> ## 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.
# Payments
> How to record and manage customer payments, supplier payments, bank reconciliation, and outstanding balances in your dry fruit business.
The Payments module is where money entering and leaving your business is recorded. This includes collecting from customers, paying suppliers, recording bank transactions, and reconciling your books against your bank statement.
***
## Who Uses This Feature
| Role | What They Do |
| ----------------------- | --------------------------------------------------------- |
| **Accounts Receivable** | Records customer payments, follows up on overdue invoices |
| **Accounts Payable** | Records supplier payments, manages payment scheduling |
| **Accountant** | Performs bank reconciliation, records journal entries |
| **Finance Manager** | Reviews cash flow, approves large payments |
***
## Before You Start
To record payments you need:
* Customers and suppliers set up in the system
* Sales and Purchase Invoices submitted (the documents you are paying against)
* Bank accounts configured in the system matching your actual bank accounts
***
## Receiving Payment from a Customer
When a customer pays their invoice (by NEFT, RTGS, cheque, cash, or UPI):
1. Go to **Receivables workspace → Payment Entry → New**
2. Set **Payment Type** to "Receive"
3. Select the **Customer**
4. Select the **Mode of Payment** (NEFT, RTGS, Cheque, Cash, UPI, etc.)
5. Enter the **Amount** received
6. Set the **Paid From** account (the customer's Debtors ledger) and the **Paid To** account (your bank account)
7. Under the **Outstanding Invoices** section, the system lists all open invoices for this customer. Click on the invoice(s) being paid to allocate the payment
8. Submit
The invoice is now partially or fully paid, and the customer's outstanding balance is reduced accordingly.
### Partial payments
If the customer pays less than the full invoice amount, enter only the amount received and allocate it to the invoice. The invoice will show as **Partly Paid** and the remaining balance will still appear in the Accounts Receivable report.
### Advance payments
If a customer pays in advance before an invoice is raised, create the Payment Entry without linking it to an invoice. When the invoice is raised later, go to **Payment Reconciliation** to match the advance to the new invoice.
***
## Making a Payment to a Supplier
When you are ready to pay a supplier's invoice:
1. Go to **Payables workspace → Payment Entry → New**
2. Set **Payment Type** to "Pay"
3. Select the **Supplier**
4. Select the **Mode of Payment** and the bank account from which payment is being made
5. Enter the **Amount**
6. Under **Outstanding Invoices**, allocate the payment to the relevant Purchase Invoice(s)
7. Submit
***
## Payment Reconciliation
Payment Reconciliation is used when an advance payment needs to be matched to an invoice that was raised later.
1. Go to **Receivables workspace → Payment Reconciliation** (for customers) or **Payables workspace → Payment Reconciliation** (for suppliers)
2. Select the customer or supplier
3. Click **Get Unreconciled Entries** - the system shows all unmatched payments and invoices
4. Match advances to invoices by selecting the appropriate rows
5. Click **Reconcile** to apply the matching
***
## Bank Reconciliation
At the end of each month, compare your system records against your actual bank statement to ensure they match.
1. Go to **Accounting workspace → Banking → Bank Reconciliation Tool**
2. Select the bank account and the statement period
3. Upload your bank statement or enter the transactions manually
4. The system highlights entries that match and flags those that do not
5. For any entry in the bank statement that is not in the system (e.g., a bank charge), create a Journal Entry to record it
6. Once all entries are matched, confirm the reconciliation
The goal is to ensure that the closing balance in the system matches the closing balance on your bank statement.
***
## Journal Entry
A Journal Entry is used for accounting entries that are not linked to a specific invoice or payment - such as depreciation, bank charges, interest income, opening balances, or manual adjustments.
1. Go to **Accounting workspace → Payments → Journal Entry → New**
2. Select a **Journal Entry Type** (e.g., Bank Entry, Credit Card Entry, Inter Company Journal Entry)
3. In the **Accounts** table, enter the debit and credit lines. The total debits must equal the total credits
4. Add a **Remark** explaining why this entry was made
5. Submit
***
## Setting Up Payment Terms
If you give customers 30-day credit (Net 30), or if your suppliers give you 45-day credit, set up Payment Terms to track due dates automatically.
