Invoice Payment

An Invoice Payment is a payment that is taken on Invoice(s) from a Customer for the goods or services provided. If any deposit has been recorded on the sales order, the invoice generated for the order will be already paid.

However, in cases where no deposit has been recorded, the invoice is generated with an "Open" status, indicating that payment is pending.

There are multiple ways to make an invoice payment:

Applying Deposits/Credits

The Invoice can be paid off by using the credits or deposits of the customer directly from the Invoice module.

From the options dropdown, select the option to “Apply Deposits /Credits”. You will be navigated to the “Apply Credits and Deposits” module.

In the header section, you can see all the available Deposits and Credits of the Customer, along with their details.

Header Fields

Section	Field	Description
Deposits	Store	This is the store of the order on which the deposit has been recorded.
Deposits	Deposit#	This field displays the deposit number that acts as a unique identifier for the deposit.
Deposits	SO Ref#	This field captures the sales order number on which the deposit has been taken.
Deposits	Date	This fields displays the date on which the deposit was taken.
Deposits	Ref#	This field displays the unique reference number or identifier of the deposit for easy tracking and reference purposes.
Deposits	Exchange Rate	If the deposit is for a foreign customer, the "Exchange Rate" field allows you to specify the conversion rate for currency exchange.
Deposits	Total	This is the total amount of the deposit.
Deposits	Applied	This field shows the deposit amount that has been used.
Deposits	Refunded	This field shows the amount of deposit that has been refunded back to the customer.
Deposits	Balance	This field shows the amount of money remaining from the total deposit that can be used to pay an invoice or cover expenses.
Deposits	Apply	This is an editable field that allows you to input the amount to be used from the deposit towards invoice payment.
Deposits	Status	This field displays the status of the deposit.
Credits	Store	This is the store of the order on which the credit has been created.
Credits	Ref#	This field displays the credit memo number that acts as a unique identifier for the deposit.
Credits	Type	This field shows the type of the credit: Credit Memo or Invoice Credit Memo.
Credits	Customer	This field displays the cutsomer for which the credit has been created.
Credits	Date	This field shows the date on which the credit was created.
Credits	Ref#	This field captures the unique reference number or identifier of the credit for easy tracking and reference purposes.
Credits	Exchange Rate	If the credit is for a foreign customer, the "Exchange Rate" field allows you to specify the conversion rate for currency exchange.
Credits	Total	This is the total credit amount.
Credits	Applied	This field captures the credit amount that has already been used.
Credits	Refunded	This field shows the credit amount that has been refunded back to the customer.
Credits	Balance	This field shows the amount of money remaining from the total credit amount that can be used to pay an invoice or cover expenses.
Credits	Apply	This is an editable field that allows you to input the amount to be used from the credit towards invoice payment.
Credits	Status	This field displays the status of the credit.
Credits	Transferred	This field shows the credit amount that has been transferred to the child or parent customer.

In the details section, you will find the details of the invoice.

Field	Description
Customer	This field displays the invoice's customer
Ref Number	The field displays the invoice’s reference number.
Original Amount	The field displays the invoice’s original balance.
Credit/Deposit Applied	The amount of Credits and Deposits already applied to the Invoice.
Credit/Deposit To Apply	The amount of Credits and Deposits selected for applying.
Invoice Number	The field displays the invoice’s number.
Invoice Date	The field displays the create date of the invoice.
Amount Paid/Discounts	The amount paid toward the Invoice through Invoice Payments and Discounts.
Amount Due	This field displays the invoice amount that is yet to be paid.
Balance Due	This field captures the invoice’s remaining balance after the Credits and Deposits selected for applying have been applied.

Select the deposit/credit you want to apply to the invoice. Click on the 'Tick' icon to utilize the entire deposit/credit amount or input the desired amount in the 'Apply' column. Then, click on 'Apply' button on the top-right corner of the screen to pay the invoice.

Pay Invoice Manually

If the payment was made in cash or you have the customer's credit card or debit card details, you can record the invoice payment from the Invoice Payment Module.

To manually pay the invoice, go to Invoice > Options > Payment > Pay Invoice

You will be navigated to the Invoice Payment Module. From here you can select the payment method, put in the payment amount, and make the invoice payment.

