Payment

Basics

The transfer of money from buyer to seller in settlement of an invoice.

Detailed Explanation

Payment is the completion of a financial transaction where the buyer transfers the agreed amount to the seller. Payment methods include cash, check, credit card, debit card, ACH transfer, wire transfer, or digital payment platforms. The payment method and timing should be agreed upon in advance and clearly stated on the invoice. Recording payments accurately is essential for maintaining correct accounts receivable balances and financial records.

Examples

  • Payment of $5,000 received via bank transfer for invoice #1001
  • Customer makes payment using credit card through online payment portal

Related Terms

Invoice Receipt Payment Terms Remittance

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