A Payment Voucher records money paid out to suppliers, employees, or other parties. It helps track disbursements, clear outstanding purchase invoices and documents, and maintain accurate cash and bank balances.
The Payment Voucher list shows all payments with key details such as date, bill number, supplier or party, amount, payment mode, and status. Use the list to open, review, or filter existing vouchers.
List View
Quick Start — Create a Payment
1. Navigate
Go to Accounts → Payment Voucher from the left menu.
2. Create new voucher
Click New to open the payment entry screen. Select the On Transaction type first — this controls which fields and line tables appear.
3. Fill in details
Enter the Date and select the party fields shown for your transaction type.
Add lines in Transactions (and Adjustments if applicable).
Select Payment Mode and From Account when cash or bank is being paid out.
Review the Amount — it should match what is actually paid or set off.
4. Save
Save — keeps the voucher as a draft for later review.
Save & Approve — approves the voucher, updates linked documents, and posts the accounting entry.
Cancel — closes the form without saving.
Header Fields Reference
| **Field** | **Description** |
|-----------|-----------------|
| Date | Date of the payment. Defaults to today but can be changed. |
| On Transaction | Type of payment. Determines which party fields and line tables are shown. See Transaction Types below. |
| To Account | Supplier or party to whom payment is made. Label changes by type — e.g. Supplier, Supplier A, or Customer for credit note payments. Hidden for Other Expenses / Custom when Multiple is enabled. |
| Customer | Shown for Customer Balance Adjustment. The party whose customer-side balance is being adjusted. |
| Supplier B | Shown for Supplier To Supplier Adjustment. The second supplier whose debit note balance is applied. |
| From Account | Cash or bank account from which payment is made. Required for Cash, Bank, and Digital Wallet; not shown for Cheque or PDC. |
| Multiple | When enabled, allows more than one document line in the Transactions table, or split payments across parties in a Custom voucher. Always on for balance adjustment types. |
| Gross Amount | Total from transaction lines before discounts and adjustments. For balance adjustments, this is the Set-off Amount. |
| Adjustment Amount | Total from debit notes or other adjustment lines. Reduces the net amount paid. |
| Cash Discount | Optional discount received on cash payment. Reduces the net amount. |
| TDS Percentage / TDS Amount | Tax deducted at source, shown for applicable companies. TDS Amount is computed from the percentage and deducted from the payment amount. |
| Amount | Net amount paid or set off. See Amount Calculation below. Hidden for balance adjustment types — use Set-off Amount instead. |
| Payment Mode | How payment is made: Cash, Bank, Cheque, PDC, or Digital Wallet. Hidden for pure set-off types with no cash paid. |
| Currency / Exchange Rate | Used when the payment is in a foreign currency. |
| Cheque details | Shown when Cheque or PDC is selected — cheque number, date, bank, and notes. Creates a record under Accounts → Issued Cheques. |
| Employee | Employee linked to the payment, if applicable. |
| Notes | Optional remarks about the payment. |
Amount Calculation
For most payment types, the net amount is calculated as:
Amount = Gross Amount − Adjustment Amount − Cash Discount − TDS AmountExceptions by transaction type
Purchase Invoice and other standard types — debit notes in Adjustments, cash discount, and TDS reduce the amount actually paid.
Customer Balance Adjustment and Supplier To Supplier Adjustment — no cash is paid. Set-off Amount equals the net totals on both document sides, and Payment Mode is not shown.
Payment Modes & Cheque / PDC
| **Payment Mode** | **Description** |
|------------------|-----------------|
| Cash | Physical cash paid from a cash account. |
| Bank | Direct bank transfer or withdrawal from a bank account. |
| Cheque | Cheque issued to the payee. Creates a record under Accounts → Issued Cheques. Enter cheque number, date, and bank details. |
| PDC | Post-dated cheque — a cheque with a future date. The voucher may show status PDC Issued until the cheque is cleared. See the Issued Cheques page for tracking and clearance. |
| Digital Wallet | Payment made through a digital wallet account. |
Payment instruments
When payment instruments are configured, Bank and Digital Wallet modes show instrument-specific options such as Bank (NEFT), Bank (RTGS), or Digital Wallet (UPI). Selecting an instrument filters the From Account dropdown to accounts tagged with that instrument. See Payment Instruments for setup.
Cheque vs PDC
Both require cheque details to be entered. For PDC, the cheque date must be after the payment voucher date.
When a payment using Cheque or PDC is cancelled, the linked issued cheque is also cancelled.
