You can record a payment in two ways. From the bill: open the approved bill and click Record Payment. From the Payments Made list: go to Purchases, then Payments Made, and click New Payment. Enter the vendor, the payment date, the amount, the payment mode (NEFT, RTGS, cheque, cash, or UPI), and the bank account from which the payment was made. If the payment covers multiple bills, select all relevant bills and allocate the amount across them.
When you pay a vendor who is subject to TDS (for example, a professional fees vendor at 10% TDS), Zoho Books lets you deduct TDS directly in the payment record. The payment entry debits Accounts Payable for the full bill amount, credits your bank for the net amount paid (bill minus TDS), and credits TDS Payable for the deducted amount. This keeps both the vendor’s ledger and the TDS liability account accurate without a separate journal entry.
Zoho Books supports making payments to multiple vendors at once through the Payments Made bulk action. You can also connect Zoho Books to your bank’s payment gateway (via the Razorpay Payout integration, for example) to initiate NEFT or RTGS payments directly from Zoho Books without logging into net banking separately. The bank confirmation automatically reconciles against the payment record in Zoho Books.
Payment Made in Zoho Books is the record of money paid to a vendor against one or more bills. It debits Accounts Payable and credits your bank or cash account, clearing the bill balance and updating the vendor’s outstanding amount.
Open the vendor bill and click Record Payment. Enter the payment date, amount, payment mode, and the account the payment was made from. Save to apply the payment and reduce the bill balance.
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