When it’s time to pay your vendors, the Payment Made record is how you log it. You’ll choose exactly which bills to cover — fully or partially — and specify the bank or cash account the money came from. Once saved, your Accounts Payable updates automatically.
Recording a Payment
Navigate to Payments Made
Go to Buy > Payments Made in the sidebar and click New Payment.
Select the Vendor
Choose the Vendor from the dropdown. The moment you do, all of their outstanding bills will auto-populate in the allocation table below — no searching required.
Heads up: You can’t change the vendor after a payment is saved. Selected the wrong one? Simply delete the payment and create a fresh one.
Fill in Payment Details
- Payment Date (required) — The date the payment was actually sent. Future dates aren’t allowed.
- Payment # — Auto-generated reference number. This is read-only, so you don’t need to worry about it.
- Amount (required) — Total amount you’re paying. Hit Pay in Full to auto-fill the exact amount needed to clear every outstanding bill at once.
- Payment Mode (required) — How you paid (Cash, Bank Transfer, Cheque, etc.).
- Paid Through (required) — The bank or cash account the money came from.
- Reference# — Optional — drop in your bank transaction ID, cheque number, or any external reference for easy tracking.
Allocate to Bills
The table at the bottom shows every unpaid bill for this vendor. For each bill you want to settle, enter the amount in the Payment column.
| Column | Description |
|---|---|
| Date | Bill date |
| Bill# | Bill document number |
| Reference# | Bill’s own reference number |
| Bill Amount | Total bill value |
| Amount Due | Remaining unpaid balance |
| Payment | Amount you’re applying from this payment |
The system automatically allocates using FIFO (First In, First Out) — oldest bills get paid first. Want a different order? Just manually override any row with a custom amount.
Save
Click Save. The bills you allocated will have their outstanding balance reduced instantly. Fully paid bills are automatically marked as settled — one less thing to track.
Payment Status Lifecycle
| Status | What It Means |
|---|---|
| Draft | Payment is being prepared — no effect on bill balances yet. |
| Pending | Payment is awaiting confirmation or processing. |
| Paid | Payment has been applied — linked bills are updated. |
| Cancelled | Payment has been voided — bill balances are fully restored. |
Partial Payments & Unused Amount
If the Amount you record is less than the total outstanding, only the bills you explicitly allocated will be updated — no surprises.
If the amount is more than what you allocated? The leftover becomes an Unused Amount. It stays on the vendor’s account like a credit, ready to be applied to future bills whenever you need it.