Banking, Feeds, and Reconciliations

Connecting Transactions to Invoices or Bills

Estimated reading: 5 minutes

When you create an Income or Expenses in Transactions, you can connect them to Invoices or Bills.

If you have a Transaction that isn't connected to an Invoice or Bill, to connect that Transaction, you must create Invoice(s) or Bill(s) that equal the Transaction amount and select the related customer (for invoices) or vendors (for bills).

Ensure that you create the Invoices or Bills as draft without adding payments to them.

Connect Transaction to an Invoice

You can create a Transaction and connect it to one or more Invoices. Please note that the Transaction amount must match the total amount of the connected Invoice(s).

Create an Income Transaction:

  • Go to Banking on the Navigation Menu
  • Select Transactions from the dropdown options.
  • On the Transactions page, click New Income.
  • Fill in the Date field.
  • Enter a value in the Amount field. (The amount must be equal to the total amount of the invoice(s) you want to connect.)

For example, the customer’s total Invoices are 30,000 (split into three Invoices of 10,000 each), so a Transaction amount of 20,000 will only connect two of the three Invoices.

  • Select the Customer. (This associates the transaction with Invoices having the same customer name.)
  • Define the Payment method, Account, Category, Transaction number, and other necessary fields.
  • Then, Save.

Next…

  • Click the three horizontal dots on the top page.
  • Select Connect from the dropdown options.
  • From the pop-up window, Click Add an Invoice
  • Select the matching invoice(s).
  • Then, Save.
  • The Transaction is automatically matched with the Invoice.

Note: To connect an Invoice to a Transaction, you must create a draft Invoice with the same value as the Transaction amount.

For example, If the Transaction amount is 3,000, you must create an Invoice of 3,000.

If you want to connect a Transaction to multiple invoices, the total amount of the Invoices must be equal to the Transaction amount.

For example, if the Transaction amount is 3,000 and you want to connect two invoices, the total amount of these invoices must add up to 3,000 ( Invoice 1: 1000, Invoice 2: 2000).

Connecting Transaction to a Partially Paid Invoice

You can connect a Transaction to a Partially paid Invoice. For an Invoice with a partial payment, you must enter the outstanding amount when creating the transaction.

To connect a transaction to an invoice with partial payment:

  • Go to Sales on the Navigation Menu and select Invoices.
  • Click on an Unpaid/Draft Invoice on the Invoices page and select an Invoice.
  • Select Add Payment in the Get Paid section on the invoice details page. (Ensure you have confirmed payment from the recipient before completing this action.)
  • Enter the required details in the Add Payment pop-up window. Date, Account, Amount, and Payment method.
  • Edit the Amount field to accurately reflect the payment that was received from the recipient. (If the Total Invoice Amount is 500, entering 250 in the amount field would make the invoice partial payment).
  • Switch Tabs on the pop-up window from General to Other for payment description, Transaction Number, and Reference.
  • Then, Save.
  • Once saved, the invoice status will be updated to Partial.

Next…

Create a Transaction

  • Go to Banking on the Navigation Menu
  • Select Transactions from the dropdown options.
  • On the Transactions page, click New Income.
  • On the New Income page, enter the exact value of the outstanding amount. e.g., Enter 250 in the Amount field.
  • In the Assign section, select the same customer associated with the Invoice.

Note: The value you enter in the Amount field must match the outstanding amount of the partially paid invoice. Additionally, the customer name must be the same as that on the invoice.

  • You can also enter any other necessary details, such as the Date, Payment method, Account, Category, and Transaction number.
  • Then, Save.

Then…

  • Click the three horizontal dots at the top corner
  • Select Connect
  • Click Add an Invoice
  • Select the Invoice
  • Then, Save.

The connection is complete, and you will be redirected to the transactions page.

Example:

Total Invoice payment due = $500

Partial payment = $200

When creating a Transaction to connect an invoice, the value of the Transaction must be the outstanding amount = $300.

To Connect Transactions to a Bill

You can create a Transaction and connect it to one or more Bills. Please note that the Transaction amount must match the total amount of the connected Bill(s).

Create an Expense Transaction

  • Go to Banking on the Navigation Menu
  • Select Transactions from the dropdown options.
  • On the Transactions page, click New Expense.
  • Select the Date.
  • Enter a value in the Amount field. (The amount must be equal to the total amount of the Bill(s) you want to connect.)

For example, if a vendor’s total number of Bills is 30,000 (split into three bills of 10,000 each), a Transaction amount of 20,000 will only connect two of the three bills.

  • Select the Vendor (This links the transaction with Bills having the same Vendor name.)
  • Define the Payment method, Account, Category, Transaction number, and other necessary fields.
  • Then, Save.

Next…

  • Click the three horizontal dots at the top corner
  • Select Connect from the dropdown options.
  • From the pop-up window, Click Add a Bill
  • Select the matching Bill(s).
  • Then, Save.
  • The Transaction is automatically matched with the Bill.

Note: To connect a Bill to a Transaction, you must create a draft Bill with the same value as the Transaction amount.

For example, If the Transaction amount is 3,000, you must create a Bill of 3,000.

If you want to connect a Transaction to multiple Bills, the total amount of the Bills must be equal to the Transaction amount.

For example, if the Transaction amount is 3,000 and you want to connect three Bills, the total amount of these Bills must add up to 3,000 ( Bill 1: 1000, Bill 2: 1500, and Bill 3: 500).

For a Bill with partial payment, the Transaction amount must equal the Bill’s outstanding amount.

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