Supplier payments

Supplier payments records money you pay to a supplier. Posting a payment takes the money out of the cash or bank account you choose and lowers what you owe the supplier. Money that does not go to a bill is kept as a supplier advance, which you can use on a later bill.

Where: Purchases › Supplier payments › New payment (or Pay bills due)
Number: SPV-000001 for a payment, SAA-000001 for an advance applied to bills. Given when you save
Posts to: Accounts Payable, the cash or bank account you pay from, Supplier Advances, Discount Received
Who: Managers and admins. Admins only for deleting

What it’s for

Pay one bill, part of a bill, or several bills of one supplier in one payment. The bills can be expense bills and credit purchases.
Pay the bills of many suppliers in one step with Pay bills due.
Pay a supplier before you have a bill. The money is kept as a supplier advance.
Use a supplier advance on a bill later, without paying again.
Look up a supplier’s recent payments, print a payment voucher, and correct or delete a payment.

The payment form is titled Pay supplier. It can pay any of one supplier’s open bills. On a single bill or purchase, the button Pay bill pays that one document.

You pay by Bank or Cash. There is no card option for supplier payments. A cheque is not entered here. Cheques have their own screens in Banking › Cheques, and this page explains what a cheque posts under Cheques to suppliers.

Fields

Supplier payments list

Choose a supplier to see their payments and advance. Two tabs show for that supplier: Payments and Supplier advance. The list shows the newest payments, with the number, the date and the amount. Open a number to see the voucher.

New payment

Field	What it means	What it changes
Supplier	Who you are paying. The supplier’s open bills load on the right	Which bills you can pay. Changing the supplier clears the bills and amounts
Paid from (Bank or Cash)	How the money leaves	Which accounts you can choose below
Bank account / Cash account	The account the money leaves. The screen shows its balance on the payment date. New account adds one. If you have only one account of that kind, it is chosen for you	The account that goes down. Cash accounts that an open till drawer is using cannot be chosen
Payment date	When you paid. Defaults to today	The date of the journal entry
Reference (optional)	For example a transfer number. Up to 120 characters	Printed on the voucher. No accounting effect
Amount to pay	The money paid. Type it, then press Pay oldest bills first	Fills the bills with the earliest due dates first. Anything left over goes into the advance box
Supplier advance to keep with the supplier (optional)	Money paid ahead, not matched to a bill	Supplier Advances goes up
Select (a tick beside each bill)	Ticking a bill fills in what it still owes. Select all bills ticks every bill	The bill is paid in full
Pay now (a box beside each bill)	The amount for that bill. Change it for a part payment	That bill owes less. It cannot be more than Still owed
Close the difference as discount received	Appears only while a bill is paid for less than it owes	The rest of the bill is closed as income. See Discount received

The bill list shows the bill number, whether it is an expense bill or a stock purchase, the supplier’s own invoice number, the due date and a badge: Open or Overdue. The screen shows up to 50 of the oldest open bills. When those are paid, the next ones appear.

A banner on this screen shows any supplier advance the supplier already holds, with Use supplier advance to open it.

Pay bills due

Field	What it means	What it changes
Bills due up to	A date. Defaults to six days from today. Overdue bills are always included	Which bills are listed, for every supplier
Pay from	The cash or bank account the money leaves, shown with (bank) or (cash)	The account that goes down by the whole run
Payment date	Today or an earlier date	The date of every payment in the run
Reference	Optional. Printed on each payment	No accounting effect
A tick beside each bill	Every bill starts ticked. Untick what should wait	Only ticked bills are paid, each in full
Discount received	Appears beside a ticked bill. Leave it blank for no discount	See Discount received

Each supplier is shown with a total, and a note if the shop holds a supplier advance with that supplier. At most 50 bills are shown for one supplier. If there are more, the screen says so. Bills that cannot be paid in the run appear under Not in this run, with the reason.

