Vendor payments

Open Purchases›Vendor Payments, or click Make Payment on a bill, Pay Bills on a vendor, or Pay Vendor on the dashboard.

Pay a vendor#

1. Click New and choose the vendor. Their Unpaid Bills are listed, with their opening balance if any.
2. Enter the Payment Date and the Amount Paid.
3. Choose the payment mode and the account it was Paid From.
4. Under Instrument & Charges, enter the Reference / Cheque No., the Reference Date, the Payee Bank, and any Bank Charges with their account.
5. Check the Pay Amount on each bill and save.

Allocation, credits and write-offs#

• With Auto Allocate Payments on in Preferences, the amount goes to the oldest bills first. Type your own amounts, or click Auto-allocate to start again.
• Tick Apply Credit to use the vendor's Available Credit from vendor credits or earlier advances.
• For a small amount the vendor waived, tick Write off the remaining balance on the bill. It goes to the Write-off Account, or to Discount Received if you leave it empty.
• If you pay more than the bills you select, the difference is kept as Excess (to credit): an advance to the vendor, used on their next bills.

Cancel a payment#

Select the payment and cancel it, giving a reason. The bills it paid are open again.