> ## Documentation Index
> Fetch the complete documentation index at: https://docs.timetracker.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Record a payment

> Record a full or partial payment against an invoice in TimeTracker, issue a credit note, or write off a balance – and how each one changes the invoice status.

Record what actually arrived. TimeTracker works out the balance and moves the invoice status for you.

## Three ways to reduce a balance

| Action                          | Use it when                       | Reason required? |
| ------------------------------- | --------------------------------- | ---------------- |
| **Record payment**              | Money arrived                     | No               |
| **Issue credit note**           | You are reducing what you charged | Yes              |
| **Write off remaining balance** | You will never collect it         | Yes              |

All three reduce the balance. None of them edits the invoice total – the original figures stay on the record.

## Record a payment

<Steps>
  <Step title="Open the invoice">
    Click its row in the Invoices list.
  </Step>

  <Step title="Click Record payment">
    The button appears on any issued, non-final invoice if you hold `payment.record`.
  </Step>

  <Step title="Check the amount">
    **Amount received** pre-fills with the full outstanding balance. Change it for a partial payment. The balance due is shown underneath.
  </Step>

  <Step title="Set the payment date">
    **Payment date** defaults to today.
  </Step>

  <Step title="Pick the method">
    **Bank transfer**, **Card**, **Cash** or **Other**. Bank transfer is the default.
  </Step>

  <Step title="Click Record payment">
    You see **"Payment recorded."** and the totals update.
  </Step>
</Steps>

### Payment rules

| Rule           | Behaviour                                               |
| -------------- | ------------------------------------------------------- |
| Currency       | Must match the invoice currency exactly                 |
| Amount         | Must be greater than zero                               |
| Amount         | Must not exceed the outstanding balance                 |
| Invoice status | Must be `sent`, `viewed`, `partially_paid` or `overdue` |

## Issue a credit note

Use **Actions** → **Issue credit note**.

| Field             | Notes                                            |
| ----------------- | ------------------------------------------------ |
| **Credit amount** | Required. Cannot exceed the outstanding balance  |
| **Reason**        | Required. It becomes part of the invoice history |

The helper text reads *"Reduces the balance due. Does not delete or edit the original invoice."*

You see **"Credit note issued."**

## Write off a balance

Use **Actions** → **Write off remaining balance**.

The modal is titled with the figure, for example **"Write off \$1,332.80 for Invoice INV-000042?"** and explains:

> This marks the remaining balance as uncollectible. It won't be counted as revenue or as an outstanding receivable.

| Field      | Notes    |
| ---------- | -------- |
| **Reason** | Required |

The confirm button is **Write off balance**. You see **"Balance written off."** The write-off covers the full remaining balance.

## How the status is worked out

Every payment, credit note and write-off is a row on the invoice's ledger:

`balance = total − payments − credit notes − write-offs`

| Balance                     | Status becomes     |
| --------------------------- | ------------------ |
| Zero or below               | **Paid**           |
| Above zero, below the total | **Partially paid** |
| Equal to the total          | Unchanged          |

The status is derived, never typed. See [/invoicing/invoice-statuses](/invoicing/invoice-statuses).

## The totals block

Once there is a ledger, the invoice document shows the full picture:

| Row             | Shown when                 |
| --------------- | -------------------------- |
| Subtotal        | Always                     |
| Discount        | The discount is above zero |
| Tax             | The tax is above zero      |
| **Total**       | Always                     |
| Paid            | Payments exist             |
| Credit notes    | Credit notes exist         |
| Written off     | Write-offs exist           |
| **Balance due** | Always                     |

## Example

Bluebird Coffee's invoice totals **\$2,332.80**.

<Steps>
  <Step title="A part payment arrives">
    Daniel records \*\*$1,000.00**, bank transfer, 15 April. Balance $1,332.80. Status **Partially paid**.
  </Step>

  <Step title="A billing error is agreed">
    Ruth points out one line was double-counted. Daniel issues a \*\*$332.80** credit note with the reason *"Duplicate wireframe line on the March invoice."* Balance $1,000.00. Status stays **Partially paid**.
  </Step>

  <Step title="The rest arrives">
    Daniel records \*\*$1,000.00**. Balance $0.00. Status **Paid**.
  </Step>
</Steps>

The invoice still shows a total of \$2,332.80. The ledger explains the difference.

## What happens when an invoice is paid in full

1. The status becomes **Paid** and is final.
2. The client's billing contact gets a receipt email.
3. Your workspace owners and admins get an internal notification.
4. The overdue reminder for that invoice never fires.