Line Tables — Transactions, Adjustments, Populate Lines
Transactions table
Lists the documents being settled on the payment side. Common columns:
Sl.No — line serial number
Document — purchase invoice, expense, or other document (label changes by transaction type, e.g. Purchase Invoices, Supplier A Documents)
Date — document date
Employee — linked employee, if any
Balance — outstanding balance on the document
Amount — amount being applied on this payment
Adjustments table
Lists offsetting documents that reduce the net amount paid:
Purchase Invoice — debit notes against supplier purchase invoices
Customer Balance Adjustment — sale invoices or credit notes on the customer side (Customer Documents)
Supplier To Supplier Adjustment — debit notes on Supplier B side (Supplier B Documents)
Populate Lines
Populate Lines automatically allocates an entered amount against outstanding documents, starting from the oldest invoice first and continuing until the amount is fully used.
Available for: standard types such as Purchase Invoice where a party account is selected.
Not available for:Customer Balance Adjustment or Supplier To Supplier Adjustment. For these types, add lines manually in the Transactions and Adjustments tables.
Transaction Types
The On Transaction field determines which party accounts appear, which documents can be added to the line tables, and whether cash is paid out.
Quick reference
| **On Transaction** | **Cash paid?** | **Populate Lines?** | **Main party fields** |
|--------------------|----------------|---------------------|------------------------|
| Purchase Invoice | Yes | Yes | To Account (Supplier) |
| Expense | Yes | No | To Account |
| Purchase Expense | Yes | No | To Account |
| PayRun | Yes | No | To Account |
| Prepaid Expense | Yes | No | To Account |
| Other Expenses / Custom | Yes | No | To Account (or split via Multiple) |
| Credit Note | Yes | No | To Account (Customer) |
| Import Tax Voucher | Yes | No | To Account |
| Customer Balance Adjustment | No | No | Supplier + Customer |
| Supplier To Supplier Adjustment | No | No | Supplier A + Supplier B |
| Purchase Order | Yes | No | To Account (Supplier) |
| Work Order | Yes | No | To Account (Supplier) |
Purchase Order and Work Order appear only when the Payment on Order company preference is enabled.
Standard Transaction Types
1. Purchase Invoice
Record payment to a supplier against one or more outstanding purchase invoices.
• To Account: Supplier
• Transactions: Purchase Invoice lines
• Adjustments: Debit Notes (optional)
• Supports Multiple and Populate Lines for automatic oldest-first allocation.
2. Expense
Record payment against an expense entry.
• To Account: Supplier or other party
• Transactions: Expense line
3. Purchase Expense
Record payment linked to a purchase expense document.
• To Account: Supplier
• Transactions: Purchase Expense line
4. PayRun
Record salary or payroll disbursement against a pay run.
• Transactions: PayRun line
5. Prepaid Expense
Record payment against a prepaid expense document.
• To Account: Supplier or party
• Transactions: Prepaid Expense line
6. Other Expenses / Custom
Record miscellaneous payments not tied to a specific document at entry time. Supports Link with Bill after approval to associate the payment with purchase invoices or other documents later. A payment started as Purchase Invoice (or another convertible type) can become Custom if you accept Proceed as custom on an excess amount.
• To Account: Supplier or Customer
• Can use Multiple with split payments across parties.
7. Credit Note
Record payment to a customer against a credit note balance (amount owed to the customer).
• To Account: Customer
• Transactions: Credit Note line
8. Import Tax Voucher
Record payment related to import tax obligations.
• To Account: Supplier or party
• Transactions: Import Tax Voucher line
9. Purchase Order
Pay against a purchase order. Appears only when Payment on Order is enabled.
• To Account: Supplier
• Transactions: Purchase Order line
10. Work Order
Pay against a work order. Appears only when Payment on Order is enabled.
• To Account: Supplier
• Transactions: Work Order line
Customer Balance Adjustment
Set off a party's supplier-side payables against customer-side receivables — used when a business partner is both a customer and a supplier. No cash is paid.
Key fields
• Supplier: The supplier whose payables (supplier side) are being adjusted.
• Customer: The party whose receivables (customer side) are being set off.
• Set-off Amount: Total amount being adjusted (must match both sides).
• Supplier Documents (Transactions): Purchase Invoice lines on the supplier side.
• Customer Documents (Adjustments): Sale Invoice or Credit Note lines on the customer side.
• Payment Mode: Not shown — this is a balance adjustment, not a cash payment.
