> ## 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.
# Accounting and Payments
> How to manage the Bizaxl Toy Store's financial records - recording payments, reconciling accounts, monitoring cash and bank balances, and reading financial reports.
Every sale, every purchase, and every payment at the toy store creates a financial entry in the system. The Accounting section of Bizaxl keeps these entries organised, ensures your books balance, and gives you the financial reports you need to understand how the business is performing. This section covers payment recording, reconciliation, and the financial reports most useful for a toy store.
***
## Who Uses This Feature
| Role | What They Do |
| ------------------ | ------------------------------------------------------------------------------------------- |
| **Accounts Team** | Records all payments, reconciles invoices, manages the chart of accounts, prepares journals |
| **Store Manager** | Reviews cash and bank balances, monitors outstanding payables and receivables |
| **Business Owner** | Reviews Profit and Loss, Balance Sheet, and other financial statements |
***
## Before You Start
* The Chart of Accounts must be set up for the company (Bizaxl Toy store).
* The Fiscal Year must be active.
* Bank accounts and cash accounts must be created in the Chart of Accounts.
***
## Recording a Payment from a Customer (Receivable)
When a B2B customer pays their invoice by bank transfer or cheque:
1. Go to **Receivables Workspace** or **Accounting Workspace** and click **Payment Entry**.
2. Click **New**.
3. Set **Payment Type** to **Receive**.
4. Select the **Customer**.
5. Set the **Mode of Payment** (bank transfer, cheque, online payment).
6. Enter the **Amount Paid**.
7. In the **Allocated Against** section, select the open Sales Invoice(s) this payment covers.
8. Click **Submit**.
The invoice balance is reduced by the payment amount. If the payment fully covers the invoice, the invoice is marked as paid.
***
## Recording a Payment to a Supplier (Payable)
When you pay a supplier:
1. Go to **Payables Workspace** or **Accounting Workspace** and click **Payment Entry**.
2. Click **New**.
3. Set **Payment Type** to **Pay**.
4. Select the **Supplier**.
5. Set the **Mode of Payment** (bank transfer or cheque).
6. Enter the **Amount Paid**.
7. In the **Allocated Against** section, select the Purchase Invoice(s) being paid.
8. Click **Submit**.
The supplier's outstanding balance is reduced.
***
## Payment Reconciliation
Sometimes payments arrive without a clear reference, or a customer pays multiple invoices with a single transfer. The Payment Reconciliation tool helps you match payments to invoices.
1. Go to **Receivables Workspace** and click **Payment Reconciliation**.
2. Select the **Party Type** (Customer) and the **Customer**.
3. Click **Get Unreconciled Entries**.
4. Match payments against invoices by clicking **Allocate**.
5. Click **Reconcile**.
The same process works for suppliers under the Payables Workspace.
***
## Journal Entries
Journal Entries are manual accounting adjustments. Use them for entries that do not fit into a standard transaction - such as depreciation, write-offs, bank charges, or opening balance entries.
1. Go to **Accounting Workspace** and click **Journal Entry**.
2. Click **New**.
3. Select the **Voucher Type** (Journal Entry, Bank Entry, etc.).
4. Add rows for each account, with debit or credit amounts.
5. Verify that total debits equal total credits.
6. Click **Submit**.
***
## Workflow Journey
```
Sale at POS / B2B Invoice → Accounting entry auto-created
Customer Pays → Payment Entry (Receive) → Reconcile against Invoice
→ Invoice marked Paid
Goods Received → Purchase Invoice submitted → Payable created
Supplier Paid → Payment Entry (Pay) → Reconcile against Invoice
→ Invoice marked Paid
Month End → Review General Ledger → Run Trial Balance → Prepare GST Returns
→ Review Profit and Loss → File Returns
```
***
## Reports and Monitoring
### Accounting Workspace Number Cards
| Card | What It Shows |
| -------------------------- | ------------------------------------------------------- |
| **Total Outgoing Bills** | Total value of all sales invoices raised this year |
| **Total Incoming Bills** | Total value of all purchase invoices received this year |
| **Total Outgoing Payment** | Total payments made to suppliers this year |
### Home Workspace Number Cards
| Card | What It Shows |
| ---------------- | ------------------------------------------------------------------------- |
| **Cash Balance** | Current balance in the cash account (updated with every cash transaction) |
| **Bank Balance** | Current balance in the bank account |
### Receivables Workspace Reports
| Report | What It Shows |
| ------------------------------- | ---------------------------------------------------------------- |
| **Accounts Receivable** | What each customer owes and for how long it has been outstanding |
| **Accounts Receivable Summary** | A summary view of receivables by customer |
| **Sales Register** | All sales invoices in a period with tax breakdowns |
| **Item-wise Sales Register** | Sales broken down by item |
