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Working with Payments to Suppliers (Money Out)

The Payment to Supplier Document has three purposes:

  1. Record the payment method details, and the amount, of a payment made to a Supplier upon receipt of a Bill(s) from this Supplier.
  2. Track and apply the balances of any unused credit or payments.
  3. Allow you to allocate amounts from Supplier Credit Notes.

When viewing a Supplier, you will see all Bills due to the supplier. If at that point, you select the Action ‘Make Payment‘ on the Supplier Document, all the Bills with outstanding balances for this Supplier will show.

If you select the Action ‘Make Payment‘ only while viewing a Bill Document, only the balance outstanding on that Bill will show.


Working with Suppliers
Working with Bills (Supplier Invoices)

How to create a ‘Payment To Supplier’ Document

A Payment can be generated either from the Supplier Document, or from a specific Bill.

  1. While viewing the supplier, or viewing the bill, from the ‘Actions’ dropdown, select the ‘Make Payment‘ action.
  2. This will create a ‘New Payment to Supplier’ Document.
  3. From the Supplier Document, all outstanding Bills will show for that Supplier.

The Payment to Supplier Document is shown below, which indicates more than one Bill due to be paid. In this example, the allocation of credit is also shown.

New Payment to Supplier Document

New Payment to Supplier Document

From the diagram above note the following:

  1. Enter the date of the payment. That would be the date payment left your account, not the date you are capturing the payment.
  2. Enter the actual amount paid. Usually it is pre-populated with the outstanding amount owed, but can be adjusted.
  3. Select the Bill or Bills you wish to pay by clicking the appropriate checkbox. Once done 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 in the ‘Amount to Pay’ field.

A field called ‘Unused Payment’ will display the difference between what was paid, and what was allocated. This will decrease as you progress through the allocations.

How to process a Credit from a Supplier

  1. Click the ‘Credit‘ tab. (See point 5 in Diagram above) This displays the currently available Supplier Credit Notes.
  2. Click on the appropriate checkbox to make the ‘Amount to Allocate‘ field editable.
  3. Enter the amount of Credit you wish to allocate. In this case the full $100. (See point 6 in Diagram above)
  4. To allocate this credit to the Bill, go back to the Bills tab. Enter the $100 credit in the ‘Amount to Credit‘ field. Now the Bill has been fully allocated i.e. $100 + $20 = $120.

How to make payment to the Supplier

  1. Once the above steps has been completed, navigate to the ‘Payment Method‘ tab.
  2. Select the payment method from the Dropdown. (See point 7 in Diagram above)
  3. The reference number could be a check number, if the payment method is check.
  4. Add a descriptive memo to the payment.
  5. Specify the bank account from which the payment will be/has been taken.
  6. Remember to save!

Also Read About

Working with Suppliers
Working with Supplier Credit Notes
Working with Supplier Refunds
Entering Payment Details
Working with Memos
Working with Emails