Receive a payment against an invoice
An invoice is not cash until the customer pays. Recording each payment against the invoice it settles keeps the amount still due right for every customer.
Match each payment to an invoice
A receipt records the date, amount, mode (bank transfer, UPI, cheque, cash) and reference. Matching it to an invoice marks that invoice paid or part-paid. A payment that matches no invoice yet is an advance.
Part payments and the amount due
If the customer pays Rs 10,000 of a Rs 23,600 invoice, Rs 13,600 is still due. The customer statement and the receivables report add these up for every customer.
Ageing
Ageing groups what is due by how long it has been due, for example 0–30, 31–60, 61–90 and over 90 days. Old amounts need a call first. Buyers from registered micro and small enterprises have a legal payment limit of 45 days [MSMED Act 2006, section 15].
Practice task
Questions
What if the customer deducted TDS?
Record the amount received and the TDS deducted; together they settle the invoice. The TDS is a credit against your own income tax once it shows in Form 26AS.
Reviewed: 7 Nov 2026. This is general information, not advice from a chartered accountant. Rates and rules change; check the source named in brackets.