TamilAccounting

New Supplier Payment

A Supplier Payment records money going out to a supplier. It reduces your bank or cash balance, reduces the balance in Accounts Payable, and lets you decide exactly which outstanding bills the money settles.

Where to find it

Go to Purchases > Payments > New Supplier Payment.

Before you start

The supplier must exist and have outstanding bills to settle.
The paying bank or cash account must be set up and funded.
The accounting period must be open for the payment date.
You need the SA_SUPPLIERPAYMNT permission.

Header field reference

Field	Required	Description
Payment To	Yes	The supplier being paid. Selecting them loads their outstanding invoices and expenses into the allocation table.
From Bank Account	Yes	The bank or cash account the funds leave. The current Bank Balance is shown beneath the field so you can check available funds before processing.
Payment Type	No	The mode of payment — Cash, Cheque, Savings Account. Categorising this properly is what makes bank reconciliation manageable later.
Date Paid	Yes	The date the money left. Must fall in an open accounting period.
Reference	Yes	Your unique identifier for this payment, from Setup > Transaction Reference.
Payment Amount	Yes	The total being paid. Enter it, then refresh the allocation table to distribute it across outstanding bills.
Bank Charge	No	Any fee or commission the bank deducted for the transfer, so the bank balance is adjusted accurately while keeping the supplier's credit separate from transaction costs.

Enter the Bank Charge whenever the bank takes a cut, particularly on international transfers. Without it the payment will not reconcile against your statement, and the supplier appears to have been underpaid by the fee.

Branches & Departments

Branches represent separate business locations or units of the same company. Enable under Setup > Preferences > Use Branches Only.
Departments are internal divisions responsible for a specific function, letting you attribute the payment to the right part of the business.

Foreign currency

Where the supplier trades in a currency other than yours, the form shows an Exchange Rate field for that currency. Where the bank account is in a third currency, a Bank Exchange Rate field appears as well.

Field	Converts
Exchange Rate	The supplier currency into your company currency.
Bank Exchange Rate	The bank account's currency into your company currency, when it differs from both.

The rates shown are stored against the payment date, so the same date used again picks the rate up rather than asking for it a second time. You can type a rate that differs from the stored one — the rate you actually got is the rate to use.

Enter the rate here rather than adding it elsewhere first. The fields exist so that a payment from a foreign-currency supplier can be taken without leaving the screen to set up a rate.

Backdating a payment

The reference carries the fiscal year of the payment date. Change the date after the form has opened and the reference is rebuilt for the new date's year, and validated against it.

This matters when catching up on an earlier year. A payment backdated without the reference following it takes a number out of the live year's sequence — the document then reads as belonging to a year it was never in, and the sequence it came from has a gap.

Payment Allocation Table

This is where you apply the money to specific debts. The order bills are listed in follows your Setup > Preferences configuration — either First-In-First-Out or Last-In-First-Out — so the oldest or newest liability is prioritised automatically.

Column	Description
Transaction Type	The document being paid, such as a Supplier Invoice or an Expense.
Supplier Ref & Date	The supplier's own reference and the date of the original bill, for easy identification.
Total Amount	The full value of the bill.
Left to Allocate	The remaining unpaid balance on that bill.
This Allocation	The amount of this payment to apply against it.

Total Details

Field	Description
Amount of Discount	A settlement discount the supplier gave for paying early or in full. This reduces the total payable.
Amount of Payment	The final amount being processed.

Make Amount of Payment match what actually left your bank, to the decimal. Anything else turns into a reconciliation difference that somebody has to chase later.

Memo

Notes about the payment — a cheque number, a transfer reference, who authorised it.

Attachments

Attach the bank transfer confirmation, a cheque image, or the remittance advice sent to the supplier.

Draft Option

Save the payment as a draft before finalising it, which is useful when the transfer has been prepared but not yet released by the bank.

Click Draft while entering the payment.
It is saved without touching the bank balance or the supplier ledger.
Find it again in the payments list, carrying a Draft status.
Open it and finalise once the money has actually gone.

Action Buttons

Button	What it does
Update	Refreshes the allocation table and recalculates totals.
Process Payment	Finalises the payment and posts the ledger entries.

General Ledger (GL)

Account	Effect
Accounts Payable	Debited — reduces the total you owe the supplier.
Bank / Cash Account	Credited — company assets fall as funds go out.
Payment Discount Account	Credited where a settlement discount was taken.
Bank Charge Account	Debited with any bank fee entered.
TDS Account	Credited where tax is deducted at source, recording the amount withheld on the supplier's behalf.

TDS is withheld, not paid. The supplier receives the net, and the deducted amount sits as a liability until you remit it to the tax authority — so the payment leaving your bank is smaller than the invoice it settles.

Note

Money left unallocated still shows the supplier's bills as outstanding. Your ageing reports treat them as unpaid even though the cash has gone, so finish the allocation at the point of payment wherever you can.

Supplier Payments List — find payments
Supplier Payment View — read one payment in detail
Allocations — apply payments across bills
Purchase Invoices List — the debt being settled
Direct Debit Note — reduce a bill instead of paying it

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