Payment Ledger in ERPNext
A Payment Ledger is a separate ledger that records only Receivable and Payable transactions.
It helps track outstanding invoices and payment status in a structured and simplified way.
Key Concept
Only accounts marked as “Receivable” or “Payable” are recorded in the Payment Ledger.
Example
A Sales Invoice of ₹1000 and a Payment Entry against it will reflect as:
Invoice → Creates Receivable
Payment → Reduces Outstanding Balance
Usage of Payment Ledger
1. Reports
- Accounts Receivable Report
- Accounts Payable Report
- Summary Reports for outstanding tracking
These reports are directly generated from the Payment Ledger data.
2. Tools
- Payment Reconciliation Tool
- Semi-Auto Payment Reconciliation
These tools use Payment Ledger to calculate outstanding invoices and match payments automatically.
How It Works
- Every Sales Invoice increases receivable balance.
- Every Payment Entry reduces the outstanding amount.
- Ledger continuously updates real-time payment status.
Reconciliation does NOT change invoices, it only updates the Payment Ledger.
Key Takeaway
The Payment Ledger is the backbone of ERPNext’s receivable/payable tracking system, powering reports, reconciliation, and outstanding calculations.
