Supplier Payments Tutorial 

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.

2. Select New (button).

3. Enter the Payment Date.

4. Select the Supplier.

• Note: The Currency will automatically be 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 will automatically be selected.

6. If applicable, select an Entity. 

   • Note: If a user is linked to an Entity, it will automatically be selected.

7. Optionally enter the amount in the Subtotal column (the amount will be 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 will be entered automatically.  

9. Select the Invoice/s 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. 

     • • Ctrl+A: Select All.

       • Hold down the Ctrl key and click on the invoices you want to select one at a time.

       • Click on the first invoice, press and hold down the shift key and click on the last invoice to include all the invoices in a consecutive list.

10. Click on the 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 > 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 to be paid is less than the Due amount. 

    • Note: You cannot add amounts that are larger than the Due amount. The Total and Sub-totals fields in the header and footers on the right are automatically updated based on the Invoices to be paid.

13. Once the Supplier Payment is loaded correctly, click on Status (button) > Select Complete to prevent further changes.

ℹ️ You can create Supplier Payments before or after they are made. 

▶ Before: A bookkeeper can capture the invoices that should be made and set them to Pending. A manager can check the payments, process them and either mark them Complete or give a list of payments back to the bookkeeper to make the necessary adjustments and then mark them Complete.

▶ After: A manager can make the payments using the Supplier Age Analysis. A bookkeeper can capture the payments afterwards. In this case, the bookkeeper will mark the payments Complete.

NB! If you use the Banking module to create the Supplier Payments, do not post them to the Ledger using this module.

How to Approve a Supplier Payment

ℹ️ Note this step is only necessary if the payment is done using the Supplier Payment Module (Accounting > Supplier Payments)

1. Make sure the Supplier Payment's Status is Complete.

2. Select Action (button) > Approve Payment.

How to Post a Supplier Payment to the Ledger

ℹ️ Note this step is only necessary if the payment is done using the Supplier Payment Module (Accounting > Supplier Payments). This function is only used if you are not processing the Supplier Payment from a Bank Import. 

1. Make sure the Supplier Payment's status is Approved.

2. Select Action (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 the New (button) > Supplier Transactions > Supplier Payment 

2. Enter the Payment and Period Dates.

3. Select the Supplier.

   1. • Note: The Currency will automatically be set to the Supplier's Currency.

4. Select the Bank from which the payment was/will be made.

   1. • Note: If there is only one Bank Account, it will automatically be selected.

5. If applicable, select an Entity. 

   1. • Note: If a user is linked to an Entity, it will automatically be selected.

6. Enter the amount paid in the Amount field. 

7. Select No VAT.

8. Click Save (button) 

   1.  Note: This step activates showing the outstanding invoices.

9. Select the Invoice/s 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. Tick or untick 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 pop-up.

       • Note:  The discount transaction will be 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 pop-up.

       • Note:  A transaction will be created to write off the overpayment but it will be set to pending. 

12. Once the Supplier Payment is loaded correctly, click on Status (button) > Select Complete to prevent further changes.

13. Click Save (button).

How to Record Currency-Mismatched Supplier Payments.

ℹ️ The procedure outlined in this section is where the currency of the payment and the invoice are not the same.

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

1. 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. Type in 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 tick the checkbox of 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

ℹ️ This step can also be performed once a month.

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. Type in the balance next to Amount and select No VAT.

8. Type in 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

How to Change a Completed Supplier Payment

1. When viewing Supplier Payments, double-click to open a Supplier Payment. 

2. Select Status (button) > Pending > Click Save. 

ℹ️ Changing a Supplier Payment will affect both the Supplier's Account and the Bank Account if it was posted to the Ledger.

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

▶ If a Supplier was short-paid, create a new 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.

Following this approach will help you, and the supplier, reconcile the account if there is a discrepancy between your records and their records. It will also help you Reconcile the Bank Account.

How to Delete a Pending Supplier Payment

1. Select Delete (button).

• Note: Administrator rights are required. You cannot delete a Supplier Payment transaction if the payment has been allocated to invoices. 

How to Fix Supplier Payment Warnings

If there is a red bar at the top of the screen with missing information (a Warning), you will not be able to approve the payment until you provide the missing information.

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).

Related Topics

• Reference: Supplier Payments

• Setup: Supplier Payments