What is meant by Incoming payments?
The term "incoming payments" refers to the point in time when payments are received as compensation for services rendered or goods delivered. Payment receipts are an important component of a company's accounts receivable management and accounting.
Typical software functions in the area of "incoming payments":
- Automatic allocation: Linking incoming payments with open invoices based on reference numbers or customer data.
- Monitoring of open items: Creation and updating of open item lists to control outstanding payments.
- Notification system: Automatic notifications for payment receipts or payment delays.
- Dunning process: Integrated functions for creating and managing payment reminders and dunning letters.
- Reporting: Generation of reports on payment receipts, payment behavior, and liquidity.
- Booking automation: Automatic posting of payment receipts in financial accounting.
Examples of "incoming payments":
- Transfer of the invoice amount by a customer to the company account.
- Receipt of a cash payment for goods sold in retail.
- Credit of a credit card payment for an online order.
- Collection of a SEPA direct debit for recurring services.
- Receipt of a partial payment as part of an installment payment agreement.
- Payment receipt through a payment service provider such as PayPal or Stripe.
