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A Payment Entry records money moving in or out of your business. In manufacturing, you receive money from customers against Sales Invoices, and you pay money to suppliers against Purchase Invoices. Every Payment Entry updates the relevant invoice (reducing the outstanding balance), updates the bank account, and posts the correct accounting entries.

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Who Uses This Feature

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Types of Payment

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Recording a Customer Payment (Receive)

1

Open the Sales Invoice

Navigate to the Sales Invoice the customer has paid. Click Create Payment Entry. Most fields are pre-populated from the invoice.
2

Confirm the payment details

Check the auto-filled fields:
  • Payment Type: Receive
  • Party Type: Customer
  • Party: The customer’s name
  • Paid Amount: The amount received
  • Payment Date: Today’s date (adjust if the payment was received earlier)
3

Select the payment account

In the Paid To field, select the bank account or cash account where the payment was received.
4

Select the mode of payment

Choose how the payment was received: Bank Transfer, Cheque, Cash, NEFT, RTGS, UPI, etc.
5

Verify the outstanding invoices

In the Payment References table, the outstanding invoice is pre-linked. If the customer has paid for multiple invoices at once, add each invoice and the amount applied to it.
6

Save and submit

Click Save to review, then Submit. The Sales Invoice’s outstanding amount reduces by the payment amount. When fully paid, the invoice status changes to Paid.
Payment Entry form (Receive type) showing customer, paid amount, bank account, and invoice references

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Recording a Supplier Payment (Pay)

1

Open the Purchase Invoice

Navigate to the Purchase Invoice you are paying. Click Create Payment Entry.
2

Confirm the payment details

  • Payment Type: Pay
  • Party Type: Supplier
  • Party: The supplier’s name
  • Paid Amount: The amount you are paying
3

Select the payment account

In the Paid From field, select the bank account from which you are making the payment.
4

Verify the invoice reference

Confirm the Purchase Invoice is listed in the Payment References table with the correct amount.
5

Save and submit

Click Save then Submit. The Purchase Invoice’s outstanding amount reduces accordingly.

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Field Guide

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Accounting Workspace Number Cards

The Accounting workspace shows live payment summaries:

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Advance Payments

If a customer pays before the invoice is raised (advance), or if you pay a supplier in advance:
  1. Create a Payment Entry without linking to any invoice
  2. Leave the Payment References table empty
  3. Submit the payment entry — it is recorded as an advance
When the invoice is later created, the advance appears in the Outstanding Invoices section and can be applied against the invoice at that time.

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Bank Reconciliation

After recording payments, the Finance team reconciles Payment Entries against the actual bank statement:
  1. Go to the Accounting workspace → Banking card → Bank Reconciliation Tool
  2. Select the bank account and the statement period
  3. Match each bank statement line to a Payment Entry in Bizaxl
  4. Unmatched items (payments recorded in Bizaxl but not on the statement, or vice versa) are identified for investigation

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Best Practices

Record payments the same day they are received or made. Delays in recording payments lead to inaccurate outstanding balances and incorrect accounts receivable reports. Always allocate payments to invoices. Unallocated payments show as an unexplained credit in the party’s account. Always link each payment to the invoice it settles. Record the bank reference number. The Reference Number field (bank UTR, NEFT reference, or cheque number) is essential for bank reconciliation. Without it, matching payment entries to bank statement lines becomes very time-consuming. Reconcile the bank account monthly. Regular bank reconciliation catches errors (duplicate payments, incorrect amounts) early, before they affect financial reporting.

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Troubleshooting

The invoice status has not changed to Paid after submitting the payment: Check that the Allocated Amount on the Payment Reference matches the full outstanding amount of the invoice. Unallocated Amount is not zero: Some payment amount was not linked to an invoice. Open the Payment References table and allocate the remaining amount to an invoice, or investigate whether it is an advance payment. Cannot find the invoice in the Payment References table: The invoice may already be fully paid, or it may be in Draft status (not submitted). Check the invoice status.
  • Sales Order — leads to the Sales Invoice that this payment settles
  • Purchase Order — leads to the Purchase Invoice that this payment settles
  • GST Compliance — GST filings depend on invoices and payments being accurately recorded