Sell on credit (udhaar) and collect the money

Create a credit bill, set a due date and credit limit, see who owes you, and record each payment against the right bills. Step by step.

Many shops sell on credit. This article shows the whole loop: set a limit, make the credit bill, see who owes you, and record the payment when it comes.

Step 1: Set a credit limit for the customer (optional)

  1. Go to Sales > Parties.
  2. Tap Add Party for a new customer, or open an existing party to edit it.
  3. Set Type to Customer or Both.
  4. Enter the Credit Limit (₹): the most this customer may owe you at one time. Enter Payment Terms (days) if they usually get, say, 15 days.
  5. Save the party.

Step 2: Make the credit bill

  1. Go to Sales > Invoices and tap New Invoice.
  2. Pick the customer with Select Customer (or leave for Cash). A credit bill needs a saved customer, so do not choose Cash Customer here.
  3. In the details card, check the Date. Set the Due Date to when you expect payment (if the field is shown for your business type).
  4. Find the green switch labelled Cash Bill with the note Instant settlement. Leave it off. Off means the amount stays unpaid and appears in your Pending Bills. On means the bill is marked paid on the spot.
  5. In the Items card, type in the Search item… box, pick each product, and fill Qty and Rate. Enter commits a line and starts the next one.
  6. Tap Save Invoice.

What you see next: the saved panel with Print, Share and New Invoice. The full amount is now owed by the customer.

Credit sales are done in New Invoice. Quick Sale takes cash, UPI and card only, and has no credit option.

If the credit limit is crossed

If saving would take the customer past their limit (or they have overdue bills under your credit policy), a window titled Credit block active opens. It shows the Credit ceiling, the amount Outstanding now and any Overdue invoices. Your choices:

  • Cancel: the bill is not saved. Reduce the bill, or collect an old payment first.
  • Administrator override: an administrator signs in, types an Override reason and approves. The bill then saves. The override is recorded with the reason.

Step 3: See who owes you

  1. Open Finance > Pending Bills. The page is titled Pending Bills Hub.
  2. The top cards show Total Outstanding, Overdue Amount and Customers with Dues.
  3. Below them, each customer with dues is listed with their unpaid invoices. Use the search box to find one customer. When nobody owes anything you see All clear (nothing outstanding).

For a customer's full account, open Reports > Customer Ledger, pick the customer, then use CSV, Share or Print / PDF.

Step 4: Record a payment

Way A: one customer, a form with full detail

  1. Open Finance > Receive Payment.
  2. Check the Date and the Receipt No. (filled for you, editable).
  3. In Customer, search by name, phone or GSTIN and pick the customer. Their unpaid bills load below.
  4. Choose the Payment mode. Cash, UPI and bank transfer ask for a UTR / Reference and a Bank / account. A cheque asks for Cheque number, Cheque date, Bank and Branch.
  5. Type the Amount received.
  6. Choose Received into: your cash or the bank account that got the money.
  7. In the bills list, the payment is spread across the bills. You can change the allocation per bill, or tick a bill to allocate against it directly.
  8. Add Notes if you like. Tap Save receipt, or Save & print to print it as well.

A cheque is recorded as held and is not counted as received until you confirm it later in the Voucher & Instrument Register.

Way B: pay several bills for one customer from Pending Bills

  1. In Pending Bills, tick the invoices the customer is paying.
  2. Tap Record Bulk Payment.
  3. In the window, check the Selected invoices count and total. Enter the Payment Amount.
  4. Tap Record Payment. A message says Payment Recorded.

What you see next: the paid bills drop off the list or show a smaller balance, and Total Outstanding goes down.

Reminders

On your dashboard, the attention card lists overdue invoices, invoices with no due date and ones needing reconciliation. Use View affected records or View party ledger to see them. InvoBill does not send payment reminders to customers. You contact them yourself, for example with Share on the Customer Ledger.

Good to know

  • Pending Bills needs a connection, because it reads your latest records.
  • Payment links and automatic customer reminders are not available yet.