I. Making a Payment Entry from a Sales Invoice
Step 1: Making a Payment Entry from a Sales Invoice
- Navigate to Sales > Sales Invoices.
- In the list of invoices, find the Sales Invoice for which you want to record the payment.
- Click on the specific Sales Invoice to open it.
Step 2: Create a Payment Entry
- Once the Sales Invoice is open, click the Create button at the top right of the screen.
- From the dropdown menu, select Make Payment.
Step 3: Payment Entry Details
- A Payment Entry form will appear with details auto-filled from the Sales Invoice.
- Make sure the following fields are correctly filled:
- Item Code: Ensure it is set to Receive, as this is a payment received against a sales invoice.
- Payment Type: A descriptive name for your item.
- Party Type: Should be Customer.
- Party: The customer’s name will be pre-filled from the Sales Invoice.
- Mode of Payment: Select how the payment was received (e.g., Bank, Cash, etc.).
- Payment Account: Choose the appropriate account where the payment will be deposited.
Step 4: Review and Submit
- Review the details. If everything is correct, click Save to review the entry or Submit to finalize it.
- Once submitted, the Sales Invoice will reflect the payment and reduce the outstanding amount.
II. Making a Payment Entry as Advance Payment
Step 1: Open the Payment Entry Module
- Go to Accounts > Payment Entry.
- Click on New Payment Entry to create a new entry.
Step 2: Select Payment Type
- In the Payment Entry form, set the Payment Type to Receive, since you are receiving an advance payment from a customer.
Step 3: Fill in Party Details
- Set the following:
- Party Type: Choose Customer.
- Party: Select the customer who is making the advance payment.
Step 4: Enter Payment Details
- Paid Amount: Enter the amount received as an advance.
- Mode of Payment: Select how the payment was received (e.g., Bank, Cash).
- Payment Account: Choose the appropriate bank or cash account where the payment is deposited.
Step 5: Link to an Advance Payment
- Scroll down to the References section.
- Add a new row and in the Reference Type, select Sales Order (if applicable) or leave it blank to keep it as an unallocated advance payment.
- This step is important because advance payments can later be linked to future Sales Invoices or Orders
Step 6: Review and Submit
- After filling in all details, review the entry for accuracy.
- Click Save to check for errors, then click Submit to finalize the payment entry.
- The advance payment will now reflect in the customer’s account and can be adjusted against future invoices.
Key Differences:
From Sales Invoice: The payment is directly linked to an existing invoice, and details are automatically populated.
Advance Payment: Created without linking to an invoice, and can be adjusted against future sales invoices or sales orders.
Using ERPNext Payment Entries efficiently helps streamline the accounting process and ensures that payments are accurately recorded in the system.
