> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bizaxl.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Payment Entry
> How to record incoming and outgoing payments in Bizaxl — settling customer invoices and supplier bills, reconciling bank accounts, and tracking outstanding balances.
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.
***
## Who Uses This Feature
| Role | What They Do |
| ---------------------------- | ----------------------------------------------------- |
| **Accounts Receivable** | Records customer payments against Sales Invoices |
| **Accounts Payable** | Records supplier payments against Purchase Invoices |
| **Finance Manager** | Reviews payment positions and approves large payments |
| **Bank Reconciliation Team** | Matches payment entries to bank statement lines |
***
## Types of Payment
| Payment Type | When to Use |
| --------------------- | ------------------------------------------- |
| **Receive** | Money coming in from a customer |
| **Pay** | Money going out to a supplier or employee |
| **Internal Transfer** | Moving money between your own bank accounts |
***
## Recording a Customer Payment (Receive)
Navigate to the Sales Invoice the customer has paid. Click **Create Payment Entry**. Most fields are pre-populated from the invoice.
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)
In the **Paid To** field, select the bank account or cash account where the payment was received.
Choose how the payment was received: Bank Transfer, Cheque, Cash, NEFT, RTGS, UPI, etc.
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.
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**.
***
## Recording a Supplier Payment (Pay)
Navigate to the Purchase Invoice you are paying. Click **Create Payment Entry**.
* **Payment Type:** Pay
* **Party Type:** Supplier
* **Party:** The supplier's name
* **Paid Amount:** The amount you are paying
In the **Paid From** field, select the bank account from which you are making the payment.
Confirm the Purchase Invoice is listed in the Payment References table with the correct amount.
Click **Save** then **Submit**. The Purchase Invoice's outstanding amount reduces accordingly.
***
## Field Guide
| Field | Description |
| ------------------------------------------------- | ------------------------------------------------------------------------------------- |
| **Payment Type** | Receive (incoming), Pay (outgoing), or Internal Transfer |
| **Payment Order Status** | Status if a payment order approval workflow is in use |
| **Party Type** | Customer, Supplier, or Employee |
| **Party** | The specific customer or supplier |
| **Party Name** | Auto-filled |
| **Payment Date** | Date of the payment (mandatory) |
| **Mode of Payment** | How the payment was made: Bank Transfer, Cheque, Cash, UPI, etc. |
| **Paid Amount** | Total amount paid or received (mandatory) |
| **Received Amount** | Amount in company currency after exchange rate conversion |
| **Paid From** | The account money is leaving (for Pay type) |
| **Paid To** | The account money is entering (for Receive type) |
| **Reference Number** | Bank reference, cheque number, or UTR number |
| **Reference Date** | Date on the bank reference |
| **Payment References table — Reference Type** | Sales Invoice or Purchase Invoice |
| **Payment References table — Reference Name** | The specific invoice being settled |
| **Payment References table — Outstanding Amount** | Amount still owed on that invoice |
| **Payment References table — Allocated Amount** | Amount applied from this payment to that invoice |
| **Total Allocated Amount** | Sum of all allocated amounts |
| **Unallocated Amount** | Paid Amount minus Total Allocated Amount (should be zero for a fully applied payment) |
| **Remarks** | Notes about this payment |
***
## Accounting Workspace Number Cards
The Accounting workspace shows live payment summaries:
| Card | What It Shows |
| -------------------------- | ------------------------------------ |
| **Total Incoming Payment** | Payments received from customers |
| **Total Outgoing Payment** | Payments made to suppliers |
| **Total Incoming Bills** | Unpaid Sales Invoices outstanding |
| **Total Outgoing Bills** | Unpaid Purchase Invoices outstanding |
***
## 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.
***
## 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
***
## 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.
***
## 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.
***
## Related Features
* [Sales Order](/manufacturing/sales/sales-order) — leads to the Sales Invoice that this payment settles
* [Purchase Order](/manufacturing/procurement/purchase-order) — leads to the Purchase Invoice that this payment settles
* [GST Compliance](/manufacturing/finance/gst-compliance) — GST filings depend on invoices and payments being accurately recorded