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Introduction - Vendor Payments

A vendor payment records money leaving to settle bills.

Paying a supplier, and deciding which bills that money clears.

Like customer payments, the money and the allocation are two separate things, which is what lets you pay a supplier a round figure covering six invoices and still know exactly which ones are now clear.

The Vendor Payments screen listing twenty-eight payments with columns for Date, Payment #, Vendor, Bill#, Payment Mode, Amount, Status, Amount Allocated and Unused Amount. Payment modes read CHAPS, BACS, Bank Transfer and Cheque. Most rows are Draft with 0.00 allocated and the full amount unused; a Paid row at the foot has its whole amount allocated and nothing unused.
Amount Allocated and Unused Amount always add up to Amount. Unused is money not yet matched to a bill.

Payment and allocation

Paymentthe money
The amount, the date and which account it left from. This is what your bank reconciliation matches.
Allocationthe matching
How that amount is split across open bills. Editable afterwards without touching the payment.
Prepaymentthe remainder
Money sent that has not been matched to a bill yet. It sits against the vendor.

Before you send money

Three checks, in this order, on the vendor's transactions tab. Each one can reduce or remove the payment entirely, and none of them happens automatically.

  1. Unused creditsApply them first
  2. PrepaymentsMatch before sending more
  3. Disputed billsCredit the disputed part
  4. Then payWhat is genuinely due

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