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Payment Recording

Books supports multiple payment methods and handles partial payments, overpayments, and refunds. Payments automatically post GL entries and update invoice balances.

Payment Methods​

MethodDescription
StripeOnline payment via credit card or ACH through the client portal
CheckManual check payment with check number tracking
ACHBank transfer (non-Stripe)
WireWire transfer
Credit CardIn-person or phone card payment
CashCash payment
OtherAny other payment method

Recording a Payment​

  1. Navigate to Accounts Receivable > Payments
  2. Click Record Payment
  3. Select the customer
  4. Choose the payment method
  5. Enter the amount received
  6. Select which invoice(s) to apply the payment to
  7. For check payments, enter the check number
  8. Click Save

GL Entry Created​

When you record a payment, Books posts:

  • DR Bank Account (or Undeposited Funds) — the amount received
  • CR Accounts Receivable — the amount applied to invoices

Stripe Payments (Automatic)​

When a client pays through the Portal using Stripe:

  1. Stripe processes the payment
  2. Stripe sends a webhook to Books
  3. Books automatically records the payment and applies it to the invoice
  4. GL entry is posted (DR Undeposited Funds, CR Accounts Receivable)

No manual action required. The payment appears in your payment list with the Stripe payment intent ID for reference.

💡Stripe payments initially go to Undeposited Funds. When the Stripe payout hits your bank account, use the deposit workflow to move funds from Undeposited Funds to your Bank Account.

Partial Payments​

Clients can pay less than the full invoice amount:

  1. Record the payment with the partial amount
  2. Apply it to the invoice
  3. The invoice status changes to Partial
  4. The remaining balance is tracked on the invoice

You can record additional payments later until the invoice is fully paid.

Applying Payment to Multiple Invoices​

A single payment can be split across multiple invoices:

  1. Record the payment with the total amount
  2. In the invoice applications section, select multiple invoices
  3. Enter the amount to apply to each invoice
  4. The total of all applications must equal the payment amount

Overpayment Handling​

If a client pays more than the invoice balance:

  1. Record the full payment amount
  2. Apply the invoice amount to the invoice (it becomes Paid)
  3. The excess creates a credit on the customer's account
  4. The credit can be applied to future invoices

Undeposited Funds​

Payments received but not yet deposited in the bank go to the Undeposited Funds account. This is common for:

  • Stripe payments awaiting payout
  • Check payments awaiting bank deposit
  • Multiple payments bundled into one bank deposit

To clear undeposited funds:

  1. Navigate to Accounts Receivable > Undeposited Funds
  2. Select the payments included in the bank deposit
  3. Click Create Deposit
  4. Select the bank account
  5. Books posts: DR Bank Account, CR Undeposited Funds

Recording a Refund​

To refund a payment:

  1. Navigate to Accounts Receivable > Payments
  2. Find the original payment
  3. Click Refund
  4. Enter the refund amount (full or partial)
  5. Books posts a reversing GL entry (DR Accounts Receivable, CR Bank Account)

For Stripe payments, Books can trigger the refund through Stripe automatically, which also posts the reversing GL entry (DR Revenue, CR Undeposited Funds).

Sales Receipts​

For immediate payment (no invoice needed):

  1. Navigate to Accounts Receivable > Sales Receipts
  2. Create a sales receipt with line items and payment details
  3. Books posts the revenue and payment in a single transaction

Sales receipts skip the Accounts Receivable step — revenue goes directly to the bank account.

Next Steps​