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How to record payment for sales or purchase via journal entry in ERPNext.
This tutorial will guide you through the process of recording payment/s for a sales or purchase invoice/s using a Journal Entry in ERPNext. Please note the preferred method is to record all payments via payment entry.
Step 1: Navigate to the Journal Entry
- In the top right section of page click on Add Journal Entry.
- Set the Series and Posting Date if not automatically done.
- Edit the Posting Date as per the payment date, if required.
Example 2: Making Payment for Sales Invoice
- In Accounting Entries section add CR account which is usually Debtors. Upon choosing ERPNext will set Customer in Party Type section. Add as many Debtors rows as the number of invoices you want to make payment for.
- Add one or more DR accounts to which the payment was made. Example: All by check or part by check and part by cash etc.
- Do the following for each CR account to link sales invoice:
- Click the edit icon to open the CR row.
- Choose the Party whose Sales Invoice is being paid.
- In Reference Type select Sales Invoice
- In Reference Name below Reference Type choose the invoice for which you are making payment. The system will automatically add the invoice amount in Credit section.
- Exit and follow similiar steps for other invoices
- Match the Debit amount with Credit amount and press save.
Example 2: Making Payment for Purchase Invoice
- In Accounting Entries section add a DR account which is usually Creditors. Upon choosing ERPNext will set Supplier in Party Type section. Add as many Creditors rows as the number of invoices you want to make payment for.
- Add one or more CR accounts from which the payment was made. Example: All by check or part by check and part by cash etc.
- Do the following for each DR account to link purchase invoice:
- Click the edit icon to open the DR row.
- Choose the Party whose Purchase Invoice is being paid.
- In Reference Type select Purchase Invoice
- In Reference Name below Reference Type choose the invoice for which you are making payment. The system will automatically add the invoice amount in Debit section.
- Exit and follow similiar steps for other invoices
- Match the Debit amount with Credit amount and press save.
Step 3: Submit the Journal Entry
- After saving, click Submit to finalize the Journal Entry.
- This will mark the payment as made and update the outstanding balance of the sales invoice.
Step 4: Verify the Payment
- Go back to the Sales or Purchase Invoice list you worked on.
- You should see that the Outstanding Amount is reduced by the payment amount (or marked as fully paid if the payment was for the entire balance).
You have now successfully recorded a payment for a sales or purchase invoice using a Journal Entry in ERPNext. This process ensures that your ledger entries are accurate, and the outstanding balance is updated correctly.
