Payment

Definition

Payment is the satisfaction, or partial satisfaction, of a debt.

Purpose

Payments are made to settle debts, compensate for services, or purchase goods. They are fundamental to financial transactions, ensuring that obligations are met and business operations continue smoothly.

Examples of Use

• Invoices: Settling an invoice for goods or services rendered.
• Loans: Making regular payments to repay a loan.
• Salaries: Disbursing payments to employees for their work.

Related Terms

• Transaction: The act of conducting business, including the exchange of goods, services, or funds.
• Remittance: The transfer of money from one party to another, typically to settle a debt.
• Installment: A partial payment made at regular intervals to settle a debt over time.

Notes

• Methods: Payments can be made in various forms, including cash, checks, credit cards, and electronic transfers.
• Receipts: Issuing and keeping receipts for payments is essential for record-keeping and dispute resolution.