Record Payment for Bills

Recording payments for bills helps you track when and how vendor dues are settled. In Zoho ERP, recording bill payments ensures that your accounts payable, cash or bank balances, and vendor balances remain accurate.

Zoho ERP lets you record payments made offline (such as cash, cheque, or bank transfer) as well as online payments processed through connected bank accounts or payment gateway integrations. You can also settle bills using vendor advances or credits, making bill payments flexible and easy to manage.

Methods to Record Bill Payments

Zoho ERP provides multiple methods to record or manage bill payments based on how the payment is made or adjusted. The available methods:

Record payment manually: Record payments made outside Zoho ERP, such as cash payments, bank transfers, or offline transactions.
Pay via online payment methods: Make payments directly from Zoho ERP using connected bank accounts or supported payment gateways.
Using vendor advance: Apply advance payments made to a vendor to settle one or more bills. Learn more aboout vendor advances.
Using vendor credits: Use existing vendor credits to adjust or fully settle a bill. Learn more about vendor credits.
Pay via check: Record payments made through cheques and track their clearance status.

Record Payments Manually

If you’ve already made a payment for a bill, you can record the payment in Zoho ERP to update the bill status, track vendor payments accurately, and ensure your accounts remain up to date. To record a payment made:

Go to Purchases on the left sidebar.
Hover over Bills in the Modules bar and select Bills from the dropdown.
Click Record Payment at the top.
Fill in the following details:
- Payment Made: Enter the amount paid to the vendor. By default, the total amount is auto-populated. If you’ve not paid the entire amount, you can enter the amount paid.
Bank Charges: Enter any bank fees incurred while processing the payment. Bank charges recorded here are exclusive of the total amount paid.
- Payment Mode: Choose from the different payment modes or configure one of your own.
- Payment Date: Enter the date you made the bill payment.
- Paid Through: Choose the account in which you want to track this payment.
Once you’ve added the required details, click Save. The payment will be recorded, and the bill’s status will be updated to Paid or Partially Paid based on the amount recorded. You can view the details of the payment from the Payments Made tab on the bill’s Details page.

You can also record payments for multiple bills at once. Here’s how:

Go to Purchases on the left sidebar.
Hover over Bills in the Modules bar and select Bills from the dropdown.
Click Record Bulk Payment at the top.
Fill in the following details:
- Payments Made: Enter the amount paid to the vendor. By default, the total amount is auto-populated. If you’ve not paid the entire amount, you can enter the amount paid.
- Payment Mode: Choose from the different payment modes or configure one of your own.
Bank Charges: Enter any bank fees incurred while processing the payment. Bank charges recorded here are exclusive of the total amount paid.
- Payment Date: Enter the date you made the bill payment.
- Paid Through: Choose the account in which you want to track this payment.
Once you’ve added the required details, click Save.

Pay Bills Online

You can make bill payments directly from Zoho ERP using connected bank accounts or supported payment gateways. The following online payment methods are available in Zoho ERP:

ICICI Bank
Yes Bank
HSBC Bank

View Payment Journal

Viewing the payment journal allows you to see how a bill payment is recorded in your accounting books. It displays the debit and credit entries created when the payment is recorded, helping you understand the accounting impact of the transaction. To view the payment journal:

Go to Purchases on the left sidebar.
Hover over Payments in the Modules bar and select Payments Made from the dropdown.
Select the payment made whose journal entry you want to view.
Scroll down to the Journal section on the payment made’s Details page. OR Click the More icon at the top of the payment made’s Details page and select View Journal from the dropdown.

Reconcile Payments