Payment Ledger
The Payment Ledger in ERPNext is a dedicated ledger that only holds transactions of Receivable and Payable accounts. A transaction is shown in the Payment Ledger only if the Account Type of the ledger account is Receivable or Payable.
Example
Assume a Sales Invoice of $1000 is posted, and a Payment Entry is posted against the invoice:
- The Sales Invoice entry will then be reflected in the Payment Ledger as an amount receivable.
- The Payment Entry will then be shown, minimizing the outstanding balance.
Usage of Payment Ledger
1. Reports
The below reports in ERPNext are driven by the Payment Ledger:
- Accounts Receivable
- Accounts Receivable Summary
- Accounts Payable
- Accounts Payable Summary
2. Tools
The following reconciliation tools use the Payment Ledger to compute Outstanding bills:
Only the Payment Ledger gets updated during reconciliation — the General Ledger (GL) is not altered. Payment Ledger in ERPNext offers a neater and quicker method of tracking and reconciling Receivable and Payable transactions to better manage AR/AP.
