Payments

Understand payment statuses

Every payment you record has a status that tells you where it is in its life and what you can do with it. This page describes customer payments; supplier payments work the same…

Understand payment statuses

Every payment you record has a status that tells you where it is in its life and what you can do with it. This page describes customer payments; supplier payments work the same way.

The five statuses are Draft, Posted, Voided, Refunded and Reversed.

stateDiagram-v2
    [*] --> Draft: Record Payment
    Draft --> Posted: Post Payment
    Draft --> Voided: Void
    Posted --> Refunded: Refund (money went back)
    Posted --> Reversed: Reverse (it was a mistake)
    Posted --> Posted: Allocate / remove allocation
    Voided --> [*]
    Refunded --> [*]
    Reversed --> [*]

What each status means

Draft

The payment has been started but not yet posted. A draft:

  • has no effect on your accounts — nothing has entered your books yet;
  • can be freely edited or deleted;
  • can be voided (cancelled) if you decide not to keep it;
  • can be posted when you are ready to commit it.

Recording a new payment from Payments → Customer Payments → Record Payment always creates a draft first.

Posted

The payment has been committed to your books. Posting records the money received and makes it available to match to invoices. Once a payment is posted:

  • you can allocate it to one or more invoices (and it can be left partly or wholly unallocated / on account);
  • it can no longer be edited, deleted or voided — it is now part of your records;
  • to undo it you must refund or reverse it, which posts an equal and opposite entry rather than erasing anything — and you are asked which of the two it is, because they are not the same thing.

Voided

A draft payment that you cancelled instead of posting. Because a draft never entered your books, voiding it has no accounting effect. Voiding requires a reason and cannot be undone — the record is kept for your history. Voided is a final status.

Note: You can only void a payment that is still a draft. A payment that has been posted must be refunded or reversed instead — see Refund or reverse a payment.

Refunded

A posted payment where the money went back to the customer. The reversing entry is dated today — the day the money moved — so the month the payment was received in is left exactly as it was. Refunded is a final status.

Reversed

A posted payment that should never have been recorded — a duplicate, the wrong customer, a receipt that never happened. The reversing entry is dated the payment's own date, so that month reads as though nothing had been received. Reversed is a final status.

The two look similar on the payment itself and very different in your accounts: a refund on 3 September of a receipt dated 15 August leaves August's bank balance alone and shows money leaving in September; a reversal of the same receipt takes it out of August. That is also why a reversal of a payment dated inside a locked period is refused while a refund of it is not.

What you can do in each status

Status Edit / delete Allocate to invoices Post Void Refund / reverse
Draft Yes No (post it first) Yes Yes No
Posted No Yes — No Yes
Voided No No No — No
Refunded No No No No —
Reversed No No No No —

Note: Allocating a payment, or removing an allocation, does not change the payment's status — it stays Posted. Only the invoice's balance (and therefore its own status) changes.

Finding payments by status

On Payments → Customer Payments you can filter the list with the quick filters All, This Month, Draft, Posted, Voided and Refunded, or use the Status filter in the Filters panel.

[Screenshot required: Customer Payments list showing the Draft / Posted / Voided / Refunded quick filters]

Supplier payments

Supplier payments have the same five statuses and the same question when a posted one is undone: the supplier sent the money back (dated today, Refunded) or the payment was a mistake (dated the payment's own date, Reversed). See Record a supplier payment.

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