Payments

Lekha’s Payments module allows you to record and manage outgoing payments made to vendors against confirmed bills. Whether payments are partial or full, the system supports flexible settlement tracking to ensure your payables stay accurate and audit-ready.

Each payment entry captures details like vendor name, payment number, amount, reference info, and settlement method—all linked to one or multiple outstanding bills. With built-in validation and automatic balance updates, Lekha simplifies cash flow management across finance accounts.

This module enhances financial transparency, reduces manual errors, and accelerates your payment tracking—keeping your vendor relationships strong and payment obligations current.

Listing Payments

The payments list provides a comprehensive view of all payment records with efficient search and management capabilities.

Default View

• Payments are listed by creation time in descending order (newest first)
• Each row displays key information: payment number, vendor, date, total amount, and reference
• Click on any row to view detailed information for that payment

Sorting Options

You can sort the list by clicking on column headers:

• Payment Number - Alphanumeric sorting
• Reference - Reference number sorting
• Date - Date-based sorting
• Total Amount - Monetary value sorting

Search Functionality

Use the search feature to quickly locate payments:

• By Payment Number - Enter complete or partial payment number
• By Vendor Name - Search by vendor display name
• Real-time search results as you type

Available Actions

Individual Actions:

• View Details - Click on payment row to see complete information
• Print - Generate PDF for individual payment

Creating a New Payment

Recording payments ensures accurate tracking of vendor payments and maintains up-to-date payables.

Step 1: Access Payments

1. Navigate to Purchase in the main menu
2. Click on Payments from the submenu
3. Click the "+ New" button

Alternative Method:

• From a bill detail page, click “Capture Payment” to auto-populate payment details

Step 2: Basic Information

Vendor (Required)

• Select vendor from the dropdown with search functionality
• Start typing to search for existing vendors
• Note: Cannot be changed for existing payments

Vendor Currency (Read-only, conditional)

• Automatically displays when vendor currency differs from finance account currency
• Shows the vendor’s default currency
• Used for currency conversion calculations

Payment Number (Required)

• Auto-generated by system or manually entered
• Must be unique within the system
• Use "⚙️" Payment Settings to configure numbering
• Note: Read-only for existing payments

Date (Required)

• Select the payment date
• Defaults to current date
• Important for accounting and cash flow tracking

Amount (Required)

• Enter total payment amount with currency prefix
• Minimum: 1, with 2 decimal place precision
• Must be positive number
• Will be allocated across selected bills

Reference (Optional)

• Enter any reference number or text
• Examples: Check number, bank reference, wire transfer ID
• Helps with reconciliation and tracking

Step 3: Payment Settlement Configuration

Payment Settlement Type (Required)

Select how the payment is settled:

Settlement Type	Description	Use Case
Finance Account	Payment made from a specific bank/cash account	Regular vendor payments via bank transfer, check, or cash
Opening Balance	Adjustment against opening vendor balance	Historical balance adjustments or corrections

Note: Cannot be changed for existing payments

Finance Account (Required when settlement type is “Finance Account”)

• Select the finance account from which payment was made
• Examples: “Bank Account”, “Cash”, “Petty Cash”
• Use "⚙️" Account Settings to manage available accounts

Finance Account Currency (Read-only, conditional)

• Displays when vendor and finance account have different currencies
• Shows the selected finance account’s currency

Currency Exchange Rate (Required for multi-currency)

• Enter exchange rate between vendor and finance account currencies
• Must be valid number with decimal places
• Used for accurate conversion between currencies

Step 4: Bill References

Adding Bill Allocations:

1. Click "+ Add Bill" to add bill references
2. Allocate the payment amount across multiple bills

Bill Selection (Optional per line)

• Select bill from dropdown with search functionality
• Filtered to show only bills for selected vendor
• Only shows bills with unpaid amounts
• Search by bill number for quick selection

Bill Number (Read-only per line)

• Automatically displays when bill is selected
• Shows the vendor’s bill/invoice number

Bill Amount (Read-only per line)

• Shows the total amount of selected bill with currency symbol
• Provides context for payment allocation

Unpaid Amount (Read-only per line)

• Displays remaining unpaid amount for selected bill
• Helps determine maximum allocation possible

Due Date (Read-only per line)

• Shows the due date of selected bill
• Helps prioritize payment allocation

Payment Amount (Optional per line)

• Enter payment amount for this specific bill
• Minimum: 1, with 2 decimal place precision
• Maximum: Smaller of unpaid amount or remaining total
• Auto-fills with appropriate amount when bill is selected

Managing Bill Rows:

• Use "×" to remove bill reference rows
• Button disabled if only one row remains
• Add multiple rows to allocate payment across several bills

Step 5: Dynamic Calculations

Real-time Validation:

• Remaining Amount: Automatically calculated as total amount minus sum of all bill allocations
• Auto-adjustment: Bill amounts auto-fill when bill is selected
• Maximum Validation: Each bill amount cannot exceed unpaid balance
• Total Validation: Sum of allocations cannot exceed total payment amount

Step 6: Additional Settings

Payment Settings (⚙️)

• Configure payment settings and preferences
• Set default values and behaviors
• Manage payment numbering sequences

Step 7: Save Payment

1. Review all entered information
2. Ensure total allocations match payment amount
3. Click “Save” to create the payment
4. System automatically updates bill payment status

Editing a Payment

Payments can be edited to correct allocation errors or update reference information.