Example
Party X is both a customer and a supplier:
• As supplier: outstanding purchase invoice of 500
• As customer: outstanding sale invoice of 500
Create a Customer Balance Adjustment with purchase invoice 500 in Supplier Documents and sale invoice 500 in Customer Documents, Set-off Amount 500. On approval, both documents reduce balance by the set-off; when the set-off covers the full balance, both documents close. No cash movement.
Notes
• Each Customer Documents line must be either a sale invoice or a credit note — not both on the same line.
• Debit notes and purchase invoices are not allowed in Customer Documents.
• Supplier Documents and Customer Documents net totals must equal the Set-off Amount.
• Populate Lines is not available; add lines manually.
• On approval, linked documents update balance and close when fully settled: purchase invoices on Supplier Documents; sale invoices and credit notes on Customer Documents. Partially set-off documents stay open with the remaining balance.
• Cancel the payment voucher before cancelling a linked purchase invoice, sale invoice, or credit note.
• On statements, the set-off appears as On Set-off: debit on Supplier Statement and credit on Customer Statement.
Supplier To Supplier Adjustment
Transfer or offset balance between two different suppliers — one supplier's payable is cleared using another supplier's debit note balance. No cash is paid.
Key fields
• Supplier A: The supplier whose payables are being cleared.
• Supplier B: The supplier whose debit note balance is being applied.
• Set-off Amount: Total amount being adjusted (must match both sides).
• Supplier A Documents (Transactions): Purchase Invoice lines.
• Supplier B Documents (Adjustments): Debit Note lines only.
• Payment Mode: Not shown — this is a balance adjustment, not a cash payment.
Example
• Supplier A has an outstanding purchase invoice of 300
• Supplier B has a debit note of 300
Create a Supplier To Supplier Adjustment with A's purchase invoice in Supplier A Documents and B's debit note in Supplier B Documents, Set-off Amount 300. On approval, both documents reduce balance by the set-off; when fully covered, they close. No cash movement.
Notes
• Supplier A and Supplier B must be different parties.
• Only debit notes are allowed in Supplier B Documents.
• Supplier A Documents and Supplier B Documents net totals must equal the Set-off Amount.
• Populate Lines is not available; add lines manually.
• On approval, linked documents update balance and close when fully settled: purchase invoices on Supplier A Documents; debit notes on Supplier B Documents. Partially set-off documents stay open with the remaining balance.
• Cancel the payment voucher before cancelling a linked purchase invoice or debit note.
• On Supplier Statement, Supplier A shows an On Set-off credit line and Supplier B shows an On Set-off debit line.
Excess Amount
When you enter a payment against a single bill and the amount is at least 1 more than that bill’s open balance, save is not blocked with a toast. An Excess amount warning is shown instead.
When you can proceed as custom
Applies to Purchase Invoice, Expense, Prepaid Expense, PayRun, Credit Note, Purchase Order, and Work Order.
Cancel — nothing is saved.
Proceed as custom — the voucher is saved as Other Expenses / Custom. The original bill is linked for its open balance. The leftover stays unlinked and can be allocated later with Link with Bill.
The warning looks like this:
Payment amount X exceeds invoice BILL balance Y by Z. Proceed to save as a custom payment and link the invoice for min(X, Y)? The remaining Z will stay unlinked.
Example
Invoice balance 100, payment 150 → after Proceed, custom payment of 150, invoice linked for 100, 50 unlinked.
When excess is allowed without convert Other Expenses / Custom, Fixed Asset, and Purchase Expense can still be saved for more than the document balance. They stay the same type.
When excess is not allowed
For set-off types (such as Customer Balance Adjustment and Supplier To Supplier Adjustment) and other types that cannot be custom-linked, the warning appears without Proceed as custom. OK closes it and save is blocked.
Notes
If the amount matches the balance (or is over by less than 1), the payment stays the original type. Nothing is converted.
Multiple invoice lines still cannot exceed a line’s open balance.
Bulk multi-employee save still blocks excess.
Convert happens only when there is excess and you click Proceed. Cancel leaves the form unchanged.
After convert, reopening the voucher shows the Custom form. That is expected.
The invoice balance drops only when the voucher is approved. A draft shows the bill under Linked Bills with link status Pending.
On a converted custom payment, the header does not show a Transaction Invoice. The bill appears only in Linked Bills.
Link with Bill
The Link with Bill option lets you associate an approved payment with specific purchase invoices or other documents after the payment has been saved. This is useful for Other Expenses / Custom payments that were recorded before the related bill was known, and leftover amounts after an excess convert.
