Record payment of a sales invoice or bill
You can record a full or part payment of a sales invoice or bill that's awaiting payment.
Get to a sales invoice that's awaiting payment from Sales or a bill that's awaiting payment from Purchases. You can also drill down from certain reports or customer statements. Your user role will determine whether you can record a payment of an invoice or a bill.
Role comparison tables
- Batch pay bills together
- Create a cheque payment for a bill
- Email a remittance after recording payment on a bill
Pay a sales invoice or bill
If your accounts have been locked your role and the type of lock will determine whether you can enter a payment date that is before the lock date.
You can record a full or part payment on an Awaiting Payment sales invoice or bill. A payment transaction will be created in the bank account for a payment you enter. If the invoice or bill is fully paid, its status will change to ‘Paid’ and it will move to the Paid tab.
If you are recording a payment for an invoice or bill that was automatically generated to repeat, the payment is applied to the individual transaction only and not to any others in the series.
The fields and process for paying an Awaiting Payment invoice or bill is the same.
Click on your invoice or bill to open it, then scroll to the Make a payment section at the bottom of it.
Invoices or bills marked as paid will no longer
display on Money Coming In (aged debtor) or Money Going Out graphs on the main Dashboard.
Enter the amount paid. The Amount Paid field defaults to the total amount due on the invoice or bill, taking into account any payments already made or credit notes attached to it. You can change this to another amount if a part payment was made.
The date on which you made or received the payment or part payment. If the Date Paid on an invoice or bill you are paying is in the future, it will display with the amount being paid on the Money Going Out graph (in green).
Choose the account from which you made the payment or have received the payment into.
Payment reference if required.
All fields with the exception of Reference are mandatory.
Pay by cheque
Tick Pay by cheque if you want to print the cheque from Xero, or to record you're paying the invoice by cheque.
View the changes that have been tracked for the invoice or bill in History & Notes.
Enter a note specific to this invoice or bill at any time in History & Notes.
Invoices or bills that have been fully paid will no longer appear on the awaiting payment tab.
Complete partial payments
You can make partial payments directly from bank reconciliation by creating a 'split' transaction on the invoice or bill.
Sales invoices or bills that have been partially paid i.e. have an amount outstanding will remain on the Awaiting Payment tab until the full amount has been recorded as paid. The amount paid, and amount due will display.
The invoice or bill will reflect any partial payments made or credit notes attached. You can record partial payments as often as necessary until it is fully paid - but no more than the total amount due.
Any amounts paid or credited will also show on the PDF invoice if you wanted to send a copy of an invoice showing partial payments to your customer.
You can also record overpayments directly from bank reconciliation by adding the Spend Money or Receive Money overpayment in Find & Match.
Sales invoices or bills that have been overpaid will go straight to the Paid tab. The overpayment transaction will go to the Awaiting Payment tab. It will stay there till you refund the overpayment or use it as credit on another invoice or bill.
The paid invoice or bill will show the amount paid, less the overpayment amount. The overpayment is a separate transaction and not an amount owed on the invoice or bill. However, invoice (Spend Money) overpayments will show on customer statements.
You cannot edit any part of a sales invoice or bill that has been paid, except for the account it has been assigned to, the tracking and file attachments.
If you have entered a payment in error you can delete the payment from the list of transactions in the relevant bank account.
You cannot delete an invoice or bill that has been paid. However, you can delete the payment, which will return it to the awaiting payment tab. You can then void it. For best accounting practice you should credit an invoice or bill rather than voiding it. You should only void an invoice or bill you have not sent. For how to credit invoices or bills you should speak to your accountant or bookkeeper. For more information on credit notes in Xero please see our Credit Notes help.