Supplier advance tab

Field	What it means	What it changes
Supplier advance	Which advance to use. Each one shows its number and what is left	The advance that goes down
Date applied	Defaults to today. Not before the advance was paid, and not before the bill’s date	The date of the journal entry
Pay now boxes under Bills to apply it to	How much of the advance each bill takes	Each bill owes less

Buttons

Nothing touches your accounts until you confirm the review.

Button	When you see it	What happens	Accounts
New payment	Supplier payments list	Opens the payment form	No change
Pay bills due	Supplier payments list	Opens the bills-due screen. Managers and admins	No change
Pay oldest bills first	New payment	Spreads Amount to pay over the bills with the earliest due dates	No change
Review payment	New payment	Checks everything and opens “Review supplier payment”	No change
Save payment	The review window	Saves the payment and gives it a number. Pressing it twice does not save twice	Posts
Review payments	Pay bills due	Opens “Check before paying”	No change
Pay ‹n› suppliers	Pay bills due review	Pays all the suppliers in one step. If any one is refused, nothing is paid	Posts
Apply supplier advance	Supplier advance tab	Uses the advance on the bills you entered. No cash or bank balance changes	Posts
Apply oldest first	Supplier advance tab	Fills the oldest bills first, up to what the advance holds	No change
View voucher and Print…	The ⋯ menu of a payment	Opens or prints the voucher	No change
Edit payment	An open voucher, when allowed	Changes the date, account, reference, amounts or advance. Asks for a reason. Confirm with Update payment batch	Restated
Delete payment	An open voucher, when allowed. Admins only	Asks for a reason, then removes the payment. The number stays	All effects removed
Unapply from ‹bill›	The ⋯ menu of an advance application	Gives some or all of the applied money back to the advance. Confirm with Confirm unapplication	Posts
Edit application / Delete application	The ⋯ menu of an advance application	Changes or removes the application. Delete is for admins only	Restated / All effects removed
Cancel unused supplier advance ‹number›	An advance that has not been used at all	Cancels the whole advance. Confirm with Confirm cancellation	Posts
Receive refund	An advance with money left	Records money the supplier paid back to you. Confirm in the window “Receive supplier advance back”	Posts
Cancel refund ‹number›	A refund you received	Takes the refund back, with a reason	Posts

Statuses you will see: bills in the list show Open or Overdue. A deleted payment shows This payment has been deleted. Each supplier advance is shown with its status and how much is still available.

What gets posted

Each bill you pay gets its own journal entry, dated on the payment date. A payment of three bills saves three entries. Money you keep as an advance gets one more entry. All of them are saved together: if one fails, none is saved.

One payment that covers several bills is called a payment batch in some messages and buttons. It has one voucher and one number.

Example 1Paying part of a credit purchase from the bankPurchase of 945.00 · bank payment of 300.00

Purchase total945.00
Paid from the bank300.00
Still owed afterwards645.00

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	300.00		You owe the supplier 300.00 less
1020Bank Accounts (the bank account you pick)		300.00	The money left the bank
Total	300.00	300.00	Balanced

Paying an expense bill posts the same two lines. A bill paid in full simply uses its whole balance as the amount.

When one payment covers several bills, each bill has its own entry like the one above. For example, 100.00 to one bill and 57.50 to another saves two entries and one payment voucher of 157.50.

Example 2Paying a supplier in advanceBank · AED 500.00 · no bill yet

Paid ahead from the bank500.00

Account	Debit (AED)	Credit (AED)	Why
1250Supplier Advances	500.00		The supplier now holds your money. You can use it on a bill later
1020Bank Accounts (the bank account you pick)		500.00	The money left the bank
Total	500.00	500.00	Balanced

Accounts Payable does not change. If you pay 25.00 to a bill and keep 75.00 as an advance, you get Example 1’s lines for the 25.00 and Example 2’s lines for the 75.00.

Using a supplier advance

Applying an advance moves no cash. It only lowers what you owe and what the supplier holds for you.

Example 3Using 40.00 of an advance on a billAdvance of 75.00 available · 40.00 applied

Advance still available before75.00
Applied to the bill40.00
Advance still available after35.00

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	40.00		The bill owes 40.00 less
1250Supplier Advances		40.00	The advance has 40.00 less left
Total	40.00	40.00	Balanced

The bill owes 40.00 less from the date applied. The date applied cannot be before the advance was paid or before the bill’s date.

