How to Record a Shipping Payment
Use this feature to record payments made for shipping or transportation charges that have already been recorded in the system.
Shipping payments allow you to settle outstanding shipping costs while keeping supplier balances, account balances, and financial reports accurate.
Before you begin: A shipping record must already exist before a shipping payment can be recorded.
Step 1: Open the Shipping List
From the sidebar menu, click Purchases.
Select Shipping.
The Shipping List page will display all existing shipping records.
Step 2: Open the Shipping Payment Form
Locate the shipping record you want to pay.
Under the Action column, click Add Payment.
The Create Shipping Payment form will open.
Step 3: Review Shipping Information
The following information will be displayed automatically and cannot be edited:
| Field | Description |
|---|---|
| Shipping Number | The reference number of the shipping transaction. |
| Total Shipping | The total shipping cost recorded for the shipment. |
| Total Due | The remaining amount outstanding for payment. |
These values are displayed for reference to help you determine the amount to pay.
Step 4: Enter Payment Information
Complete the required fields:
| Field | Description |
|---|---|
| Paid Amount | Enter the amount being paid. |
| Payment Source | Select where the payment is coming from. |
| Cheque Number | Enter the cheque number if payment is made by cheque. |
| Receipt Number | Enter the payment receipt reference if applicable. |
| Payment Date | Select the payment date. |
| Status | Select the appropriate payment status. |
| Note | Enter any additional notes. |
| Description | Enter a brief description of the payment. |
Step 5: Select the Payment Source
Choose where the payment will come from.
Account
Select Account if the shipping payment is being made directly from a business account.
Then select the account used for the payment, such as:
Cash Account
Bank Account
Mobile Money Account
Any other business account
The selected account balance will be reduced by the payment amount.
Supplier Advance
Select Supplier Advance if the shipping payment will be settled using funds that were previously paid in advance to the shipping supplier.
The payment amount will be deducted from the supplier's available advance balance.
The supplier ledger will be updated automatically.
Step 6: Save the Shipping Payment
Review all information entered.
Click Save to record the payment.
The outstanding shipping balance will be updated automatically.
Understanding the Accounting Effect
Shipping Record
When a shipping payment is recorded, the system will:
Reduce the outstanding balance of the shipping transaction.
Update the payment history for the shipping record.
Mark the shipping transaction as fully paid when the outstanding balance reaches zero.
Payment Source
If the payment source is an Account, the system will:
Reduce the balance of the selected account.
Record the payment against the shipping transaction.
If the payment source is Supplier Advance, the system will:
Reduce the supplier's available advance balance.
Apply the advance to the shipping payment.
Update the supplier ledger automatically.
Inventory Cost
Recording a shipping payment does not change the inventory cost or the Recent Average Cost.
The inventory cost is determined when the shipping record is created. The payment simply settles the outstanding shipping amount.
Impact on Financial Reports
Balance Sheet
Recording a shipping payment reduces:
Cash or bank balances when an account is used for payment.
Supplier advance balances when an advance payment is used.
Outstanding shipping liabilities associated with the shipping transaction.
Cash Flow Report
When payment is made from an account, the transaction is recorded as a cash outflow and reduces the balance of the selected account.
Supplier Ledger
If Supplier Advance is used, the supplier ledger is updated by reducing the available advance balance and recording the payment against the shipping transaction.
Profit & Loss Report
Recording a shipping payment does not affect the Profit & Loss Report.
The shipping cost has already been incorporated into the inventory cost when the shipping record was created. Profit is affected only when the related products are sold through the Cost of Goods Sold (COGS).
Why Recording Shipping Payments Is Important
Recording shipping payments helps you:
Track outstanding shipping balances accurately.
Keep supplier accounts up to date.
Maintain accurate cash and bank balances.
Monitor payments made to transport companies and shipping suppliers.
Prevent duplicate or missed shipping payments.
Produce accurate liability and cash flow reports.
Maintain a complete payment history for every shipping transaction.
Best Practice
Record shipping payments immediately after payment is made. Keeping shipping payments up to date ensures your supplier balances, account balances, outstanding liabilities, and financial reports remain accurate and synchronized with your shipping records.