Managing Payments

Managing Payments

Overview

Payments are key to cash flow and business relationships. iVendNext helps you manage payments for sales, purchases, and internal transfers—including multi-currency and advanced cases. This article covers how to create and manage Payment Entries.




What is a Payment Entry?

A Payment Entry in iVendNext is a record that indicates a payment has been made or received. It is used to record payments against various transactions such as:


  • Sales Invoices: Payments received from customers.

  • Purchase Invoices: Payments made to suppliers.

  • Sales Orders: Advance payments from customers.

  • Purchase Orders: Advance payments to suppliers.

  • Expense Claims: Reimbursements to employees.

  • Internal Transfers: Transfers between company accounts.


Payment Entries ensure that your accounts receivable and payable are updated accurately, and they provide a clear audit trail for all financial transactions.



Key Features of Payment Entries

Before diving into the steps, let’s explore some key features of Payment Entries in iVendNext:


  1. Automatic Allocation: Payments can be automatically allocated to outstanding invoices.

  2. Multi-Currency Support: Payments can be recorded in different currencies, with automatic exchange rate calculations.

  3. Advance Payments: Record advance payments and allocate them against future invoices.

  4. Internal Transfers: Manage transfers between bank accounts, cash accounts, or a combination of both.

  5. Payment Reconciliation: Easily reconcile payments with invoices using the Payment Reconciliation tool.



Step-by-Step Guide to Creating a Payment Entry

Let’s walk through the process of creating a Payment Entry in iVendNext.



1. Accessing the Payment Entry Module

To create a Payment Entry, follow these steps:


  1. Navigate to Home > Accounting > Accounts Receivable/Payable > Payment Entry.

  2. Click on New to create a new Payment Entry.



2. Filling in the Payment Entry Details

Once you’re in the New Payment Entry screen, fill in the following details:


  1. Payment Type:


  • Receive: For payments received from customers.

  • Pay: For payments made to suppliers.

  • Internal Transfer: For transfers between company accounts.


  1. Party Type:


  • Select the type of party (e.g., Customer, Supplier, Employee).


  1. Party:


  • Select the specific customer, supplier, or employee.


  1. Posting Date:


  • Set the date on which the payment should be recorded.


  1. Mode of Payment:


  • Select the payment method (e.g., Bank, Cash, Wire Transfer).


  1. Account Paid To/From:


  • Select the bank or cash account from which the payment is made or received.


  1. Amount Paid:


  • Enter the total amount of the payment.



3. Allocating Payments to Invoices

If the payment is being made against outstanding invoices, you can allocate the payment amount to specific invoices:


  1. Click on Get Outstanding Invoices to fetch all unpaid invoices for the selected party.

  2. In the Payment References table, select the invoices to which the payment should be allocated.

  3. Enter the Allocated Amount for each invoice.



4. Saving and Submitting the Payment Entry

Once all the details are filled in:


  1. Click Save to save the Payment Entry.

  2. Review the entry to ensure that the payment is correctly allocated.

  3. Click Submit to finalize the Payment Entry.



Common Use Cases for Payment Entries

Payment Entries are used in a variety of scenarios. Here are some common use cases:



1. Receiving Payment from a Customer

Scenario: A customer pays Rs. 10,000 against a Sales Invoice.


  • Payment Type: Receive

  • Party Type: Customer

  • Party: Select the customer.

  • Account Paid To: Bank Account

  • Amount Paid: Rs. 10,000

  • Allocate: Select the Sales Invoice and allocate the payment.



2. Making Payment to a Supplier

Scenario: You pay Rs. 5,000 to a supplier against a Purchase Invoice.


  • Payment Type: Pay

  • Party Type: Supplier

  • Party: Select the supplier.

  • Account Paid From: Bank Account

  • Amount Paid: Rs. 5,000

  • Allocate: Select the Purchase Invoice and allocate the payment.



3. Recording an Advance Payment

Scenario: A customer makes an advance payment of Rs. 20,000 for a future order.


  • Payment Type: Receive

  • Party Type: Customer

  • Party: Select the customer.

  • Account Paid To: Bank Account

  • Amount Paid: Rs. 20,000

  • Allocate: No allocation needed (this will be allocated to future invoices).



4. Internal Transfer Between Accounts

Scenario: You transfer Rs. 15,000 from your Bank Account to your Cash Account.


  • Payment Type: Internal Transfer

  • Account Paid From: Bank Account

  • Account Paid To: Cash Account

  • Amount Paid: Rs. 15,000



Advanced Features of Payment Entries

iVendNext offers several advanced features to enhance the functionality of Payment Entries:


  1. Multi-Currency Payments:


  • Record payments in foreign currencies.

  • The system automatically calculates exchange gains or losses.


  1. Payment Reconciliation:


  • Reconcile payments with invoices using the Payment Reconciliation tool.

  • Automatically allocate payments to outstanding invoices.


  1. Write-Offs:


  • Write off small differences in payment amounts due to rounding errors or currency fluctuations.

  • The difference amount is recorded in a write-off account.


  1. Cheque Printing:


  • Print cheques directly from Payment Entries using the Cheque Print Format.



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