New Supplier Payment
A Supplier Payment is an official document used to record and allocate payments made to vendors for purchased goods or services. It ensures that your outstanding liabilities are accurately reduced and that the company’s financial records reflect the dispersal of funds. To create a supplier payment, navigate to Purchases > Click "Payments" Tab > Click "New Supplier Payment".
Payment To
A supplier is required to record a payment. You can select a vendor from the existing list, which displays your most recent and most transacted suppliers. You can search to narrow down results or click the + button to add a new supplier instantly if they do not exist in the system.
From Bank Account
The From Bank Account field specifies the bank or cash account from which the funds will be withdrawn to pay the supplier. The system will display the current Bank Balance below this field to help you verify available funds before processing.
Payment Type
Use this field to set the mode of payment, such as "Cash," "Cheque," or "Savings Account." This helps categorize how the funds were sent for better bank reconciliation and internal tracking.
Date Paid
The Date Paid represents the official date the payment was made or the date the funds left your bank account. This is critical for accurate cash flow reporting and period-end closing.
Reference
In the ERP system, the Reference field is used to uniquely identify each transaction, such as a Purchase Order, GRN, or Purchase Invoice. This is our unique reference for every transaction.
The system allows the user to customize the reference number format as per your business requirement. User can define and modify the serial pattern in: Setup -> Transaction Reference
The reference value can also be edited and changed without affecting the format, giving the user flexibility while maintaining consistency in your numbering pattern.
Payment Amount
Enter the total amount being paid to the supplier. Once entered, click the Go button to refresh the Allocated amounts table, which allows you to distribute this total against your outstanding invoices or expenses.
Bank Charge
If the bank has deducted a fee or commission for the transfer, enter that amount here. This ensures that your bank account balance is adjusted accurately while keeping the supplier's credit separate from transaction costs.
Branches & Departments
These fields help organize business operations across different locations or functions.
- Branches: Represents a separate business location (Enable via Setup -> Preference).
- Departments: Refers to an internal division like Sales or Accounts (Enable via Setup -> Preference).
Payment Allocation Table
The system provides a detailed table to apply payments against specific outstanding debts. The list priority (FIFO or LIFO) is determined by your Setup -> Preference configuration.
- Transaction Type: Displays the document being paid, such as a Supplier Invoice or Expense.
- Supplier Ref & Date: Shows the unique ID and the date of the original bill for easy identification.
- Left to Allocate: Shows the remaining unpaid balance for that specific transaction.
- This Allocation: Enter the amount you want to apply. Click All to pay the balance in full or None to clear the line.
Total Details
- Amount of Discount: Enter a value if the supplier provided a settlement discount. This reduces the total amount payable.
- Amount of Payment: Displays the final total amount being processed. Ensure this matches your bank exit exactly, even at the decimal level, for precise reconciliation.
Memo
Users can add internal notes or comments to the payment. It is recommended to include a bank transaction ID or payment reference here to ensure better record maintenance and easier searching.
Attachments
You can attach digital evidence of the transaction, such as a scanned bank transfer receipt or a photo of a cleared cheque. Click the Choose File button to upload and save these files directly with the payment record.
General Ledger (GL)
The General Ledger reflects the financial impact of the payment. For a Supplier Payment, the following entries are typically made:
- Accounts Payable: This account is Debited to show a reduction in the total amount you owe to the supplier.
- Bank/Cash Account: This account is Credited to reflect the decrease in company assets as funds are sent out.
Draft Option
You can save a payment as a Draft if you need to verify bank details or approval before finalizing. Drafts do not create financial entries or affect the ledger. Once ready, you can open the draft and click Submit Payment to finalize the transaction.
Supplier Payments Report
The Supplier Payments Report provides an organized view of all disbursements. Access this via Reports > Purchases > Payments. You can use the filter panel to select templates, date ranges, or specific suppliers before printing the report in PDF or Excel format.