Recording Purchase Payments

Recording Purchase Payments

Recording purchase payments accurately is essential for managing accounts payable, tracking supplier payments, and maintaining proper financial records. This guide covers how to record payments against purchase bills in EquiBillBook.

Understanding Purchase Payments

Purchase payments are payments made to suppliers for:

• Purchase bills/invoices
• Outstanding balances
• Advance payments
• Partial payments
• Full payments

When to Record Payments

Record payments when:

• You make payment to a supplier
• Payment is due on a purchase bill
• You want to track payment status
• You need to update accounts payable
• Reconciling supplier statements

Accessing Payment Recording

To record a purchase payment:

1. Navigate to Purchase → Supplier Payments or Purchase Payments
2. Click "Record Payment" or "Add Payment"
3. Select the supplier
4. Choose the payment method

Recording Payment Against Bill

To record payment for a specific bill:

1. Open the purchase bill
2. Click "Record Payment" or "Make Payment"
3. Enter payment details
4. Select payment method
5. Enter payment amount
6. Enter payment date
7. Add reference number (cheque, transaction ID, etc.)
8. Save the payment

Payment Details to Enter

When recording a payment, enter:

• Supplier: Select the supplier
• Payment Date: Date payment was made
• Payment Amount: Amount being paid
• Payment Method: Cash, Cheque, Bank Transfer, etc.
• Reference Number: Cheque number, transaction ID, etc.
• Bills to Pay: Select which bills to apply payment to
• Notes: Additional notes or remarks

Full Payment

To record full payment for a bill:

1. Select the purchase bill
2. Payment amount is auto-filled with outstanding amount
3. Verify the amount
4. Enter payment method and reference
5. Save the payment
6. Bill status changes to "Paid"

Partial Payment

To record partial payment:

1. Select the purchase bill
2. Enter the payment amount (less than outstanding)
3. Enter payment method and reference
4. Save the payment
5. Bill status changes to "Partially Paid"
6. Remaining balance is tracked

Multiple Bill Payment

To pay multiple bills at once:

1. Select multiple purchase bills
2. Enter total payment amount
3. System distributes payment across bills
4. Or manually allocate amounts to each bill
5. Save the payment

Payment Methods

Common payment methods include:

• Cash: Cash payment
• Cheque: Cheque payment (enter cheque number)
• Bank Transfer: Online/NEFT/RTGS transfer
• Credit Card: Credit card payment
• Debit Card: Debit card payment
• UPI: UPI payment
• Other: Other payment methods

Advance Payment

To record advance payment to supplier:

1. Select the supplier
2. Choose "Advance Payment" option
3. Enter payment amount
4. Enter payment method and details
5. Save the payment
6. Advance is tracked and can be applied to future bills

Applying Advance to Bills

To apply advance payment to a bill:

1. When recording payment for a bill
2. System shows available advance
3. Select to apply advance
4. Enter additional payment if needed
5. Save the payment
6. Advance is deducted from available balance

Payment Allocation

When paying multiple bills, you can:

• Let system auto-allocate (oldest bills first)
• Manually allocate amounts to specific bills
• Prioritize high-value bills
• Allocate based on due dates

Payment Reference Numbers

Always enter reference numbers:

• Cheque Number: For cheque payments
• Transaction ID: For bank transfers
• UPI Reference: For UPI payments
• Receipt Number: For cash payments
• Helps with reconciliation and tracking

Payment Status Updates

After recording payment:

• Bill status updates automatically
• Outstanding balance is reduced
• Supplier balance is updated
• Accounts payable is updated
• Payment history is recorded

Editing Payments

You may be able to edit payments if:

• Payment was recorded incorrectly
• You have edit permissions
• Payment hasn't been reconciled
• Bill status allows editing

Note: Some systems restrict editing after a certain period.

Deleting Payments

To delete a payment:

• Open the payment record
• Click delete (if permitted)
• Confirm deletion
• Bill status reverts to previous state
• Outstanding balance is restored

Note: Deletion may be restricted based on permissions and system settings.

Payment Reconciliation

Reconcile payments by:

• Matching payments to bank statements
• Verifying payment amounts
• Checking payment dates
• Confirming reference numbers
• Resolving discrepancies

Payment Reports

Use payment reports to:

• Track payment history
• View outstanding payments
• Monitor payment trends
• Reconcile accounts
• Generate payment summaries

Best Practices

• Record payments promptly when made
• Always enter reference numbers
• Verify amounts before saving
• Match payments to correct bills
• Keep payment documentation
• Reconcile regularly
• Review outstanding payments
• Set up payment reminders

Common Mistakes to Avoid

• Recording wrong payment amount
• Applying payment to wrong bill
• Not entering reference numbers
• Recording duplicate payments
• Wrong payment date
• Selecting wrong supplier

Troubleshooting

If you encounter issues:

• Can't record payment: Check bill status and permissions
• Amount mismatch: Verify bill outstanding amount
• Payment not applying: Check bill selection and allocation
• Status not updating: Refresh and verify payment was saved
• Duplicate payment: Check payment history before recording

Payment Workflow

Typical payment workflow:

1. Purchase bill is created and approved
2. Payment due date approaches
3. Payment is made to supplier
4. Payment is recorded in system
5. Bill status updates to Paid
6. Accounts payable is updated
7. Payment is reconciled

Payment Reminders

Set up reminders for:

• Upcoming payment due dates
• Overdue payments
• Large payment amounts
• Payment approvals needed

Accurately recording purchase payments ensures proper accounts payable management, supplier relationship maintenance, and financial accuracy. Record payments promptly and maintain good documentation practices.