Answer Posted / savita acharya

Outgoing Payments need not be only in relation to Account
Payable Invoices. It can be for any payment to third
parties be in Vendors or Government dues (Excise Duty). In
case we create the employees as vendors direct payment of
Salary(Outgoing) can be created. Outgoing payments also
arise when we have received advance from customers and we
need to pay it back to them.

The same applies to Incoming Payment - the only difference
is that usually Government dues are not received back.

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