# Payment Instruments
Payment Instruments let you define specific payment methods — such as NEFT, RTGS, UPI, and Deposit — and link them to your bank and digital wallet accounts. This gives you better control, improved accuracy, and clearer visibility into how payments are received and made.
Overview & List View
A Payment Instrument is a named payment method that refines the Bank and Digital Wallet payment modes — for example NEFT, RTGS, UPI, or Deposit. Once created, instruments can be tagged to your bank and digital wallet accounts and selected during transactions through the Payment Mode dropdown. (Cheque is a separate payment mode, not a payment instrument, and cash-in-hand accounts do not use instruments.)
The Payment Instruments list shows all instruments you have defined. Use the list to open, edit, or create new instruments.
List View
> Screenshot pending.
Quick Start
1. Navigate
Go to Accounts → Payment Instruments from the left menu.
2. Create an instrument
Click New, enter the instrument name (e.g. NEFT), and save.
3. Link it to an account
Open a Bank or Digital Wallet account (new or edit) and select the payment instruments that apply to that account. The Payment Instruments field appears only for bank and wallet accounts.
4. Use it in a transaction
In a supported transaction (e.g. Sale Invoice), select the exact mode from the Payment Mode dropdown — such as Bank (NEFT). The Account dropdown automatically shows only the accounts tagged with that instrument.
Create Payment Instruments
Configure your own payment instruments under Accounts → Payment Instruments.
Common examples:
You can define any instruments that match how your business actually receives and makes payments through bank or digital wallet accounts.
Link Instruments to Accounts
While creating or editing a Bank or Digital Wallet account, select the payment instruments that apply to that account. Cash-in-hand accounts do not show the Payment Instruments field.
Example:
- SBI Bank → Deposit
- HDFC Bank → NEFT, RTGS
An account can be tagged with one or more instruments, and the same instrument can be linked to multiple accounts.
How It Works
Instrument → cash account mapping
Each payment instrument is tagged to one or more bank or digital wallet Cash/Bank Accounts. When a user picks an instrument-specific Payment Mode — for example Bank (NEFT) — the Account dropdown shows only accounts linked to that instrument. Generic modes (Cash, Bank, Credit, Wallet) continue to show all accounts of that type.
Payment modes on vouchers and expenses
Payment Mode and the underlying payment instrument are stored separately on each transaction. Supported on Receipt Voucher, Payment Voucher, Expense, Prepaid Expense, and sale/purchase bills. The selected mode determines which cash or bank account receives or pays funds and whether cheque details appear on payment vouchers.
Connected reports: Payment Voucher Report, Receipt Voucher Report, Day Book, Account Transactions (cash/bank account movement by payment mode).
Select the Exact Payment Mode During Transactions
The Payment Mode dropdown now includes the standard modes plus instrument-specific options, for example:
- Cash
- Credit
- Bank
- Bank (NEFT)
- Bank (RTGS)
- Bank (Deposit)
- Wallet (UPI)
This lets users capture the exact payment method used on each transaction. The Payment Mode and the Payment Instrument are stored separately on the transaction, giving cleaner records and more meaningful reporting.
Smart Account Filtering
When a payment instrument is selected, the Account dropdown automatically shows only the accounts tagged with that instrument. This reduces incorrect account selection and speeds up data entry.
Example
You have two bank accounts:
- SBI → tagged with Deposit
- HDFC → tagged with NEFT and RTGS
In a Sale Invoice:
- Selecting Bank (Deposit) shows only SBI in the Account list.
- Selecting Bank (NEFT) shows only HDFC.
- Selecting Bank (without an instrument) continues to show all bank accounts, just as before.
Where It's Available
Payment Instruments are supported in both New and Edit screens of the following transactions:
- Sale Invoice
- Credit Note
- Purchase Invoice
- Debit Note
- Advance Sale Invoice
- Expense
- Purchase Expense
- Prepaid Expense
- Import Tax Voucher
- Receipt Voucher
- Payment Voucher
Good to Know
- Fully optional and backward-compatible. If no payment instruments are created, the system continues to work exactly as before.
- Stored separately. The payment mode and payment instrument are kept as separate values on each transaction, providing cleaner records and more meaningful reporting.
Best Practices
- Match real methods: Create instruments that mirror how money actually moves in your business (NEFT, RTGS, UPI, Deposit, Cheque).
- Tag accounts carefully: Link each cash, bank, or wallet account only to the instruments it genuinely supports so smart filtering stays accurate.
- Use specific modes: Prefer the instrument-specific mode (e.g. Bank (NEFT)) over the generic Bank mode for cleaner reporting.
- Keep names clear: Use the same names users already recognize from bank statements and remittance advices.
FAQ
Do I have to create payment instruments?
No. The feature is fully optional. If you create none, payment modes and account selection behave exactly as before.
Where do I create payment instruments?
Under Accounts → Payment Instruments. Click New, enter a name, and save.
How do I make an instrument appear for an account?
Open a Bank or Digital Wallet account in new or edit mode and select the instruments that apply to it. The field is not shown for cash-in-hand accounts.
Is Cheque a payment instrument?
No. Cheque (and PDC) is a standalone payment mode with its own cheque-tracking workflow. Payment instruments only refine the Bank and Digital Wallet modes.
Why does the Account dropdown show fewer accounts after I pick a mode?
When a payment instrument is selected, the Account list is automatically filtered to only the accounts tagged with that instrument. Selecting plain Bank (without an instrument) shows all bank accounts.
Can one instrument be linked to several accounts?
Yes. An instrument can be linked to multiple accounts, and an account can carry multiple instruments.
Is the payment instrument stored on the transaction?
Yes. The payment mode and the payment instrument are stored separately on each transaction for cleaner records and reporting.
Which screens support this?
Sale Invoice, Credit Note, Purchase Invoice, Debit Note, Advance Sale Invoice, Expense, Purchase Expense, Prepaid Expense, Import Tax Voucher, Receipt Voucher, and Payment Voucher — in both New and Edit screens.
Related documentation
- Receipt Voucher — record money received; select the exact payment mode and instrument.
- Payment Voucher — record money paid out using the matching payment instrument.
- Accounts Settings — manage cash and bank accounts that instruments are linked to.