Payment and Receipt Vouchers

Payment and Receipt vouchers are the two most common vouchers you will post in Udyot ERP Nepal. A Payment voucher records every rupee your business sends out — paying a supplier, settling an expense, or repaying a loan. A Receipt voucher records every rupee that comes in — collecting from a customer, receiving an advance, or depositing rental income. Together, they keep your cash and bank ledgers accurate in real time, link payments to outstanding invoices through bill-wise allocation, and automatically handle TDS deductions so you stay IRD-compliant without manual calculations.

Recording a Payment Voucher (paying a supplier or expense)

Use a Payment voucher any time money leaves your business — a cheque to a supplier, a cash expense, a loan repayment, or an advance to a vendor.

1. Go to Vouchers → Payment → New.
2. Enter the date in Bikram Sambat (e.g. 2082-04-15). The calendar widget converts AD dates automatically if you prefer to type in AD.
3. In the first ledger row, select the account you are paying from — your bank account (e.g. NIC Asia Cheque Account) or Cash. This is the Credit side (money leaving that account).
4. In the second row, select the party or expense ledger you are paying — a supplier under Sundry Creditors, an expense like Office Rent, or any other ledger. This is the Debit side.
5. Enter the amount in NPR and add a brief narration (e.g. “Cheque #102345 — payment against invoice INV-2082-0021”).
6. Click Save. The voucher number is stamped automatically (e.g. PV/0001) and resets each new fiscal year.

You can add as many ledger rows as needed for a single payment — for example, paying three different vendors in one bank transfer, or splitting a payment across expense categories. Just ensure total Debits equal total Credits before saving.

Recording a Receipt Voucher (collecting from a customer)

Use a Receipt voucher any time money arrives in your business — a customer cheque, a cash sale collection, or an advance payment from a buyer.

1. Go to Vouchers → Receipt → New.
2. Enter the date in BS.
3. In the first row, select the account receiving the money — your bank account or Cash. This is the Debit side (balance increasing).
4. In the second row, select the customer ledger (under Sundry Debtors). This is the Credit side.
5. Enter the amount and a narration (e.g. “Cheque #234567, NIC Asia clearing — ABC Trading”).
6. Click Save.

Bill-wise Allocation — Matching Payments to Outstanding Invoices

Every Payment or Receipt voucher involving a party ledger (customer or supplier) supports bill-wise allocation. This lets you specify exactly which outstanding invoice a payment is settling, so your AR and AP reports show the true outstanding balance rather than a lump sum.

1. After selecting the party ledger and entering the amount, look for the + Allocate button below the party row.
2. Click it to see a list of open invoices for that party. Select the invoice(s) you are settling.
3. You can split a single payment across multiple bills — for example, a Rs. 50,000 cheque that covers three invoices of Rs. 20,000, Rs. 20,000, and Rs. 10,000.
4. If you are recording an advance (no invoice yet), leave the allocation blank or enter a reference like OPEN-ADV-2082-001. The advance appears as an unallocated amount in the Outstanding Bills report and can be applied to a future invoice later.
5. Save the voucher. The allocated bills update immediately — settled bills drop off the AR/AP outstanding list, and partially settled bills show the remaining balance.

You can also apply an existing advance to an invoice at any time through Reports → Outstanding Bills → Apply without creating a new voucher.

TDS Deduction on Payments (automatic calculation)

In Nepal, businesses are required to deduct Tax Deducted at Source (TDS) when paying certain vendors — for example, 1.5% on service fees from a PAN-registered vendor under IRD Section 15(2). Udyot ERP handles this automatically once a vendor is tagged with their TDS section.

Setting up a vendor for TDS

Before the first payment, go to Masters → Parties, open the vendor, and set their TDS Section (e.g. 15-2 Service 1.5%) and confirm whether they have a PAN. Vendors without a PAN are charged double the rate per IRD rules.

Posting a payment with TDS

1. Go to Vouchers → Payment → New.
2. Select the vendor ledger in the Debit row. Udyot ERP reads the TDS tag from the vendor profile.
3. Tick Deduct TDS in the vendor row. The system automatically computes:
   • Full invoice amount — Debited to the vendor ledger
   • Net amount paid — Credited to your bank/cash account (invoice minus TDS)
   • TDS amount — Credited to TDS Payable — [Section] (a liability you will remit to IRD)
4. For example: paying a service vendor Rs. 10,000 at 1.5% TDS (PAN registered) → Bank Cr Rs. 9,850 + TDS Payable Cr Rs. 150 = Vendor Dr Rs. 10,000.
5. Add the bill-wise reference if applicable and click Save.

The deducted TDS flows automatically into the TDS Return report under Tax → TDS Return. At the end of the month you can generate TDS certificates for each vendor from Reports → TDS Certificate.

Note: TDS rates are set by IRD and may change each fiscal year. Always verify against the current IRD circular.

Cost-Centre Tagging (optional)

If your business tracks profitability by department or project, you can tag each ledger line in a Payment or Receipt voucher with a cost centre. For example, tag an office rent payment to “Operations” and a marketing expense to “Sales Dept”. The cost-centre column appears on each voucher line — if you do not see it, enable it under Settings → Account Settings.

Tagged entries appear in the Cost Centres and Profitability report, giving you a department-level P&L without needing separate ledgers for each department.

Contra Voucher — Cash to Bank Transfers

If you are simply moving money between your own bank accounts or depositing cash into the bank, do not use a Payment or Receipt voucher. Use a Contra voucher instead (Vouchers → Contra → New). A Contra only accepts Bank and Cash ledgers on both sides, and the system will remind you if you try to use it for the wrong voucher type.

Nepal-Specific Notes

• Bikram Sambat dates: All voucher dates are entered in BS format (e.g. 2082-04-15 = 15 Shrawan 2082). The app converts AD dates for you if needed. Vouchers are grouped by BS fiscal year (Shrawan to Ashadh).
• TDS remittance to IRD: TDS deducted through Payment vouchers accumulates in the TDS Payable ledger. You must remit this to IRD by the 25th of the following month. Use Tax → TDS Return to view and file.
• Advances to employees: Record employee advances using a Payment voucher, with the employee ledger on the Debit side. When the advance is settled, create a Journal entry to clear it against the relevant expense. For a structured approach, see Employee Loans and Advances.
• Large amounts: Nepal commonly expresses amounts in Lakh (1,00,000) and Crore (1,00,00,000). Udyot ERP uses standard numeric entry — type the full number (e.g. 500000 for 5 Lakh).

Related Articles

• Sales and Purchase Invoices
• TDS — Tax Deducted at Source
• Recording Vouchers — Overview
• Bank Reconciliation
• Cost Centres and Profitability
• Generating VAT Returns and IRD Annexes