# 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 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.

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 '**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. {% hint style="info" %} To manually pay the invoice, go to **Invoice > Options > Payment > Pay Invoice** {% endhint %} 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. If the entered payment amount exceeds the total invoice amount due, the system treats it as an overpayment and prompts users to either create a customer credit or issue a refund for the excess amount. For more details, refer to the Handling Invoice Overpayments section below.
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. {% hint style="info" %} To send the payment link, go to **Invoice > Options > Payment > Send Payment Link** {% endhint %} 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. {% hint style="info" %} To generate the payment link, go to **Invoice > Options > Payment > Generate Payment Link** {% endhint %} 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.

### Handling Invoice Overpayments The Invoice Payment module allows users to process overpayments when the payment amount entered exceeds the invoice amount due. In such cases, the excess amount can either be converted into a **customer credit** or **issued as a refund**. Users can also enter a **Reference Number** and **Memo** for easier tracking and future lookup. **Workflow:** **Step 1:** Navigate to **Menu → Sales → Payment → Invoice Payment**. Select the customer (and store, if required), then choose the invoice(s) for which payment is to be made.

**Step 2:** Enter the **Payment Amount** such that it exceeds the selected invoice amount due. Then, enter the amount under the **Pay Amount** column for the invoice and click **Pay Invoice(s)**.

This triggers the overpayment workflow. **Step 3:** An **Over Payment** pop-up window appears. Enter the following details: * **Reference Number** – Enter a reference number for tracking the overpayment transaction. * **Memo** – Enter any additional remarks or notes. * **Create Credit** – Select this option to convert the overpaid amount into customer credit. * **Issue Refund** – Select this option if the excess amount should be refunded to the customer.

**Step 4:** If **Create Credit** is selected, the **Credit** pop-up window appears, where you can select the required **Store** and **Account**. The system automatically displays the excess overpayment amount that will be converted into credit.

Click **Save & Apply Payment** to complete the invoice payment and create the customer credit. **Step 5:** Once completed, the system displays a success confirmation message with the generated **Payment Number**.

If you click on the **Payment Number**, the Invoice Payment record opens, where users can view the invoice payment details, applied invoice lines, and the generated customer credit line for the overpayment amount.

**Step 6:** The **Reference Number** entered during the overpayment process is searchable through the **Global Search**, allowing users to quickly locate the related Invoice Payment and Credit records.

### **How can I make a credit card payment for an open invoice?** You can process a credit card payment for an open invoice directly through the **Invoice Payment** screen in XoroERP. *** #### **Manual Credit Card Payment** Follow these steps to process the payment manually: 1. Open the Invoice 2. Navigate to:\ **Options → Payment → Pay Invoice** 3. In the Invoice Payment screen: * Select the Customer and Invoice * Set the **Payment Method** to **Credit Card** 4. Click **Process Card** 5. Enter new card details or select a saved card 6. Click **Confirm**, then **Pay** *** #### **Payment Link Option** If you want the customer to make the payment themselves, you can send a payment link directly from the invoice. Navigate to: * **Invoice → Options → Payment → Send Payment Link**\ or * **Generate Payment Link** This sends a secure payment URL to the customer through email, allowing them to complete the credit card payment online. *** #### **If the Invoice Already Has Deposits or Credits** If the invoice amount is already covered partially or fully through deposits or credits, use: **Options → Apply Deposits/Credits** instead of processing a credit card payment. *** #### **In simple terms** * Use **Pay Invoice** for manual credit card processing * Use **Send Payment Link** if the customer will pay online themselves * Use **Apply Deposits/Credits** if existing credits need to be applied to the invoice --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.xorosoft.com/xoroerp-1/sales/payment/invoice-payment.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.