Payments Received

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

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

What This Module Does

A payment received is a record of money you have received from a customer. You can record a payment against one or more invoices (to settle or part-settle those invoices) or as an advance payment (to be applied to invoices later). Once a payment is approved, the system updates the customer's outstanding balance and (if linked to invoices) each invoice's balance and status. For cheque payments, you can track the cheque through Received → Deposited → Cleared before approving. The system can also update your bank balance when a payment is approved (and reverse it when the payment is cancelled or deleted).

The Payment Received module lets you:

• Create and edit payment received records (when the status allows).
• Record payments against specific invoices (with amount per invoice) or as advance (no invoice 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: mark cheque as Received, then Deposited, then Cleared, then approve.
• Cancel an approved payment (reverses bank balance and invoice/customer balance; advance already applied to invoices 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 invoices later.
• Remove an invoice from an advance payment (unapply that amount).
• Remove one or more invoices from a normal payment (adjust allocation; customer and invoice balances are updated).

Main Features (What You Can Do)

1. Create a New Payment Received

When you create a payment received you typically enter:

• Customer: who paid you.
• Branch (and optionally division, warehouse), where the payment is recorded; the customer must have this branch linked (the system adds it if missing).
• Bank: the bank account where the money was received (must exist in your bank master).
• Amount received: the total amount received.
• Payment date: when the payment was received.
• Payment mode: e.g. Bank Transfer, Cheque, UPI, Credit Card, Petty Cash, Other.
• Reference: optional reference number or note.
• Invoices: either:
  • Against invoices: list of invoices with amount applied per invoice (the amount of this payment allocated to each invoice). The total of amount applied should match the amount received (or the system may allow partial allocation depending on configuration).
  • Advance payment: leave invoices empty and mark as advance payment. The full amount is then available to apply to invoices 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, the system sets the cheque status to Pending when you save. You can then move the cheque through Received → Deposited → Cleared (e.g. via approve workflow or separate actions) and finally approve the payment so that bank and customer/invoice balances are updated.

What the system does when you save

• It generates a unique payment received number (e.g. PMT-001).
• It records who created the payment and when.
• It adds a comment in the payment's comment history (e.g. "Payment Received Created with amount ₹X").
• The payment is saved in Pending status. No bank balance or customer/invoice balance is changed until the payment is approved.

2. View and Search Payments Received

You can list payments received 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.
• Pending mapping: when enabled, the list shows only advance payments that are approved, have unused amount > 0, and are available to be applied to invoices. This helps you find advance payments that can still be allocated.
• Search: by payment number, reference, payment mode, customer name (display name or company name), bank name, or invoice number. The list shows only payments that match your filters and search.

The list is paginated. For each payment you can see customer, bank, branch, amount, payment date, status, invoices (and amount applied per invoice), 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 received, the system shows:

• Header: payment number, customer, bank, branch, division, warehouse, payment date, amount received, payment mode, status, unused amount (for advance).
• Customer: display name (and other details if configured).
• Bank: bank name.
• Branch, division, warehouse: names.
• Invoices: for each invoice linked to this payment: invoice 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 Received Created", "Payment Received Approved", "Payment Received Rejected", "Payment Received Cancelled").
• Attachments: list of attached files.
• Approved by and approval date: if the payment has been approved.
• Cheque status: if payment mode is Cheque: Pending, Received, Deposited, Cleared, or Bounced.

4. Edit a Payment Received

You can edit a payment received 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 customer, branch, bank, amount received, payment date, payment mode, reference, invoices (and amount applied per invoice), and attachments.
• The system checks again that the customer has the selected branch (and adds the branch if your settings allow) and that the bank exists.
• A comment is added to the payment history (e.g. "Payment Received Updated" or "Amount changed from ₹X to ₹Y").

5. Approve a Payment Received

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

• Bank balance: increases the selected bank's available balance by the amount received (so your bank balance in the system reflects the receipt).
• Against invoices: for each invoice in the payment, the system:
  • Reduces the invoice's balance by the amount applied (and may update the invoice status to Partially Paid or Paid).
  • Reduces the customer's branch current balance (outstanding) by the amount applied.
• Advance payment (no invoices at approval): the system reduces the customer's branch current balance by the full amount received. The payment's unused amount is set to the full amount so you can later apply it to one or more invoices.

Cheque workflow

• For payment mode Cheque, the system may require the cheque to move through stages before approval:
• Pending → Received (cheque received; you can optionally set cheque received date).
• Received → Deposited (cheque deposited in bank; you can optionally set deposit date).
• Deposited → Cleared (cheque cleared; you set clearing date).
• Then the payment can be approved. After approval, bank and customer/invoice balances are updated as above.

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

6. Reject a Payment Received

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

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

7. Cancel a Payment Received

You can cancel an approved (or in some setups, rejected) payment. Cancellation reverses the effect of the payment as if it had never been approved:

• Bank balance: the system reduces the bank's available balance by the amount received (reverses the increase done at approval).
• Against invoices: for each invoice that had amount applied from this payment, the system:
  • Increases the invoice's balance back (and may update the invoice status to Sent or Partially Paid).
  • Increases the customer's branch current balance by the amount that had been applied.
• Advance payment (not yet applied to any invoice): the system increases the customer's branch current balance by the full amount received (reverses the reduction done at approval).

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

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

8. Delete a Payment Received

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

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

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

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

For a payment that is approved and has invoices linked (not a pure advance), you can remove one or more invoices from the payment. You send the list of invoices (and amount applied) that you want to keep; the system treats the rest as removed.

• For each removed invoice, the system:
• Increases the invoice's balance back by the amount that had been applied from this payment (same effect as cancelling that part of the payment).
• Increases the customer's branch current balance by the same amount.
• The payment record is updated: only the remaining invoices stay linked, and the payment's amount received 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 invoice (it may represent unallocated cash or you may record a separate adjustment elsewhere depending on your process).

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

10. Apply Advance Payment to Invoices

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 invoices.

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

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

11. Remove Advance from One Invoice

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

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

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

Summary of Rules (Quick Reference)