Payments Received

What is Payments Received?

Payments Received represents actual money collected from customers during the reporting month. This is when cash physically moves from customers' accounts into your bank account, reducing what customers owe you (Account Receivable) or increasing customer credit balances.

When a payment is received:

1. Cash increases - Money arrives in your bank or payment processor
2. Account Receivable decreases - Customer owes you less (for invoice payments)
3. Customer Balance increases - Credit is added to customer account (for non-invoice payments)

This row appears when payments are successfully processed, not when invoices are created.

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Payments Included

A payment appears in "Payments Received" when ALL of the following are true:

1. Created this month: Payment created date is within the selected month
2. Successful payment: Payment status is "succeeded" (not pending or failed)
3. Not deleted: Payment has not been deleted
4. Correct account: Payment belongs to your account
5. Correct currency: Payment currency matches the selected currency

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Real-World Examples

Example 1 - Credit Card Payment for Subscription:

• Customer's $110 subscription invoice is due
• Customer pays with credit card on October 15
• Result in October's Report:
  • Cash - Online Payments: +$110
  • Account Receivable: -$110 (invoice paid off)

Example 2 - Check Payment Received:

• Customer sends $500 check for outstanding invoices
• Check deposited and clears on October 20
• Result in October's Report:
  • Cash - Offline Payments: +$500
  • Account Receivable: -$500

Example 3 - Customer Prepayment (No Invoice):

• Customer makes $1,000 advance payment via ACH
• No specific invoice attached
• Result in October's Report:
  • Cash - Online Payments: +$1,000
  • Customer Balance: +$1,000 (credit for future use)

Example 4 - Agency Subscription Payment:

• Agency subscription payment of $200 received
• Result in October's Report:
  • Cash - Online Payments: +$200
  • Customer Balance: +$200 (held for agency remittance)

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Columns Affected

Payments Received affects different columns depending on payment type:

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Cash - Online Payments

What Does This Number Mean?

Cash - Online Payments shows the total amount received through electronic payment methods during the month.

Think of it as: "Money that hit our payment processor"

Payment Types Included

• Credit card payments (Visa, Mastercard, Amex, etc.)
• Debit card payments
• PayPal
• ACH/bank transfers (processed online)
• Digital wallets (Apple Pay, Google Pay)
• Stripe, Braintree, or other payment gateway transactions

The Exact Calculation

For each successful online payment this month:
  Add: Payment amount

Result is shown as a POSITIVE number (cash increasing)

Example:

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Cash - Offline Payments

What Does This Number Mean?

Cash - Offline Payments shows the total amount received through manual/traditional payment methods during the month.

Think of it as: "Money that came through the bank, not a payment processor"

Payment Types Included

• Checks (mailed or hand-delivered)
• Wire transfers
• Physical cash
• Money orders
• Bank deposits
• Manual ACH (not processed through online gateway)

The Exact Calculation

For each successful offline payment this month:
  Add: Payment amount

Result is shown as a POSITIVE number (cash increasing)

Example:

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Customer Balance

What Does This Number Mean?

Customer Balance shows credits added to customer accounts from payments that aren't applied to specific invoices, or from agency subscription payments.

Think of it as: "Store credit" or "prepayments for future use"

When Does This Increase?

1. Prepayments: Customer pays without a specific invoice
2. Overpayments: Customer accidentally pays more than owed
3. Agency Subscriptions: Payments for agency-type subscriptions
4. Advance Credits: Customer loads credit for future purchases

The Exact Calculation

For each payment this month:
  IF subscription is agency type OR no invoice attached:
    Add: Payment amount to Customer Balance
  ELSE:
    Add: $0

Result is shown as a POSITIVE number (credit increasing)

Example:

• Agency subscription payment: $200 → Customer Balance: +$200
• Prepayment with no invoice: $1,000 → Customer Balance: +$1,000
• Regular invoice payment: $110 → Customer Balance: $0 (goes to AR instead)

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Account Receivable

What Does This Number Mean?

Account Receivable shows how much the amount owed by customers decreased due to invoice payments received this month.

Think of it as: "IOUs being paid off"

The Exact Calculation

For each payment this month:
  IF subscription is NOT agency type AND invoice exists:
    Add: -1 × Payment amount
  ELSE:
    Add: $0

Result is shown as a NEGATIVE number (asset decreasing)

Why Is This Number Negative?

When payments are received, Account Receivable (an asset) decreases. In accounting, when an asset decreases, it's shown as negative. This is the opposite of when you create an invoice (which increases AR with a positive number).

Example:

• Customer owes $110 (from previous month's invoice creation)
• Customer pays $110 → Account Receivable: -$110
• Net effect: Customer now owes $0

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Payment Flow Example

Complete Transaction Cycle

Month 1 (September) - Invoice Created:

Month 2 (October) - Payment Received:

Net Effect After Payment:

• Cash replaces Account Receivable
• Deferred Revenue remains (service still owed)
• Taxes remain (tax still owed to government)

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Common Questions

Why do some payments affect Customer Balance instead of Account Receivable?

A: Payments are split based on context:

• Regular invoice payments: Reduce Account Receivable (paying off a debt)
• Agency subscriptions or no invoice: Increase Customer Balance (holding credit)
• Prepayments: Increase Customer Balance (credit for future use)

When does a payment appear in this row?

A: Payments appear when they're created/processed, not when invoices are created. If you invoice October 30 but customer pays November 5:

• Invoice: October Revenue Streams
• Payment: November Payments Received

What's the difference between online and offline payments?

• Online: Processed through payment gateway (Stripe, PayPal, etc.) - tracked electronically
• Offline: Manual methods (checks, wires, cash) - requires manual entry/reconciliation

Why don't I see taxes in this row?

A: Payments Received doesn't separate out taxes - it records the full payment amount. The tax portion was already recorded when the invoice was created.

What happens if a payment fails?

A: Failed payments don't appear in this row. Only successful (status = "succeeded") payments are included.

Can I see individual payment transactions?

A: Yes! If you have the appropriate permissions, there's a download icon next to the Payments Received row that lets you export detailed transaction data.

What if a customer pays multiple invoices at once?

A: Each payment is recorded separately in this row. If a customer makes one $500 payment covering 5 invoices, it appears as one $500 payment affecting Account Receivable by -$500.

How do I reconcile payments with my bank account?

• Online Payments: Check your payment processor dashboard (Stripe, PayPal) - should match the "Cash - Online Payments" column
• Offline Payments: Check your bank deposits - should match the "Cash - Offline Payments" column

Note: Payment processor fees may cause slight differences.

What about partial payments?

A: Partial payments work the same way - they appear for the amount actually paid. If an invoice is $110 and customer pays $50:

• Cash: +$50
• Account Receivable: -$50
• Remaining balance ($60) stays as Account Receivable

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Summary

Quick Reference:

What appears here: Successful customer payments processed during the month

Inclusion criteria:

• Payment created/processed this month
• Status = succeeded
• Not deleted
• Correct account and currency

Columns:

• Cash - Online Payments: Payment processor transactions
• Cash - Offline Payments: Manual payment methods
• Customer Balance: Agency/prepayment credits
• Account Receivable: Regular invoice payments