Supplier Payments Transaction Type

The process of paying suppliers is one of the final steps in the purchase cycle. Briefly, when a company orders goods from a supplier it raises a Purchase Order (PO). When the goods or services arrive, they will receive an invoice from the supplier. If the goods or service matches the PO, the Purchase Order is copied to a Supplier Invoice, and then to a Supplier Payment for payment.

This topic covers how to setup a Supplier Payment Transaction Type.

All of these fields and tabs are explained in detail in the Transaction Type topic, here.

What you'll find on this page

• Start here

• Transaction Types

• Accounting Setup

Start here

1. Navigate to Setup > Transaction Types > Edit.

2. Click Add. A new record will appear at the bottom of the screen. You will note that some fields are auto-populated already.

Transaction Types

The defaults for Transaction Types only require a small amount of change. The only fields to change are:

1. Description - Enter 'Supplier Payment'.

2. Code - Enter 'SP'. This is the 'nickname' of the Transaction Type.

3. Contacts - Select Suppliers - All. This is so that users can create a Supplier Payment for all Suppliers.

4. Accounting - Check the box. This allows Supplier Payment transactions to debit or credit specific accounts.

Accounting Setup

Because this Transaction Type affects accounting, we need to setup which accounts are credited and debited by this Transaction Type.

Navigation

Setup > Accounting > Transaction Types > Supplier Payment.

The only fields you need to change are the following:

1. Dr Category- Select 'Payables'. This determines what Account Category will be debited by default. Selecting 'Payables' allows you to debit the Supplier account.

2. Cr Category - Select 'Bank'. This determines what Account Category will be credited by default. 'Bank' will then Debit the Bank Account by default on the Transaction.

3. Cr Account - Select 'Bank - Detail'. This specifies the account that will be credited.