1. Go to **Accounting workspace → Accounting Masters → Payment Term**
2. Create terms like "Net 30 Days", "Due on Receipt", "50% Advance + 50% Net 30"
3. Link these terms to Customer and Supplier records as the default
When an invoice is created, the due date is calculated automatically from the invoice date and the payment terms. Overdue invoices appear flagged in the Accounts Receivable and Payable reports.
***
## Mode of Payment Setup
You need to configure each payment mode (NEFT, UPI, Cash, Cheque) with its corresponding bank or cash account.
Go to **Accounting workspace → Payments → Mode of Payment** and ensure each method is linked to the correct ledger account.
***
## Field Guide: Payment Entry
| Field | Description |
| ------------------------ | -------------------------------------------------------------------------------------------------- |
| **Payment Type** | Receive (customer pays you), Pay (you pay supplier), Internal Transfer (between your own accounts) |
| **Posting Date** | The date the payment was received or made |
| **Mode of Payment** | How the money moved (NEFT, Cash, UPI, Cheque, etc.) |
| **Amount** | The total payment amount |
| **Customer / Supplier** | Who you are receiving from or paying to |
| **Paid From** | The ledger account the money is coming from |
| **Paid To** | The ledger account the money is going to |
| **Reference Number** | Cheque number, UTR number, or transaction ID |
| **Reference Date** | Date the cheque was issued or the transfer was initiated |
| **Outstanding Invoices** | Table showing open invoices to allocate this payment against |
| **Deductions** | Any write-offs or discounts given on this payment |
***
## Monitoring Outstanding Balances
| Report | What It Shows | Where to Find It |
| ------------------------------- | --------------------------------------------- | --------------------------- |
| **Accounts Receivable** | All unpaid customer invoices with age in days | Receivables workspace |
| **Accounts Receivable Summary** | Total outstanding per customer | Receivables workspace |
| **Accounts Payable** | All unpaid supplier invoices with due dates | Payables workspace |
| **Accounts Payable Summary** | Total outstanding per supplier | Payables workspace |
| **Customer Ledger Summary** | Running balance history for each customer | Financial Reports workspace |
| **Supplier Ledger Summary** | Running balance history for each supplier | Financial Reports workspace |
| **General Ledger** | Every individual accounting entry | Financial Reports workspace |
***
## Best Practices
* Record payments on the same day they are received, not at the end of the week. This keeps your Accounts Receivable report accurate and prevents chasing customers who have already paid
* Always allocate payments to specific invoices rather than leaving them as unallocated advances. Unallocated advances create confusion in ledger balances
* For high-value customers, set up a credit limit in the customer record. The system will warn you if the outstanding balance exceeds the limit when a new Sales Order is created
* Run the Accounts Receivable report every Monday morning and follow up on any invoices that are more than 7 days overdue
* Perform bank reconciliation at least monthly. The longer you leave it, the harder it is to resolve discrepancies
***
## Troubleshooting
**An invoice is showing as Unpaid but the customer says they paid.**
Check if a Payment Entry exists for the customer without being allocated to an invoice. Go to Payment Reconciliation to match it.
**The bank reconciliation shows a large unmatched difference.**
Look for Payment Entries created in the system with the wrong bank account, or bank transactions (fees, interest) that have not been recorded as Journal Entries.
**A customer has a negative outstanding balance (credit balance).**
This means they have overpaid or a credit note has been applied. Check their ledger for unmatched payments and use Payment Reconciliation to apply them to future invoices.
***
## Related Features
* [Sales](./sales) - Creating invoices that need to be collected
* [Procurement](./procurement) - Creating supplier invoices that need to be paid
* [GST Compliance](./gst-compliance) - Recording GST payments to the government