---
title: "2.3 B2C Disbursements"
space: "Frappe Mpesa Payments"
url: "https://docs.navari.co.ke/frappe-mpesa-payments/payment-features/b2c-disbursements"
updated: "2026-05-19"
---

# B2C Disbursements (Business to Customer)

B2C (Business to Customer) integration enables ERPNext to send money directly to M-Pesa accounts. This is used for paying employees their salaries, reimbursing expense claims, settling supplier invoices, and disbursing loans all from within the ERP system.

## How It Works

You create a **B2C Payment Disbursement** document, select the outstanding records to pay, enter or confirm mobile numbers, and submit. The app sends a separate Daraja B2C API call for each payment reference. Results are reflected in real time as success or failure notifications per reference.

### Use Cases

- Employee salary disbursement i.e Salary Slip
  ![](/files/image279035.png)
- Supplier invoice payment i.e Purchase Invoice
  ![](/files/imagec17c82.png)
- Employee expense reimbursement i.e Expense Claim
  ![](/files/image279035.png)
  *Employee Expense*
- Employee advance payment i.e Employee Advance
  ![](/files/image279035.png)
  *Employee advance payment*
- Loan disbursement i.e Loan (via Frappe Lending)
  ![](/files/imageaba151.png)
  *Loan Disbursement*

## Step-by-Step Guide

![](/files/b2c.mp4)



### Step 1: Open B2C Payment Disbursement

Use the Awesome Bar or Mpesa workspace to navigate to **B2C Payment Disbursement** and click **New**.

### Step 2: Fill in the Mandatory Fields


| Field                          | Notes                                                                   |
| ------------------------------ | ----------------------------------------------------------------------- |
| **Company**                    | Auto-filled from session defaults. Change if needed.                    |
| **Mode of Payment**            | Select the Mode of Payment linked to your B2C Mpesa Settings.           |
| **Party Type**                 | Select the type of party being paid: Employee, Supplier, Customer, etc. |
| **Transaction to Pay Against** | Select the document type to pull outstanding records from.              |
| **Account Paid From**          | The bank/cash account from which payment is being made.                 |
| **Account Paid To**            | The destination account for the accounting entry.                       |


### Step 3: Fetch Outstanding Records

Click the **Get References** button to load unpaid records based on the Party Type and Transaction type selected. Use the filters in the Filters Section to narrow the results.



The fetched records populate the **References** child table.

### Step 4: Set Mobile Numbers

If mobile numbers are not automatically populated, enter the M-Pesa phone number for each reference in the format `2547XXXXXXXX`.

Verify the **Allocated Amount** for each reference. You can also set a **Paid Amount** at the header level to auto-distribute the allocation across references.

### Step 5: Submit

When you are satisfied with the entries, click **Submit**. The system initiates a Daraja B2C API call for each reference.

Real-time notifications appear showing the result for each line:

- **Success**: Payment was accepted by Safaricom
- **Failure**: The disbursement failed for that reference

### Step 6: Review Document Status

After submission, the document status updates automatically:


| Status            | Meaning                                    |
| ----------------- | ------------------------------------------ |
| **Paid**          | All references were successfully disbursed |
| **Partly Paid**   | Some references succeeded, others failed   |
| **Failed**        | All references failed                      |
| **Not Initiated** | No payment attempts were made              |


### Step 7: Retry Failed Payments

If any references failed, a **Retry Failed Payments** button appears. Click it to re-attempt disbursement for failed entries only.

## Accounting Entries Created

The accounting entries generated depend on the document type being paid:


| Document Type                                     | Accounting Entry Created          |
| ------------------------------------------------- | --------------------------------- |
| Salary Slip                                       | Journal Entry (type: Bank Entry)  |
| Purchase Invoice, Expense Claim, Employee Advance | Payment Entry (one per reference) |
| Loan                                              | Loan Disbursement record          |


## Phone Number Format

All mobile numbers must be in the international format without a leading zero or plus sign:


| Input         | Correct Format |
| ------------- | -------------- |
| 0722123456    | 254722123456   |
| +254733987654 | 254733987654   |