Collecting

Record the money received from customers and apply it to open invoices through transactions and settlements.

Collecting payments means recording the money received from customers and applying it to open invoices. Every payment, credit, adjustment, and rebate is captured as a transaction, then formally linked to invoices through settlements.

Transaction types

Augno supports four transaction types, each serving a different purpose:

Type	Purpose	Example
Payment	Record funds received from a customer	Check for $5,000
Credit memo	Issue a credit to the customer	Return credit
Adjustment	Record discounts, write-offs, fees, refunds, short payments, or shipping discrepancies	$200 write-off
Rebate	Apply a rebate against invoice balance	Volume rebate

Recording a transaction

To record a transaction:

Select the customer
Enter the amount
Choose the transaction type (payment, credit memo, adjustment, or rebate)
For payments: select the payment method
For adjustments: select the adjustment type
Set the effective date
Add an optional note

Payment methods

Payment methods are a configurable list that defines how funds were received. Common methods include:

Check: paper check
ACH: electronic bank transfer
Credit card: card payment
Wire transfer: wire payment
Cash: cash payment

Your team can add or modify payment methods to match your business.

Adjustment types

Adjustments cover a range of scenarios. Each adjustment transaction is assigned a type:

Adjustment type	Purpose
Discount	Apply a negotiated or early-payment discount
Shipping discrepancy	Resolve a difference in shipping charges
Short payment	Record when a customer pays less than the invoiced amount
Write-off	Forgive an uncollectable balance
Fee	Record a fee charged to the customer
Refund	Record a refund issued to the customer

Settling transactions to invoices

A settlement is the formal record that links transactions to invoices. Each settlement contains one or more allocations: each allocation pairs a specific transaction with a specific invoice for a specific dollar amount.

The settlement flow works like this:

Select one or more transactions to allocate
Select one or more invoices to apply them to
Specify the allocation amount for each transaction-invoice pair
Create the settlement

One transaction can be split across multiple invoices, and one invoice can receive allocations from multiple transactions. This flexibility handles partial payments, overpayments, and bulk payment runs.

Parent/child account payments

When a parent account makes a payment, that payment can be allocated to invoices belonging to both the parent and any of its child accounts. During settlement, the system shows invoices across the entire parent-child hierarchy so you can distribute the payment where it belongs.

Learn about customer accounts

Handling discounts and rebates

Discounts are recorded as adjustment transactions with the "discount" adjustment type. Rebates are their own transaction type. Both are allocated to invoices through settlements just like payments: each allocation reduces the invoice balance by the allocated amount.

Learn about discount codes

Write-offs

Write-offs are recorded as adjustment transactions with the "write-off" adjustment type. They are allocated to invoices through settlements to forgive remaining balances. Once allocated, a write-off reduces the invoice balance toward zero, effectively closing out uncollectable amounts.

Open credits

When a transaction is only partially allocated: or not allocated at all: the unallocated portion remains as an open credit. The system tracks these leftover amounts so you can apply remaining funds to future invoices in a later settlement.

How allocations affect invoice status

After each settlement, the system recalculates every affected invoice's balance and status:

Balance equals zero: the invoice is marked as paid in full
Balance is less than zero: the invoice is marked as overpaid
Balance is greater than zero: the invoice remains unpaid with the updated outstanding amount

Learn about accounts receivable

Next: Settlements