Payments Made (Vendor Payments)

For: People using the software to record and manage payments to vendors

Purpose: Understand what the Payment Made module does and how it helps your business

What This Module Does

A payment made is a record of money you have paid to a vendor. You can record a payment against one or more bills (to settle or part-settle those bills) or as an advance payment (to be applied to bills later). Once a payment is approved, the system updates the vendor’s outstanding balance and (if linked to bills) each bill’s balance and status. For cheque payments, you can track the cheque through Pending → Cleared (e.g. via approval). The system can also update your bank balance when a payment is approved (deduct from bank) and reverse it when the payment is cancelled or deleted.

The Payment Made module lets you:

• Create and edit payment made records (when the status allows).
• Record payments against specific bills (with amount per bill) or as advance (no bill at creation).
• Attach documents (e.g. bank slip, cheque image).
• Approve or reject payments (only pending payments can be approved or rejected).
• For cheque payments: set PDC cheque date and mark as Cleared on approval.
• Cancel an approved payment (reverses bank balance and bill/vendor balance; advance already applied to bills cannot be cancelled until unapplied).
• Delete a payment (same reversals as cancel, then record is removed; advance already applied cannot be deleted until unapplied).
• Apply advance payment to one or more bills later.
• Remove a bill from an advance payment (unapply that amount).
• Remove one or more bills from a normal payment (adjust allocation; vendor and bill balances are updated).

Main Features (What You Can Do)

1. Create a New Payment Made

When you create a payment made you typically enter:

• Vendor: who you paid (the vendor must exist; the system ensures they have the selected branch, adding it if missing).
• Branch (and optionally division, warehouse), where the payment is recorded.
• Bank: the bank account from which the money was paid (must exist in your bank master).
• Amount paid: the total amount paid.
• Payment date: when the payment was made.
• Payment mode: e.g. Bank Transfer, Cheque, UPI, Credit Card, Petty Cash, Other.
• Reference: optional reference number or note.
• Bills: either:

• Against bills: list of bills with amount applied per bill (the amount of this payment allocated to each bill). The system checks that the amount applied to each bill does not exceed the remaining amount on that bill (bill total minus any amount already applied from other approved payments). You cannot apply more than the remaining amount; if the bill is already fully covered, you get a clear message.
• Advance payment: leave bills empty and mark as advance payment. The full amount is then available to apply to bills later. The system tracks unused amount (balance still to be applied).
• Attachments: you can upload files (e.g. bank slip, cheque copy). These are stored securely and shown with the payment.

Cheque payments

• If the payment mode is Cheque, you can optionally enter cheque number and PDC cheque date.
• The cheque status is set to Cleared when the payment is approved. Approval triggers the bank deduction and vendor/bill balance updates.

What the system does when you save

• It generates a unique payment made number (e.g. PMTM-001).
• It records who created the payment and when.
• It adds a comment in the payment’s comment history (e.g. "Payment Made Created with amount ₹X").
• The payment is saved in Pending status. No bank balance or vendor/bill balance is changed until the payment is approved.

2. View and Search Payments Made

You can list payments made with:

• Date: a single payment date or a date range (from–to).
• Bank: filter by bank account.
• Branch and division: filter by one or more branches or divisions.
• Payment mode: e.g. Cheque, Bank Transfer, UPI.
• Status: Pending, Approved, Rejected, Cancelled.
• Vendor: filter by vendor.
• Pending mapping: when enabled, the list shows only advance payments that are approved, have unused amount > 0, and are available to be applied to bills. This helps you find advance payments that can still be allocated.
• Search: by payment number, reference, payment mode, vendor name (display name or company name), bank name, or bill number. The list shows only payments that match your filters and search.

The list is paginated. For each payment you can see vendor, bank, branch, amount, payment date, status, bills (and amount applied per bill), unused amount (for advance), and who added or last updated it. The list can also show a count of advance payments pending mapping (approved advance with unused amount > 0) for the same filters.

3. Open a Payment (Full Details)

When you open one payment made, the system shows:

• Header: payment number, vendor, bank, branch, division, warehouse, payment date, amount paid, payment mode, status, unused amount (for advance).
• Vendor: display name (and other details if configured).
• Bank: bank name.
• Branch, division, warehouse: names.
• Bills: for each bill linked to this payment: bill number, date, due date, total, balance, and amount applied from this payment. This helps you see how this payment was allocated.
• Comment history: who did what and when (e.g. "Payment Made Created", "Payment Made Approved", "Payment Made Rejected", "Payment Made Cancelled").
• Attachments: list of attached files.
• Approved by and approval date: if the payment has been approved.
• Cheque details: if payment mode is Cheque: cheque number, PDC date, cheque status (e.g. Cleared on approval).
• Module tree: how this payment links to bills, GRPOs, and purchase orders (Payment Made → Bills → GRPOs/POs).

4. Edit a Payment Made

You can edit a payment made only when its status is Pending. Once the payment is Approved, Rejected, or Cancelled, the system does not allow editing (so the record stays as it was when you approved or closed it).

