đŗ Payments, Credit Notes & Collections
The sale isn't complete until the money is in your bank. This guide covers the end-to-end payment collection process, handling partial payments, and issuing credit notes for returns.
In Versoll Books, a Payment Entry links your Bank/Cash account to a Customer's Invoice. This reduces the Customer's balance and the Invoice's "Outstanding" amount simultaneously.
Recording Customer Payments
Standard Payment Entry
Navigate to Sales > Payment Entry > New. This is used when you receive a cheque, bank transfer, or cash for one or more invoices.
- Customer: The entity making the payment.
- Mode of Payment: Bank Transfer, Cash, Cheque, etc.
- Paid Amount: Total amount received.
- Allocation: Versoll will automatically suggest allocating the amount to the oldest outstanding invoices first (FIFO). You can manually adjust this if needed.
Advance Payments
Sometimes customers pay before an invoice is raised. Record these as "Advance" payments. These stay as a credit balance on the customer's account and can be applied to future invoices with a single click.
Handling Sales Returns & Credits
If a customer returns goods or you need to give a post-sale discount, you issue a Credit Note.
Issuing a Credit Note
Go to Sales > Credit Note > New or click "Create Credit Note" directly from the original invoice.
- Impact on Inventory: If goods are returned, the system will automatically increase your stock levels in the designated warehouse.
- Impact on GST: The GST originally charged is reversed. This will be reflected in your GSTR-1 as a reduction in tax liability.
- Financial Impact: The customer's receivable balance is reduced.
đ Monitoring Collections (Aging Report)
Use the Accounts Receivable Aging report to see exactly who owes you money and for how long (0-30 days, 31-60 days, etc.). This is your primary tool for debt collection and cash flow forecasting.
đĄ Pro Tip: Automatic Reminders Configure Versoll Books to send automatic email reminders to customers 3 days before their invoice is due, and every 7 days after the due date.