A partial payment notifies your team but does not email the client.

## Permissions

| Action              | Capability       | Default roles                          |
| ------------------- | ---------------- | -------------------------------------- |
| Record a payment    | `payment.record` | Owner, Admin, Project Manager, Finance |
| Issue a credit note | `payment.record` | Owner, Admin, Project Manager, Finance |
| Write off a balance | `payment.record` | Owner, Admin, Project Manager, Finance |
| Send a reminder     | `payment.record` | Owner, Admin, Project Manager, Finance |

Payments are a **Pro** feature (`payments`). See [/invoicing/invoice-permissions](/invoicing/invoice-permissions) and [/concepts/plans-and-features](/concepts/plans-and-features).

## Common questions

<AccordionGroup>
  <Accordion title="Can I record a payment on a draft?">
    No. Send the invoice first. You see *"Invoice #42 is still a draft. Send it before recording a payment."*
  </Accordion>

  <Accordion title="Can I record an overpayment?">
    No. A payment larger than the outstanding balance is refused, and the message names the outstanding figure.
  </Accordion>

  <Accordion title="Can I delete a payment I recorded by mistake?">
    There is no delete on a ledger row. If the invoice is not yet paid, issue an offsetting adjustment; if it is, void the invoice and raise a corrected one.
  </Accordion>

  <Accordion title="Credit note or write-off – which do I use?">
    A credit note means you agree the charge was wrong. A write-off means the charge was right but you will not collect it. The distinction matters for your accounts.
  </Accordion>

  <Accordion title="Can I record a payment in a different currency?">
    No. The payment must be in the invoice currency. Convert it yourself and record the invoice-currency figure.
  </Accordion>

  <Accordion title="Does recording a payment change the time entries?">
    No. Time entries are settled once they are invoiced. Payment is a money event on the invoice only.
  </Accordion>

  <Accordion title="Does TimeTracker collect the money?">
    No. There is no payment gateway. You record payments you received elsewhere.
  </Accordion>
</AccordionGroup>

## Troubleshooting

| Message                                                                       | Meaning                                   | Fix                                                   |
| ----------------------------------------------------------------------------- | ----------------------------------------- | ----------------------------------------------------- |
| "Invoice #42 is still a draft. Send it before recording a payment."           | The invoice was never issued              | Send it                                               |
| "Invoice #42 is paid, so it can no longer take a payment."                    | The invoice is final                      | Nothing to do                                         |
| "'abc' won't work as an amount. Enter a number like 500 or 500.25."           | The amount is not a number                | Enter a plain decimal                                 |
| "Enter an amount greater than zero."                                          | The amount is zero or negative            | Enter a positive figure                               |
| "This invoice is in USD, so a payment in EUR can't be recorded against it."   | Currency mismatch                         | Record it in the invoice currency                     |
| "That payment of 3000 is more than the 1332.80 still outstanding."            | Overpayment                               | Record the outstanding amount, or raise a credit note |
| "Give a reason for this credit note, so the invoice history explains itself." | The reason is blank                       | Write a reason                                        |
| "That credit note of 3000 is more than the 1332.80 still outstanding."        | The credit exceeds the balance            | Lower the amount                                      |
| "This invoice is already settled, so there's nothing to write off."           | The balance is zero                       | Nothing to do                                         |
| "This invoice has already moved on since the page loaded."                    | Someone else changed it                   | Reload the invoice                                    |
| The **Record payment** button is missing                                      | Draft, void, or you lack `payment.record` | Check the status and your capability                  |

## Related guides

<CardGroup cols={2}>
  <Card title="Invoice statuses" icon="signal" href="/invoicing/invoice-statuses">
    How the balance drives the status.
  </Card>

  <Card title="Send an invoice" icon="paper-plane" href="/invoicing/send-an-invoice">
    The step before payment.
  </Card>

  <Card title="Void an invoice" icon="ban" href="/invoicing/void-an-invoice">
    When a correction is not enough.
  </Card>

  <Card title="Taxes and currency" icon="percent" href="/invoicing/taxes-and-currency">
    Why payment currency must match.
  </Card>

  <Card title="Invoice permissions" icon="file-shield" href="/invoicing/invoice-permissions">
    Who can record money.
  </Card>

  <Card title="Invoicing troubleshooting" icon="life-ring" href="/invoicing/troubleshooting">
    Every message in one place.
  </Card>
</CardGroup>