Vendor Payment
Record payments to suppliers against purchase bills and print a voucher.
In short
A vendor payment records money paid to a supplier against one or more of their bills, in full or in part. VyaparKit's Vendor Payment tool marks the bill paid or partly paid, updates the vendor's ledger and your payables, and generates a payment voucher PDF that carries the vendor's UPI QR, so you can pay by scanning it and hand the vendor a voucher for their records.
Create a Vendor Payment in under a minute
Sign in once with Google or email. Your business name, GSTIN, logo, bank details and saved vendors fill in automatically. Download a PDF or share a link on WhatsApp. 5 documents a month are free, forever.
- ✓Beautiful PDF with your logo and details
- ✓GST calculated automatically where applicable
- ✓Saved customers, vendors and items, so no retyping
- ✓Share link with WhatsApp button and UPI QR
- ✓Converts to related documents in one click
About the vendor payment tool
A vendor payment is the outgoing side of the ledger: you owed a supplier for a bill, you paid some or all of it, and both of you need a record. In Indian small businesses this usually happens by UPI, NEFT or cheque, often as part payments (₹50,000 now, the rest after the next sale), and the proof is a bank screenshot on WhatsApp. The payment voucher is the document that ties the payment to the specific bills, shows what remains, and is signed by both sides when cash is involved.
Without a system, payments are the biggest source of vendor disputes. A part payment is recorded against the wrong bill, a bill is paid twice because two people in the office saw the same reminder, or the vendor's statement shows a balance that nobody can reconcile because payments were never tied to bills. VyaparKit records each payment against the bills you choose, allows part payments, marks the bill's status and posts the credit to the Vendor Ledger, so your balance and the vendor's statement can be matched line by line.
Payments start from bills. A Purchase Bill converts into a payment voucher in one click, the Payables Statement shows which vendors to pay first, and the vendor's saved UPI ID prints as a QR on the voucher so you can pay from the same screen. Payment vouchers count against the 5 receipts, vouchers and notes a month on Free; Pro is unlimited.
How to pay a vendor and record it
- 1
Save the vendor's payment details
Open the vendor and add their UPI ID and bank account. The UPI ID becomes a QR on the voucher; the bank details help you fill the NEFT form.
- 2
Start from the bill or from Vendor Payment
Open the purchase bill and click Convert to Payment Voucher, or go to Payables, then Vendor Payment, pick the vendor and select the bills you are paying.
- 3
Enter the amount and mode
Type the amount paid, which can be less than the bill total for a part payment, the date, and the mode (UPI, NEFT, cheque, cash) with the reference number or cheque number.
- 4
Pay by scanning the voucher's QR
The voucher shows a UPI QR for the vendor's UPI ID and the amount. Scan it with your UPI app, pay, and paste the UPI reference into the voucher.
- 5
Save and share
Click Create. The bill is marked Paid or Partial, the vendor's balance drops, and the payables statement updates. Download PDF or WhatsApp the voucher to the vendor as confirmation.
What a vendor payment voucher should record
- Voucher number and date, in your financial-year series (for example PV/26-27/0031).
- Vendor name, GSTIN and address from the saved vendor.
- The bills being paid: vendor invoice number, date, bill amount, amount paid now and balance remaining on each.
- Amount paid in figures and words, and the mode: UPI (with UTR), NEFT/IMPS (with reference), cheque (number, bank, date) or cash.
- TDS deducted, if applicable, with the section (194C for contractors, 194J for professionals, 194Q for goods purchases above ₹50 lakh a year from a vendor when your turnover exceeds ₹10 crore) and the net amount paid; check thresholds with your CA.
- Cash payments above ₹10,000 to one person in a day are disallowed as expenses under Section 40A(3), so record cash mode carefully.
- Vendor's UPI QR for the amount, printed on the voucher, so whoever pays scans the right account.
- Signature of the person paying and, for cash, the vendor's acknowledgement.
Who uses the vendor payment
Retailers paying distributors weekly
A kirana store in Nashik pays each distributor on the collection day by scanning the voucher QR. The salesman gets the voucher PDF on WhatsApp, and the distributor's ledger and the shop's ledger agree.
Manufacturers with running accounts
An auto components unit pays its steel supplier in parts across the month. Each part payment is recorded against specific bills, so the supplier's month-end statement matches without a reconciliation meeting.
Contractors paying sub-contractors
An interior contractor in Bengaluru pays carpenters and electricians against their bills, records TDS under 194C, and hands over a voucher that doubles as the sub-contractor's receipt.
Transporters settling fuel and tyre bills
A transporter in Ludhiana pays the fuel pump's fortnightly bill by NEFT and records the UTR on the voucher, giving the accountant a clean trail for the bank reconciliation.
Vendor Payment: frequently asked questions
- What is a payment voucher and when is it needed?
- A payment voucher is the internal document that evidences a payment made by the business: to whom, how much, against which bills, by what mode and on what date. Accountants use it to post the entry and auditors use it to verify the bank outflow. It is also useful proof for the vendor, especially for cash payments where there is no bank record.
- Can I make a part payment against a vendor bill?
- Yes. Enter any amount up to the bill's balance. The bill is marked Partial with the remaining amount shown, the vendor's ledger records the payment, and the payables statement shows the balance. You can record as many part payments as needed until the bill is fully paid, and each voucher lists what remains.
- Do I have to deduct TDS when paying a vendor?
- Only if the payment falls under a TDS section and your business is required to deduct: for example 194C on contractor payments above ₹30,000 per contract or ₹1 lakh a year, 194J on professional fees above ₹30,000 a year, or 194Q on goods purchases above ₹50 lakh from a vendor when your turnover exceeds ₹10 crore. Individuals and HUFs not under tax audit are mostly exempt. Confirm with your CA.
- How is the vendor's UPI QR generated on the voucher?
- The QR is built from the UPI ID you saved on the vendor and the payment amount, in the standard UPI format. Scanning it with any UPI app opens a payment to that vendor for that amount. If the vendor has no UPI ID saved, the voucher prints without a QR and you can pay by NEFT using the bank details.
- What is the difference between a vendor payment and an expense voucher?
- A vendor payment settles a purchase bill that was recorded earlier, so it reduces a payable that already exists in the vendor's ledger. An expense voucher records a direct expense that had no prior bill entry, such as petty cash for courier or tea, and does not touch a vendor balance. If a bill was recorded, always pay it through Vendor Payment so the ledger stays right.
- Why does my vendor say a bill is still unpaid when I have paid it?
- Usually the payment was applied to a different bill on their side, or it was made from a personal account they did not recognise. Send them the voucher PDF, which names the bill and the UTR, and ask for their ledger. Recording the UPI or NEFT reference on every voucher makes this a two-minute check.
Guides from the blog
TDS for small businesses: Sections 194C, 194J and 194H explained with rates and due dates
When a small business must deduct TDS, the 194C, 194J, 194H and 194I rates and thresholds, TAN, deposit by the 7th, Form 26Q, Form 16A, penalties and worked examples.
Read the guide →