Paying for Purchases

Payment to suppliers can be recorded in several ways and depends on timing and preference to how you will do it.

1. From within the purchase order

This method can be used to record payment made against a single purchase, and also can be used to record pre-payments before receiving the invoice.

1. Search for and open the purchase order.
2. In the products & prices tab, click the Take payment button.
3. Choose a bank account (the one that you have received funds into).
4. Enter the amount, the date and a reference.
5. Click Allocate payment.

2. Use the Payment Allocation screen

Purchases will only be listed here for payment once the invoice has been received against the purchase order. However, it is possible to make an on-account payment which is not related to any invoice and match them up in this screen later.

1. Search for the supplier.
2. When the supplier is listed, click their name to view/edit the record.
3. In the Financials detail box on the right-hand side click Allocate payment.
4. Choose a bank account, a date and enter a reference.
5. Click the Pay in full button next the invoices to clear. To part pay enter the amount paid in the amount to pay field.
6. Click Allocate payment button.

The bank payment is created and the invoices marked as paid. The supplier account balance is updated and the accounting posted. This won't actually pay the supplier, you will need to transfer the money through your desired route.

3. Using the Bank Matching process

Learn about bank matching

Dealing with Under/Over Payments

If you have over or under paid your supplier, you can simply leave it on account to allocate against a later invoice or payment, or you can write it off to gains and losses with an adjustment.

First of all you will need to set up your "adjustment accounts".

1. Go to Accounting > Chart of accounts.
2. Add a new nominal code.
3. Mark it as yes "Allocate discounts to this account".
4. Save.

Now when you make a payment to the supplier you can follow the steps above and enter any under or over amount into the adjustment column. Once you have entered an adjustment value you will be able to select your adjustment nominal code just below.

This will write-off the outstanding amount.

Learn how to deal with under or over payments after you have already allocated the payment