Payments (Cash Out) — Recording Expense Payments

The Payments section tracks money leaving your business — payments to vendors, salaries, rent, utilities, and any other business expenses.

What Goes Here?

• Payment made to a vendor against a purchase invoice
• Advance payment to a supplier
• Salary payment to employees
• Rent, electricity, internet bills
• Any business expense paid from your account

How to Record a Payment

1. Go to Accounting → Payments (Cash Out) in the sidebar.
2. Click + New Payment.
3. Fill in:
   • Payee — Who you paid (vendor, employee name, or custom entry).
   • Amount — Amount paid.
   • Date — Payment date.
   • Payment Mode — Bank Transfer, UPI, Cash, Cheque, NEFT/RTGS.
   • Reference — UTR number, cheque number, or transaction ID.
   • Against Purchase — Optionally link to a purchase invoice to mark it as paid.
   • Expense Category — e.g. Rent, Salary, Raw Materials, Office Expenses.
4. Click Save.

Linking to a Purchase Invoice

When you link a payment to a purchase invoice:

• The purchase invoice status updates to Paid or Partially Paid.
• The outstanding payable balance reduces.
• Cash flow report reflects the payment.

Cash Flow Impact

All cash-out payments appear in your Cash Flow Report under outflows, helping you understand your net cash position.

Tip: Use the expense category field consistently — it powers the expense breakdown chart on your dashboard and makes tax season easier.