Payments
A Payment records the transfer of funds between your business and a customer or supplier. Payments are typically created after a Sales Invoice or Purchase Invoice to settle the outstanding amount.
Frappe Books supports both incoming payments from customers and outgoing payments to suppliers while automatically updating the related accounts and outstanding balances.
Tip
The easiest way to record a payment is directly from the Sales Invoice or Purchase Invoice using the Make Payment option.
Payment Types
Payments can either receive money from customers or pay money to suppliers.
| Transaction | Payment Type | To Account | From Account |
|---|---|---|---|
| Sales | Receive Payment | Bank or Cash Account | Accounts Receivable |
| Purchases | Pay Payment | Accounts Payable | Bank or Cash Account |
Create a Payment
Navigate to the appropriate payment page:
- Sales > Sales Payments
- Purchases > Purchase Payments
Click the + button to create a new Payment.
Steps
- Select the customer or supplier.
- Enter the payment details.
- Specify the payment amount.
- Review the payment information.
- Click Save.
- Click Submit to record the payment.
After submission, Frappe Books updates the relevant accounts and records the payment in the General Ledger.
Payment References
If the payment is made against an existing invoice, you can link the payment directly to that invoice.
- Add the invoice in the Payment Reference table.
- The invoice’s Outstanding Amount is updated automatically.
- Multiple invoices can be referenced within a single payment when applicable.
Note
Payments linked to invoices automatically reduce the outstanding balance and update the invoice payment status.
Write Off Amount
A write-off allows you to deduct a portion of the payment when the full invoice amount is not expected to be received or paid.
- The write-off amount is recorded in the configured Write Off Account.
- You can configure the Write Off Account from Setup > Settings > General.
| Calculation | Formula |
|---|---|
| Transferred Amount | Payment Amount − Write Off Amount |
Make Payments from Invoices
Instead of creating a payment manually, you can generate one directly from an invoice.
Steps
- Open the Sales Invoice or Purchase Invoice.
- Click the … menu.
- Select Make Payment.
- The outstanding amount is filled automatically.
- Review the payment details and submit.
This method automatically links the payment with the invoice and updates the outstanding balance.
Payment Workflow
| Step | Description |
|---|---|
| Create Invoice | Generate a Sales or Purchase Invoice. |
| Record Payment | Receive or pay the invoice amount. |
| Reference Invoice | Link the payment to the related invoice. |
| Update Status | The invoice status changes as the outstanding amount is settled. |
Related Features
Related Features
- Sales Invoices
- Purchase Invoices
- Customers
- Suppliers
- Accounts Receivable
- Accounts Payable
- General Ledger
Best Practices
- Record payments against invoices whenever possible to maintain accurate outstanding balances.
- Verify payment amounts before submission.
- Use Write Offs only for genuine balance adjustments.
- Regularly reconcile Bank and Cash accounts with recorded payments.
- Review the General Ledger after posting payments to ensure accurate accounting.
