Receive a Customer Payment

Last updated: 2026-06-06 Summary:

• Receive Payment allocates one payment across the customer’s open invoices.
• When a customer withholds tax from your payment, record the withheld portion — it’s a tax credit you’ll claim, not money you lost.
• The 2307 certificate the customer owes you is the document behind that credit; track it from the payment.

Steps

1. Go to Accounts Receivable → Payments → Receive Payment.
2. Pick the customer. Their open invoices appear in a table.
3. Allocate the payment — tick the invoices it covers; partial application is fine.
4. Enter the amount and payment method, and the date the money arrived.
5. If the customer withheld tax — government agencies and designated withholding agents do — the screen shows the withholding rows: record the withheld amount, and capture the 2307 reference once the customer issues the certificate.
6. Save. The invoices’ balances update, and the withheld portion posts as a creditable tax asset rather than a shortfall on the receivable.

Why the withholding rows matter

When a customer pays ₱100,000 less ₱2,000 withholding, you received ₱98,000 — but you didn’t lose ₱2,000. The customer remitted it to the BIR in your name, and the 2307 they issue you is your proof. Recorded properly, it reduces your own income tax due at quarter end. See Withholding tax & ATC codes for the full mechanics, including the government-VAT case.

Where people get tripped up

• Booking the withheld amount as a discount or write-off. It’s a tax credit. Booked wrong, you pay that tax twice — once via the customer’s remittance and again on your own return.
• Claiming the credit without the certificate. Chase the 2307. A credit on your return with no certificate behind it is the first thing an examiner asks for.
• Leaving the payment unallocated. A payment saved without invoice allocation leaves the invoices showing open — aging reports and collection follow-ups go wrong from there.

See also

• Create an invoice
• Withholding tax & ATC codes