Example 4Giving applied money back to the advance (Unapply)Correction of 20.00 on an application

Applied to the bill before60.00
Given back20.00

Account	Debit (AED)	Credit (AED)	Why
1250Supplier Advances	20.00		The advance holds 20.00 again
2000Accounts Payable		20.00	The bill owes 20.00 again
Total	20.00	20.00	Balanced

This is dated the correction date you choose. It cannot be before the application. The bill’s balance goes up by 20.00 from that date.

Example 5The supplier pays part of an advance back to youReceive refund · bank · AED 200.00 of a 500.00 advance

Advance paid500.00
Received back into the bank200.00
Advance still held300.00

Account	Debit (AED)	Credit (AED)	Why
1020Bank Accounts (the account you receive it into)	200.00		The money came back to the bank
1250Supplier Advances		200.00	The supplier holds 200.00 less of your money
Total	200.00	200.00	Balanced

Accounts Payable is not touched. Cancelling the refund posts the opposite lines.

The advance cannot be received back, or cancelled in full, once any of it has been used on a bill. Unapply those bills first.

Discount received

Sometimes a supplier agrees to take less and sends no credit note. Pay the lower amount and tick Close the difference as discount received. On Pay bills due, type the amount in Discount received beside the bill instead.

The bill then shows as fully paid. The difference is income for you. The VAT and the stock cost stay exactly as on the supplier’s invoice.

Example 6Paying 10.00 on a purchase of 10.50Cash · discount received 0.50

Purchase total (10.00 + 5% VAT)10.50
Paid in cash10.00
Discount received0.50

Account	Debit (AED)	Credit (AED)	Why
2000Accounts Payable	10.50		The supplier is owed nothing more on this purchase
1000Cash on Hand (the cash account you pick)		10.00	The cash you paid
4910Discount Received		0.50	The amount the supplier let you off
Total	10.50	10.50	Balanced

The app saves this as two entries on the payment date: the payment (10.00 against Accounts Payable) and the discount (0.50 against Accounts Payable). They are shown together here. Input VAT and Inventory do not change. The discount must be less than the bill, because the rest is paid.

A payment that closed a discount cannot be edited. Delete it and enter it again. Deleting it cancels the discount, dated the day you delete it.

Supplier advance from edits and returns

Money that a supplier holds for you always appears as a supplier advance on the Supplier advance tab, with the same buttons. It can come from three places:

Paying ahead, as in Example 2.
A purchase return you choose to keep as an advance instead of receiving the money back. This is offered for a purchase that was already paid. For a return of 200.00 plus 10.00 VAT:

Example 7A return kept as a supplier advanceReturn of 200.00 + 10.00 VAT · kept as an advance

Goods returned at cost200.00
VAT on them10.00
Kept as supplier advance210.00

Account	Debit (AED)	Credit (AED)	Why
1250Supplier Advances	210.00		You now hold 210.00 as a supplier advance
1200Inventory		200.00	The goods left your stock
1400Input Tax Recoverable		10.00	The VAT you can claim back goes down by 10.00
Total	210.00	210.00	Balanced

The bank is not touched. See Purchase returns.

A purchase you edit down, or delete, after paying it. When the new total is lower than what was paid, or the purchase is deleted, the payment stays as money you paid. It becomes a supplier advance in a separate entry dated the day you save (Supplier Advances debit, Accounts Payable credit). The payment’s own entry is not changed, because that cash did leave your account. See Purchases.

An advance that was applied to a purchase is released when an edit lowers the purchase below what is already paid or applied, or moves it to another supplier. Example: a purchase of 100.00 with 80.00 of advance applied owes 20.00. Edit it to 50.00 and it owes 50.00, and the 80.00 is free again as an advance.

Cheques to suppliers

You enter a supplier cheque in Banking › Cheques. It posts nothing to your accounts when you issue it, and nothing when its status changes to Taken to the bank by supplier. It posts when it is Cleared.