Step 1: Find the Payment

1. Go to Payments list
2. Use search function to locate the payment
3. Click on the payment row to view details

Step 2: Access Edit Mode

1. Click the “Edit” button
2. The editing form will open

Step 3: Editing Limitations

Read-only Fields (Cannot be changed):

• Vendor - Vendor cannot be changed
• Payment Number - Payment number is fixed
• Payment Settlement Type - Settlement method cannot be changed

Editable Fields:

• Date - Can be adjusted for correct accounting period
• Amount - Can be modified (affects bill allocations)
• Reference - Can be updated for better tracking
• Finance Account - Can be changed (when settlement type is finance account)
• Currency Exchange Rate - Can be updated for multi-currency payments
• Bill Allocations - Can be modified, added, or removed

Step 4: Make Changes

Common edits include:

• Correcting payment amount
• Adjusting bill allocations
• Updating reference information
• Changing finance account
• Modifying exchange rates

Step 5: Validation During Editing

• Total allocations must not exceed payment amount
• Individual allocations cannot exceed bill unpaid amounts
• Currency exchange rates must be valid
• At least one bill allocation is recommended

Step 6: Save Changes

1. Review modifications
2. Ensure allocations balance correctly
3. Click “Save” to update the payment

Deleting a Payment

Payments can be deleted to reverse payment records when necessary.

Step 1: Find the Payment

1. Go to Payments list
2. Locate the payment you want to delete

Step 2: Check Impact

Before deleting, consider:

• Bill Status: Deleting payment will change bill payment status
• Reconciliation: May affect bank reconciliation
• Reports: Will impact financial reports and aging

Step 3: Delete Process

1. Click on the payment to view details
2. Click the “Delete” button
3. Confirm deletion when prompted

Step 4: Automatic Adjustments

When a payment is deleted:

• Bill payment statuses are automatically updated
• Unpaid amounts are recalculated
• Bill states may change (e.g., from “Paid” back to “Partially Paid”)
• Finance account balances are adjusted

Auto-initialization from Bills

Lekha provides a convenient way to create payments directly from bills.

Step 1: From Bill Details

1. Navigate to a bill that requires payment
2. Click “Capture Payment” button on bill detail page

Step 2: Auto-populated Fields

The payment form automatically fills:

• Vendor - From bill vendor
• Amount - Unpaid amount from bill
• Bill Reference - Selected bill with unpaid amount
• Currency Information - From bill currency settings

Step 3: Complete Payment

1. Select payment settlement type
2. Choose finance account (if applicable)
3. Adjust amount or add additional bills if needed
4. Save the payment

Best Practices for Payment Management

Accuracy and Reconciliation

• Record payments promptly after making payment
• Use clear, descriptive references for easy identification
• Verify amounts against bank statements
• Allocate payments to correct bills

Currency Management

• Keep exchange rates current and accurate
• Understand impact of currency fluctuations
• Maintain consistent currency conversion practices
• Document exchange rate sources

Settlement Tracking

• Choose appropriate finance accounts
• Maintain separate accounts for different payment methods
• Regular reconciliation with bank statements
• Track opening balance adjustments separately

Vendor Relations

• Pay bills on time to maintain good relationships
• Prioritize payments based on terms and importance
• Communicate payment schedules clearly
• Keep detailed records for disputes

Documentation

• Include comprehensive reference information
• Link to external payment confirmations
• Maintain supporting documentation
• Keep audit trails for all modifications

Integration with Other Modules

Payments integrate seamlessly with:

• Vendors: Auto-populate vendor details and currency preferences
• Bills: Update payment status and unpaid amounts automatically
• Finance Accounts: Track balances and reconciliation
• Reports: Generate aging reports and payment analysis
• Accounting: Create journal entries for payment recording

Payment Allocation Strategies

Single Bill Payment

• Allocate entire payment to one bill
• Simplest form of payment processing
• Clear audit trail

Multiple Bill Payment

• Distribute payment across several bills
• Prioritize older bills or urgent payments
• Maintain detailed allocation records

Partial Payment Handling

• Record partial payments accurately
• Track remaining balances
• Plan for future payment schedules

Cash Flow Management

• Plan payments based on cash availability
• Consider payment terms and due dates
• Maintain vendor relationship priorities
• Monitor payment performance

Payment Settlement Types

Finance Account Payments

When to Use:

• Regular vendor payments
• Bank transfers, checks, credit card payments
• Cash payments

Benefits:

• Clear audit trail
• Easy reconciliation
• Accurate cash flow tracking

Opening Balance Adjustments

When to Use:

• Historical balance corrections
• System implementation adjustments
• Error corrections from previous periods

Considerations:

• Does not affect cash flow
• Used for balancing purposes
• Requires proper authorization

The payments module ensures comprehensive payment tracking while maintaining the flexibility needed for complex business scenarios and multi-currency operations, helping you maintain strong vendor relationships and accurate financial records.