API ReferenceIntegrationsKnowledge Base

Vendor Payments

When you purchase goods or avail services from a vendor, it is usually on credit. The vendor sends you an invoice and expects payments as per the agreed payment terms. The payment is then made after deducting TDS.

The Vendor Payments App allows you to automate the process of making payments to your vendors in three simple steps:

  1. Upload an invoice on the RazorpayX Dashboard.
  2. Add vendor details.
  3. Make the payment as per your business requirements.

Currently, this feature is not available on test mode.

How it Works#

  1. Your vendors send you an invoice that you have to pay.
  2. Upload the invoice on the RazorpayX Dashboard. The invoice details are auto-read and uploaded using our OCR technology.
  3. Select an existing vendor or create a new vendor.
    • The vendor is the person or entity to which the invoice payment is to be made.
  4. Select a fund account for the vendor or create a new fund account.
    • These are the account details (bank account or UPI ID) to which the amount is transferred.
  5. Review the Invoice Details such as due date, TDS category and Amount to Vendor.
  6. You can either:
    • Save the invoice and pay it at a later time. You will be sent reminders as you get closer to the due date.
    • Make the payment immediately.
  7. Once created, payouts follow the approval workflow set on your RazorpayX account, if any.

Life Cycle#

Below is the life cycle of an invoice.


Read more: For details about the payout states, refer to the approval workflow section.


The invoice has been uploaded to our system, but no payout has been made against it.

Possible payout states:

  • Payout not yet created.
  • Rejected
  • Cancelled
  • Failed
  • Reversed


The payout for the invoice is being processed.

Possible payout states:

  • Pending
  • Queued
  • Processing

From the processing states, the invoice can go back to the unpaid state if the payout is rejected or cancelled by you or if the payout fails or is reversed.


A payout for the full amount has been made against the invoice to your vendor.

Possible payout state: Processed.

Once an invoice is paid, an email is sent to your vendor informing them about the payment. Shown below is a sample email that will be sent to your vendor.



You have manually cancelled the payout against the invoice from the Dashboard.

  • You can only cancel an invoice in the Unpaid state.
  • You cannot cancel an invoice once a payout has been initiated against it.

Mark as Paid#

You might have uploaded an invoice on the Vendor Payment App, but made the payment offline. In such scenarios, you can mark the invoice as paid via the RazorpayX Dashboard. The invoice is moved to the Paid state without creating a corresponding payout.

When marking an invoice as paid, you have the option to select the external method you chose to pay the invoice (such as Bank Transfer, Cheque or Cash). This makes Vendor Payments an end-to-end solution to track all your vendor payments, irrespective of the way you choose to make the payment.

Invoices marked as paid are considered for TDS payments. This allows you to calculate and pay the tax deducted at source (TDS) using the Tax Payments App.

Invoice Report#

The Invoice Report allows you to export details of all invoices uploaded to your account.

To download the Invoice Report:

  1. Log into your Dashboard.
  2. Navigate to MenuVendor Payments.
  3. Apply the required filters such as from and to date.
  4. Click the download icon.
  5. Select the date range for which you want to download data.
  6. Select the Include Invoice Files option, if you want to include the the invoices you uploaded on the Dashboard as part of the report.
  7. Select the format for the report. Available options are: CSV and XLS.
  8. Click:
  • DOWNLOAD to download the report and save it on your local system.
  • EMAIL to email the report to your team members.

Invoice Report Fields#

Listed below are the fields in the invoice report.



Invoice Number

The invoice number entered by you when creating the invoice.

Invoice Date

The invoice date entered by you when creating the invoice.

Due Date

The invoice due date calculated based on the payment terms for the vendor.

Vendor Code

The unique identifier for the vendor. For example, cont_FKzsQacUrPh4yq.

Vendor Name

Name of the vendor. For example, Acme Corp.

Vendor Fund Account Name

Bank account beneficiary name. For example, Gaurav Kumar.

Vendor Fund Account Number

Beneficiary bank account number. For example, 55446677443311.

Vendor Fund IFSC

Beneficiary bank IFSC. For example, HDFC0000123.

Vendor UPI Address

The vendor's UPI ID. For example, gaurav.kumar@exampleupi

Transfer Mode

The mode used to make the payment. Possible values: IMPS, NEFT, IFT and UPI.

Debit Account

The account (virtual or current account) from which the amount was debited for the payment.


The description entered by you when creating the invoice. For example, Accounting Fees.


The invoice status. Possible values: Unpaid, Processing, Paid and Cancelled.

Sub Total

The invoice amount before GST, cess and other taxes.

TDS Category

The Vendor's TDS Category.

Amount to Vendor

Total amount to be paid to the vendor. This is the total invoice amount minus TDS.

Total Amount

The total invoice amount. This includes GST, TDS, cess and other taxes.

Internal Notes

Internal notes entered by you when creating the invoice.

Created at

Date when the invoice was created.

Processed at

Date the invoice was processed.

Paid By

The email address of the user who paid the invoice.

Manually Paid

Indicates if the invoice was marked as paid by you. Possible values:
● 1 - The invoice was paid offline and marked as paid by you.
● 0 - The invoice was paid using the Vendor Payments app.

Tax Amount

The TDS amount on the invoice.

TDS payment ID

A unique reference generated by us when paying the TDS.

TDS Payment status

The TDS payment status. Possible values: Unpaid, Processing and Paid.

TDS payment date

The date TDS was paid.


Payment Terms

This is the number of days you have to pay the invoice once it is issued to you. This can vary from Immediate to x number of days.

For example, let us say you are issued an invoice on July 01 and the payment terms for this invoice is 15 days. This means the invoice has to be paid by July 15.

If the invoice is not paid by July 15, it is marked as Overdue on the Dashboard.


This is the invoice amount without GST, cess and any other taxes.

Total Amount

This is the invoice amount with GST, cess and any other taxes.

For example, if your subtotal is ₹5,000, SGST is ₹200, CGST is ₹200 and Cess is ₹10

CopyTotal amount = Subtotal + SGST + CGST + Cess Total amount = ₹5,000 + ₹200 + ₹200 + ₹10 Total amount = ₹5,410
TDS (Tax Deducted at Source)

As per government mandates, you are required to deduct TDS when making payouts to vendors.

TDS is calculated on the Invoice Subtotal. That is, the invoice amount without GST, cess and other taxes.

Read More: How tax payment works.

As per government norms, TDS rates have been reduced by 25% till the end of FY21.

For example, let us say TDS for a vendor is set to 7.5%.

CopySubtotal (Amount without GST, cess and other taxes.) = ₹5,000 TDS = ₹5,000 x 7.5% TDS = ₹375
Amount to Vendor

This is the amount that is to be paid to the vendor. That is the Payout amount.

For example:

CopyAmount to vendor = Total Amount - TDS Amount to vendor = ₹5,410 - ₹375 Amount to vendor = ₹5,035


You can find a list a frequently asked question (FAQs) about Vendor Payments on our Knowledgebase.