Proof of payment is evidence that a payment instruction was made or processed. It may be a bank receipt, provider confirmation, statement entry or network reference. The document’s meaning depends on its source and status: evidence of initiation is not necessarily evidence that the recipient was credited or settlement became final.
What should proof of payment contain?
- Payer and recipient details appropriate to the route
- Amount and currency
- Initiation or processing date
- Transaction, payment or network reference
- Payment status and issuing institution
- Invoice or remittance reference where available
How should it be verified?
Confirm the record through the financial provider or account history rather than relying only on a forwarded screenshot. Match the reference, amount, currency and parties, then check whether the status means initiated, accepted, processed, credited, settled, returned or failed.
Proof of payment vs. payment confirmation
Proof of payment is the evidence supplied to demonstrate an event. Payment Confirmation is the broader message or record reporting a payment status. Neither term should be used to imply Recipient credit unless the underlying source and status support that conclusion.
What should finance do with it?
Attach the evidence to the invoice or obligation, but close the balance only after the received amount is identified and reconciled under the company’s policy. Keep later status changes, returns and adjustments with the same transaction record.
