How To Mark An Invoice As Paid In Sage Desktop

Marking an invoice as paid in Sage 50 Accounting (Desktop version) involves recording a customer payment against an outstanding sales invoice.  In this article,  we will show you how to mark an invoice as paid in Sage Desktop.

Step 1: Open Sage 50 and Log In

1. Launch Sage 50 from your desktop.
   Open your company file.
2. Log in with your user ID and password (if prompted).

Step 2: Open the “Receive Money” Window

You’ll use this window to apply a payment to an existing customer invoice.

Option A – From the Home Screen:

• Go to the Customers & Sales section.
• Click “Receive Money” (green dollar icon).

Option B – From the Top Menu:

• Click Tasks from the top menu bar.
• Select Receive Money.

Step 3: Select the Customer

1. In the Receive Money window, use the Customer ID drop-down to select the customer who paid.
2. The system will auto-fill the Customer Name, Address, and show any outstanding invoices in the lower half of the screen.

Step 4: Apply Payment to Invoice

1. In the Apply to Invoices tab (usually default), Sage will list open invoices for the selected customer.
2. Find the specific invoice(s) being paid.
3. In the Amount Paid column next to the invoice, enter the amount received:
   • If it’s a full payment, enter the total due.
   • For partial payment, enter only the received amount.

Sage 50 will automatically adjust the balance due and show how much remains.

Step 5: Enter Payment Details (Top Section)

Make sure to fill in:

• Date: The date you received the payment.
• Reference: Optional (e.g., check number, transaction ID).
• Receipt No.: Auto-fills unless edited.
• Deposit To: Choose the bank account where funds will be deposited.
• Payment Method: Select from drop-down (Cash, Check, Credit Card, etc.).
• Check Number: If paid by check, enter the number here.

Step 6: Verify and Save

1. Double-check that the Total Amount Received (top right) matches what you received.
2. Click Save or Save and Close at the top of the window.

Step 7: Confirm the Invoice Status

To verify that the invoice is now marked as Paid:

1. Go to the Customers menu.
2. Select Customer List.
3. Find and double-click the customer to open their Customer Ledger.
4. Look for the invoice you just paid — it should be marked Paid or show a $0.00 balance due.

Tips 

• To print or email a payment receipt, click the Print or Email button before saving.
• For batch deposits, use Receive Money multiple times, or group payments in the Bank Deposit module.
• If you receive advance payments or deposits not linked to an invoice yet, use the “Apply to Revenues” tab instead of “Apply to Invoices.”