Payment status and marking payments

In faktoora, you can record payments for your invoices and thus manage their status. This is important for accounting and for keeping an overview of open items.

Marking a single invoice as paid

If you want to record an incoming payment for an invoice:

1. Open the invoice in faktoora.
2. Find the option for marking the payment (usually in the "Payments" section or via a context menu).
3. Enter that the invoice has been paid and save the change.

This updates the invoice's payment status. The outstanding balance is adjusted accordingly.

Marking several invoices as paid at once

If you want to reconcile many invoices at once (e.g. from a bank statement):

1. Use the invoice overview and filter for unpaid invoices.
2. Select several invoices from the list.
3. Use the bulk action for payments or a bulk import (if available) to record several payments at once.

The user interface offers functions for processing incoming payments efficiently.

Payment date and payment history

Each recorded payment receives:

• A payment date (when the payment was received)
• An amount (how much was paid)
• A status (e.g. assigned manually, detected automatically)

You can record several partial payments on one invoice. Example:

• Invoice for 1,000 EUR
• Payment 1: 500 EUR on 2024-01-10
• Payment 2: 500 EUR on 2024-01-15
• Status: paid in full

Overpayments and incorrect payments

If a payment exceeds the invoice amount or too much has been paid on an invoice:

• The outstanding balance is shown as negative (e.g. -50 EUR means an overpayment).
• You can book this as a credit or make a correction.
• For credits or deductions (e.g. cash discounts, legal fees), you should create a separate corrected invoice to document everything in an audit-proof way.

Paying incoming invoices

For incoming invoices (invoices you receive from suppliers), marking works in a similar way:

1. Open the incoming invoice.
2. Mark the payment as made.
3. The system tracks when the invoice was paid and to whom.

This helps with reconciliation against your bank statement.

Automatic payment detection

If you have connected a bank account in faktoora, some payments can be detected automatically:

• Transactions are retrieved from the bank account
• The system tries to assign these payments to invoices automatically (based on invoice number, amount, date)
• You can confirm detected payments or correct them manually

Not all payments can be assigned automatically; in that case, manual assignment is necessary.

Proof of payment

Payments in faktoora are documented for accounting purposes, but the following count as legal proof:

• Your bank's account statement
• The transfer receipt
• Confirmations from the payee, if applicable

Keep these documents in case an authority or business partner asks for proof of payment.

Payment terms and payment reminders

In addition to recording payments, you can also manage:

• Payment terms: how long the recipient has to pay (e.g. "Net 14 days")
• Payment reminders: reminders about outstanding payments

These are managed separately and help you keep track of invoices that are due. You can find more information under Payment Reminders.

Invoice status

The payment status of an invoice can have different states:

The outstanding balance is calculated automatically as: invoice amount - payments received.

Correcting an incorrect payment assignment

If you have mistakenly assigned a payment to the wrong invoice:

1. Open the incorrect assignment.
2. Delete or correct the payment entry.
3. Assign the amount to the correct invoice.

This is important so that the outstanding balance is calculated correctly and payment reminders do not go to the wrong customer.