Purpose
Map payment vouchers to the correct supplier invoices or documents.
Ensure disbursements are reflected against the related bills.
Maintain a clear audit trail between invoices and payments.
Avoid duplicate or unmatched payment entries.
When it applies
Link with Bill is available only for payments with Other Expenses / Custom as the On Transaction type, and only after the payment is approved.
Workflow
Open Accounts → Payment Voucher and create a new payment with Other Expenses / Custom — or open a custom payment created by excess convert.
Fill in party, date, payment mode, and amount. For a single party, select To Account. For a split across parties, enable Multiple and enter each supplier or customer with their amount.
Save & Approve the voucher if it is still a draft.
Open the three-dot menu on the approved payment and select Link with Bill.
In Custom Payments Linking:
When the voucher was split across parties, select Supplier or Customer first (only parties from the voucher appear). For a single To Account they are not asked again.
Choose On Transaction at the top (Purchase Invoice, Expense, Credit Note, Prepaid Expense, Purchase Expense, PayRun; Purchase Order / Work Order when Payment on Order is enabled).
Use the search icon next to On Transaction to open the pending-bills list. The title shows the remaining Unlinked amount on this payment.
Only open documents for that type and party are listed. For Expense, only credit-mode expenses with remaining balance are listed. Oldest bills that cover the unlinked amount are pre-selected (the last bill can be partial). Tick or untick before confirming.
Confirmed rows fill the table with those allocated amounts. You can still edit amounts, or add a row manually and pick Transaction Id when you need a specific bill.
Bills already approved on this payment stay locked. Newly added rows are applied when you Approve. Linked amounts for a party cannot exceed that party's allocation on the voucher.
Approve the linking. The bill status updates to Partially Paid or Fully Paid as applicable. Total linked amount cannot exceed the payment amount.
Viewing linked bills
Open the payment voucher and expand it to see the Linked Bill section.
Unlinking bills
If a payment was linked to the wrong bill:
Open the payment voucher.
Expand the Linked Bills section.
Click Unlink on the incorrect entry.
Once unlinked, the bill reverts to its previous payment status, and the payment can be linked to the correct bill.
Voucher Actions & Status
| **Action** | **Description** |
|------------|-----------------|
| Save | Saves the voucher as a Draft. No accounting entry is posted and linked documents are not updated. |
| Save & Approve | Approves the voucher in one step. Linked documents are updated and the accounting entry is posted. |
| Cancel (form) | Closes the entry screen without saving changes. |
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited, deleted, or approved later. |
| Approved | Finalized. Linked documents updated and accounting entry posted. |
| For Revisal | Sent back for correction. Can be edited or deleted before re-approval. |
| PDC Issued | A post-dated cheque was issued. Awaiting cheque clearance. |
| Closed | Fully settled/linked voucher; still supports Cancel and Master Update. |
| Cancelled | The payment has been cancelled. The posted journal is reversed and the linked cheque (if any) is also cancelled. |
When multi-level approval is enabled, a voucher can also show Multi Level Approval (awaiting approval stages) and Multi Level Approval Rejected.
Master Update
Master Update lets you change selected header fields on an approved or closed payment voucher without reopening the full edit form. Open a voucher, click the more menu (⋮), and select Master Update.
When available: Approved or Closed status only.
Dialog actions: Confirm, Cancel
Fields that can be master-updated
| **Field** | **Required** | **Description** |
|-----------|--------------|-----------------|
| Date | Yes | Voucher date and time. Updating the date also updates the linked journal date. |
| Employee In charge | Optional | Employee responsible for the voucher. |
| Branch | Optional | Branch assignment. |
| Brand | Optional | Brand assignment. |
| Project | Optional | Project assignment. |
Not master-updatable: party, amount, payment mode, accounts, linked bills, adjustments, and notes.
View Tabs & Side Panels
When you open a payment voucher in full view (not in a small modal), the right side shows tabbed panels. Click the expand icon on a tab to open the same data in a larger modal.
Middle panel
| **Tab** | **What it shows** |
|---------|-------------------|
| Journal Info | Accounting journal entries posted by this voucher. Requires journal access. See Journal Report. |
| Linked Bills | Bills linked to this payment. Shown for Custom On Transaction type only. A draft after an excess convert can show a Pending link until approve. |
Bottom panel (all transactions)
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or cancelled the voucher and when. |
| Attachments | Files uploaded to this voucher. |
Best Practices
Link to invoices: For standard payments, always select the outstanding purchase invoices being paid for clear payables tracking.
