MSME Payment Tracking

This page explains how to monitor payment deadlines for MSME (Micro, Small, and Medium Enterprise) suppliers in PayInvoice Next, and what actions to take when a payment is approaching its due date or is overdue.

Prerequisites

• You have the Accounts User or Accounts Manager role
• MSME supplier classification is maintained in the supplier master (MSME Category and Udyam Registration Number)

Understanding Payment Deadlines

Payment deadlines for MSME suppliers are calculated automatically based on two factors: the supplier's MSME category and whether a written payment agreement exists.

MSME Category	Without Agreement	With Agreement
Micro	15 days	Up to 45 days
Small	15 days	Up to 45 days
Medium	45 days	Up to 45 days

The countdown starts from the acceptance date of the invoice (the date the invoice was verified and accepted for processing). The system calculates the Payment Due Date automatically on the IPU MSME Tracking record.

Checking MSME Payment Status

From the IPU Dashboard

1. Open the IPU Dashboard.
2. Look at the MSME Urgent counter in the quick stats bar. This shows invoices from MSME suppliers that are either overdue or due within 3 days.
3. Click the counter to see the filtered list of urgent MSME invoices.

From the IPU List View

1. Navigate to Invoice Processing Unit list view.
2. Use the filter: Is MSME Supplier = Yes.
3. Sort by MSME Payment Due Date (ascending) to see the most urgent invoices first.
4. The MSME Alert Level column shows the urgency: On Track, Warning, Critical, or Overdue.

From the MSME Tracking Record

Each MSME invoice has a linked IPU MSME Tracking record that shows:

• Acceptance Date — when the invoice was accepted
• Payment Due Date — the calculated deadline
• Actual Payment Date — filled when payment is made
• Payment Status — current state (Pending, On Time, Overdue, Paid Late, Paid On Time)
• Days Overdue — number of days past the deadline (if applicable)
• Interest Applicable — whether interest is owed due to late payment
• Interest Amount — calculated interest liability

Alert Escalation

As the payment deadline approaches, alerts escalate automatically:

Days Remaining	Alert Level	What Happens
More than 5	On Track	Normal processing — no special alerts
3–5 days	Warning	Invoice appears in the "approaching deadline" list
1–2 days	Critical	Dashboard notification sent to Accounts Manager
0 or past due	Overdue	Prominent flag on the dashboard. Interest calculation begins.

What to Do When a Payment Is Approaching

1. Prioritize the invoice. Ensure it has completed matching and approval. If it is stuck in review, escalate it.
2. Create the Purchase Invoice. If the IPU record is approved but the Purchase Invoice has not been created yet, create it to begin the payment process.
3. Process payment. Work with your payment team to ensure the Payment Entry is created and submitted before the deadline.
4. Record the payment date. Once payment is made, the Actual Payment Date on the MSME Tracking record is updated. If paid before the due date, the Payment Status changes to "Paid On Time."

What Happens If Payment Is Late

• The Payment Status changes to "Overdue" and then to "Paid Late" once payment is eventually made.
• The Interest Applicable flag is set and the Interest Amount is calculated automatically. Under MSME regulations, interest at three times the bank rate may be payable.
• The late payment is flagged in compliance reports for your finance team and auditors.
• Under Section 43B(h), the payment amount may not be deductible in the current financial year if not paid within the statutory period.

Related Pages

• MSME Compliance Overview — How MSME tracking works in PayInvoice Next
• MSME Field Reference — Every MSME-related field explained
• IPU Dashboard — Monitoring MSME urgent invoices
• IPU Overview — The complete Invoice Processing Unit guide