Payment Entry without payment reference

Hi i am new to ERPNext. I want to understand if I can create payment entry without adding any payment reference to it? How will it affect accounting wise ?

hI @Shree_laxmi,

Yes, You can create.

If payment is not linked to an invoice or order, it is considered an advance payment. The advance payments are reflected in the Accounts Receivable and Payable reports.

More information for check it: Advance Payment Entry

Thank You!