If a cutomer pays less than invoice total, then how to settle this in accounting

ERPNext Accounting
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If any customer pays less then invoice total amount then how to nullify this in accounting.
For example: If Invoice value is INR 1000 and customer pays INR 800 then how to balance INR 200

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Hi Team,

Any update for above topic ?

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Did they short pay because of a discount or because of a credit or what is the reason? You wouldn’t want to settle it unless it was intended to be short paid and then you need to have some transaction to match the 200 to close the invoice. Otherwise, they still owe the 200 and it remains open until they pay the remaining balance.

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You have to write-off these INR 200 in accounting. Make sure, you had configured write-off account.

Kindly go through these reference links which will help you about write-off entries:

  1. "Write Off Account" - best accounting practice
  2. See “Bad Debts or Write Offs” section in Journal Entry - Documentation
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