Payment Methods for Suppliers

Payment Methods for Suppliers

EquiBillBook supports multiple payment methods for recording supplier payments. Understanding the different payment methods available helps you accurately record payments and maintain proper financial records. This guide explains the various payment methods and when to use each.

Available Payment Methods

EquiBillBook supports the following payment methods for supplier payments:

• Cash: Cash payments made directly to suppliers
• Bank Transfer/NEFT/RTGS: Electronic bank transfers
• Cheque: Cheque payments
• Credit Card: Credit card payments
• Debit Card: Debit card payments
• Online Payment Gateway: Payments through payment gateways
• UPI: Unified Payments Interface payments
• Other: Custom payment methods you configure

Setting Up Payment Methods

Step 1: Access Payment Settings

To configure payment methods:

1. Navigate to Settings → Purchase Settings
2. Go to "Payment Methods" or "Payment Types"
3. View existing payment methods or add new ones

Step 2: Add Payment Method

To add a new payment method:

• Click "Add Payment Method"
• Enter the payment method name (e.g., "UPI", "Bank Transfer")
• Configure payment method settings if applicable
• Set as active or inactive
• Save the payment method

Selecting Payment Method During Payment

When recording a supplier payment:

1. Navigate to Suppliers → Supplier Payment
2. Click "Add Payment"
3. Fill in supplier and payment details
4. Select the appropriate "Payment Method" from the dropdown
5. The selected method will be recorded with the payment

Payment Method Details

Cash Payments

When to use: For small payments, immediate transactions, or when cash is the preferred method

Features:

• Instant payment recording
• No clearing time required
• Deducts from cash account
• Suitable for small amounts

Best Practices:

• Keep proper receipts for cash payments
• Maintain cash payment records
• Reconcile cash accounts regularly

Bank Transfer (NEFT/RTGS/IMPS)

When to use: For secure, documented payments, especially for large amounts

Features:

• Electronic payment method
• Provides transaction reference numbers
• Deducts from bank account
• Suitable for any amount

Best Practices:

• Always record transaction reference numbers
• Verify bank account details before transfer
• Keep bank statements for reconciliation
• Note the transfer date and clearing date

Cheque Payments

When to use: For traditional payment method, post-dated payments, or when cheque is required

Features:

• Physical payment instrument
• Requires clearing time
• Deducts from bank account when cleared
• Cheque number tracking

Best Practices:

• Always record cheque numbers
• Track cheque clearing status
• Maintain cheque register
• Follow up on outstanding cheques

Credit/Debit Card Payments

When to use: For convenient payments, online transactions, or when card payment is preferred

Features:

• Instant or quick processing
• Transaction reference numbers
• May have processing fees
• Deducts from bank account

Best Practices:

• Record transaction IDs
• Account for any processing fees
• Keep card payment receipts
• Verify transactions with bank statements

Online Payment Gateway

When to use: For integrated online payments, automated payments, or gateway-enabled transactions

Features:

• Integrated with payment gateways
• Automated payment processing
• Real-time payment confirmation
• Transaction tracking

Best Practices:

• Ensure payment gateway is properly configured
• Verify payment confirmations
• Monitor gateway transactions
• Handle failed transactions appropriately

UPI Payments

When to use: For quick, mobile-based payments, especially for smaller amounts

Features:

• Instant payment processing
• Mobile-friendly
• Transaction reference (UPI transaction ID)
• Suitable for smaller to medium amounts

Best Practices:

• Record UPI transaction IDs
• Verify payment success
• Keep UPI payment confirmations

Payment Method and Account Selection

When selecting a payment method:

• The payment method determines how the payment is processed
• You also need to select the Account from which payment is made
• Cash payments should be allocated to cash accounts
• Bank transfers, cheques, and cards should be allocated to bank accounts
• The account balance is updated based on the payment

Reference Numbers by Payment Method

Different payment methods use different reference numbers:

• Cash: Receipt number or cash voucher number
• Bank Transfer: Transaction reference number, UTR number
• Cheque: Cheque number
• Credit/Debit Card: Transaction ID, authorization code
• UPI: UPI transaction ID
• Online Gateway: Gateway transaction ID, payment ID

Always record the appropriate reference number for traceability and reconciliation.

Payment Method Reports

You can analyze payments by payment method:

• Payment Method Summary: Total payments by method
• Payment Method Report: Detailed payment list by method
• Method-wise Analysis: Payments grouped by method for analysis

Best Practices for Payment Methods

• Select the most appropriate payment method for each transaction
• Always record reference numbers for traceability
• Use consistent payment methods for specific suppliers if preferred
• Consider payment processing times when selecting methods
• Account for any fees associated with payment methods
• Maintain proper documentation for all payment methods
• Reconcile payments by method regularly
• Keep payment method records updated

Multiple Payment Methods in Single Payment

In some cases, you may need to split a payment across multiple methods:

• Some systems allow splitting payment amounts across methods
• Alternatively, record separate payment entries for each method
• Ensure total payment amount matches the purchase bill amount
• Document the payment method split clearly

Payment Method Security

Security considerations for different payment methods:

• Cash: Keep secure, use for small amounts, maintain receipts
• Bank Transfer: Verify account details, use secure channels
• Cheque: Secure cheque storage, proper authorization
• Cards/Gateway: Use secure payment gateways, protect card information
• UPI: Use secure UPI apps, verify transactions

Related Articles

Learn more about:

• Recording Supplier Payments
• Payment Reconciliation
• Supplier Payment Reports
• Payment Due Tracking

Selecting the right payment method and recording it accurately is essential for proper financial management. EquiBillBook supports various payment methods to accommodate different business needs and payment preferences.