Payment Entry

A payment entry in accounting is a type of journal entry that records the payment of money to a vendor, creditor, or any other party. This entry reflects the reduction in the company's cash or bank balance and the corresponding settlement of a liability or expense. Payment entries are crucial for maintaining accurate cash flow records and ensuring that all financial obligations are properly accounted for.

Payment Entry in Tally Prime

1. Go to the “Gateway of Tally.” Click on the “Accounting Vouchers” section. Or use the keyboard shortcut “Alt+V.”
2. Select “F5: Payment” on the Button Bar. Or simply press the F5 key.