Recording Customer Payments

Recording Customer Payments

Recording customer payments is an essential part of managing your accounts receivable in EquiBillBook. This guide will help you understand how to record payments from customers against their invoices and maintain accurate payment records.

What are Customer Payments?

Customer payments are transactions that record when customers pay you for goods or services. These payments are typically recorded against sales invoices, but can also be recorded as advance payments or direct payments depending on your business needs.

Step-by-Step Guide to Recording Customer Payments

Step 1: Navigate to Customer Payments

To record a new customer payment:

1. Go to the Customers module in the main menu
2. Click on "Customer Payment" or "Payments"
3. Click the "Add Payment" or "New Payment" button

Step 2: Select Customer

Choose the customer who is making the payment:

• Select an existing customer from the dropdown list
• The system will display outstanding invoices and balances for the selected customer
• You can also search for customers by name or code

Step 3: Enter Payment Details

Fill in the payment information:

• Payment Date: Select the date when the payment was received (defaults to today's date)
• Payment Amount: Enter the total payment amount received
• Payment Method: Select how the customer paid (Cash, Bank Transfer, Cheque, Credit Card, Online Payment, etc.)
• Account: Select the account where the payment will be deposited (Bank account, Cash account, etc.)
• Reference Number: Enter cheque number, transaction ID, or other reference if applicable

Step 4: Allocate Payment to Invoices

Allocate the payment amount to specific invoices:

1. The system will display all outstanding invoices for the selected customer
2. Select the invoices you want to apply the payment against
3. Enter the payment amount for each selected invoice
4. The total allocated amount should match the payment amount
5. You can apply partial payments to multiple invoices

Step 5: Add Notes and Attachments

Additional information:

• Notes: Add any internal notes or comments about the payment
• Attach Document: Upload payment receipts, bank statements, or other supporting documents
• Branch: Select the branch/location if using multi-branch setup

Step 6: Save the Payment

Once all details are entered:

1. Review the payment summary and allocation
2. Click "Save" to record the payment
3. The invoice status will automatically update based on the payment amount

Payment Types

In EquiBillBook, you can record different types of customer payments:

• Sales Payment: Payment against a specific sales invoice
• Advance Payment: Payment received before creating an invoice
• Direct Payment: General payment not linked to a specific invoice
• Booking Deposit Payment: Payment for table bookings (Restaurant module)

What Happens After Recording a Payment?

After recording a customer payment:

• Invoice status is updated (Paid, Partially Paid, or remains Due)
• Customer account balance is updated
• Accounts Receivable is reduced
• Payment account balance is increased
• Payment records are available for reporting and reconciliation
• Payment receipt can be generated and sent to the customer

Payment Status Updates

The invoice status automatically updates based on payments:

• Paid: When payment amount equals the invoice total
• Partially Paid: When payment amount is less than the invoice total
• Due: When no payment has been received
• Overdue: When payment is past the due date

Best Practices

• Always record payments on the date they were received, not the date you're entering them
• Use reference numbers for traceability (cheque numbers, transaction IDs)
• Attach supporting documents for audit purposes
• Verify the payment amount matches the invoice amount before recording
• Review customer balances regularly to ensure accuracy
• Reconcile payments with bank statements periodically
• Keep detailed notes for future reference

Related Articles

Learn more about:

• Partial Payments
• Advance Payments
• Payment Reconciliation
• Multiple Payment Methods
• Payment Receipt Generation

Recording customer payments accurately is crucial for maintaining proper accounts receivable and ensuring your financial records are up to date. EquiBillBook makes it easy to track all customer payments and maintain a clear audit trail.