Piecemeal Payment
Pay vendor bills in installments. Status tracks automatically. Balance stays accurate.
Piecemeal payment — also called partial payment — allows you to pay a vendor bill across multiple vouchers. The bill stays open and tracks the running balance until the full amount is settled. Each voucher creates its own journal entry. The bill status updates automatically at each payment.
This is common for large supplier invoices, negotiated payment plans, and situations where cash flow requires spreading payments over time.
How It Works
Bill for 20,000 is saved. The full AP obligation is created immediately. Status: Unpaid. Balance: 20,000.
Journal on save: DR Purchases / Inventory 20,000 — CR Accounts Payable 20,000
Payment voucher of 8,000 is recorded and allocated to this bill.
Journal on save: DR Accounts Payable 8,000 — CR Bank 8,000
Status changes to Partly paid. Amount paid: 8,000. Balance: 12,000.
Payment voucher of 12,000 is recorded and allocated to the same bill.
Journal on save: DR Accounts Payable 12,000 — CR Bank 12,000
Status changes to Paid. Amount paid: 20,000. Balance: 0.00. AP fully settled.
Journal Summary
| Account | Debit | Credit | Description |
|---|---|---|---|
| Purchases / expense account | 20,000.00 | — | Cost recognized in full on the date the bill is saved |
| Accounts Payable | — | 20,000.00 | Full vendor obligation recorded. Vendor is now a creditor for this amount. |
| Account | Debit | Credit | Description |
|---|---|---|---|
| Accounts Payable | 8,000.00 | — | Partial AP reduction. 12,000 still outstanding on this bill. |
| Bank / Cash | — | 8,000.00 | Cash leaves the business. Bank balance reduced. |
| Account | Debit | Credit | Description |
|---|---|---|---|
| Accounts Payable | 12,000.00 | — | Remaining AP cleared. Bill now fully paid. |
| Bank / Cash | — | 12,000.00 | Final cash payment leaves the business. |
Status Transitions
| Status | Condition | Amount Paid | Balance |
|---|---|---|---|
| Unpaid | Bill saved, no payments applied | 0.00 | Full bill amount |
| Partly paid | One or more payments applied, balance greater than zero | Partial amount | Greater than 0.00 |
| Paid | Total payments equal total bill amount | Full amount | 0.00 |
Status transitions happen automatically when vouchers are saved. You do not set the status manually.
Allocating a Voucher to a Specific Bill
When recording a voucher, the Apply to Bills table lists the vendor's outstanding documents. To apply a payment to a specific bill:
- Procurement → Payment vouchers → New
- Select the vendor and set the Payment Type to Apply to Bill
- Add Bill, then enter the amount on each row (or use Pay in full / Apply oldest first)
- The Amount field fills from the allocations; the server refuses an allocation above a bill's remaining balance
- Save — each bill's balance updates independently
You can also start from the bill detail page. Click Record Payment — the voucher form opens with the bill added and the bill's outstanding balance as the amount. Change it to the partial amount if needed.
Multiple Bills, One Voucher
A single voucher can be split across multiple outstanding bills. This is common when one bank transfer settles several invoices.
Example: One bank transfer of 35,000 covers three outstanding bills.
| Bill | Outstanding | Amount Applied |
|---|---|---|
| BIL000012 | 15,000.00 | 15,000.00 (fully settles this bill) |
| BIL000018 | 12,000.00 | 12,000.00 (fully settles this bill) |
| BIL000021 | 20,000.00 | 8,000.00 (partial — 12,000 remains on this bill) |
| Voucher Total | 35,000.00 |
After this voucher: BIL000012 and BIL000018 are Paid. BIL000021 is Partly paid with a 12,000 balance.
If a voucher's amount exceeds what is allocated to bills, the remainder sits as an unmatched credit against the vendor and the voucher shows as Partly matched. Apply it to future bills with Match Bills on the voucher.
Viewing the Payments on a Bill
Open any saved bill → the Lifecycle panel → Payments stage lists every voucher applied to this bill: number, date and amount, each a link to the voucher. The bill's summary shows Amount paid and Balance as computed by the backend.
Related
- The allocation surfaces and their helpers: Matching a payment to bills.
- Recording each instalment: Manual payment.
- The bill that stays open between them: Bills.
- Undoing an instalment: Voiding a payment.