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
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 customer 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.
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 'Check' 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.
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
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:
In the "Invoice Payment" page, click on the Discount amount to apply discounts on the Invoice.
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.
Click "Apply Discount" to update the payment amount.
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.
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.
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.
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