Supplier Payment Tutorial

Overview#

Supplier payments can be recorded in three ways. Use only one of them, so that no payment is recorded twice:

• Supplier Payments Module (SPM): A standalone module that can be added to any Menu Group from the Fixed radio button. Its payments reach the Ledger only after Approve Payment and Post to Ledger (Method A).
• Ledger: A supplier payment entered with a standard Transaction Type in the Ledger. It follows the normal transaction rules: it posts when its status has Accounting checked (Method B).
• Bank Import: A supplier payment created while importing a bank statement. It follows the same rules (Method B).

💡These tutorials explain how to create and edit supplier payments including how to apply discounts and filter outstanding invoices for payment using the fixed module or a created Transaction Type.

Method A: Process a Supplier Payment Using the Supplier Payment Module#

How to Create a Supplier Payment#

1. Navigate to Main Menu > Accounting > Supplier Payments (for example).
2. Click New (button).
3. Enter the Payment Date.
4. Select the Supplier.
   • Note: The Currency is automatically set to the Supplier's Currency.
5. Select the Bank from which the payment was/will be made.
   • Note: If there is only one Bank Account, it is automatically selected.
6. If applicable, select an Entity.
   • Note: If you are linked to an Entity, that entity is automatically selected.
7. Optionally enter the amount in the Subtotal column (the amount is filled in once invoices are selected).
8. (Optional) Enter a settlement Discount percentage or amount.
   • Note: If a Payment Discount % is entered on the Supplier's Accounting tab, this field is automatically entered.
9. Select the Invoices from the Outstanding Invoices (section) on the left.
   • Note: If there are many Outstanding Invoices you can filter them using the options provided: All, Current, 30 days, 60 days, 90 days or 120+ Days. You can also select multiple Invoices at a time.
     • Hold down the Ctrl key and click the invoices you want to select one at a time.
     • Click the first invoice, press and hold down the Shift key and click the last invoice to include all the invoices in a consecutive list.
10. Click Add to Payment (button).
    • Note: This moves the Invoice from the Outstanding Invoices (section) on the left to the Invoices to be Paid (section) on the right.
11. To remove an Invoice, select the Invoice and click Remove from Payment (button).
12. (Optional) For every Invoice, edit the value shown in the Pay (column) in the Invoices to be Paid (section) if the amount paid is less than the Due amount.
    • Note: You cannot add amounts that are larger than the Due amount.
    • Note: The total and subtotals in the header and footer are automatically updated based on the selected invoices.
13. Once the Supplier Payment is captured, click Status (button) on the top row and select Complete to prevent further changes.

How to Approve a Supplier Payment#

1. Make sure the Supplier Payment's Status is Complete.
2. Select Actions (button) > Approve Payment.

How to Post a Supplier Payment to the Ledger#

1. Make sure the Supplier Payment's status is Approved.
2. Select Actions (button) > Post to Ledger.

Method B: Process a Supplier Payment Using the Ledger or Bank Import function#

How to Create a Supplier Payment#

1. Navigate to Main Menu > Accounting > Ledger > Click the arrow on New (button) > Supplier Transactions > Supplier Payment.
2. Enter the Payment and Period Dates.
3. Select the Supplier.
4. Select the Bank from which the payment was/will be made.
   • Note: If there is only one Bank Account, it is automatically selected. A warning appears if the bank's currency does not match the supplier's currency.
5. If applicable, select an Entity.
   • Note: If you are linked to an Entity, the linked Entity is automatically selected.
6. Enter the amount paid in the Amount field.
7. Select No VAT.
8. Click Save (button) to display the outstanding invoices.
9. Select the Invoices from the Outstanding Invoices (section) on the right:
   1. Click Select (button) to auto-select invoices (or choose an option by clicking the arrow on the Select (button)).
   2. Check or uncheck Outstanding Invoices if applicable.
   3. Edit the amounts paid if applicable.
   4. Click Allocate (button).
10. If there is a discount click Menu (...) at the end of the applicable invoice and select Discount Outstanding from the Context Menu.
    1. Confirm the discount on the popup.
       • Note: The discount transaction is created but set to pending.
11. If there is an overpayment click the Menu (button) on the same row as Outstanding and select Clear Overpayment.
    1. Confirm the overpayment on the popup.
       • Note: A transaction is created to write off the overpayment and set to pending.
12. Once the Supplier Payment is captured, click the Status dropdown list and select Complete to prevent further changes.
13. Click Save (button).

How to Record Currency-Mismatched Supplier Payments#

Step 1: Record the payment from the bank account and allocate it to the Supplier#

1. Navigate to Main Menu > Accounting > Ledger > Click the arrow on the New button > Supplier Transactions > Supplier Payment – Forex 1 (SPFX1)
2. Enter the Payment and Period Dates.
3. Select the Supplier.
4. Select the Bank Account from which the payment was made.
5. Enter the Amount of the payment and select No VAT.
6. Click Save (button).
7. Click Actions (button) > Copy to Supplier Payments – Forex 2.
8. Once the Supplier Payment is displayed:
   1. In the bottom right-hand corner change the Currency to the Supplier's currency
   2. In the Outstanding block on the bottom-left:
      1. Click Select and check the invoices being paid.
      2. Click Allocate (button).
   3. Click Done (button).

Step 2: Mark the pending transaction complete#

1. Navigate to Main Menu > Accounting > Ledger:
   1. Set Filter = Transaction Type (Transactions).
   2. Transaction = Supplier Forex Payment Transfers (SPFX1).
   3. Double-click the Pending transaction.
   4. Click Done (button).

Step 3: Clear the Forex Accrual account#

1. Navigate to Main Menu > Accounting > Ledger.
2. Set Filter = Ledger Account.
3. Set Account = Accrued Liabilities – Accrual – Forex – Current Liabilities.
4. Click View (button).
5. Make a note of the outstanding balance and whether it is a debit or credit balance.
6. Click the arrow next to New (button) > General Journal (GJ).
7. Enter the balance next to Amount and select No VAT.
8. Enter a Reference and Note.
9. If Accrued Liabilities – Accrual – Forex – Current Liabilities has a Debit balance:
   1. Set Debit = Forex Gains and Losses – Expenses.
   2. Set Credit = Accrued Liabilities – Accrual – Forex – Current Liabilities.
10. If Accrued Liabilities – Accrual – Forex – Current Liabilities has a Credit balance:
    1. Set Debit =Accrued Liabilities – Accrual – Forex – Current Liabilities.
    2. Set Credit = Forex Gains and Losses – Expenses.
11. Click Done (button).

General Supplier Payment Functions#

You should only change a completed transaction if you accidentally entered in the amount wrong. Otherwise:

• If a supplier was short paid, create a transaction for the balance when it is paid.
• If a supplier was overpaid, leave the overpayment as a credit and allocate it to the next invoice.

How to Change a Completed Supplier Payment#

1. When viewing Supplier Payments, double-click to open a Supplier Payment.
2. Click Status (button) > Pending.
3. Click Save (button).
4. Make any changes.
5. Change the status back to what it was.
6. Click Save (button).

How to Delete a Pending Supplier Payment#

1. Select Delete (button).
   • Note: User access rights for Delete are required. You cannot delete a Supplier Payment transaction if the payment is allocated to invoices.

How to Fix Supplier Payment Warnings#

Missing information can include:

• The Supplier Payment Form: Check that all the steps under How to Create a Supplier Payment were completed.
• The Supplier Account: Navigate to the Supplier Account (Actions > Edit Supplier) and fill in the missing information under the Accounting (tab).