Payment Entries are records of transactions made against documents like purchase or sales invoices, sales orders or even internal expense claims. They are used to keep a record of outgoing, incoming and internal payment transactions.

There are different types and modes of payment in each transaction, it is important to make sure each detail is recorded accurately. Payment entries reflect various other document types such as sales and purchase invoices and can be linked seamlessly.

Payment entries are also helpful in recording advance payments, partial payments, and payments in different currencies and exchange rates.