You can record a payment received in two ways. From the invoice: open the invoice and click Record Payment. From the Payments Received list: go to Sales, then Payments Received, and click New Payment. Either way, you specify the customer, the payment date, the amount, the payment mode (bank transfer, NEFT, RTGS, UPI, cheque, or cash), and the deposit account (your bank account in Zoho Books). If the payment covers multiple invoices, select all relevant invoices and allocate the amount across them.
When a customer pays less than the full invoice amount, Zoho Books marks the invoice as “Partially Paid” and records the balance as still outstanding in Accounts Receivable. The remaining amount continues to appear in the Aged Receivables Report until fully cleared. You can apply subsequent payments to the same invoice until it is fully settled.
When a customer deducts TDS before paying, the payment received is less than the invoice amount. In Zoho Books, record the full invoice amount as the payment but account for TDS separately. Many organisations record TDS deducted by customers as a credit to TDS Receivable (an asset account), with the balance offset when the Form 26AS credit is confirmed. Your CA will guide the exact journal entries for this treatment.
Payment Received in Zoho Books is the record of money collected from a customer against one or more invoices. It debits your bank or cash account and credits Accounts Receivable, clearing the invoice balance and updating the customer’s outstanding amount.
Open the invoice and click Record Payment. Enter the payment date, amount, payment mode, and deposit account. Save to apply the payment and clear the invoice balance.
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