Document issued upon receipt of payment for goods sold on credit, where a Sales Invoice was previously issued.
A Collection Receipt is the companion document to a Sales Invoice in credit sales transactions. When goods are delivered on credit, the seller issues a Sales Invoice to record the sale. When the buyer eventually pays — whether days or months later — the seller issues a Collection Receipt referencing the original Sales Invoice. The CR proves that the receivable has been settled.
Collection Receipts must also be pre-printed under an Authority to Print, just like Sales Invoices and Official Receipts. They must reference the corresponding SI number and date so the payment can be traced back to the original transaction.
In practice: Mendoza Auto Parts sells brake pads worth ₱45,000 to a fleet company on 30-day terms. On Day 1, Mendoza issues SI No. 5511. On Day 28, the fleet company pays in full. Mendoza issues CR No. CR-2087, noting "in full payment of SI No. 5511 dated [date]." Mendoza's accounts receivable ledger for this customer is cleared.
Why it matters: Without proper CRs, your accounts receivable records become unreliable — you cannot tell which invoices have been paid and which are still outstanding. During a BIR audit, unmatched SIs (no corresponding CR or payment record) can be interpreted as unreported income, leading to deficiency assessments. Systematic CR issuance also protects you from customers who claim they already paid.
Some businesses use their Sales Invoice itself as a Collection Receipt by stamping it "PAID" for immediate cash sales, which is acceptable. The separate CR is required only when there is a time gap between sale and payment.