In this video, I will show you how to record payments for a project and how to reconcile them. I will also show you how to create payments using AI features, which is currently in beta.

This process ensures that your recorded spending matches your actual bank withdrawals and keeps your cash flow reports accurate.

First, let’s clarify what Payments are. Payments represent money going out of the project, such as vendor payments, expense reimbursements, or investments. Recording payments correctly is essential for accurate cash flow and reconciliation.

To create a payment, go to the Payments menu and click Add Payment. You can choose to add it Manually or Record with AI.

For manual entry, click Manually. Enter a Description, select the Vendor, and link it to a specific Purchase Order if applicable. Select the Budget Item, enter the Amount, and click Save.

To use the AI feature, select Record with AI. You can simply type a natural language description like ‘Vendor Payment’ and upload a file such as an invoice or receipt. The AI will extract the details for you. Click Save to create the payment record.

Once the payment is created, it must be Approved. Click the Approve button on the payment record. Approval updates your project’s Actual to Date cost in the Cost Report.

The final step is Reconciliation. Open the approved payment and scroll down to the Add Payment section. Enter the Amount Paid and the Payment Date. Most importantly, select the Bank Account the money was paid from. Click Save to finish.

Reconciling payments updates your Cash Flow report, reduces outstanding payables, and ensures your project’s financial data matches your bank records.