Payment type: Receive

Receive is the Payment Entry type for money coming in, almost always from a customer. The bank or cash account is debited and the customer's receivable account, Debtors - YFF, is credited, so the customer owes less. Allocation in the References table decides which invoices are settled; an amount received before any invoice stays unallocated and shows as an advance on the customer's statement until an invoice absorbs it. When a company customer withholds TDS on your invoice, which is common on contract and consultancy income, add a Deductions row to TDS Receivable so the bank line matches the real transfer and the invoice still clears in full. The figures below show that case.

Bank receipt = Invoice allocated - TDS withheld by the customer; Rs 36,160 - 1.5% of Rs 32,000 = Rs 35,680

1. 01Go to Payments > Payment Entry > New and set Payment Type Receive.
2. 02Pick Party Type Customer and the customer; Debtors - YFF fills as Account Paid From.
3. 03Pick the Mode of Payment and enter the Paid Amount actually received, Rs 35,680.
4. 04Click Get Outstanding Invoices and allocate Rs 36,160 to the invoice.
5. 05In Deductions or Loss add a row to TDS Receivable - YFF for Rs 480.
6. 06Save and Submit. The entry below posts and the invoice shows Paid.

Choose Receive and party type Customer, then allocate the amount against open Sales Invoices.

ACC-PAY-2026-00001: Receive, Customer Jivan Dahal, Rs 36,160 into the bank.