Record a Payment
Recording a payment from the invoice is the quick path: the allocation is filled in for you and the invoice closes itself.
It is the right route whenever one payment settles one invoice, which is most of the time.
From the invoice
Open the invoice and choose Record Payment
The amount defaults to the outstanding balance and the allocation is filled in against this invoice.
Set the date money arrived
Not the date you are typing it in. Cash-basis reporting and your bank reconciliation both use this date.
Choose the deposit account
Which bank or cash account the money landed in. This is what your reconciliation will match against.
Adjust the amount if it was partial
The balance stays open and the invoice stays unpaid until it is settled in full.
Save
An invoice that reaches a zero balance moves to Paid automatically.
Partial payments
Partial payments are normal and need no special handling. The invoice keeps its due date, keeps ageing on the remaining balance, and shows both figures on the list. Record each part as it arrives.
| They paid | Invoice status after | What ages |
|---|---|---|
| The full amount | Paid | Nothing |
| Part of it | Sent, or Overdue if past due | The remaining balance only |
| More than the amount | Paid | Nothing. The excess becomes unapplied credit. |
| Nothing yet | Sent, or Overdue | The whole amount |
Applying a credit instead
If the customer has an unapplied credit note or an advance balance, apply that rather than recording a payment. No money moved, so recording one would overstate your cash. The invoice offers whatever is available on the customer when you open it.
- Credit note reduces what they owe because value was reversed.
- Advance reduces what they owe because they already paid you.
- Payment is for money arriving now.
- All three can be combined on one invoice until the balance reaches zero.