Record customer credit sales, repayments and outstanding balances with a clear daily routine.
Agree the credit arrangement before the sale
Decide which customers may buy on credit, who can approve it, and how you will communicate the amount and repayment arrangement. Keep customer identification consistent so one person does not end up with several unrelated records. Record only the information you need and restrict access to authorised staff.
Record each credit sale
Choose the customer, record the products and sale amount, and use the supported credit workflow. The credit entry increases the customer’s outstanding balance. Give the customer a clear record of the transaction and review any existing balance when discussing what remains due.
Record repayments without losing the history
A repayment is a separate event from the original sale. Record its date, amount and customer using the supported repayment workflow. For example, a customer with 800 outstanding who repays 300 should have 500 remaining, assuming no other entries. Keep both events in the ledger history rather than overwriting the original credit amount.
Check outstanding amounts regularly
Review the ledger with the customer when an amount is disputed. Look for a missing repayment, duplicate customer, incorrect sale or supported adjustment. Check evidence before making a correction. Accurate records help explain an amount; they do not guarantee repayment.
Connect the routine to SellingIt
SellingIt’s customer credit workflow connects credit sales, balances, repayments and history. The udhaar management overview explains the merchant use case. These operational records do not replace full accounting, lending controls or legal advice.
A daily udhaar routine for shopkeepers
To manage udhaar reliably, record every credit sale and repayment against the correct customer on the day it happens, then review unresolved differences before closing the shop. The aim is not merely to show a final balance. A shopkeeper should be able to explain that balance from dated sales, repayments, returns and authorised corrections.
This article is the step-by-step daily routine. For policy, limits, privacy and wider controls, read the customer credit management guide. For verified product capability, see SellingIt Customer Credit. Keeping those purposes separate prevents the three pages from competing for the same question.
Before opening: review the previous day’s exceptions
Check entries that were left incomplete, repayments awaiting confirmation, duplicate customer records, returns that may affect a credit sale and adjustments needing approval. Resolve the source of a difference rather than carrying an unexplained total into another day.
Confirm which authorised staff can approve a new credit sale, record a repayment or make a correction. The merchant should already have a clear policy for who may buy on credit, any limit or expected payment date and how terms are communicated.
At the counter: identify the correct customer first
Search before creating a customer. Use a permitted identifier appropriate to the shop, such as a verified phone number or another agreed detail, to distinguish people with similar names. Do not merge records merely because two names look alike, and do not collect information the business does not need or is not permitted to use.
What if the customer has two records?
Pause before adding another sale or repayment. Review the underlying entries and follow an authorised correction or merge process where supported. Moving only the final balance can lose transaction history or attach another person’s activity to the wrong customer.
During the sale: record udhaar immediately
- Select the correct customer.
- Confirm the products, quantities and supported sale amount.
- Use the configured customer-credit workflow.
- Review the previous balance and the new outstanding amount.
- Give the customer an appropriate record or acknowledgement.
- Correct an entry promptly through the supported, authorised process.
A handwritten note to enter later can be forgotten, duplicated or assigned to the wrong person. The supported POS and billing workflow provides the sale context; it should not be treated as proof of cash received when the transaction was recorded as credit.
When money is received: add a separate repayment
Keep the original credit sale unchanged and record the repayment as a new dated event. If a customer owes 1,200 and pays 400, the history should retain the 1,200 credit, the 400 repayment and a remaining balance of 800 before any other activity. Confirm the customer and amount before saving.
If one payment is meant to cover several sales, follow the shop’s documented allocation process and the capabilities of the system. Do not invent transaction matching that is not supported. A repayment record is not automatically bank reconciliation or a formal accounting entry.
Handle returns and cancelled credit sales carefully
Connect a return or cancellation to the original transaction wherever the supported workflow permits. Confirm the exact product, quantity and condition, then record the effect on the customer balance and stock through the appropriate processes. Do not simply reduce the customer’s balance while leaving the product and sale records unchanged.
The retail returns checklist explains the wider product, stock and customer steps.
When a balance is disputed: rebuild it from entries
- Confirm that the correct customer record is open.
- Review credit sales in date order.
- Check every recorded repayment.
- Look for returns, cancellations and duplicate entries.
- Check whether a payment was assigned to another customer.
- Record any justified correction with its reason and authorisation.
Listen to the customer and separate confirmed evidence from memory. Deleting history or overwriting the total may end the conversation temporarily while leaving the cause unresolved. Use the credit and repayment checklist for a fuller reconciliation.
Before closing: complete the daily udhaar check
- Confirm today’s credit sales appear once and against the right customers.
- Confirm every repayment received today was recorded once.
- Review unusual adjustments and require the appropriate reason.
- Check unresolved returns, cancellations and duplicate customers.
- Identify balances requiring permitted follow-up.
- Restrict the report and customer information to authorised people.
- Carry forward a named next action for genuine exceptions.
Pair this routine with the retail daily closing checklist. Operational totals should be reconciled to their source records and should not automatically be treated as audited accounts.
Follow up on outstanding udhaar respectfully
Use contact information the customer has permitted the business to use. Keep the message factual: identify the merchant, relevant balance or transaction context and a way to discuss an error. Avoid public disclosure, threats, excessive messages or claims the records cannot support. Applicable privacy, consumer, lending and collection rules depend on the facts and jurisdiction.
Common udhaar mistakes and practical fixes
| Problem | What to check | Safer action |
|---|---|---|
| Balance is higher than expected | Missing repayment, duplicate sale or wrong customer | Recalculate from dated entries before correcting |
| Balance is lower than expected | Repayment entered twice, missing credit sale or return | Verify source records and document the authorised correction |
| Customer exists twice | Names, permitted identifiers and transaction history | Use the supported controlled correction process |
| Staff entered credit later | Date, products, amount and whether it already exists | Record promptly and check for duplication |
| Customer questions old udhaar | Original sale, repayments, returns and adjustments | Review the ledger together without erasing history |
Questions shopkeepers ask about udhaar
Should I keep udhaar in a notebook and software?
Two active records can develop different balances. Choose one controlled operational record where possible and define how any temporary note is entered, checked and retired.
How often should I review customer balances?
Record activity when it happens and perform a daily exception check. Review outstanding balances on a weekly or other schedule suited to their number, age, value and the shop’s policy.
Can software guarantee repayment?
No. Clear records can explain what the merchant recorded, but they cannot guarantee that a customer will repay or decide an appropriate legal recovery process.
Is SellingIt a lending or accounting service?
No. SellingIt supports merchant operational credit records where enabled. It is not a lender, credit bureau, debt-collection service or full accounting system.