How to Log Payment

Use this workflow to record a customer payment against a specific invoice or apply existing customer credit to that invoice.

When to use this workflow

Use Log Payment when payment has been received for a specific invoice.

Use How to Log Payment Without Invoice when the customer sent money but there is no invoice to apply it to yet.

Do not use payment entry to correct invoice lines, shipment quantities, customer records, or order totals. Review the invoice and order first, then record payment only when the receivable is correct.

Before you start

Confirm:

• You have permission to record customer payments.
• The invoice number is known.
• The invoice is not already Paid.
• The payment amount and payment date are correct.
• The payment method is known.
• Check number is available when the payment method is Check.
• Any credit card, wire, or EFT fee is known.
• Any early payment discount or manual discount has been approved.
• Any customer credit should be applied intentionally.

Screen path

Dashboard > Sales > Payments > Log Payment

Steps

1. Open Dashboard > Sales > Payments.

2. Search for the invoice by invoice number, order number, customer PO, customer code, or customer name.

3. Review the invoice row.

4. Confirm the invoice status is Open or Partially Paid.

5. If needed, expand the invoice row and review invoice lines, totals, customer PO, terms, and created date.

6. Select Log Payment on the invoice row.

7. In Log Payment - Invoice {invoice_id}, review the customer, order number, invoice or order total, total paid, and balance due.

8. If returns are shown, confirm the reduced balance due is correct before continuing.

9. If an early payment discount is available and the payer took it, select Early payment discount WAS applied by payer.

10. If an approved manual discount applies, enter the discount as a percent or amount in Manual Discount (Optional).

11. Enter Payment Amount.

12. Confirm Payment Date.

13. Select Payment Method.

14. Enter the reference:

15. If the payment method is Credit Card, Wire, or EFT, enter the fee if applicable and review the net amount received.

16. Review GL Entries to be created.

17. Select Record Payment.

18. Return to the Payments list and confirm the invoice status updated as expected.

Applying customer credit

If the customer has available credit, PAX shows Customer Credit Balance in the payment modal.

Use this option when existing customer credit should be applied to the invoice instead of recording a new cash receipt.

1. Open the invoice payment modal from Dashboard > Sales > Payments.

2. Review the invoice balance due.

3. Review Customer Credit Balance.

4. Select Apply customer credit to this invoice.

5. Review the credit application note.

6. Select Apply Credit.

Applying customer credit does not record a new check, ACH, EFT, wire, credit card, cash, or other payment. It links existing available credit to the invoice.

What happens behind the scenes

When the payment modal opens, PAX loads invoice payment information, including customer, order number, invoice or order total, total paid, returns, balance due, terms, early payment discount information, invoice line status, and customer credit balance.

When Record Payment is selected, PAX:

• Validates the invoice and payment amount.
• Creates a payment record for the invoice.
• Stores the payment amount, date, method, reference, fee, discount values, and user.
• Marks prepaid-order payments as prepayments when the order terms indicate prepayment.
• Updates the invoice status to Partially Paid or Paid when payment and discount totals cover the invoice balance.
• Uses payment posting logic to create the related accounting entries.
• Updates customer credit behavior when payment and prepayment rules apply.

Early payment discounts are based on terms code patterns such as 2%10 NET30. If the checkbox is selected, PAX treats the difference between the full invoice amount and the payment amount as the early payment discount.

Manual discounts are separate from early payment discounts. Manual discount applies to invoice subtotal excluding shipping.

When customer credit is applied, PAX links available unallocated customer payment records to the invoice in FIFO order. If needed, PAX splits the last available payment so the invoice receives only the amount needed and the rest remains available as customer credit.

Related docs

• Payments Overview
• How to Log Payment Without Invoice
• Invoicing Overview
• Invoice Detail Overview
• Customer Detail Overview
• Daily Cash Receipts Report Overview
• Customer Statement Overview
• AR Aging Report Overview