To settle the invoice there are two ways:
1. Settling invoice through payment
2. Settle it through expense accounts.
Case 1: Settling invoice through payment
Go to Income > Invoices
Step 1: Click on the Invoice for which you want to settle the payment.
Step 2: Click on the Add Payment option on the top right side.
Step 3: Select Deposit to Account from drop down, Received Date, Amount, TDS amount if applicable.
Now Select the Receipt of payment as:
1) Cash - In case the payment is received in Cash
2) Cheque - If the payment is received in Cheque enter the Cheque Number, Bank name, Cheque Date
3) Credit/Debit Card - If via cards please enter Transaction date, Card number, Transaction reference Id
4) Internet Banking - If payment is received through Online Banking, Enter Bank Name, Payment Date, Transaction ID.
The payment receipt will reflect in the Invoice window as shown in the above picture.
Case 2: Settling invoice through expense account:
Go to Income > Invoices
Step 1: Click on the Invoice for which you want to settle the invoice through expense account.
Step 2: Select settle invoice option from action button (see the below picture)
Step 3: Select the account with which you want to settle your invoice and click on save.
