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Supplier payments

When you pay a supplier, you record this from the Supplier Payment option. This option is particularly useful if you send your supplier one payment to cover multiple invoices.

When you record the payment, you can also produce a remittance advice, which you can then send to your supplier to let them know which invoices you’re paying.

You can also use the Supplier Payment option to create payments on account and to allocate payments on account or credit notes to one or more invoices at the same time as recording a receipt. If you want to allocate credits and payments on account without recording a receipt, you can do this using the Account Allocation option.

To record a payment you made to a supplier

  • 1. Go to Banking, then click the required bank account.
  • 2. Point to New Entry, then click Purchase / Payment.
  • 3. On the Supplier Payment tab, complete the following information:
Supplier * Enter or select the supplier you paid, or click Add a supplier to add a new supplier.

A list of outstanding purchase invoices for the supplier display below. You can select All or Due in the Display field to change which invoices show on the list.
Owed The total outstanding balance you owe the supplier.
Paid from Bank Account * Select the bank account from which you made the payment.
Balance The current balance of the bank account you selected.
Method * Click the method you used to make the payment.
Date Paid * Enter or select the date you made the payment.
Reference * Optionally, enter a reference for the payment.
Amount Paid * Enter the total amount you paid your supplier or select an invoice below to populate this field with the outstanding amount of the invoice.

* These details are compulsory.

  • 4. Select the check box for the invoice (or invoices) you paid:
  • If you entered an amount in the Amount Paid field (instead of selecting items from the list), Accounting populates the Left to allocate field with that amount.

As you select invoices on the list, Accounting will subtract the amount owed on each invoice from the Left to allocate amount. Accounting will create a payment on account transaction for any remainder in the Left to allocate field.

  • If the amount in the Left to allocate field is less than the amount owed on a selected invoice, Accounting will apply the Left to allocate amount to the invoice as a partial payment. The remaining balance on the invoice will remain outstanding.

If you want to record all of the invoices as being paid, select the check box at the top left-hand corner. If you want to allocate a payment on account or credit note, select the payment or credit then select the invoice you want to allocate it to.

  • 5. If you want to enter a discount or only pay part of the invoice, click the Edit button in the Discount or Paid column of the invoice, then enter the amount in the Amount to pay field, and click Apply.

The amount paid plus the discount cannot exceed the outstanding amount.

  • 6. Do one of the following to:
  • Add another payment, click Save then click Add Another.
  • Print a remittance advice, click Save then click Print Remittance. The remittance advice opens in a new window, where you can print or save it.
  • Email a remittance advice, click Save then click Email Remittance.
  • Save the payment without creating a remittance advice or adding another payment, click Save.

If you had an amount left to allocate, click Yes when prompted to save the payment. Alternately, click No to return to the Supplier Payment tab and allocate this amount to another invoice.

If you use the VAT Cash Accounting scheme, you are prompted to choose the VAT rate, this is because VAT is calculated at the point of payment. Choose the correct VAT rate and then click Yes.

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