Invoice Payment Module Fields

Section	Field	Description
Payment Header	Select Store	Choose the sale store for which you want to pay the invoices.
Payment Header	Customer	Search for a Customer whose Invoice(s) will be paid.
Apply Payments	Payment Date	Select the date of payment.
Apply Payments	Payment Method	Select the payment method.
Apply Payments	Deposit Account	Select the Deposit Account for the payment.
Apply Payments	Exchange Rate	If the invoice is a foreign customer, this field captures the conversion rate for currency exchange
Apply Payments	Payment Amount	Enter the amount to pay for the invoice.
Apply Payments	Reference#	Enter the reference number of the invoice.
Apply Payments	Reference 2 / Cheque No #	Enter another reference number or cheque number here.
Apply Payments	Memo	Enter a memo for the payment if required.
Apply Payments	Customer	This field displays the invoice's customer.
Apply Payments	Customer Full Name	This field displays the full name of the invoice's customer.
Apply Payments	Sale Store	This field displays the store from which the sale has been recorded.
Apply Payments	Ship Store	This field displays the store from where the goods have been shipped.
Apply Payments	Date	This field displays the date of the invoice.
Apply Payments	Invoice#	This field displays the invoice number.
Apply Payments	Wave#	This field displays the wave number corresponding to the invoice.
Apply Payments	Currency	This field shows the currency of the customer.
Apply Payments	Status	This field shows the status of the invoice.
Apply Payments	Exchange Rate	If the invoice is a foreign customer, this field captures the conversion rate for currency exchange
Apply Payments	Due Date	This field shows the date on which the invoice is due.
Apply Payments	Ref#	This field captures the reference number of the invoice.
Apply Payments	Customer PO	This field captures the customer's purchase order number.
Apply Payments	Terms	This field captures the payment term of the invoice.
Apply Payments	Discount Date	This field captures the discount date of the invoice. This date is calculated from the invoice’s due date and its payment terms. If payment is made within this date, the customer is eligible for a discount.
Apply Payments	Original Amount	This field displays the original balance due on the invoice.
Apply Payments	Paid	This field displays the invoice amount that has already been paid.
Apply Payments	Credit Applied	This field captures the credit amount applied to the invoice.
Apply Payments	Deposit Applied	This field captures the deposit amount applied to the invoice.
Apply Payments	Amount Due	This field displays the remaining balance due on the invoice
Apply Payments	Discount	This field captures the discount amount on the invoice.
Apply Payments	Pay Amount	This field displays the invoice amount being paid.
Apply Payments	Ship To Company Name	This field shows the company name from the shipping address specified in the invoice

Showing Discount as a separate expense

Clubbing discounts with income can make it difficult to track the actual revenue earned. By treating discounts as a separate expense, you can gain a clearer understanding of your business's financial performance and make informed decisions.

If you prefer to show your discounts as a separate expense, you can do so during the invoice payment process. Here's how:

1. In the "Invoice Payment" page, click on the Discount amount to apply discounts on the Invoice.

   
2. In the "Add Discount" dialog box, enter the discount amount and select a discount account where the discount amount will be reflected as an expense.

   
3. Click "Apply Discount" to update the payment amount.

   
4. Make the payment by clicking on "Pay Invoice".

   

In this case, your Income Account will not be decreased; instead, the Discount amount will be shown as a separate expense in the selected Discount Account. To track your Discounts, you can see the ledger of that specific discount account in the GL (Analytics) report.

Applying Discount based on the Payment Terms

Payment Terms specify conditions under which a discount can be applied if payments are made within a certain period. When Payment Terms are selected for an order, a discount can be applied during the invoice payment process.

In Xoro, there's an additional feature that automatically suggests a discount based on the Payment Terms applied to the Sales Order.

Consider a Sales Order with the Payment Terms "5%15 Net 70." This means:

• A 5% discount is applied if payment is made within 15 days.

• The full amount is due within 70 days of being invoiced.

If the order amount is $1000 and payment is made within the first 15 days, the customer is eligible for a $50 discount (5% of $1000). This discount can be applied when paying the invoice.

How does it work?

• As mentioned above, when you click on the amount under the “Discount” column to apply the Discount.

• It will show you the ‘Payment Terms’ that you have applied and will give you an amount for ‘Suggested Discounts’.

  
• You can also apply a different discount by updating the amount in the "Discount Amount" field.

  
• To apply the discount as per the payment term, click "Apply Discount" and make the invoice payment.

This feature ensures that eligible discounts based on Payment Terms are easily visible and can be applied seamlessly during the payment process.

Send Payment Link

You can send a payment link to the customer directly from the invoice.

To send the payment link, go to Invoice > Options > Payment > Send Payment Link

The customers will receive an email where they can make a payment with their credit card. Once it is successfully processed, a corresponding transaction will automatically get created in Xoro. This is very handy when managing hundreds of customers and giving them the freedom to make their payments.

Generate Payment Link

If you do not want to automatically send the payment link to the customer directly, you can generate a payment link for the customer and then manually email the link to the customer later.

To generate the payment link, go to Invoice > Options > Payment > Generate Payment Link

This is a useful option if you want to share the link on a different customer email or share the link at a later date. You can find this link in the 'Payment Links' column in the Invoice Centre. This allows you more flexibility and control over the invoice payment process.

Setting the ‘Process Card’ option as the default in the Invoice Payments Module

If payment by card is the default payment method for your customers, XoroERP allows you to set "Process Card" as the default method in the invoice payment module.

Auto-Select Process Card

The "Auto-Select Process Card" feature allows you to have the “Process Card” option automatically selected when making an Invoice Payment. To enable this feature, toggle the Auto-Select Process Card option in the Customer module. This option is available if you choose a card as your “Default Payment Method.”

How it works?

• When you initiate a payment for an invoice, the card set as the default in the Customer module will be automatically selected as the Payment Method. The “Process Card” checkbox will also be automatically selected.

  
• With this feature enabled, you will need to enter the card details or select a saved card to complete the invoice payment.

• A warning icon will appear beside the “Payment Method” field, reminding you to provide the credit card information.

  
• If you attempt to pay the invoice without processing a card, the system will throw an error.