When you edit a Pending payment:

• You can change vendor, branch, bank, amount paid, payment date, payment mode, reference, bills (and amount applied per bill), and attachments.
• The system checks again that the vendor has the selected branch (and adds the branch if your settings allow) and that the bank exists.
• For each bill, the amount applied must not exceed the remaining amount on that bill (considering other approved payments already linked to it).
• A comment is added to the payment history (e.g. "Payment Made Updated" or "Amount changed from ₹X to ₹Y").

5. Approve a Payment Made

You can approve a payment only when its status is Pending. Once approved, the system:

• Bank balance: reduces the selected bank’s available balance by the amount paid (so your bank balance in the system reflects the payment). The system checks that the bank has sufficient available balance before approving.
• Against bills: for each bill in the payment, the system:
  • Reduces the bill’s balance by the amount applied (and may update the bill status to Partially Paid or Paid).
  • Reduces the vendor's branch current balance (outstanding) by the amount applied.
• Advance payment (no bills at approval): the system reduces the vendor’s branch current balance by the full amount paid. The payment’s unused amount is set to the full amount so you can later apply it to one or more bills.

Cheque workflow

• For payment mode Cheque, you can set PDC cheque date (and optionally cheque number). On approval, the cheque status is set to Cleared and the bank deduction and vendor/bill balance updates are applied.

A comment is added (e.g. "Payment Made Approved with amount ₹X"). The payment status is set to Approved and approval date and approver are recorded.

6. Reject a Payment Made

You can reject a payment when its status is Pending. Rejection means the payment is not accepted (e.g. cheque not issued or payment not to be processed). The system:

• Sets the payment status to Rejected.
• Does not update bank balance or vendor/bill balances (because the payment was never considered made).
• Records an optional rejection note and adds a comment (e.g. "Payment Made Rejected with amount ₹X").

7. Cancel a Payment Made

You can cancel an approved payment. Cancellation reverses the effect of the payment as if it had never been approved:

• Bank balance: the system increases the bank’s available balance by the amount paid (reverses the deduction done at approval).
• Against bills: for each bill that had amount applied from this payment, the system:
• • Increases the bill’s balance back (and may update the bill status to Open or Partially Paid).
  • Increases the vendor's branch current balance by the amount that had been applied.
• Advance payment (not yet applied to any bill): the system increases the vendor’s branch current balance by the full amount paid (reverses the reduction done at approval).

You cannot cancel an advance payment that has already been applied to one or more bills. You must first remove those bill allocations (unapply the advance from each bill) using "Remove advance from bill"; then you can cancel the payment.

The payment status is set to Cancelled and a comment is added (e.g. "Payment Made Cancelled with amount ₹X").

8. Delete a Payment Made

You can delete a payment made. The system applies the same reversal rules as cancel (bank balance and vendor/bill balances), then removes the payment record.

You cannot delete an advance payment that has already been applied to one or more bills. You must first remove those bill allocations; then you can delete the payment.

After deletion, the payment no longer appears in lists or reports. Bills and other documents that referred to this payment may still show history or references depending on your configuration.

9. Remove Bill(s) from a Payment (Adjust Allocation)

For a payment that is approved and has bills linked (not a pure advance), you can remove one or more bills from the payment.

• You send the list of bills (by bill id) that you want to remove; the system keeps the rest.
• For each removed bill, the system:
• • Increases the bill’s balance back by the amount that had been applied from this payment (same effect as cancelling that part of the payment).
  • Increases the vendor's branch current balance for that amount.
• The payment record is updated: only the remaining bills stay linked, and the payment’s amount paid is set to the total of the remaining amount applied. So the payment now represents a smaller allocation; the “released” amount is no longer allocated to any bill.

This is useful when you allocated a payment to the wrong bill(s) and want to correct the allocation without cancelling the whole payment.

10. Apply Advance Payment to Bills

For a payment that was recorded as advance and is approved, you can apply part or all of its unused amount to one or more bills.

• You choose the bills and the amount to apply to each bill.
• The system checks:
  • The payment is an approved advance and has unused amount > 0.
  • Each bill exists and belongs to the same vendor.
  • The amount applied to each bill does not exceed that bill’s balance amount.
  • The total amount you are applying does not exceed the payment’s unused amount.
• For each bill:
  • The bill’s balance is reduced by the amount applied (and bill status may move to Partially Paid or Paid).
  • The vendor's branch current balance is reduced by the amount applied.
• The payment’s unused amount is reduced by the total applied. The payment’s bills list is updated to include these bills and amounts. The advance is now “used” for those bills.

This lets you hold vendor advance and allocate it to the correct bills when they are raised or when you decide the allocation.

11. Remove Advance from One Bill

For an advance payment that has been applied to one or more bills, you can remove the application from one bill.

• You choose the payment and the bill (or the specific bill entry in the payment) to unapply.
• The system:
  • Increases that bill’s balance back by the amount that had been applied from this advance.
  • Increases the vendor's branch current balance for same amount.
  • Increases the payment’s unused amount back by that amount.
  • Removes that bill from the payment’s bills list.

The advance is again available to apply to other bills (or to cancel the payment if you unapply all).

Summary of Rules (Quick Reference)