Recording a payment against an invoice

When a client pays, record the payment on the invoice. SmartLedger posts it to the account you choose, reduces the balance due and updates the invoice status for you.

Record a payment

Go to Sales → Sales Invoices and click the invoice.
Click Edit Invoice. If a payment is already recorded, the button reads Edit Payment.
In the right-hand panel, find Payment Details and click Record Payment.
Fill in the payment details (see below).
Click Record Payment.

The payment is saved straight away. You don't need to click Update Invoice afterwards. If you had other unsaved changes on the invoice, SmartLedger saves the invoice first.

Payment fields

Mode of Payment — Cash, Bank Transfer, Cheque, UPI, Card or Other. Starts on Bank Transfer.
Payment Date — starts on today. It can't be earlier than the invoice date.
Payment Reference Number — the bank's reference, such as a UTR, cheque or transaction number.
Select Account (Payment Received In) — the bank, cash or other account the money went into. If you have an Undeposited Funds account, it is picked for you.
Currency and Exchange Rate — for a payment in a foreign currency. The rate is locked at 1 for INR.
Amount Received — enter what the client paid. Hover over the info icon to see the amount still due.

Tick Add additional charges if the bank deducted fees, such as payment gateway or conversion charges. For each charge, choose the expense account, enter the Amount (₹) and GST (₹), and choose whether to Treat as expense or Claim ITC on the GST.

How the status changes

Pay less than the balance due and the invoice becomes Partially Paid.
Once payments cover the balance, it becomes Paid.
Each payment appears under Payment Timeline with its date, mode, account and the Balance Due after it. Applied credit notes appear there too.
To add another part payment, click Record Another Payment.

If you set Status to Paid or Partially Paid without recording a payment, you'll see "Record at least one payment below to update the invoice." and the invoice can't be saved until you do.

Edit or delete a payment

Use the pencil or bin icon next to a payment in the timeline. SmartLedger asks you to confirm and to pick a reason, such as "Payment recorded by mistake" or "Incorrect payment amount". The reason is kept for audit. When you delete a payment, the status goes back to Partially Paid or Unpaid.

TDS deducted by your client

If the invoice has TDS, the balance due is the invoice total less the TDS. Record the money you received as usual. To record the TDS your client deducted, choose Payment Type → TDS Payment, fill in the details and click Record TDS Payment. It appears under TDS Payment Timeline.

TDS options only appear on invoices once TDS is turned on in Settings → Taxes → Income TDS Settings.

Tips

Once an invoice has payments, its amounts and line items are locked. You can still change the order number, project, notes, terms and attachments.
To record one receipt that settles several invoices, go to Accounting → Payments and click Record Receipt.

Security at Its Core.