Paying vendors, tracking payables and handling refunds

Overview

Guidelines

1. Always enter a reference number

   When you record a vendor payment, add the cheque number, UTR or transaction ID in Reference Number. It makes the payment easy to match with your bank statement and the vendor's records.

2. Allocate every payment

   A payment only reduces a vendor's outstanding bills once it is allocated. Keep an eye on the Unallocated card and allocate payments soon after recording them.

Steps

1. 1

   Step 1: Open Vendor Payments

   Go to Payments → Vendor Payments and choose your organisation under Select Organization. The cards show Total Payables, Total Payments, Outstanding and Unallocated. Below them, Vendor Balances lists each vendor's total payable, paid and outstanding amounts, and Payment History lists every payment. Click Filters to show one vendor only.

   • , view larger
2. 2

   Step 2: Record a vendor payment

   Click Record Payment. Choose the Vendor, set the Payment Date, enter the Reference Number and the Amount Paid, then click Record Payment. Vendor, date and amount are required, and the amount must be at least ₹0.01.

3. 3

   Step 3: Allocate the payment to bills

   Click a payment in Payment History to open Payment Details. It shows the Total Amount, how much is Allocated and what is Remaining, and lists the bills it has been allocated to. Click Auto-Allocate to allocate the remaining amount to the vendor's oldest bills. You can also use the wand icon on the payment's row. A message tells you how many documents were allocated and what is left.

4. 4

   Step 4: Check payables and ageing

   Go to Payments → Payables / Aging and choose your organisation. List View shows every payable document with its vendor, date, amount, Status (Open, Partial or Closed) and age in days. Aging View groups open amounts into Current, 1-30 Days, 31-60 Days, 61-90 Days and Over 90 Days. Use Filters to narrow by Vendor or Status, and click a document to see its details.

5. 5

   Step 5: Review refund requests

   Go to Payments → Refunds. Filter by organisation and status. Each row shows the sale, Reason, Amount, original payment Method, Status and when it was requested. For a Requested refund, click Approve to accept it or Reject to turn it down.

   • , view larger
6. 6

   Step 6: Pay out an approved refund

   How you pay out depends on how the customer paid:

   • UPI, card or wallet: click Send via Razorpay. The refund moves to Processing and shows Awaiting Razorpay… until Razorpay confirms it.
   • Cash: hand the cash to the customer, then click Mark Complete.

   If a refund ends up Failed, click Retry. This puts it back to Approved so you can send it again. Click Refresh to see the latest statuses.

7. 7

   Step 7: Create a payment link

   Go to Payments → Payment Links and click New Link. Choose the Organisation and enter the Amount (₹) and a Description, such as the PO it is for. Optionally add a Reference ID, the payer's Name, Phone and Email, and change Expires in (hours), which is 48 by default. Click Create Link. Use the copy icon on the row to copy the link and share it. The table shows how much has been Paid and whether the link is Active, Paid, Partial, Cancelled or Expired.

Terms

Allocation

Linking a vendor payment to one or more of the vendor's bills, so those bills show as part-paid or paid.

Unallocated

Money you have paid vendors that has not yet been allocated to any bill.

Ageing

How long a payable has been open, counted in days from the document date.

Payment link

A Razorpay link you send to someone so they can pay you online.

Key points

Notes

Warnings

FAQs