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Payment Entry ​

A Payment Entry records that your organization has paid a supplier. Every time a bank transfer, cheque, or other payment is made against a Purchase Invoice, you create a Payment Entry in PayInvoice Next to keep your books accurate.

When to Create a Payment Entry ​

You create a Payment Entry when:

  • A supplier invoice is due and payment has been released.
  • You are making a partial payment against an invoice.
  • You are paying an advance against a Purchase Order (see Advance Payments).
  • A payment has been returned or needs to be reversed.

Step-by-Step: Pay a Purchase Invoice ​

  1. Open the submitted Purchase Invoice you want to pay.
  2. Click Create > Payment Entry.
  3. PayInvoice Next creates a draft Payment Entry with key fields pre-filled:
    • Payment Type is set to "Pay" (outgoing payment).
    • Party Type is "Supplier" and the supplier name is filled in.
    • Paid Amount shows the outstanding invoice balance.
  4. In the Mode of Payment field, select how the payment was made (e.g., Bank Transfer, Cheque, NEFT, RTGS).
  5. Enter the Reference No. (cheque number or bank transaction reference) and Reference Date.
  6. If paying in full, leave the Paid Amount as is. For a partial payment, reduce the amount to the actual amount paid.
  7. Review the accounting entries shown at the bottom of the form.
  8. Click Save, then Submit.

TIP

You can also navigate to Accounting > Payment Entry > + New and select the supplier manually. PayInvoice Next will show all outstanding invoices for that supplier, and you can select which ones to pay.

Partial Payments ​

If your organization pays an invoice in installments:

  1. Create the first Payment Entry for the partial amount (e.g., ₹50,000 of a ₹1,50,000 invoice).
  2. After submission, the Purchase Invoice's outstanding amount updates to reflect the remaining balance (₹1,00,000).
  3. When the next installment is ready, open the same Purchase Invoice and click Create > Payment Entry again. The system shows the updated outstanding amount.
  4. Repeat until the invoice is fully paid.

Each partial payment is recorded as a separate Payment Entry, giving you a complete payment history.

Payment Schedules ​

For invoices with defined payment terms (e.g., 30% on delivery, 70% after 60 days), the Purchase Invoice shows a Payment Schedule table. Each row lists the due date and amount for that installment. When you create a Payment Entry, you can allocate the payment against a specific schedule row.

Payment Reconciliation ​

Payment reconciliation matches payments to their corresponding invoices. This is particularly useful when:

  • A single payment covers multiple invoices.
  • Payments were recorded without linking to a specific invoice.
  • Bank statement entries need to be matched to PayInvoice Next records.

To reconcile payments, navigate to Accounting > Payment Reconciliation. Select the supplier, and PayInvoice Next displays unmatched payments and unpaid invoices side by side. Select the matching pairs and click Reconcile.

Payment Status on Purchase Invoice ​

The Purchase Invoice form shows payment-related fields that help you track where things stand:

  • Payment Status — Shows the current payment state. When SAP Integration is active, this field reflects the payment status from SAP (e.g., Draft, Posted, or Paid).
  • Total Paid Amount — Shows the cumulative amount paid against this invoice. When SAP Integration is active, this value is updated from SAP to reflect payments processed in both systems.

These fields update automatically as payments are recorded and as SAP sync runs.

[VERIFY IN SANDBOX] Confirm the exact label and position of the "Payment Status" and "Total Paid Amount" fields on the Purchase Invoice form.

SAP Integration ​

When SAP Integration is active, Payment Entry data flows between PayInvoice Next and SAP. SAP processes the payment on its side and sends status updates back. The Purchase Invoice's SAP Status field reflects the overall document lifecycle in SAP, while the Payment Status field specifically tracks the payment progression.

For full details on how SAP sync works, see SAP Integration.

PayInvoice Next — P2P Documentation v1.0.0-beta

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