Receipts and payments
Pay a supplier
Record a payment to a supplier from a cash box, by cheque or through a linked bank or wallet method. The payment lowers what you owe the supplier and posts to the books at once.
3 min readLast updated
In this article
When you pay a supplier for purchases, record the payment here. It reduces the amount you owe that supplier, and the system posts a balanced payment voucher in the same step. The payment is made on the supplier's account; it is not tied to one purchase invoice.
Before you start
The supplier must exist in your company.
To pay in cash, the cash box you pay from must hold enough money. The system refuses a cash payment that would take the cash box below zero.
For bank transfer, card or wallet, the method must be linked to an account for your branch. See Set up payment methods.
The current year's fiscal year must be active for your branch. The payment is dated today.
Steps
Open Accounting › Payments › Pay Supplier.
In Supplier, search for and select the supplier.
Enter the Amount.
Choose the Payment method.
Complete the fields for that method:
Cash: choose the Cash box account the money leaves from. The list shows the cash boxes of your branch.
Cheque: enter the Cheque serial no., choose the Bank account the cheque is drawn on, and set the Due date.
A method linked to an account: the Cash box account field is hidden, and the line Posts to: shows the account the money leaves from.
Optional: add a Note, such as the invoices this payment covers.
Select Submit.
A message confirms the posting and shows the batch number of the journal entry.
What happens next
The books: the supplier's payable account is debited with the amount, and the money account is credited: the cash box, the cheque's bank account, or the account linked to the method.
Supplier balance: what you owe the supplier falls by the amount. The payment shows on the supplier statement and in the aging report.
Cheque: a cheque payment is added to the cheques register as a released cheque. See Record and track cheques.
Voucher: the payment is listed in the payments voucher report and can be opened by its batch number from Accounting › Transactions › Transactions.
Common questions
The system says there is not enough balance. The cash box you chose holds less than the amount. Choose another cash box, pay part of the amount, or move money into the cash box first with a transfer between accounts.
The Cash box account list is empty. Your branch has no cash box accounts set up. An administrator sets the branch's cash box group and adds the cash boxes in the chart of accounts.
Can I pay a supplier by bank transfer? Yes, if the bank transfer method is active and linked to a bank account for your branch on the payment methods screen.