Skip to main content

Payment Entry

A Payment Entry is a record indicating that payment has been made for an invoice.

Payment Entry can be made against the following transactions.

  • Sales Invoice
  • Purchase Invoice
  • Sales Order (Advance Payment)
  • Purchase Order (Advance Payment)
  • Expense Claim
  • Internal Transfer

In ABNERP, there are two options through which User can capture the payment:

  • Payment Entry (Default)
  • Journal Entry

Here are diagrams to understand the flow:

To access the Payment Entry list, go to:

\u003e Home \u003e Accounting \u003e Accounts Receivable/Payable \u003e Payment Entry \u003e \u003e

  1. Prerequisites

A Payment Entry can also be created directly then linked to an order/invoice later. Before creating and using Payment Entry, it is advised to create the following first:

  1. Customer
  2. Supplier
  3. Bank Account

If you're following the Sales/Purchase Cycle, you'd need the following:

  1. Sales Order (Advance Payment)
  2. Purchase Order (Advance Payment)
  3. Sales Invoice
  4. Purchase Invoice

Set up:

  1. Chart Of Accounts

  2. Company (for default accounts)

  3. How to create a Payment Entry

On submitting a document against which Payment Entry can be made, you will find the Payment option under the Create button.

  1. Change the posting date.
  2. The Payment Type will be set based on the transaction you're coming from. The types are 'Receive', 'Pay', and 'Internal Transfer'.
  3. The Party Type, Party, Party Name will be fetched automatically.
  4. The Account Paid To and Account Paid From will be fetched as set in the Company form.
  5. The Amount Paid will be fetched from the Invoice.

2.1 Creating a Payment Manually​

A Payment Entry created manually will have no order/invoice linked to it. Payments made this will be recorded in the Customer's/Supplier's account and can be reconciled later using the Payment Reconciliation Tool.

  1. Go to the Payment Entry list and click on New.

  2. Select the Party Type and the respective Customer/Supplier.

  3. Select the Bank Account/Cash Account Paid To and Paid From. Enter the Cheque Number and date if bank transfer.

  4. Enter the Amount Paid.

  5. Save and Submit.

  6. Features

3.1 Setting Mode of Payment​

Mode of Payment: Entering this helps classify Payment Entries based on the payment mode used. Modes of Payment can be Bank, Cash, Wire Transfer, etc.

\u003e Tip: In the Mode of Payment master, default Account can be set. This default payment Account will be fetched into Payment Entries. \u003e \u003e

3.2 Payment From/To​

  • Party Type: Whether Customer, Supplier, Employee, Shareholder, Student, or NGO Member.
  • Party: The specific party for which the Payment Entry is made.
  • Party Name: The name of the party, this is fetched automatically.
  • Company Bank Account: Your Company's Bank Account.
  • Party Bank Account: The Party's Bank Account.
  • Contact: If the Party is an organization, a Contact person can be stored here.

3.3 Accounts​

  • Party Balance: The overall amount receivable or payable from Customer or Supplier from Invoices set in the current Payment Entry. Paid amounts will be positive and if advance payments are made, they will be negative.
  • Account Paid From: The Account from which the amount will be deducted when Payment is submitted.
  • Account Paid To: The CoA account from which the amount will be added when Payment Entry is submitted.
  • Account Currency: The Currencies of these accounts will be fetched as set in the Account and cannot be edited here. To know about more about transactions in multiple currencies, visit this page.
  • Account Balance: The total amount balance from all the invoices of the selected accounts.

Paid Amount: The total amount paid for the current Payment Entry is shown in this field.

\u003e Note: When making Payment Entries, the default bank account will be fetched in the following order if set: \u003e \u003e

\u003e * Company form \u003e * Mode of Payment default account \u003e * Customer/Supplier default bank account \u003e * Select manually in Payment Entry \u003e

3.4 Reference​

Fetching outstanding Invoices​

This can be used to make payments to multiple Sales Invoices using one Payment Entry. When creating a new Payment Entry, on clicking the Get Outstanding Invoices button or the Get Outstanding Orders button, all the outstanding Invoices and open Orders respectively will be fetched for the party. You need to enter the 'Paid Amount' to see this button. From here a date range and invoices to be fetched can be selected.

If the Party has not made full payment, enter the amount paid in the 'Allocated' field.

If creating Payment Entry for a Customer, the Payment Amount will be allocated against a Sales Invoice. On the same lines, when creating Payment Entry for a Supplier, Payment Amount will be allocated against a Purchase Invoice.

Payment References table​

  • Type: Whether the payment is being made against a Sales Order, Sales Invoice, or a Journal Entry.
  • Name: The particular transaction ID is fetched/selected here.
  • Total Amount: The total amount of one Invoice/Journal Entry in the row.
  • Outstanding: The amount to receive/to pay for this invoice.
  • Allocated: If the Paid Amount is less than the invoice amount only the paid amount will be allocated to the invoice(s) fetched in the Payment Entry. The payment may be made in parts, for example, if there are three invoices of amounts 20, 20, 20, the Paid Amount is 60 then this Paid Amount will be distributed equally. Payment Terms may also be involved.

![payment_entry_get_outstanding_buttons](/files/payment_entry_get_outstanding_buttons.png \