Payments — Lines

The date when the payment was made. This records the actual disbursement date of funds from your bank or cash account.

This date is crucial for bank reconciliation, cash flow tracking, and determining the accounting period. Ensure accuracy as it affects financial reporting and tax calculations.

A unique reference number or identifier for the payment. This helps you track and locate specific payments quickly.

Common references include check numbers, electronic transfer IDs, or sequential payment numbers. Consistent referencing improves bank reconciliation and audit trail maintenance.

The bank or cash account used to make this payment. This shows where the funds came from.

Selecting the correct account ensures accurate bank reconciliation and cash flow reporting. The payment amount will be deducted from this account's balance.

The customer associated with this payment. Used for customer refunds, credit balance returns, or other customer-related payments.

Selecting a customer updates their account balance and maintains accurate customer statements. Leave blank if the payment is not customer-related.

The supplier or vendor receiving this payment. This identifies the payment recipient and updates their account balance.

Choose the correct supplier to maintain accurate accounts payable records and supplier statements. Most commonly used for purchase invoice payments and vendor expense reimbursements.

A brief description explaining the purpose of this payment. This appears in lists and reports for quick identification.

Use clear, specific descriptions like 'Office rent - March 2024' or 'Invoice #12345 payment'. Good descriptions make searching and reporting much easier.

The inventory or non-inventory item this payment line relates to. Links the payment to specific products or services in your item list.

Selecting an item automatically applies its default account and tax code settings. Leave blank for general expenses not tied to specific items.

The general ledger account where this payment line will be posted. This categorizes the transaction in your accounting system.

Select the appropriate expense, asset, or liability account based on the payment purpose. This choice directly impacts your financial statements and tax reporting.

A detailed description for this specific line item. Provides additional context about what this portion of the payment covers.

Include relevant details such as invoice numbers, service periods, or specific work performed. Detailed line descriptions eliminate the need to reference source documents later.

The quantity of units being paid for in this line item. Used for countable items or measurable services.

Enter the number of items, hours, or other units. The system calculates the line total by multiplying quantity by unit price.

The price per unit for this line item. Used when purchasing specific quantities of goods or services.

This could represent the cost per item, hourly rate for services, or price per unit of measure. Multiplied by quantity to calculate the line total.

The project this payment line is allocated to. Enables tracking of project-specific costs and profitability.

Assigning payments to projects helps monitor project budgets, analyze profitability, and prepare project-based financial reports. Essential for businesses that track job costs.

The division or department this payment line belongs to. Enables tracking expenses by organizational unit.

Divisions help analyze costs by department, location, or business segment. This segmentation supports better budgeting and profitability analysis for each division.

The tax code applied to this payment line. Determines the tax treatment and rate for this expense.

Choose the correct tax code to ensure proper tax calculations and reporting. Tax codes determine whether tax is recoverable, the tax rate, and how it appears in tax reports.

The tax amount for this payment line. Shows the tax component calculated based on the tax code.

For tax-inclusive pricing, this displays the tax portion already included in the amount. For tax-exclusive pricing, this tax is added to the subtotal. These amounts flow to your tax reports and affect input tax credits.

The total amount for this payment line. Represents the complete value including any applicable taxes.

Calculated as quantity × unit price for quantity-based items, or entered directly for fixed amounts. The sum of all line amounts equals the total payment value.