Step	What posts
Cheque issued	Nothing. Your bank balance does not change
Taken to the bank by supplier	Nothing
Cleared	A supplier payment (SPV number), dated the clearing date you enter, taken from the bank account chosen for the cheque

When the cheque was set aside for bills, clearing pays those bills: for each bill, Accounts Payable goes down and the bank goes down, as in Example 1. When the cheque was set aside for no bill, clearing keeps the amount as a supplier advance: Supplier Advances goes up and the bank goes down, as in Example 2.

A bill that a cheque is already set aside for is not offered again on Pay bills due. It appears under Not in this run. A cheque cleared at less than its bill can close the rest as discount received.

To correct a payment that came from a cheque, use the cheque, not the voucher. The voucher says: ‹number›: this payment batch settles a post-dated cheque; correct it from the cheque’s clearance detail instead.

The bank or cash account cannot go below zero

A payment is money leaving an account. By default, a payment is refused if it would take a bank account below zero on the payment date or on any later day. Cash accounts follow the same rule only when your administrator turns on Don’t let cash go below zero in Accounting rules. Your administrator also chooses what happens, in If a payment would take a bank account or cash below zero:

Choice	What happens
Block	The payment is not saved. The message says the day, and how much to record first
Allow a manager with a reason	The payment is not saved until an administrator, or a manager whose role allows it, approves it with a reason
Warn only	The payment is saved and you are told

The check looks at the whole run or payment together. Two payments that each fit but together do not are refused, and nothing is saved.

Where it shows up

Place	What changes
Supplier statement	Each bill payment and each advance application is listed. An advance paid ahead is not listed until you apply it to a bill. Cheques not yet cleared are in a separate list
Bill or purchase	It owes less, and the status changes to part paid or paid
Supplier dues by age	The supplier’s dues go down. Supplier advances are listed separately and are not taken off what you owe
Supplier advances report	Suppliers whose balance is below zero, shown apart from what you owe. An advance paid ahead is on the Supplier advance tab, not in this report. See Suppliers
Day book	One entry for each bill paid, for each advance, and for each discount received
Bank or cash account	The balance goes down on the payment date
Balance sheet	Accounts Payable, Supplier Advances and the bank or cash account
Profit and loss	Discount Received, when you used it

What the app blocks

These checks happen before anything is saved. A refused payment leaves nothing behind.

Situation	What you see
No supplier chosen	Choose the supplier you are paying.
No account chosen	Choose the account the money leaves.
No bill chosen and no advance	Choose the bills to pay, or enter an amount to keep as supplier advance.
Amount to pay left empty or not a number	Enter an amount to pay, with at most 4 decimal places.
More than a bill still owes	This is more than the bill still owes.
A date in the future	Choose today or an earlier date in the company time zone.
A date before the bill	The payment date can’t be before ‹date›, the bill date of ‹number›. Choose that date or later, or keep the money as supplier advance.
Pay bills due with nothing ticked	Tick at least one bill to pay.
Pay bills due with no account	Choose the cash or bank account the money leaves.
Pay bills due with a later date	Choose today or an earlier date.
Pay bills due with a date before a bill	Bill ‹number› is dated ‹date›. Choose that day or a later one, or untick it.
Pay bills due, more than 50 bills for one supplier	Pay 50 bills or fewer to one supplier in a run.
A supplier who is archived, in Pay bills due	The supplier is archived. Make the supplier active to pay it.
A bill that a cheque is set aside for, in Pay bills due	Cheque ‹number› is already planned to pay it.
A cash account that an open till drawer uses	This Cash Financial Account is assigned to an open POS drawer. Close the drawer or choose another Cash or Bank Financial Account.
Account does not match Bank or Cash	Select a Financial Account matching the payment method.
Date inside a locked period	The accounting period is locked through ‹date›. Choose a later date, or ask an administrator to reopen the period.
Date behind a bank reconciliation	A bank account in this journal is reconciled through ‹date›. Undo that reconciliation first.
Date behind a cash count	This Cash account was already counted through the selected date. Undo its latest cash count or choose a later transaction date.
The account would go below zero	This would take ‹account› below zero on ‹date› (balance then AED −‹amount›). Record at least AED ‹amount› coming in on or before ‹day› first, then save again.
Advance used for more than is left	The bills add up to more than the supplier advance still available.
Advance applied on a date before it was paid	The date cannot be before the supplier advance was paid (‹date›).
Advance applied with no bill chosen	Choose at least one bill to apply the supplier advance to.
A discount as large as the bill, in Pay bills due	The discount must be less than what the bill owes (‹amount›), because the rest is paid. To pay nothing, untick the bill.
A discount larger than what is open	The discount is more than is still owed on the bill or purchase after this payment. Lower the discount.
Receiving back more than the advance holds	Only ‹amount› is left on this advance. Enter that or less.
An advance that came from a cleared cheque	This advance came from a cleared cheque, so it cannot be refunded on its own. Use it on a bill.
An advance made from till cash	This advance was made from till cash, so it cannot be refunded. Use it on a bill.
A connection problem while saving	The screen keeps your payment and shows a panel with Check status. It sends the same request again, so it cannot be saved twice

