A customer payment should close or reduce the balance of the invoice it belongs to. It should not create a second sale simply because money arrived in the bank.

That distinction matters when a business uses both an invoicing workflow and an income register. The invoice documents what the customer owes. The payment documents what the customer paid. They are connected records, not two separate sources of revenue.

Start with the original invoice

Before recording a payment, confirm the invoice number, customer, issue date, currency, total and payment terms. Then compare the payment date, amount and source with the bank activity or other payment evidence.

Ask three practical questions:

• Does the amount match one open invoice exactly?
• Is it a partial payment, an overpayment or a payment covering several invoices?
• Has anyone already recorded or matched this payment?

If the answer is unclear, leave the item for review instead of guessing.

Link the payment to the invoice

Record the payment against the existing invoice. Preserve the original invoice total and add the actual payment date and amount. A full payment reduces the outstanding balance to zero; a partial payment leaves a visible remainder.

Do not create a new standalone income record for the same sale when the invoice workflow already represents that sale. In SilaTrail, use customer invoicing to preserve the invoice-to-payment relationship and income tracking for income that is not already represented by an invoice.

If the bank transaction is also imported, match it to the recorded payment rather than recording another sale. Bank statement matching should explain the movement of money without multiplying it.

Handle differences separately

A payment may differ from the invoice because of a processing fee, credit, refund, foreign-exchange difference or customer overpayment. Keep those facts separate from the invoice payment:

1. Record the gross amount the customer paid.

2. Record a processing fee only when there is evidence for it.

3. Document any credit or refund with its own date and reason.

4. Leave an unexplained difference open for review.

This preserves the audit trail and makes the remaining balance understandable.

Keep the supporting evidence

The Canada Revenue Agency says income records should show the date, amount and source of income, supported by original documents such as sales invoices and deposit slips. Keep the invoice, payment confirmation and relevant bank record together or linked securely.

See the CRA guidance on business records and business income.

A quick review checklist

Before marking an invoice paid, verify:

• the customer and invoice number;
• the payment date, amount and currency;
• the bank or payment source;
• whether the payment is full or partial;
• whether a fee, credit or refund needs a separate record;
• that no duplicate income or duplicate match exists.

Frequently asked questions

Is the invoice date or payment date the income date?

That depends on the accounting method, tax rules and facts that apply to the business. The records should preserve both dates so an accountant can make the correct determination.

What if one deposit pays several invoices?

Allocate the deposit across the identified invoices and make sure the allocations add back to the deposit total. Do not force the whole amount onto one invoice if the evidence says otherwise.

What if I cannot identify the invoice?

Keep the payment unallocated and investigate. Do not invent a customer or invoice link.

Does SilaTrail decide revenue recognition or tax timing?

No. SilaTrail helps organize records and relationships. It does not determine revenue recognition, GST/HST treatment or tax timing. Ask a qualified professional when the correct treatment is uncertain.