About supplier ledger payment processing

Introduction

Supplier ledger payments are a type of internal payment document designed for settling invoices incurred through purchases from suppliers.

You create a supplier ledger payment using the Supplier payments (AP302000) window. First, choose the date, supplier, location, and how you want to pay them. On the Details tab, you can do two things:

  • You can add the invoices to pay and make changes.

  • You can let the system find all the invoices you owe automatically, including any money you need to pay back from returns, and then pick which ones you want to pay.

The Unapplied balance field shows how much money you still owe. You cannot complete the payment until this balance reaches zero.

If your bank adds extra charges to your payment, like interest fees, you can set those up on the Finance charges tab.

Initiate automatic invoice payments in the Process payments (AP50301S) window using schedules. See About the scheduler and Create a new schedule.

Select invoices for payment by date, cash account, method, supplier, and discount availability. Payments will be created for selected invoices, grouped by supplier.

However, sometimes you might want to pay certain invoices separately. If you set the Pay separately option for a supplier in the Suppliers (AP303000) window, each invoice or credit adjustment will have a separate payment. For specific invoices, you may need to select Pay separately for individual payments. If Pay separately is selected for a supplier in the Suppliers (AP303000) window, each invoice or credit adjustment will get its own separate payment.

Each supplier ledger payment has one of the following statuses, which tells you its stage in processing:

Status Description
On hold Typically used for drafts.
This is the default status for new documents if the Hold documents on entry check box is selected in the Supplier ledger preferences (AP101000) window.
  • Payments with this status cannot have applied invoices or adjustments, and cannot be taken off hold if the payment method requires printing and has not been printed.
    		•
    Printed

    Once editing is completed and the payment, if required, has been printed, the status of the supplier ledger payment will change to Printed.
    You can release a document in this status.

    Closed
  • The document has been released.
    		•

    You can release supplier ledger payments that do not need to be printed whenever you want, regardless of when you plan to make the actual payment.

    When you release a payment, it generates a batch of transactions that decreases both the cash account and the supplier's ledger account balances. If you release the payment before the cash discount deadline, you can take advantage of a discount, which reduces the amount you need to pay.

    In the workspace, you have the option to void a supplier ledger payment that was previously released. When you void a payment, it effectively reverses all the transactions associated with that payment and undoes any entries made in the workspace.

    The voided payment for a supplier ledger payment contains the same summary and details as the original payment but with negative amounts, essentially cancelling out the previous transaction.