Why a payment cannot be edited or deleted

When Edit payment and Delete payment are missing, the voucher says why. The reasons are:

The payment came from a post-dated cheque that cleared. Correct it from the cheque.
The advance it created has already been applied to a bill. Unapply it first. The message reads: ‹number›: this advance has already been applied; unapply it before making further changes to this batch.
The payment or its advance was already cancelled or changed by an earlier correction.
A purchase it paid was converted to a supplier advance. Change that advance first.
The payment closed a discount. It can be deleted but not edited: This payment closed a difference as discount received (‹number›), so it cannot be edited. Delete the payment and enter it again.
The date is in a locked period, or behind a bank reconciliation or a cash count.

If your role does not allow either action, the voucher shows Permission needed: You don’t have permission to edit or delete this payment.

Who can do it

Action	Admin	Manager	Cashier
See supplier payments and vouchers	Yes	Yes	No
New payment, Pay bills due	Yes	Yes	No
Apply a supplier advance	Yes	Yes	No
Edit payment, Edit application	Yes	Yes	No
Delete payment, Delete application	Yes	No	No
Unapply, cancel an unused advance, receive or cancel a refund	Yes	Yes	No
Approve a payment that takes an account below zero	Yes	If your company allows it	No

These are the standard roles. Your administrator can give a custom role each action separately in Settings › Users & access. Cashiers work at the till and do not see Purchases.

Fixing a mistake

Not saved yet. Press Back to payments, or change the form. Nothing was posted. The screen asks before you leave a form with entries.
A payment with the wrong date, account, reference, amount or advance. Open the voucher and press Edit payment.
- The payment keeps its SPV number. The old entries are removed and new ones are posted for the new details. The bank or cash effect ends up as the new total only.
- A reason is required. It must have at least 3 characters. The history keeps the before and after.
- To release a bill, set its amount to zero.
- An edit does not turn the old payment into supplier advance. Only the Supplier advance amount you keep on the payment is held as an advance.
A payment that should never have been made, or was entered twice. An admin opens the voucher and presses Delete payment. Every bill it paid owes again, the money goes back to the account it came from, and no supplier advance is kept. The number stays, shown as deleted.
An advance applied to the wrong bill or for the wrong amount. A manager uses Edit application, or Unapply from ‹bill› to give part or all of it back. An admin can use Delete application.
An advance paid by mistake. If none of it has been used, use Cancel unused supplier advance. If some of it was used, unapply first. If the supplier gave the money back, use Receive refund.
A payment from a cheque. Correct it from the cheque in Banking › Cheques.
The supplier took less than the bill. If you have not paid yet, tick Close the difference as discount received. If you already paid, delete the payment and enter it again.
A bill was wrong. Fix the bill, not the payment. See Expense bills and Purchases. For goods you send back, see Purchase returns. Supplier details are in Suppliers.