Receipts and payments
Money in from customers, money out to suppliers, full or partial, advances, and settling a specific invoice.
What it is
A receipt is money a customer gives you; a payment is money you give a supplier. Each one lowers the party's balance (what they owe you, or you them). Shop payments — Razorpay and cash on delivery — post themselves: online money lands in *Razorpay (money on its way)*, COD in *Cash* on the day of delivery.
Steps
- To settle one invoice: open it (Sales invoices) and record the receipt there — the amount is allocated to that invoice and its outstanding drops to zero.
- General receipt or payment: Accounting → Receipts & payments. Pick the party, the amount, the account the money moved through, and a reference (UTR, cheque). If nothing is due, it is an advance and sits on the party's balance until the next invoice.
- Outstanding by party and by age: Reports → Receivables / Payables ageing.
Razorpay settlements
When Razorpay pays your bank, record a contra (Bank & cash) from *Razorpay (money on its way)* to the bank account, and the fee as an expense under *Bank & payment charges*.