Recording Payments Against Invoices
Track payment status and manage accounts payable
Payment Application is the process of recording money received against issued invoices. This is essential for tracking accounts payable, calculating cash flow, and understanding your financial position. In EZTax.in, you can record full payments, partial payments, and track advance adjustments.
Managing invoice payments properly helps you track outstanding amounts, plan cash collection, and maintain accurate financial records. The system supports multiple payment modes (cash, bank, cheque, UPI, credit card, debit card, online transfer).
Understanding Payment Status
Different invoice payment states and their meanings
Unpaid/Open
Invoice issued but no payment received yet. Full amount is still outstanding.
Partially Paid
Part of invoice amount received. Balance remaining for future collection or payment.
Paid
Full invoice amount received. Invoice is settled and closed.
Advance Pending
Advance received but not yet applied to invoices. Can be adjusted later.
How to Apply Payments
Step-by-step process for recording payments
- Open Manage Invoice Screen: Go to Sales menu > Manage Invoice or press Alt+M shortcut.
- Select Month/Year: Choose the period to view invoices for that timeframe.
- Find the Invoice: Locate the invoice you want to mark as paid or partially paid.
- Change Status: Click on status column and change to "Partially Paid" or "Paid".
- Enter Payment Details: System prompts for payment information (amount, date, mode, reference).
- Select Payment Mode: Choose cash, bank, cheque, or other payment method used.
- Add Reference Number: Enter bank reference, cheque number, UPI transaction ID, etc. for proof.
- Save Payment: Click save to record the payment against the invoice.
Helpful: Payment details are automatically saved. System sends notifications to customers about payment status updates.
Payment Modes Explained
Understanding different payment methods and their recording
Cash
Physical currency received. Best for immediate, on-hand transactions.
Bank Transfer
Online transfer, NEFT, RTGS. Include transaction reference number.
Cheque
Cheque payment. Record cheque number, date, and bank details.
Digital Payment
UPI, Google Pay, PhonePe, credit card, debit card. Include transaction ID.
Best Practices
Tips for accurate payment tracking
- Record timely: Update payment status within a few days of receiving payment.
- Always add reference: Cheque number, bank reference, or transaction ID for audit trail.
- Match amounts exactly: Ensure payment amount matches what was received.
- Document advance payments: Track advance received before invoice issuance.
- Monitor outstanding: Regularly review unpaid invoices for collection follow-up.
Need Help with Payment Recording?
Our team can help you set up proper payment tracking and management.