Supplier payments and payments on account

This article will explain how to record a payment made to a supplier and how to match with the relevant invoice to show that you have paid the invoice.

Do this so you can see which invoices you still need to pay, and how much you still owe your suppliers.

How this works

Only use this for money received from a supplier and being used to pay a purchase invoice.
To pay one or more invoices, enter the details of the payment and choose the invoices that it is paying.
If you don't know which invoice the payment is paying, save the receipt as a Payment on Account. Allocate the payment to an invoice later.
If you have overpaid the supplier
- You may be keeping the money on account to pay another invoice later. In this case, save the overpaid amount as a Payment on Account and allocate it to another invoice later.
- The supplier may be planning to send you a refund. In this case, save the remaining amount as a Payment on account and then allocate it to the refund when you receive it.
  Read more about Refunds.
For cash purchases and expenses where you do not have a invoice, use the Other Payment tab instead.

Create payments from a bank feed or import from a statement

If you import transactions directly from your bank account, either from a bank feed from your statement, you can

Save the payment as a payment on account and match it invoices later.
Match the payment directly to purchase invoices
Save any overpayment as a payment on account to match to a refund later.

Save as a payment on account

From Banking, select the Transactions link on the relevant bank account.
Find the payment.
Choose the supplier from the For drop-down list.
Choose Payment on account from the What drop-down list.
Select Create.

This saves as a Payment on account. You can match this to purchase invoices later.

Match a payment to invoices

From Banking, select the Transactions link on the relevant bank account.
Find the payment.
Select Match.
Select the invoice or invoices you want to pay.
If you are part-paying an invoice, change the Payment amount in section 2.
When the receipt is fully allocated, select Match.

Save an overpayment

This explains how to save any left over amount.

From Banking, select the Transactions link on the relevant bank account.
Find the payment.
Select Match.
Select the invoice or invoices you want to pay.
Select New Transaction in section 2. Choose Payment on Account. This allow you to match to another invoice or refund later.
When the receipt is fully allocated, select Match.

Enter a supplier payment

From Banking, open the required bank account.
Choose New Entry then Purchase / Payment, then select the Supplier Payment tab.
Complete the details of the payment.
- For a new supplier, choose Add a supplier from the drop down list.
- To change to a different bank account, choose the new account from the Paid From Bank drop-down list.
- Add a Reference to help you track the payment and match with your bank statement.
Enter the Amount paid.

Leave the amount blank, to calculate the total payment amount from the invoices being paid.
Select the check box next to each invoice that you want to pay.

To pay all outstanding items, select the check box in the top left.

As you select each invoice, the Left to allocate value updates.

Note: The Left to allocate value must be 0.00 in order to save the allocation.
Save the payment.

Part pay an invoice

Select the Paid column for the invoice you want to part pay.
Enter the amount of receipt as the Amount to pay.
Choose Apply.

Add a discount

If the supplier has offered you a discount, for prompt payment for example then you can record this alongside allocating your payment:

Select the Edit icon next to the Outstanding amount.
Enter the amount to pay less the discount and choose Apply.
Select the Edit icon next to the Discount amount.
Enter the amount of the discount and choose Apply.

Manage an overpayment

This explain how to what to do when you overpay a supplier. You can either save the remaining amount as a Payment on Account. Use this to pay a future invoice. If your supplier sends you a refund, record this as a refund transaction and match it to the overpayment.

Save the overpayment

Choose the invoices you want to pay and Save.
Choose Yes when asked to save as a Payment on Account.

Records a refund

If the supplier send you a refund, just create a Refund for the overpaid amount and match to the Payment an Account.

From the Bank account, choose New Entry, then Sale / Receipt.
Select the supplier Refund tab.
Choose the Supplier and complete the remaining details.
The details of the Payment on Account shows in the rows at the bottom. Choose the check box for the Payment on account and Save.