Record Payments Made

You can record payments made in Zoho ERP to capture when and how vendor dues are settled. This helps you update bill statuses, track vendor payments accurately, and ensure your accounts payable and cash or bank balances remain up to date.

Methods to Record Payments Made

Zoho ERP provides you with multiple ways to record payments made, making it easy to capture vendor payments based on how and where the payment is processed. You can choose the method that best fits your workflow, whether you are recording payments manually, applying payments directly from bills, or syncing payments from your bank or card transactions. The following methods are available to record payments made:

• Record Manually: Record payments made to vendors by filling details from scratch.
• Record from Bill: Record a payment directly from a bill to settle the payable quickly and update the bill status.
• Record from Vendor Details Page: Record payments from a vendor’s details page to apply payments across one or more bills for that vendor.
• Record from Bank or Card (Banking Module): Record or match payments from bank or card transactions in the Banking module.
• Import Payments: Import multiple payments at once using a supported file format to save time on bulk data entry.
• API: Use Zoho ERP APIs to record payments from external systems programmatically or integrations.

Record a Payment Made

You can record a vendor payment from the Payments Made module by entering details such as the vendor, payment date, payment mode, amount paid, and the account used for payment. To record a payment made to your vendor:

• Go to Purchases on the left sidebar.
• Hover over Payments in the Modules bar and select Payments Made from the dropdown.
• Click + New in the top right corner.
• Fill in the following details in the Bill Payment tab:

Vendor Details

• Vendor Name: Select the vendor for whom you’re recording the payment. The list of unpaid bills for this vendor will be populated below.
• Click Initiate payment via {bank name} if your organization is integrated with a bank. Otherwise, click Record payment.
• Select the Currency in which you want to record the payment.

Payment Details

• Payment#: The unique number for this payment. If you want configure the auto-generated number, click the Gear icon next to the field, select Auto-generating payment numbers, enter the required Prefix and Next Number, and click Save.
• Payment Made: Enter the amount paid to the vendor. This field will be shown if you select Record payment.
  • Click Yes in the Would you like this amount to be reflected in the Payment field? pop-up if you want to apply the amount entered to the vendor’s bills. The amount entered will be split across the outstanding bills, starting from the first bill in the list.
  • Click No in the Would you like this amount to be reflected in the Payment field? pop-up if you want to record the amount entered as excess payments. The excess payment will be recorded as vendor credits and can be used to record payments for future bills from the vendor.
  • Check Pay full amount if you want to pay for all the outstanding bills of the vendor.
• Payment Amount: Enter the amount you want to pay to the vendor. This field will be shown if you select *Initiate payment via {bank name}.
• Payment Date: Enter the date when you made the payment. This field will be shown if you select Record payment.
• Payment Mode: Select how you made the payment. Click + Configure Payment Mode from the dropdown to add a new payment mode. This field will be shown if you select Record payment.
  • Paid Through: Select the account you used to make the payment. This field will be shown if you select *Initiate payment via {bank name}.
• Transfer To:** Select the bank account to which you want to transfer the payment.

Bills

You can also pay for individual bills from the Outstanding Bills table.

• Enter the amount to be paid for the respective bill in the Payment column.
• Click Pay in Full if you want to record payment for the bill’s total.

Total

Once you’ve entered the amount, you can find the details of the split in the total section.

• Amount Paid: The total amount paid to the vendor.
• Amount Used for Payments: The amount applied to outstanding bills.
• Amount in Excess: The excess payments made to the vendor. They will be recorded as vendor credits.

Other Details

Notes: Add notes related to the bill. These notes will appear on the PDF version of the bill. Attachments: Upload supporting documents such as vendor invoices or receipts. You can upload up to 5 files, with a maximum file size of 10 MB per file.

• Once you’ve added the required details, click Save.

How Payments Are Applied to Bills

When recording payments for your vendors, you might come across the following cases:

Record and Split Payment

The payments you record for your vendors can be applied to their outstanding bills. The total paid amount can be split among a vendor’s outstanding bills either in full or in part. Let’s understand this better with a scenario.

Excess Payments

The total amount that you enter in any payment made can be applied across the different outstanding bills of the vendor. If there is any balance amount left after you’ve applied this amount, then you can save it as an excess payment. Let’s understand this better with the help of a scenario.

Edit Payments Made

If you want to make changes to a vendor payment, you can edit it. Here’s how:

• Go to Purchases on the left sidebar.
• Hover over Payments in the Modules bar and select Payments Made from the dropdown.
• Click the vendor payment you want to edit.
• Click Edit at the top.
• Make the necessary changes and click Save.

You can also edit multiple vendor payments at once. Here’s how:

• Go to Purchases on the left sidebar.
• Hover over Payments in the Modules bar and select Payments Made from the dropdown.
• Select the vendor payments you want to edit.
• Click Bulk Update at the top.
• Select the field you want to update and fill in the new value.
• Click Update.