Smart Books
Record money received and money paid
Note down every payment from customers and to suppliers, and match it to their bills.
Before you start
Who this is for
Anyone who records cash and bank entries.
Before you start
- Your bank and cash accounts set up in Masters → Accounts.
Steps
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Step 1: Choose the right entry
Under Transactions → Cash & Books: Receipt (F6) for money that comes in, Payment (F5) for money that goes out, and Contra (F4) for moving money between your own cash and bank accounts.
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Step 2: Pick who paid, or who you paid
Choose the customer or supplier, and the bank or cash account the money went into or came out of.
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Step 3: Match it to their bills
Use the bill allocation to say which invoices this payment settles. Anything left over stays on the party’s account.
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Step 4: Post
Check the amount and date, then choose Post.
What happens next
The customer’s or supplier’s balance goes down, the bills you matched are marked as paid, and your bank or cash balance is up to date.
Questions
A customer paid less because they deducted TDS. How do I record it?
Record the amount received and the TDS deducted in the same entry, so the bill is fully settled.
I deposited cash into the bank. Which entry is that?
A Contra — it moves money between your own cash and bank accounts.
Ready? Try it now.
Open Smart Books in a new tab and follow along.
Next guide: Handle a return or price change with a credit or debit note