Zikpro - Mode of Payment
Mode of Payment means how the money is paid or received. It indicates the payment method used for the transaction — such as cash, bank transfer, cheque, or credit card. In Zikpro (or any system), using the proper mode allows you to trace where the money was received from or went. It also facilitates clean records for reports and accounts.
To see the list of Mode of Payments, follow these steps:
1. How to Create a Mode of Payment
1- Go to the Mode of Payment option from the Accounting module and press "New" to add a new payment mode.
2- Enter the payment mode name. For instance, in the screenshot, it is mentioned as Cash. You can also refer to it as "Bank Transfer", "Cheque", "Cash" — based on how the money is paid or received.
3- In the Type field, select one of the pre-existing options:
Choose Cash if paid by hand.
Choose Bank if the payment is through a bank account.
Choose General if it's through another payment system such as PoS.
4- For example, in the image, the chosen type is Cash.
5- In the Accounts area, include the company name and its default account.
6- For example, in the image, the company is M & J and the default account is Cash - M&J. This instructs ERPNext to which account to post the payment in the system.
7- You can click Add Row if you wish to allocate this mode to different companies with various accounts.
8- After providing all the details, click Save to save the Mode of Payment. It will be ready to use in sales, purchases, and other postings.
2.Types of Mode of Payment
1. Cash:
This refers to the customer paying you actual money — coins and notes.
Example: A client visits your office and pays cash of £100 in hand. You select Cash as the payment method.
2. Bank:
This refers to the payment being made via a bank account — such as online transfer or cheque.
Example: Your client pays £2,000 to your bank via online banking. You select Bank as the payment mode.
3. General:
Use this when the payment is done with a card machine (POS) or any other method that is neither cash nor bank.
Example: A customer makes a payment via a card machine in your store. You choose General as the payment method.
4. Phone:
Use this for payments made via mobile apps such as Apple Pay or Google Pay.
Example: A customer pays £300 via Apple Pay from his phone. You use Phone as the payment method.
Company form.
Mode of Payment default account.
Customer/Supplier default bank account.
Manual selection in Payment Entry.
3. Using Payment Mode in Transactions
Once Payment Modes are set up, they can be used in various transactions, such as:
Payment Entry: Select the Payment Mode when recording payments.
Sales Invoice: Specify the Payment Mode for customer payments.
Purchase Invoice: Specify the Payment Mode for supplier payments.
4. Best Practices for Payment Mode
Consistent Naming: Use clear and consistent names for Payment Modes (e.g., "Cash - Main Office", "Bank Transfer - HDFC").
Link to Correct Accounts: Ensure each Payment Mode is linked to the correct default account for accurate accounting.
Disable Unused Modes: Disable Payment Modes that are no longer in use to avoid confusion.
Regular Review: Periodically review and update Payment Modes to reflect changes in payment methods.