Understanding Payments Made

This document provides a high-level overview of how payments made work in Zoho ERP. It explains the purpose of recording payments made, their lifecycle, and how they impact your accounts payable and cash or bank balances.

What Is a Payment Made?

A payment made is a record of money your organization has paid to a vendor to settle one or more outstanding bills. Payments made help you:

• Record when and how vendor dues are settled
• Track payment history and references
• Keep bill statuses and balances up to date Payments can be recorded for full or partial amounts and can be applied to one or more bills.

How Payments Made Impact Payables

Payments made directly affect your organization’s accounts payable and cash or bank balances.

When a payment is recorded:

• The outstanding payable balance for the vendor reduces
• The corresponding cash, bank, or card account balance is updated

When a payment is reconciled:

• The recorded payment is matched with the actual bank or card transaction
• Your books and bank statements remain aligned This ensures that financial statements accurately reflect payments made and remaining vendor liabilities.

Lifecycle of a Payment Made

The life cycle of a payment made shows the stages a payment goes through from the time it is recorded until it is approved and reconciled. A payment is typically recorded, sent for approval if required, and then reconciled with the corresponding bank or card transaction.

Configure Preferences

You can configure the preferences of the Payments Made module based on business requirements. Read our help document on Payments Made Preferences to learn more.