## Prepare the Payment Details Before Recording It Before you create a Payment in Pams, compare the payment information with the bank confirmation, payment receipt, or remittance advice you received. This prevents a payment from being recorded against the wrong Account or allocated to the wrong Invoice. Make sure you have the following details ready: - The **Amount** received, including the correct **Currency** where it is shown. - The date the payment was received, which you will enter in **Paid on**. - The payer details for the **Paid by** field. - The related **Account** in Pams. - The payment method details, including **Payment Method** or **Payment Method Code**, if your Payment form requires them. - The Invoice or outstanding balance the payment is intended to settle. - A supporting document to add through **Attachment**, such as a remittance advice, bank confirmation, or payment receipt. If the payer has paid more than one Invoice, identify each Invoice and the amount intended for each one before you begin. This is especially important when the received Amount does not exactly match a single Invoice Amount. Check that this is an incoming customer payment connected to an Invoices process. A payment connected to a Purchase Invoice or a sub-supplier follows the Payments process described in [Managing AP Invoices](doc:managing-ap-invoices). Do not create an incoming Payment record for an amount that is actually an adjustment, refund, or another transaction type unless its purpose has been confirmed by the person responsible for Payments. [SCREENSHOT: Bank confirmation or remittance advice beside the Pams Payment form, with Amount, Paid on, Paid by, and Account highlighted] ## Create an Incoming Payment Record 1. In Pams, open **Finance > Payments** and select the action used to create a new **Payment**. A new Payment form opens in **Draft**, which is the editable stage for entering and checking the details. 2. Select the relevant **Account**. Choose the Account that received the payment, not simply the Account that appears most recently in the Payments list. Then complete **Paid by** with the payer shown on the remittance advice, receipt, or bank confirmation. Check that the Account and payer information agree with the Invoice or outstanding balance you plan to allocate. 3. Enter the received value in **Amount**. Type the Amount exactly as it appears in the payment source document. Confirm the **Currency** before saving, particularly when the Account has Invoices in more than one currency. 4. Enter the payment date in **Paid on**. Use the date the payment was received or confirmed, rather than the date you happen to enter the Payment in Pams. If applicable, select the correct **Payment Method** and enter the related **Payment Method Code**. 5. Review the form before saving. At this stage, the Payment should identify who paid, how much was received, when it was received, and which Account it relates to. Do not allocate the Payment based only on a similar payer name or Invoice Number. 6. Click **Save** to keep the Payment in Draft while you add evidence and review the intended allocation. Use **Save and Close** only when you are ready to leave the form and return later. [SCREENSHOT: New Payment form in Draft with Account, Paid by, Amount, Paid on, Currency, and Payment Method fields highlighted] ## Attach Supporting Documents to the Payment 1. Open the Payment while it is still in **Draft**. Attaching documents before you mark the Payment as **Done (completed)** keeps the payment evidence together with the recorded Amount, payer, and allocation. 2. Locate **Attachment** on the Payment record and use it to add the payment evidence. Select the relevant file from the available file location, then wait for it to appear on the Payment record before moving on. 3. Add documents that show the payment source or its intended use. Useful evidence includes: - A remittance advice showing the Invoice Number or Invoices being paid. - A bank confirmation showing the received Amount and payment date. - A payment receipt that identifies the payer. - A document explaining a partial payment, combined payment, or overpayment. 4. Review each attached file directly from the Payment record. Confirm that the document belongs to the same **Account**, **Paid by** value, and **Amount** entered on the form. If the remittance advice refers to several Invoices, make sure the total on the document agrees with the received Amount before you allocate it. 5. Use **Save** after adding attachments. Keep the Payment in Draft if you still need to correct the **Amount**, **Paid on**, **Account**, or **Paid by** details. Attachments provide a clear payment history when someone later opens the Payment Number, reviews the related Invoice, or checks why an Amount was allocated in a particular way. Keep all payment evidence on the relevant Payment record rather than relying on a separate document location. [SCREENSHOT: Payment record showing the Attachment area with a remittance advice and bank confirmation attached] ## Complete the Incoming Payment 1. Open the Draft Payment and perform a final review of the key fields. Check **Account**, **Paid by**, **Amount**, **Currency**, **Paid on**, and **Payment Method** against the attached payment evidence. Confirm that the Amount is the amount actually received, not the Invoice Amount you expect to collect. 2. Review the intended Invoice allocation before completion. If the payment covers one Invoice, check that the Invoice Amount and received Amount agree. If it covers several Invoices, make sure you have identified how the Amount will be distributed. If the payment is partial, retain the supporting document that explains the short payment. 3. Confirm that all required evidence appears under **Attachment**. A Payment marked **Done (completed)** should have enough information for another user to understand who paid, what was received, and what the payment is intended to settle. 4. Select **Done (completed)** on the Payment record. This marks the incoming Payment as completed after its information has been checked. 5. Reopen or refresh the Payment record and verify that its status shows **Done (completed)**. Also confirm that the Payment Number, Amount, and Account still display correctly. Treat **Done (completed)** as the point at which the Payment becomes the confirmed record of the received funds. Review the payment details carefully before using this action. If a correction is needed later, use the available correction or allocation controls on the existing Payment record rather than entering a second Payment for the same bank receipt. [SCREENSHOT: Completed Payment record showing Done (completed), Payment Number, Amount, and attached evidence] ## Allocate the Payment to Outstanding Amounts 1. Open the Payment that shows **Done (completed)**. Confirm the **Amount**, **Account**, and **Paid by** values one more time so you are allocating the correct receipt. 