Multiple mode: Use when paying against several invoices in one payment, or when payment is split across parties in a Custom voucher.
Balance adjustments: Use Customer Balance Adjustment or Supplier To Supplier Adjustment instead of manual journal entries when offsetting balances between parties.
Debit notes: Add debit notes in the Adjustments table to reduce the net amount paid rather than entering a lower gross amount manually.
Cheque payments: Always enter complete cheque details. Track clearance under Accounts → Issued Cheques.
Custom payments: Use Other Expenses / Custom for payments not tied to a specific invoice at entry time, then use Link with Bill after approval. Use the pending-bills search to allocate leftover amount (including leftover after an excess convert).
Excess payment: If you pay more than one invoice, use Proceed as custom so the invoice is linked for its balance and the leftover can be linked later.
PayRun payments: Use the PayRun transaction type for payroll disbursements to maintain proper employee payment tracking.
FAQ
When should I use Customer Balance Adjustment vs Purchase Invoice?
Use Customer Balance Adjustment when the same party is both a customer and a supplier and you want to set off receivables against payables without cash movement. Use Purchase Invoice when making an actual payment to a supplier.
What documents can go in Customer Documents for Customer Balance Adjustment?
Each line must be either a Sale Invoice or a Credit Note belonging to the selected customer. Debit notes and purchase invoices are not allowed on the customer side.
Do sale invoices close on Customer Balance Adjustment?
Yes. On approval, sale invoices and credit notes in Customer Documents reduce balance like a receipt allocation and close when balance reaches zero. Purchase invoices in Supplier Documents close the same way. Partially set-off documents stay open with the remaining balance.
Why is Populate Lines not available? Populate Lines is not shown for Customer Balance Adjustment or Supplier To Supplier Adjustment. Add document lines manually in the Transactions and Adjustments tables.
Why is Payment Mode hidden? Payment Mode is hidden for Customer Balance Adjustment and Supplier To Supplier Adjustment because no cash is paid out.
What is Supplier To Supplier Adjustment used for?
It is used when you need to offset one supplier's outstanding purchase invoice using another supplier's debit note balance — for example when two suppliers are related or balances need to be transferred between them.
Can the same supplier be selected for both sides in Supplier To Supplier Adjustment?
No. Supplier A and Supplier B must be different parties. The system will not allow the same supplier on both sides.
How do debit notes work on a normal Purchase Invoice payment?
Add debit notes in the Adjustments table. The Adjustment Amount reduces the net Amount paid. The debit note balance is updated when the payment is approved.
What happens if I cancel a payment that used Cheque payment mode?
The linked issued cheque under Accounts → Issued Cheques is also cancelled.
Can I link a payment to invoices after saving?
Yes, using Link with Bill on an approved Other Expenses / Custom payment. Open the three-dot menu, select Link with Bill, choose On Transaction, then use the search icon to pick pending bills (or add a row and pick Transaction Id).
What happens if the payment amount is more than the invoice balance?
On a single bill, an Excess amount warning is shown. Cancel does not save. Proceed as custom saves the payment as Other Expenses / Custom and links the invoice for its open balance; the leftover stays unlinked. See Excess Amount. Multiple invoice lines still cannot exceed a line’s balance. Custom, Fixed Asset, and Purchase Expense can still be saved over balance without converting.
Why did my Purchase Invoice payment become Custom after save?
You accepted Proceed as custom because the amount exceeded the invoice balance. The invoice is linked for its balance (pending until approve). Reopening the voucher as Custom is expected.
When does the invoice balance reduce after an excess convert?
Only when the voucher is approved. A draft pending link does not change the invoice balance.
Why is Transaction Id empty when linking expenses for a multi-supplier custom payment?
Select the Supplier on the linking row first, then set On Transaction to Expense. Transaction Id lists open credit expenses for that supplier only. Also confirm the expense is approved, credit mode, and still has a remaining balance.
What if document totals on both sides of a balance adjustment do not match?
The Set-off Amount must equal the net totals on both the Transactions and Adjustments sides. The system will not allow saving until both sides match.
Why must I cancel purchase invoices before cancelling order payment?
When a payment is linked to a purchase order, open purchase invoices on that order must be cancelled first.
What are PDC rules on payment voucher?
PDC pay mode with cheque date after voucher date creates PDC issued status. Bank balance updates when the issued cheque is cleared.
Related Topics & Videos
Related documentation
Issued Cheques — track and clear cheques and post-dated cheques issued through payment vouchers.
Viewing linked bills
Unlinking bills