When to use this: recording what you paid the distributor and tracking what's still owed.
Steps
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Suppliers → open a supplier → Record Payment. The dialog shows that supplier's current outstanding at the top.
1 is the supplier, its GSTIN and the Outstanding you owe — ₹8,602.59 here, the same figure as the Outstanding Balance card behind the dialog.
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Enter the Amount (2), pick a Payment Method (3) — Bank Transfer, Cheque, or Cash — and set the Payment Date (4). Bank Transfer and Cheque need a Reference No. (UTR / cheque no.) so the payment can be reconciled later; Cash doesn't. 5 is an optional note.
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Allocate it to invoices — or don't. The Allocate to invoices section (6, 7) lists that supplier's open invoices with what is still due on each.
- Allocate on a row puts money against that invoice; the button shows the full amount outstanding on it, e.g. of ₹7,557.80.
- Suggest (oldest first) fills the split for you, oldest invoice first.
- Clear wipes the split and starts again.
- You do not have to use up the whole amount. Whatever you leave unallocated is kept as an advance on the supplier's account, and you can allocate it to an invoice later from the payment's own detail view.
Enter the amount first — the grid has nothing to divide until it knows the figure.
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Record Payment (8) saves it and reduces the outstanding.
Good to know
- For the full who-you-owe / aging view across suppliers → Reports → Supplier Outstanding (→ RPT-06).
- A payment doesn't settle a claim — an open debit note from a purchase return needs its own credit note logged against it, using Log Credit Note beside Record Payment on the supplier's page (→ PUR-08).
- A fully unallocated payment is still valid — it simply sits as an advance against the supplier rather than closing a particular invoice.