Recording Supplier Payments

Recording Supplier Payments

Recording supplier payments is an essential part of managing your accounts payable in EquiBillBook. This guide will help you understand how to record payments made to suppliers against their purchase bills and maintain accurate payment records.

What are Supplier Payments?

Supplier payments are transactions that record when you pay suppliers for goods or services purchased. These payments are typically recorded against purchase bills, but can also be recorded as advance payments or direct payments depending on your business needs.

Step-by-Step Guide to Recording Supplier Payments

Step 1: Navigate to Supplier Payments

To record a new supplier payment:

1. Go to the Suppliers module in the main menu
2. Click on "Supplier Payment" or "Payments"
3. Click the "Add Payment" or "New Payment" button

Step 2: Select Supplier

Choose the supplier who is receiving the payment:

• Select an existing supplier from the dropdown list
• The system will display outstanding purchase bills and balances for the selected supplier
• You can also search for suppliers by name or code

Step 3: Enter Payment Details

Fill in the payment information:

• Payment Date: Select the date when the payment was made (defaults to today's date)
• Payment Amount: Enter the total payment amount to be paid
• Payment Method: Select how you're paying the supplier (Cash, Bank Transfer, Cheque, Credit Card, Online Payment, etc.)
• Account: Select the account from which the payment will be made (Bank account, Cash account, etc.)
• Reference Number: Enter cheque number, transaction ID, or other reference if applicable

Step 4: Allocate Payment to Purchase Bills

Allocate the payment amount to specific purchase bills:

1. The system will display all outstanding purchase bills for the selected supplier
2. Select the purchase bills you want to apply the payment against
3. Enter the payment amount for each selected purchase bill
4. The total allocated amount should match the payment amount
5. You can apply partial payments to multiple purchase bills

Step 5: Add Notes and Attachments

Additional information:

• Notes: Add any internal notes or comments about the payment
• Attach Document: Upload payment receipts, bank statements, or other supporting documents
• Branch: Select the branch/location if using multi-branch setup

Step 6: Save the Payment

Once all details are entered:

1. Review the payment summary and allocation
2. Click "Save" to record the payment
3. The purchase bill status will automatically update based on the payment amount

Payment Types

In EquiBillBook, you can record different types of supplier payments:

• Purchase Payment: Payment against a specific purchase bill
• Advance Payment: Payment made before receiving goods or creating a purchase bill
• Direct Payment: General payment not linked to a specific purchase bill

What Happens After Recording a Payment?

After recording a supplier payment:

• Purchase bill status is updated (Paid, Partially Paid, or remains Due)
• Supplier account balance is updated
• Accounts Payable is reduced
• Payment account balance is decreased
• Payment records are available for reporting and reconciliation
• Payment voucher can be generated for record-keeping

Payment Status Updates

The purchase bill status automatically updates based on payments:

• Paid: When payment amount equals the purchase bill total
• Partially Paid: When payment amount is less than the purchase bill total
• Due: When no payment has been made
• Overdue: When payment is past the due date

Best Practices

• Always record payments on the date they were made, not the date you're entering them
• Use reference numbers for traceability (cheque numbers, transaction IDs)
• Attach supporting documents for audit purposes
• Verify the payment amount matches the purchase bill amount before recording
• Review supplier balances regularly to ensure accuracy
• Reconcile payments with bank statements periodically
• Keep detailed notes for future reference
• Set up payment reminders to avoid missing due dates

Related Articles

Learn more about:

• Partial Payments to Suppliers
• Advance Payments to Suppliers
• Payment Reconciliation
• Payment Methods for Suppliers
• Payment Due Tracking

Recording supplier payments accurately is crucial for maintaining proper accounts payable and ensuring your financial records are up to date. EquiBillBook makes it easy to track all supplier payments and maintain a clear audit trail.