2. Select **Adjust Allocation** to begin or update the allocation. Use the available Invoice, Account, or outstanding balance options shown for the Payment. Choose only the outstanding amount that belongs to the same payer and Account recorded on the Payment. 3. When the payment settles one Invoice in full, allocate the full received Amount to that Invoice. Compare the allocated Amount with the Invoice Amount before saving. The Payment should then show that the Invoice has been allocated. 4. When one payment covers more than one outstanding Invoice, use **Adjust Allocation** to distribute the received Amount across the eligible Invoices. Enter or confirm the amount assigned to each Invoice, then check that the combined allocations equal the Payment **Amount**. 5. When the received Amount is less than an Invoice Amount, allocate only the amount actually received. This leaves the unpaid portion outstanding. Do not increase the Payment Amount to make the Invoice appear fully paid. 6. When the received Amount is higher than the available Invoice Amount, allocate only the appropriate amount and review the **Remaining** value or the difference between the Payment Amount and allocated amounts. Keep the remittance advice or bank confirmation in **Attachment** so the reason for the unmatched amount is clear. 7. Save the allocation and confirm that the Payment shows **Invoice Allocated** where applicable. Recheck the remaining amount before closing the record. [SCREENSHOT: Adjust Allocation view showing one completed Payment distributed across multiple outstanding Invoices, with allocated and Remaining amounts highlighted] ## Fix Unallocated, Incorrect, or Incomplete Payments 1. Start by opening the existing Payment record; do not create a second Payment for the same received Amount. Check its current status, then compare **Account**, **Paid by**, **Amount**, **Currency**, and **Paid on** with the attached payment evidence. 2. If the Payment is still in **Draft**, correct the inaccurate field directly and click **Save**. For example, update **Paid by** if the wrong payer was selected, correct **Paid on** if the bank receipt shows another date, or amend **Amount** if the entered value does not match the confirmation. 3. If the Payment cannot be allocated, use **Adjust Allocation** and check whether the intended Invoice or outstanding balance is available under the correct **Account**. Verify that the Invoice has not already been settled and that it belongs to the payer recorded in **Paid by**. 4. If the allocated total differs from the Payment **Amount**, determine which situation applies: - The payment is a partial payment against one Invoice. - The payment covers several outstanding Invoices. - The received Amount includes an amount that remains unallocated. - The payment was entered with an incorrect Amount, Account, payer, or date. 5. If allocation needs changing, use **Adjust Allocation** on the existing Payment. Review the result carefully and confirm whether **Invoice Allocated** and **Remaining** show the expected values. Do not remove or change an allocation merely to force the Payment Amount to equal an unrelated Invoice Amount. 6. If payment evidence is missing, add it through **Attachment** and save the record. If the Payment is already **Done (completed)**, use only the correction options available on that Payment record and retain the original evidence and Payment Number for traceability. ## Overview Incoming Payments in Pams record money received from a payer and connect that receipt to the related Account and outstanding Invoice amount. The Payment record gives your team one place to see the payer, received Amount, **Paid on** date, Currency, supporting documents, and allocation result. The normal workflow is: - Create a Payment in **Draft**. - Complete **Account**, **Paid by**, **Amount**, and **Paid on**. - Add a remittance advice, bank confirmation, or payment receipt through **Attachment**. - Review the information and mark the Payment **Done (completed)**. - Use **Adjust Allocation** to apply the received Amount to the appropriate Invoice or outstanding balance. - Check **Invoice Allocated** and any **Remaining** amount after allocation. This process is part of the customer sales cycle that follows an AR Invoice. If you need to review the invoice before recording the receipt, see [Managing AR Invoices](doc:managing-ar-invoices). The Payment record should reflect the actual money received, while the allocation explains which outstanding amount that money settles. Incoming Payments are different from purchase-side payments. Purchase Invoices and payments to sub-suppliers belong to the Payments workflow covered in [Managing AP Invoices](doc:managing-ap-invoices). Keeping incoming and outgoing payment records separate makes it easier to review receivables, payment history, and outstanding customer balances. [SCREENSHOT: Payments list showing Payment Number, Account, Paid by, Amount, Paid on, and status] ## Prerequisites Have the payment information and related Pams records ready before you create a Payment. This reduces the risk of recording a receipt against the wrong Account or leaving a completed Payment without an allocation. Prepare the following: - Access to **Finance > Payments** in Pams. - The correct **Account** for the received payment. - The payer name needed for **Paid by**. - The confirmed received **Amount** and **Currency**. - The payment date needed for **Paid on**. - The correct **Payment Method** or **Payment Method Code**, where your Payment form uses these fields. - The related AR Invoice or outstanding balance you plan to allocate. - A remittance advice, bank confirmation, payment receipt, or similar evidence ready to add through **Attachment**. Before recording the Payment, check that the Invoice is still outstanding and that it belongs to the same Account and payer. If the payer has paid multiple Invoices together, prepare the amount to allocate to each Invoice. If the payment is lower than the Invoice Amount, record the actual received Amount and plan for a partial allocation. If it is higher than the Invoice Amount, retain the evidence explaining the additional amount. If you are unsure whether the receipt belongs to an AR Invoice, a Principal payment, or a Purchase Invoice, confirm its business purpose before creating the Payment. Recording it in the correct workflow avoids duplicate records and incorrect outstanding balances. After the incoming Payment has been recorded and allocated, continue with [Allocating Direct Cost Transactions](doc:allocating-direct-cost-transactions) to record direct costs against the appropriate work.