@YasirParvez

You would have used Sales Receipt = the date of the payment is what you want to show for the date of the sale. You only use Receive Payment because that is part of AR = you previously entered Invoices, as Unpaid Sales, and the Payments come later and/or in partial amounts. You completely skipped Sales, in other words.

Your Donation Item is supposed to be linked to Income. Not a Payment item, but Service. Not to bank. You use that on Sales Receipt = Donation Form. Invoice = Pledge.