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Record payments and settle up

Record money a customer paid and apply it to their invoices in one step: partial payments, advances, one payment for several invoices, payments short by TDS or bank charges, backdated receipts, promises to pay — and how to undo a payment recorded by mistake.

8 min read · Last updated 2026-10-01

Settle up is how you record money a customer paid you. You enter what arrived, and LogAI applies it to that customer's unpaid invoices — oldest first, or exactly how you choose. Whatever isn't applied to an invoice is kept as the customer's credit, so partial payments, advances, overpayments and one payment covering several invoices all work the same way. It's part of Books.

Payment first, then where it goes: A payment and an invoice are separate things. The payment records the money that came in; applying it says which invoice it pays. One payment can pay several invoices, several payments can pay one invoice, and money waiting for an invoice simply sits as credit. Invoice status and balance due are worked out from what's applied — you never set them by hand.

Where to find Settle up

• The Settle up button on Books → Overview, Money in and Bank (on a phone it's in the bar at the bottom of the screen).
• The Settle up button next to a customer in the Overview's Who owes you card — that customer is filled in.
• A customer's or lead's Money card (lead sidebar, customer profile) — the customer is filled in for you.
• An invoice's Payments & credits card — that invoice is ticked for its full balance.
• A bank statement line on the Bank tab: Create → Payment received opens Settle up with the amount, date and reference filled in, and matches the line once you save. See Bank & reconciliation.
• The command palette: type “settle” and pick Settle up.

Record a payment

1. Enter what arrived. Type the Amount received and check Received on — it defaults to today; pick an earlier date for money that came in before (future dates aren't allowed).
2. Say who paid. Choose the customer under Received from. Their open invoices appear below with each balance and due date. Opened from a lead who isn't a customer yet? The payment is recorded against the lead (“Recording against …”), and LogAI turns them into a customer if they have an email or phone.
3. How and where. Pick the Method — Cash, UPI, Bank transfer, Card, Cheque, Razorpay link or Other (UPI and Razorpay link are offered to Indian organizations only) — and add the Reference / UTR if you have one. Paid into pre-selects the account set as default for that method in Books settings; change it if the money landed elsewhere. Add a Note if useful.
4. Check where it goes. With Apply to oldest first on, the amount pays the oldest due invoices first. To choose yourself, tick the invoices and edit each Amount for INV-…. Tick invoices before typing an amount and the amount fills in with their full balances.
5. Save. The footer shows how much is applied to invoices and how much is left as credit. Click Save. The invoices update straight away — balance due, status and due chip — and a double-tap never records the payment twice.

Common situations

Use a customer's credit on an invoice

When a customer with credit has an unpaid invoice, the invoice's Payments & credits card says “₹X credit available (PAY-…)” with an Apply ₹X button. Click it to move that credit onto the invoice, up to its balance. If they have several credits, the oldest is used first — click again to use the next. Payments still sitting as credit are counted in the Overview's to-do list (“N payments not applied to an invoice”).

Promise to pay

Customer says they'll pay on Friday? Open the invoice, set the date under Promise to pay in Payments & credits, and click Save. The date shows in the Promised column on Money in, and the invoice's balance moves to that date under Promised in the Overview's Next 30 days chart. Use Clear to remove it.

Fix a payment recorded by mistake

Open the payment — from its line in Books → Bank, a row in Commerce → Payments, or a payment in an invoice's Payments & credits card. The detail sheet shows its details, the invoices it's applied to, anything paid short and any refunds. With Accountant view on, an Accounting section also shows the journal entries behind it.

• Put on the wrong invoice? Click remove next to that invoice (“Remove from this invoice?”) and give a reason. The invoice reopens for that amount and the money goes back to the customer's credit, ready to apply to the right invoice.
• Wrong amount, wrong customer, or never received? Click Void payment and give a reason. The invoices it paid reopen, and the payment stays on record marked Voided so there's a trail. Then record it again correctly. A payment that has refunds against it needs those voided first.
• Amount or date wrong? A recorded payment's amount and date can't be edited — void it and record it again.

Payments that record themselves

• Storefront and Point of Sale orders — Razorpay payments and Cash on Delivery collections are recorded automatically. When the order's invoice is created, the payment is applied to it and the invoice becomes Paid; until then the order shows “Paid, not invoiced”.
• Razorpay payment links — when your customer pays a link sent from an invoice or the Payments page, the payment is marked received and applied to the invoice; anything beyond the balance stays as their credit.
• Refunds for returns — refunding a return issues a credit note for the returned items, uses it against anything still owed on the order's invoice, and records the refund for the rest. See returns.

Razorpay link as a method: Choosing Razorpay link in Settle up records money you've already received through a link — it doesn't send a new one. To ask a customer to pay online, generate a payment link from the invoice or Commerce → Payments as described in orders, invoices & payments.

Access

Recording with Settle up needs Create on the Books permission item; on an invoice it also needs permission to edit invoices. Removing a payment from an invoice, applying credit and setting a promise date need Update; voiding a payment needs Delete and Manage. Roles that can view Books but not record see “Your role can view Books but not record payments.” Set these in roles and permissions.

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