Payment Entry
Go to: Financials → Payment → Payment Entry
Use Payment Entry when money enters or leaves a Cash or Bank account, or moves between two of your organization’s accounts.
Select the payment type
| Payment Type | Use it for |
|---|---|
| Receive | Money received from a Customer or other party |
| Pay | Money paid to a Supplier, Employee, or other party |
| Internal Transfer | Movement between the organization’s own Cash or Bank accounts |
Create a payment entry
Start the entry
Click Create Payment Entry. Choose Receive, Pay, or Internal Transfer, then select the Mode of Payment, Posting Date and Currency.
Select the party
For Receive or Pay, choose Party Type and Party. Confirm the party bank details when they are shown.
Confirm the accounts
Select Paid From and Paid To. Check that the Cash, Bank, Receivable, or Payable accounts match the real payment direction.
Enter the amount
Enter the actual bank Paid Amount. If the account currencies differ, confirm the exchange rate against the payment evidence. Check Settlement Amount Capacity when taxes or charges are present; it shows the amount available to allocate after those adjustments.
Allocate documents
Select the outstanding invoices, expense claims, or other supported documents. Enter an Allocated Amount for each selected reference.
Record the reference
Enter the bank, cheque, or transfer Reference Number and Reference Date when required. Add the Clearance Date only when it is known from the bank.
Review and approve
Review charges, write-offs, unallocated amount and remarks. Save Draft, assign if required, then approve.
Important fields
| Section | Important fields |
|---|---|
| Basic Information | Payment Type, Mode of Payment, Posting Date, Currency |
| Payment From / To | Party Type, Party, party bank, company bank |
| Accounts | Paid From, Paid To, balances, account currencies |
| Amount | Paid Amount, Received Amount, Exchange Rate |
| Reference Vouchers | Document type, selected document, Allocated Amount |
| Transaction Details | Reference Number, Reference Date, Clearance Date |
| Tax / Bank Charges | Rule, amount, account, Add or Deduct |
| Advance Tax (Withholding) | Invoice-linked withholding rule, deduction amount and tax payable or receivable account |
| Write Off | Difference, unallocated amount, write-off rows |
| Remarks | Payment explanation |
Settle an invoice with withholding tax
Select the Sales or Purchase Invoice in Reference Vouchers and enter its full remaining balance in Allocated when this payment closes it. Check the read-only Applied WHT amount on that reference. The matching Advance Tax (Withholding) deduction is filled from the invoice; confirm its account is Withholding Tax Payable for Pay or Withholding Tax Receivable for Receive. Enter only the cash that actually moved in Paid Amount.
The Settlement Amount Capacity must cover the full invoice allocation. For one invoice with no other adjustments, Paid Amount + Applied WHT = Allocated. See the 1,000.00 supplier invoice example for the exact invoice and payment values. Withholding is applied in full when the Payment Entry closes the invoice; a partial payment leaves it for the closing entry.
Review the result
After approval:
- the payment status becomes Completed
- the Cash or Bank balance is updated
- allocated invoices become Partially Paid or Paid as appropriate
- any remaining amount stays unallocated as an advance or open party balance
Do not write off a difference only because no invoice was selected. Leave a genuine advance unallocated and reconcile it when the correct invoice is available.
If a completed payment was allocated incorrectly, review Payment Reconciliation History and use the available reversal action before allocating it again.
Related pages
- Payment Reconciliation — allocate an unallocated payment to an invoice
- Payment Reconciliation History — reverse an incorrectly allocated payment
- Bank Reconciliation — match a recorded payment against the bank statement
- Invoices — the documents a payment is most often allocated against