Get Your Free

Xero Courses Now

Tired of bad quality homemade Xero tutorials? Our easy-to-follow FREE Xero courses will help you learn the essentials in only 2.5 hours.

Xero Invoices – How to Record a Payment on a Sales Invoice

by | 23 Jun 2018 | Invoices

If you have received a payment from a client for a sales invoice, you can manually record it against the invoice in Xero. Once the payment has been recorded, it can be reconciled against the relevant bank transaction when it comes through the bank feed. In this tutorial, we will manually record a payment on a sales invoice in Xero’s demo company and see where it appears in the bank account.

Sales Invoices Section in Xero

To get to the right place in Xero, go to Business → Sales overview from the main menu:


Now click on the Awaiting Payment section to see all the sales invoices that have been created but not paid by the customers:


How to Record a Payment on a Sales Invoice in Xero

Let’s choose the first unpaid invoice on the list for this exercise. Click anywhere on the row of the Bayside Club to open the invoice:


At the bottom of the invoice template, you should see a section called Receive a payment. Here, you can add details of either a full or part payment of the invoice. For this tutorial, we will add details of the full payment of the invoice as follows:

  • Amount Paid: type in 234.00.
  • Date Paid: choose today’s date.
  • Paid To: choose 090 – Business Bank Account.
  • Reference: type in the invoice number ORC 1039.


Click on the Add Payment button when you are ready. If the payment was successful, you will see a message at the top of your screen confirming that the payment has been recorded on the invoice:


Check the Payment in the Bank Account

Let’s take a look at where the invoice payment appears in the bank account. From the main menu, go to Accounts → Bank Accounts and click on the link for the Business Bank Account:


Click on the Account Transactions tab if it is not already open:
0096-xero-invoices-record-payment-07Pic 7

Here you should see a transaction for the payment of $234.00 you recorded against the Bayside Club invoice:


Congratulations! You have successfully recorded a payment on a sales invoice and it is now ready to be reconciled once the transaction comes through the bank feed.


Get All 6 Xero Courses and Save 57%

Do you want all our Xero courses? Save 48% by getting them all today for one low price!

  • The best value Xero training anywhere online today.
  • With 270+ lessons and 1400+ minutes of learning you will become a Xero expert fast!
  • Get on top of your Payroll, BAS & GST, Bank Accounts, Projects and much more much faster than you can going it alone.

$49.00 $34.30

Great time to visit. Take 30% off your purchase.
Offer valid until the timer hits zero!