Process supplier payments

Use this to pay all or selected suppliers listed in the Suggested Payments file.

The payments are processed by individual supplier or by Payment Group. Payment groups are set up on the Purchase Ledger settings Payment Groups tab.

If you have selected Update for the payment group:

• The supplier's account on the Purchase Ledger, the Nominal Ledger and Cash Book are automatically updated.
• Payment documents are produced.

If you have not selected Update for the payment group, only a payment document is produced.

You can assign a reference (Second ref) to each payment so that you can trace it back if there is a query raised on the payment at a later date.

When you generate the payments you can choose to:

• Add a remittance messages to remittance advices as they are printed.
• Print the remittance advices and cheques separately.

If you are using electronic banking, a payment file is generated. You use this file to transmit the payments to your bank in accordance with the electronic bank service you are using.

• If you have selected Update for the supplier's Payment Group:
  • The supplier's account balance is updated (decreased) by the value (including any discount taken) of the payment posted.
  • The bank account (for the balance sheet) in the Nominal Ledger and Cash Book if used, is credited with the value of the payment.
  • The settlement discount taken account (for profit and loss) in the Nominal Ledger is credited with the value of the settlement discount, if included.
  • The creditors control account (for the balance sheet) in the Nominal Ledger is debited with the value of the payment plus any settlement discount.
• The entries in the suggested payments file are marked as paid.
• Remittance advices and cheques are printed.

• If you are using the Sage e-banking facility, a file is generated.

  Use this file to transmit the payments to your bank in accordance with the electronic bank service you are using.

You must have:

• Created the Payment Groups in the Purchase Ledger settings.
• Assigned Payment Groups to the relevant supplier accounts using the supplier account Payment tab.
• Generated the Suggested Payments file.
• If you intend to use electronic banking you must have:
  • The Sage e-banking facility.
  • Subscribed to an appropriate electronic banking service which is compatible with Sage e-banking.
  • Selected to use Electronic Bank Payments in the Purchase Ledger settings Options tab.
  • Set up an electronic payment group in the Purchase Ledger settings Payment Groups tab.
  • Enabled the electronic bank service setting with the Cash Book module.