In short: When a customer pays an old bill, open the bill's More menu and click Add Payment, or go to Payments > Payment Entries > Payment In. To see who owes you what, open the customer in Parties and check their ledger.

Record a payment against a bill

1. Go to Sales > Tax Invoices. Unpaid bills show UNPAID (or partly paid).
2. On the bill, open the More menu and click Add Payment.
3. The party and the bill are filled in. Check the Payment Date.
4. Choose the Payment Type: Online, Cash, UPI, Cheque, Card, POS or Bank Transfer.
5. In Enter Amount, type what the customer paid. It can be less than the bill; the rest stays as udhaar.
6. Add a note if useful (for example a cheque number) and click Save & Update.

Add Payment In: a part payment of ₹2,000 against a ₹3,450 bill.

A customer paying against several bills? Click Add Invoices in the same window to add more bills to one payment.

See all payments

Go to Payments > Payment Entries. Payment-In lists money received from customers and Payment-Out lists money paid to suppliers, with totals at the top. Click + Payment In to record a payment from here.

Check a party's ledger (udhaar khata)

1. Go to Parties > Parties Details.
2. Click the eye icon on the customer (or supplier on the Vendors tab).
3. The Closing Balance shows what they owe now. The Party ledger lists every bill, payment and return with a running balance.
4. Pick a date range to see one period. Click View PDF to share the ledger with the customer, or Export CSV for Excel.

A customer's ledger with the closing balance at the top right.

Good to know

• A payment can't be more than what is due on the bill; the app stops overpayments.
• If you delete an invoice, its payments may be deleted with it. Re-record them on the new invoice.
• Give regular customers a ledger PDF at month-end. It cuts down arguments about old dues.