RisingERP - Payment Entry

Payment Entry

The Payment Entry in RERP serves as a record signifying the completion of payment for an invoice. It is also represents the Payment Voucher (Cash Payment Voucher, Cheque / Bank Payment Voucher). It can be associated with various transactions, including Sales Invoice, Purchase Invoice, Sales Order (Advance Payment), Purchase Order (Advance Payment), Expense Claim, and Internal Transfer.

To access the Payment Entry list, navigate to:

Home > Accounting > Accounts Receivable/Payable > Payment Entry

1. Prerequisites:

Before creating and utilizing Payment Entry, it is advisable to first create the following:

1. Customer
2. Supplier
3. Bank Account
4. If following the Sales/Purchase Cycle:
5. Sales Order (Advance Payment)
6. Purchase Order (Advance Payment)
7. Sales Invoice
8. Purchase Invoice
9. Set up:
10. Chart Of Accounts
11. Company (for default accounts)

2. How to create a Payment Entry:

Upon submitting a document against which a Payment Entry can be made, the Payment option can be found under the Create button. Follow these steps:

1. Change the posting date.
2. The Payment Type is set based on the transaction you're coming from ('Receive', 'Pay', or 'Internal Transfer').
3. The Party Type, Party, and Party Name will be fetched automatically.
4. The Account Paid To and Account Paid From will be fetched as set in the Company form.
5. The Amount Paid will be fetched from the Invoice.
6. Save and Submit.

2.1 Creating a Payment Manually: A Payment Entry created manually will not have an order/invoice linked to it. Payments made this way will be recorded in the Customer's/Supplier's account and can be reconciled later using the Payment Reconciliation Tool.

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

3. Features:

1. 3.1 Setting Mode of Payment:
2. Mode of Payment: Helps classify Payment Entries based on the payment mode used (Bank, Cash, Wire Transfer, etc.). Default Account can be set in the Mode of Payment master, which will be fetched into Payment Entries.
3. 3.2 Payment From/To:
4. Party Type: Specifies whether Customer, Supplier, Employee, Shareholder.
5. Party: Refers to the specific party for which the Payment Entry is made.
6. Party Name: Automatically fetched.
7. Company Bank Account: Company's Bank Account.
8. Party Bank Account: Party's Bank Account.
9. Contact: If the Party is an organization, a Contact person can be stored here.
10. 3.3 Accounts:
11. Party Balance: Overall amount receivable or payable from Customer or Supplier from Invoices set in the current Payment Entry. Paid amounts will be positive, and if advance payments are made, they will be negative.
12. Account Paid From: The Account from which the amount will be deducted when Payment is submitted.
13. Account Paid To: The CoA account from which the amount will be added when Payment Entry is submitted.
14. Account Currency: The Currencies of these accounts will be fetched as set in the Account and cannot be edited here.
15. Account Balance: The total amount balance from all the invoices of the selected accounts.
16. Paid Amount: The total amount paid for the current Payment Entry.

4. Other cases:

1. 4.1 Multi Currency Payment Entry:
2. If maintaining a receivable/payable account in foreign currency, create accounts with foreign currency and link them to the party account.
3. 4.2 Internal Transfer:
4. Used when money is transferred between the same Company's accounts.
5. 4.3 Managing Different Payment Scenarios:
6. RERP allows you to manage various payment scenarios, including upfront payments, post-shipment payments, part-in-advance, part-on/post-delivery, combined payments for multiple invoices, and advances for multiple invoices.
7. 4.4 Difference between Payment Entry and Journal Entry:
8. Payment Entry is more user-friendly, managing payments efficiently, especially in foreign currencies. Cheques can be printed from Payment Entries using the Cheque Print Format.
9. 4.5 Payments Using Journal Entry:
10. To make payment using Journal Entry, activate 'Payment via Journal Entry' in Accounting Masters > Accounts Settings. Submit the journal entry to record the payment against the invoice.