- If a payment is linked to an invoice, it reduces the amount due of the invoice. You can have multiple payments linked to the same invoice.
- If a payment is not linked to an invoice, the customer has an outstanding credit with your company, or your company as an outstanding balance with a vendor. You can use this outstanding credit/debit to pay future invoices or bills.
Paying an invoice #
If you register a payment on a customer invoice or a vendor bill, the payment is automatically reconciled with the invoice reducing the amount due.
The green icon near the payment line will display more information about the payment. From there you can choose to open the journal entry or reconcile the payment.
Payments not tied to an invoice #
Registering a payment #
In the Accounting application, you can create a new payment from the Sales menu (register a customer payment) or the Purchases menu (pay a vendor). If you use these menus, the payment is not linked to an invoice, but can easily be reconciled on an invoice later on.
Once confirmed, a journal entry will be posted reflecting the transaction just made in the accounting application.
Reconciling invoice payments #
The easiest way of reconciling a payment with an invoice is to do so on the invoice directly.
When validating a new invoice, CPA Books will warn you that an outstanding payment for this customer or vendor is available. In this case, you can reconcile this payment to the invoice near the totals at the bottom, under “Outstanding Payments”.
Reconciling all your outstanding payments and invoices #
If you want to reconcile all outstanding payments and invoices at once (instead of doing so one by one), you can use the batch reconciliation feature within CPA Books.
The batch reconciliation feature is available from the dashboard on the Customer Invoices card and the Vendor Bills card for reconciling Accounts Receivable and Payable, respectively.
The payments matching tool will open all unreconciled customers or vendors and will give you the opportunity to process them all one by one, doing the matching of all their payments and invoices at once.
Transferring money from one bank account to another #
Just like making a customer or vendor payment, you transfer cash internally between your bank accounts from the dashboard or from the menus up top.
This will take you to the same screen you have for receiving and making payments.