UPI is run by the National Payments Corporation of India (NPCI) and lets anyone with a bank account send or receive money instantly through a UPI app. Payments are made to a UPI ID, a phone number, or by scanning a QR code. Money moves from bank account to bank account, any day, at any hour.
Why businesses use it
- Money lands in the bank at once.
- Customers pay without cash or a card.
- A static QR code at the counter costs nothing to set up with most banks.
- Each payment carries a reference number that can be traced.
The bookkeeping side
UPI's convenience creates its own work. A shop or distributor may receive dozens of payments a day, many with only a name or phone number attached. If they are not recorded against the right customer and bill, ledgers show people as owing money they have paid.
Good practice
- Record each UPI receipt against the customer and invoice the same day.
- Note the UPI reference number with the payment.
- Reconcile the bank statement weekly and chase unidentified credits.
In MatruOS a payment by cash, UPI or bank is recorded against the invoice, which then shows Paid with a ₹0 balance.