Payments to Suppliers

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Purchasing > Payments to Suppliers

The Payment to Supplier Document has three purposes:

  • Record the payment method details, and the amount, made to a Supplier, resulting from you receiving one or a number of Bills from this Supplier.

  • Track and apply the balances of any unused credit or payments.

  • Allow you to allocate amounts from Supplier Credit Notes.

IMPORTANT: If you use the Action 'Make Payment' on the Supplier Document, the Payment to Supplier Document will display all of the Bills with outstanding balances for this Supplier. If you use the Action 'Make Payment' on a Bill Document, the Payment to Supplier Document will only display the balance outstanding on that Bill.

Payment to Supplier Fields


Ref #

Auto-generated unique reference number.

Paid To

The name of the Supplier to which you have made the payment.


Be careful here as the system will automatically populate this field with the date you entered the payment rather than the date the payment was made. If you are tracking the dates on which payments are made you need to enter the corresponding date in this box.

Supplier Balance

The amount you owe the Supplier. This is the current balance in Accounts Payable (Purchase Ledger). When you save the Payment the field is not updated with the new balance. If this field contains an amount preceded with a minus sign, this signifies that the Supplier owes you this amount.


The currency that this Supplier operates in.

Exchange Rate

The currency exchange rate.

Amount Paid

Enter the amount you have paid the Supplier here. The amount in this field is automatically added to the balance in the 'Unused Payment' field on the Bills tab. The latter field is adjusted when you enter an amount manually.

Available Credit

This amount in this field equals the total balance of any outstanding Credit Notes you have been issued by this Supplier. When you allocate a credit, through the Credit tab, this field is adjusted according to the amount you are allocating. The amount in the Unused Credit field on the Bills tab is updated with the amount you have allocated. You can then use the Unused Credit amount to apply some or all of this amount to any outstanding Bills.

Entering and Editing

The Payment to Supplier Document can be created in two ways:

  • From the Supplier Document

  • From a specific Bill

In both cases, this is done by clicking the 'Make Payment' action from the Action drop-down on the corresponding Document.

NOTE: Both these methods result in a similar Payment Document, however, if you make a payment through the Supplier Document you can pay all outstanding Bills, whereas if you make a payment from the Bill Document you only make payment for that specific Bill.

  1. Enter the date of the payment. This should be the date the payment actually left your account, not the date you are entering the payment.

  2. Enter the actual amount you have paid. This field is pre-populated with the outstanding amount owed on open Bills, so in many cases, you may not need to actually enter anything here.

  3. To select the Bill or Bills you wish to pay click on the appropriate checkbox. When you click the checkbox you will notice the associated 'Amount to Credit' and 'Amount to Pay' fields become editable.

  4. Enter the amount of cash you want to pay against the Bill. This is cash from the 'Amount Paid' field.

NOTE: If you pay less total cash than the 'Amount Paid' the difference is displayed in the 'Unused Payment' field. Again, when you first create a payment the amount of cash paid is already entered by default.

  1. Click on the 'Credit' tab. In a similar way to the Bills, this displays the currently available Supplier Credit Notes. As with the Bill, click on the appropriate checkbox to make the 'Amount to Allocate' field editable. Then simply enter the amount of Credit you wish to allocate.

  2. Now we allocate this credit to the Bill. Go back to the Bills tab and enter the $ in credit in the 'Amount to Credit' field. At this point, we have paid the full Bill amount.

  3. Now we need to enter the details of the payment. Go to the 'Payment Method' tab. We enter the payment method and a Reference. We also specify the bank account from which the payment will be taken.

  4. That's it! All you need to do now is save the Document.

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