A payment receipt is the document that records when a client paid you, in what currency, against which invoice. Receipts drive your Accounts Receivable balance — every receipt clears (or partially clears) the matching invoice and posts a journal entry that moves cash from AR to your bank.

Recording a receipt

1. Sales → Payment Receipts → New Receipt.
2. Pick the client. Their outstanding invoices appear.
3. Tick one or more invoices to apply this receipt against. Multi-invoice receipts are supported (one customer paying several invoices in one transfer).
4. Enter the amount received. If less than the total of selected invoices, you can allocate manually — leftover goes to a 'customer advance'.
5. Pick the payment method (Cash, M-Pesa, Bank transfer, Cheque). The method drives which GL account is debited.
6. Save. Invoices marked fully paid flip to PAID. Partially paid invoices show a PARTIAL badge and the remaining balance.

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Open Payment Receipts

Payment Receipts

M-Pesa payments

If you've connected M-Pesa Paybill / Till, incoming payments appear as Bank Transactions and can be matched directly to an invoice from the Banking module. That auto-creates the payment receipt and clears the AR balance without manual entry.

Overpayments and customer advances

When the receipt amount exceeds the selected invoices' total, the difference is held as a customer credit — a credit balance on the client's account that can be applied to a future invoice. Use Credit Notes if you need to refund the cash instead.

Reconciliation checklist (month-end)

• All PAID and PARTIAL invoices' receipts add up to the same total as the bank deposits / M-Pesa statement for the period.
• The Accounts Receivable trial-balance figure matches the sum of OUTSTANDING invoices on the Invoices list.
• Any client whose 'unpaid' figure looks wrong is the easiest place to start a reconciliation — there's usually a misallocated receipt.

Sharing a receipt with the client

Every payment receipt has a public share link the client can open in a browser. Email it as the formal acknowledgement, or send it on WhatsApp — the receipt PDF includes the invoice number and balance.