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When customers make payments, you need to record them to ensure that the list of unpaid invoices is correct. We support popular online payment gateways like Paypal to help you get paid faster. We suggest you encourage your customers to pay through them for easier and faster payments.

  1. Go to 'Invoices' tab.
  2. Select the invoice to which you want to add a payment.
  3. If the invoice is in open status, then click on 'record payment' link shown in the image below. This opens the 'Record Payment' page. Applying a payment to a draft invoice will convert its status to open.
    Select add payment
  4. Enter the values of the below fields.

    Add payment fields
    Amount Received The amount paid by the customer. By default, Zoho Invoice will reflect the balance due on the invoice. Change this, if the payment is less than the balance due.
    Payment Date Zoho Invoice defaults this to current date. Change this if required.
    Exchange Rate Enter the exchange rate, if it is a foreign currency invoice to which you are applying this payment.
    Payment Method Click here, to select the payment mode through which you have received the payment.
    Reference# You can mention the reference number for the transaction here.
    Notes You can add any notes in this section for the payment received.
    Thank You Note Select the check box if you wish to send a thank you note to your customer.
  5. Click on the 'Save' button to add the payment.
  1. Go to the 'Invoices' tab.
  2. Go to 'payments' sub link.
  3. Go to the payment you want to delete.
  4. Click on the 'delete' link. See image below.
    Select delete payment
  1. Go to the 'Invoices' tab.
  2. Go to 'payments' sub link.
  3. Go to the payment you want to edit.
  4. Click on the 'edit' link. See image below. This opens the 'Edit Payment' page.
    Select edit payment
  5. This takes you to the Edit Payment form shown in the image below.
    Edit payment
  6. Make the modifications that you want and click on the 'Save' button.

Yes, you can record a partial payment. It is no different from recording a full payment, but for changing the amount to reflect the payment received. However, you cannot record partial payments that you receive online yet.


You can add a credit to record an advance payment or overpayment you receive from your customers. Click here for more on Customer Advances.

To receive online payments, you need to configure your payment gateway details. We support Paypal, Google Checkout and Click here for more details on payment gateways.

Troubleshooting Payment Gateways
  1. Your customer reports that he receives the message below when he pays through Paypal -

    This recipient does not accept payments denominated in WS_Error_XClick_Pref_Foreign_Currency. Please contact the seller and ask him to update his payment receiving preferences to accept this currency.

    You will receive this error message when the currency is not supported by PayPal. Please check the currency in which you raised the invoice. The currencies in which PayPal accepts customer payments are

    Australian Dollar AUD Hungarian Forint HUF Polish Zloty PLN
    Canadian Dollar CAD Israeli New Sheqel ILS Pound Sterling GBP
    Czech Koruna CZK Japanese Yen JPY Singapore Dollar SGD
    Danish Krone DKK Mexican Peso MXN Swedish Krona SEK
    Euro EUR Norwegian Krone NOK Swiss Franc CHF
    Hong Kong Dollar HKD New Zealand Dollar NZD U.S. Dollar USD

    Follow the below instructions to verify your payment preferences in Paypal

    • Log in to your account at
    • Click the My Account tab.
    • Click the Profile sub tab.
    • Click the Payment Receiving Preferences link in the Selling Preferences column.
    • Edit your preferences.
    • Click Save.
    • Your Payment Receiving Preferences have been successfully changed.

When you receive payments from your customers via bank transfers or remittances, most often banks levy a charge for that particular transaction. Zoho Invoice lets you capture these bank charges while recording the payments.

  1. Go to the 'Invoices' tab
  2. Click the add payment link for the invoice for which the payment is to be added
  3. On the 'Add Payment' page, enter the bank charges and all other payment related information
  4. Click the Save button

    Record a Bank Charges

For payments added earlier you can edit the payment to include the bank charge

  1. Go to the 'Invoices' tab
  2. Click the 'Payments Received' sub-link
  3. Choose to edit the payment to which the bank charge is to be included
  4. On the 'Edit Payment' page, add the bank charge
  5. Click the Save button

Customers paying you via payment gateways may also need the option to make partial payments for their invoices. At the time of creating the invoice, check the option Let this customer make partial payments online for this invoice.

If this option is checked, while paying online for this invoice the customer gets to pay a part of the invoice amount. (see image below)

Let your customers make partial payments online

Once the customer pays up. The paid amount is deducted from the amount due for the invoice. This option comes in handy when the contract with your customers entitles you to receive payments in installments.

Some customers may opt to pay for a bunch of invoices through a single online payment. This could be for various reason, primarily to save the bank fees spent for each individual transaction. If you were to go to each individual invoice and record a payment it would be a hassle. Zoho Invoice lets you record this payment at one go and specify which invoices have been paid for, among the customer's unpaid invoices.

  1. Start off by going to the Customers tab
  2. Choose to view the details of the customer who has paid
  3. Click the Invoice Payment link on the right hand side of the page
  4. On the following screen, enter the basic information about the payment like the date of payment and the amount received

  5. Add credits to a customer

  6. If your customer has deducted the tax before paying you, please check the "Has the customer retained the tax?" option
  7. Enter the breakup of amounts paid for the invoices
  8. Click the Save button

If you take advance payments for the jobs you do or sales you make, then here's a way to record those advance payments. Similarly, when there's an excess payment, you can record that too. An excess or advance payment is accounted as credits for the customer.

  1. Go to the Customers tab
  2. View the details of the customer, who has made an advance payment or excess payment
  3. Click the Invoice Payment link, on the right hand side of the page
  4. Go on to enter the payment information like the date and amount received
  5. Click the Save button
  6. Now the system would ask if you want to save the payment as credits to the customer. Please agree to that

The credits will be added to the customer. When you invoice or add a payment, the system would remind you about these credits. You may use them for the future invoices at any time.

Got more questions?

Submit your request to us and we will help you out.

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