Outstanding amount

The outstanding amount is what remains unpaid on one invoice after every payment, advance and return allocated against it. It starts at the invoice grand total including VAT and falls each time a Payment Entry or a credit note names that invoice; when it reaches zero the invoice status turns to Paid. The Accounts Receivable and Accounts Payable reports list invoices by outstanding amount and by how many days they are overdue, which is how you chase customers and plan supplier payments. An amount that never clears usually means a receipt was posted as a plain Journal Entry rather than a Payment Entry allocated to the invoice, so the invoice still looks unpaid.

Outstanding amount = Invoice grand total - Payments allocated - Credit notes allocated - Advances adjusted.

1. 01Open Financial Reports > Accounts Receivable and set Company and the As On date.
2. 02Read the Outstanding Amount column and the ageing columns beside it.
3. 03For a supplier view, open Financial Reports > Accounts Payable; ACC-PINV-2026-00005 shows Rs 1,00,000 outstanding.
4. 04To settle an invoice, open it and click Create > Payment; the amount fills from the outstanding figure.
5. 05Submit the Payment Entry. The outstanding amount falls to zero and the invoice status turns to Paid.

Accounts Receivable and Payable list invoices by outstanding amount and age.

ACC-PINV-2026-00005 for Rs 1,00,000 is fully outstanding on the Accounts Payable report.