Payment (purchase account)

Use the Payment tab to enter the payment method, payment terms and the settlement discount for the supplier. You can also specify a factor house, if your supplier uses one to collect payments on their behalf.

Enter your supplier payment details

Open: Purchase Ledger > Purchase Accounts > Enter New Account | Payment.

Open: Purchase Ledger > Purchase Accounts >Amend Account Details.

Select existing purchase account reference.
Select Payment tab.

Enter the Payment terms:

Select the method of payment from the Payment group drop-down list.

Payment groups are set up in the Purchase Ledger settings Groups tab.

Note: If you are amending a supplier account, you cannot change this if there are payments waiting to be processed in the suggested payments file, generated when automatically processing supplier payments.
Select the Account Type.
About supplier account types
Use the Account types to decide how transactions are stored on individual supplier accounts. You can use all three account types in your Purchase Ledger in any mix. Use the account types to balance your need for a detailed breakdown of a supplier's transactions with your need to save disk space.

The default account type is Open item.

You can change a supplier account from one type to another. If you change a balance forward account to open item, you will only be able to view details for transactions entered after you made the change.
Open item
All outstanding transactions remain visible on the supplier's account. These are:

Part allocated payments.

Disputed transactions.

Unpaid invoices.

Part paid invoices.

All transactions that are fully allocated and have exceeded the time specified to keep such transactions are removed when the period is closed. The time specified to keep transactions is set using the Account history options on the Purchase Ledger settings Supplier Defaults tab. The transactions are either deleted or stored in an archive file, depending on the Purchase Ledger settings.
Balance forward

All transaction details remain visible on the supplier's account until the period end is run.

The Period End clears the transactions. A brought forward balance is displayed for the new period.

Each period's total balance is carried forward as a single balance figure and so the number of balances carried forward depends on the number of periods aged debts that are specified on the Purchase Ledger.

When transactions such as payments are posted for a previous period, they are allocated by period number, so the appropriate balance is reduced at the period end.

Transactions in query are retained on the account record.

The advantage of this type of accounting is its economical use of disk space.

Note: Balance forward accounts cannot be used for foreign currency accounts.

Automatic allocation

This automatically allocates any credit notes, payments or receipts to invoices, when the Period End is run. The oldest outstanding invoices are allocated first.

If you select this type of account, you cannot select payments manually to allocate to a specific invoice when the period end is run.

Queried invoices are not allocated.
Enter the Settlement discount percentage offered by this supplier, and the number of days If paid within to qualify for the discount.

The default discount percentage rate is set in the Purchase Ledger settings Supplier Defaults tab.
Enter the number of days the Payment terms apply for, and when the terms start From.

If your supplier uses a factor house to collect payments on their behalf, select the Factor house from the drop-down list.

You must have set up the Factor house details.