7.4 Payment Entry

A Payment Entry is a record that indicates a payment has been received or made against an invoice or order.
Payment Entries are mainly used to record customer receipts, supplier payments, advances, and internal transfers.
Payment Entry can be made against the following documents: Sales Invoice , Purchase Invoice , Sales Order (Advance Payment) , Purchase Order (Advance Payment) , Expense Claim and Internal Transfer
In BrassErp, payments can be captured using:

To access Payment Entry : Home > Accounting > Accounts Receivable / Payable > Payment Entry
Here are diagrams to understand the flow:

1. Prerequisites

Before creating a Payment Entry, ensure the following are created:

If following Sales / Purchase cycle:

On submitting a document against which Payment Entry can be made, you will find the Payment option under the Create button.

Change the posting date.
The Payment Type will be set based on the transaction you're coming from. The types are 'Receive', 'Pay', and 'Internal Transfer'.
The Party Type, Party, Party Name will be fetched automatically.
The Account Paid To and Account Paid From will be fetched as set in the Company form.
The Amount Paid will be fetched from the Invoice.
Save and Submit.

A Payment Entry created manually will have no order/invoice linked to it. Payments made this will be recorded in the Customer's/Supplier's account and can be reconciled later using the Payment Reconciliation Tool.

Go to the Payment Entry list and click on New.
Select the Party Type and the respective Customer/Supplier.
Select the Bank Account/Cash Account Paid To and Paid From. Enter the Cheque Number and date if bank transfer.
Enter the Amount Paid.
Save and Submit.

Mode of Payment helps classify payments : Bank , Cash , Cheque , Wire Transfer , Credit Card
TIP : Default account can be set in Mode of Payment master.

Party Type : Customer, Supplier, Employee, etc.
Party : Selected party
Party Name : Auto fetched
Company Bank Account : Your Company's Bank Account.
Party Bank Account : The Party's Bank Account.
Contact Person : If the Party is an organization, a Contact person can be stored here.

Party Balance: Outstanding receivable or payable

Account Paid From: Account from which money is deducted

Account Paid To: Account where money is added

Account Currency: Fetched automatically

Account Balance: Balance of selected account

Paid Amount: Total amount paid