> ## 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 payments received from customers and payments made to suppliers in Bizaxl Medical Retail.
A **Payment Entry** records every movement of money into or out of your business. When a customer pays for a credit sale, you create a Payment Entry to mark the invoice as paid. When you pay a distributor's invoice, you create a Payment Entry to clear that balance. Every Payment Entry is linked to the specific invoice it settles.
***
## Who Uses This Feature
| Role | What They Do Here |
| ------------------ | --------------------------------------------------- |
| **Accounts Staff** | Records all customer receipts and supplier payments |
| **Store Manager** | Monitors cash flow and confirms payment processing |
***
## Types of Payment Entry
| Payment Type | When to Use |
| --------------------- | ----------------------------------------------------------------------- |
| **Receive** | Money coming IN - customer paying their invoice |
| **Pay** | Money going OUT - you paying a supplier's invoice |
| **Internal Transfer** | Money moving between two of your own accounts (e.g. bank to petty cash) |
***
## How to Record a Customer Payment (Receive)
When a customer pays an outstanding Sales Invoice:
1. Go to **Accounting workspace → Payment Entry → New**
2. Set **Payment Type** to "Receive"
3. Set **Party Type** to "Customer"
4. Select the **Customer**
5. Select the **Paid From Account** - this is the account the customer is paying into (e.g. your bank account or cash account)
6. Set the **Paid Amount** - what the customer actually paid
7. In the **References** table: click **Get Outstanding Invoices** → select the invoice(s) being paid
8. The **Allocated Amount** auto-fills - adjust if paying partially
9. Submit
***
## How to Record a Supplier Payment (Pay)
When you pay a distributor's outstanding invoice:
1. Go to **Accounting workspace → Payment Entry → New**
2. Set **Payment Type** to "Pay"
3. Set **Party Type** to "Supplier"
4. Select the **Supplier**
5. Select the **Paid To Account** - the account you are paying from (e.g. your bank account)
6. Set the **Paid Amount**
7. In the **References** table: click **Get Outstanding Invoices** → select the invoice(s) being paid
8. The **Allocated Amount** auto-fills
9. Submit
***
## Field Guide
| Field | What to Enter | Required? |
| ---------------------- | ------------------------------------------------------------------------------- | --------------------------- |
| **Payment Type** | Receive / Pay / Internal Transfer | Yes |
| **Payment Date** | Today - the date money was exchanged | Yes |
| **Company** | Your company | Yes |
| **Party Type** | Customer or Supplier (or other types for internal use) | Yes |
| **Party** | The specific customer or supplier | Yes |
| **Mode of Payment** | Cash, Bank Transfer, Cheque, UPI, Card | Yes |
| **Paid Amount** | Total amount received or paid | Yes |
| **Received Amount** | May differ from Paid Amount due to currency exchange (usually the same for INR) | Yes |
| **Paid From** | Account money is coming from (for Pay: your bank account) | Yes |
| **Paid To** | Account money is going to (for Receive: your bank account) | Yes |
| **References** (table) | The invoice(s) this payment is against | Yes (allocate payment here) |
| **Difference Amount** | If paid amount does not match allocated amount - write to a write-off account | If any difference |
***
## Allocating to Multiple Invoices
A single payment can be allocated across multiple invoices. For example, a hospital pays ₹50,000 clearing three outstanding invoices:
1. Click **Get Outstanding Invoices** in the References table
2. All unpaid invoices for this customer appear
3. Select the invoices being paid
4. The **Allocated Amount** for each fills automatically
5. Adjust allocations if the customer specified which invoices they are paying
***
## Partial Payments
If a customer pays only part of an invoice:
1. In the References table, select the invoice
2. Change the **Allocated Amount** to the partial amount paid
3. The invoice status will change to "Partly Paid"
4. When the remaining amount is paid later, create another Payment Entry for the balance
***
## Unallocated Payments
If you receive a payment but are not sure which invoice it is against:
1. Create the Payment Entry without filling the References table
2. The amount is recorded as **unallocated**
3. Later, when the invoice is identified, you can allocate the payment from the Payment Entry record
Avoid leaving payments unallocated for long - they make your receivables and payables reports inaccurate.
***
## Mode of Payment
Each mode of payment (Cash, Bank Transfer, Cheque, UPI) should be configured to link to the correct bank or cash account. This is set up by your administrator in **Accounts → Mode of Payment**.
When you select a mode of payment in a Payment Entry, the system automatically fills the correct bank/cash account.
***
## Viewing Outstanding Amounts
* **Accounts Receivable report** - customers who owe you money and how long they have owed it
* **Accounts Payable report** - suppliers you owe money to and when it is due
Both reports are available in the **Accounting workspace**.
***
## Bank Reconciliation
After recording all payments, your accounts team runs a **Bank Reconciliation** to match the Payment Entries in the system against the actual bank statement. Any transactions in the bank statement that are not in the system need to be investigated.
***
## Best Practices
* **Always link a payment to an invoice.** Unallocated payments distort both your receivables and payables reports. If you are not sure which invoice a payment relates to, investigate before recording.
* **Record payments on the date the money was actually received or paid.** Using today's date for a payment that happened last week creates inaccurate period reports.
* **Match the mode of payment to the actual payment method.** If a customer paid by UPI but you record it as Cash, your bank account will not reconcile.
* **Process payments regularly - do not let them pile up.** Daily or weekly payment processing keeps your accounts accurate and makes month-end closing faster.
***
## Common Mistakes
* **Creating a Payment Entry without linking to an invoice.** The invoice remains "Unpaid" even after payment. Always allocate to the specific invoice(s).
* **Entering the wrong payment date.** Backdated or future-dated payments cause GST period mismatches and incorrect cash flow reports.
* **Paying a supplier without checking what is outstanding first.** Always use "Get Outstanding Invoices" to see what is due - do not estimate.
* **Not reconciling the bank account monthly.** Unreconciled accounts accumulate errors that become very difficult to untangle after several months.
***
## Related Features
* [Sales Invoice](/retail/medical-retail/sales-invoice) - the invoice that is settled by a customer payment
* [Purchase Invoice](/retail/medical-retail/purchase-invoice) - the invoice that is settled by a supplier payment
* [Customer Management](/retail/medical-retail/customer-management) - customer outstanding balances
* [Supplier Management](/retail/medical-retail/supplier-management) - supplier outstanding balances
* [Reports & Monitoring](/retail/medical-retail/reports-overview) - Accounts Receivable, Accounts Payable