Payments & Invoices Explained: How They Really Work

In our system, invoices and payments are linked and work together to ensure accurate billing and accounting.

Creating Payments

• Payments can be created manually by an admin.
• Payments can also be generated automatically after a successful PAD transaction.

How Payments Are Applied

1. PAD transactions are prioritized: Any invoice processed through PAD is given priority. Once a PAD transaction succeeds, the related invoice is immediately marked as paid.
2. Oldest invoices are paid first: After PAD transactions, when a payment is created, it is applied starting from the oldest outstanding invoice. Each invoice is marked as paid as its balance is covered.
3. Partial payments:
   • If a payment is less than the invoice total, the amount is applied to the invoice, and the remaining balance stays open.
   • The next payment will continue to cover the oldest outstanding balances first.
4. Full payments:
   • If a payment fully covers the invoice, the invoice is marked as paid.
5. Overpayments:
   • If a payment exceeds the invoice total, only the necessary portion is applied to mark the invoice as paid.
   • The remaining balance is stored as a credit and automatically applied to the next invoice when it is generated.