### Payables Workspace Reports
| Report | What It Shows |
| ------------------------------- | --------------------------------------------------------------- |
| **Accounts Payable** | What you owe each supplier and how long it has been outstanding |
| **Accounts Payable Summary** | Summary view of payables by supplier |
| **Purchase Register** | All purchase invoices in a period |
| **Item-wise Purchase Register** | Purchases broken down by item |
| **Supplier Ledger Summary** | Full transaction and balance history per supplier |
### Financial Reports Workspace
| Report | What It Shows |
| ----------------------------- | ------------------------------------------------------------------------- |
| **Trial Balance** | Whether debits and credits balance across all accounts |
| **Profit and Loss Statement** | Revenue, cost of goods sold, expenses, and net profit for a period |
| **Balance Sheet** | The business's assets, liabilities, and owner's equity at a point in time |
| **Cash Flow** | Where money came from and where it went |
| **General Ledger** | Every transaction posted to every account - the full audit trail |
| **Gross Profit** | Selling price minus cost per item - tells you your margin |
| **Customer Ledger Summary** | Balance and history for each customer account |
| **Supplier Ledger Summary** | Balance and history for each supplier account |
***
## Dashboard Charts (Accounting)
| Chart | What It Shows |
| ------------------------------------- | ------------------------------------------------------------------------------------- |
| **Outgoing Bills (Sales Invoice)** | Monthly trend of sales invoice values - are billings growing? |
| **Incoming Bills (Purchase Invoice)** | Monthly trend of purchase invoice values |
| **Accounts Receivable Ageing** | How long outstanding customer invoices have been unpaid (0-30 days, 31-60 days, etc.) |
| **Accounts Payable Ageing** | How long outstanding supplier invoices have been unpaid |
| **Bank Balance** | Bank account balance over time |
***
## Automatic Actions
When a **POS Invoice** is submitted:
* Debit: Cash/Card/UPI account (depending on payment mode)
* Credit: Sales account + GST Payable account
* Stock entry: deducts from Main Store
When a **Sales Invoice** is submitted:
* Debit: Accounts Receivable (Customer account)
* Credit: Sales account + GST Payable account
When a **Purchase Invoice** is submitted:
* Debit: Purchase account + GST Input Credit account
* Credit: Accounts Payable (Supplier account)
When a **Payment Entry (Receive)** is submitted:
* Debit: Bank/Cash account
* Credit: Accounts Receivable (Customer account)
When a **Payment Entry (Pay)** is submitted:
* Debit: Accounts Payable (Supplier account)
* Credit: Bank/Cash account
***
## Best Practices
* **Reconcile receipts within 2-3 days of the bank statement.** If a customer payment hits the bank account on Monday but is not recorded in the system until Friday, your accounts receivable will show it as overdue for 4 days unnecessarily.
* **Never leave "Purchase Orders to Bill" growing unchecked.** Unprocessed purchase invoices understate your liabilities. Review and process them within 7 days of the delivery.
* **Run the Accounts Receivable Ageing report every Monday.** Any invoice beyond 30 days should be followed up with the customer. Beyond 60 days, escalate to the store manager.
* **Use the Cash Balance number card, not the physical till count, as your reference.** If the Cash Balance on screen does not match the physical cash, trace the discrepancy through the Payment Entry list and POS Closing Entries.
* **Do not use Journal Entries for regular transactions.** Journal Entries are for adjustments and corrections, not for recording sales or purchases. Using journals for regular transactions bypasses GST calculation and stock impact.
* **Run a Trial Balance before filing GST returns.** If the Trial Balance does not balance, there is a problem in the accounts that must be fixed before returns are filed.
***
## Troubleshooting
**The Cash Balance number card shows a different amount from what is in the till.**
Run the General Ledger for the cash account and trace every entry. Look for any incorrect payment mode entries on POS Invoices (e.g., recorded as cash but was UPI).
**An invoice is showing as unpaid even though the customer paid.**
Check if a Payment Entry was created and submitted for this customer. If so, go to Payment Reconciliation and allocate the payment against the invoice.
**I cannot submit a Payment Entry - it shows a validation error.**
The most common cause is that the payment amount exceeds the outstanding invoice balance. Check the invoice status and the payment amount.
**The Trial Balance is not balancing.**
Look for submitted Journal Entries where debits do not equal credits, or transactions that were manually reversed incorrectly. The General Ledger will show the problem entries.
***
## Related Features
* [Procurement](/retail/toy-store/procurement)
* [Sales Management](/retail/toy-store/sales-management)
* [GST Compliance](/retail/toy-store/gst-compliance)
* [Reports and Analytics Overview](/retail/toy-store/reports-overview)