Record a payment you received

Record a payment when a customer pays you. It reduces what they owe, marks invoices paid, and adds the money to the account you deposit it in.

Record a payment

1. On an unpaid invoice, choose Record Payment. The customer and the amount due are filled in. You can also open Payments Received and start a new payment, then pick the customer yourself.
2. Check Amount Received. Enter what actually arrived.
3. Enter Bank Charges (if any) if the bank took a fee.
4. Set the Payment Date. Payment # is numbered automatically.
5. Choose the Payment Mode: Cash, Bank Transfer, UPI, Cheque, Credit Card, Debit Card, Bank Remittance or Online Payment.
6. Under Deposit To, choose the bank, cash or other account the money went into.
7. Add a Reference# if you have one, such as a cheque or transaction number.
8. Under Unpaid Invoices, type the amount to apply in Payment beside each invoice.
9. Choose Save as Paid.

Choose Save as Draft to keep it unrecorded for now.

Pay several invoices at once

The Unpaid Invoices table lists the customer's sent invoices. Split the amount across them as you like. Filter by Date Range narrows the list and Clear Applied Amount empties the boxes so you can start again.

If the customer paid more than they owed

Amount you do not apply to an invoice stays with the customer as an excess payment, or credit. It shows under Unused Credits on their customer page.

If tax was deducted

If your customer deducted tax before paying, choose Yes, TDS (Income Tax) under Tax deducted? and enter the TDS Amount. It is booked to TDS Receivable and counts towards the invoices together with the amount received.

Thank-you note

Leave Email a "thank you" note for this payment ticked to send one automatically when you save.

Check it matches the bank

Payments you record can be matched to the same deposit when you import your bank statement. See Add a bank account and reconcile it.