How to pay a supplier

A supplier payment is an outgoing payment: the money that goes out and the supplier invoices it settles. It works like a customer payment, from the other side.

Pay one or several invoices

1. Go to Payments and banking › Outgoing payments and click New outgoing payment.
2. Choose the supplier. Contents lists their open supplier invoices with due date and balance.
3. Check the ones you are paying. For a partial payment, lower the invoice's Amount to pay.
4. In Payment methods choose how you pay (transfer, check, cash), the reference and the amount. Fill in the balance fills what is missing.
5. Click Save.

Paying in cash from the register needs your register open; transfers and checks don't.

Pay in advance

• No invoice yet: check Payment on account and enter the amount. The payment stays On account and you apply it later from the same payment with Apply balance, or in Internal reconciliation.
• Formal down payment: if the supplier invoices the down payment, record it as a Supplier down payment in Purchasing and pay it here. When you capture their final invoice, the down payment is applied (see Purchasing: requests, down payments, credit memos and reserve invoices).

Print and cancel

• From the payment you print its layout (Ctrl+P) or email it with Send.
• Cancel payment gives the balance back to the supplier invoices and, with accounting, posts the reversal entry on the cancellation date.
• If the payment is matched in an internal reconciliation, cancel the reconciliation first.

In the books

With accounting on, the payment debits suppliers and credits the bank or the register. The input VAT on what you paid moves from pending payment to paid, which is the one that goes into the VAT report and the DIOT (see VAT and DIOT).

For the payment to show on the Books side of the bank reconciliation, the tender must post to the G/L account of your bank account.

If you don't see…

• The supplier invoice: it isn't posted, it is already paid or belongs to another supplier.
• The Save button is greyed out: you didn't check any invoice or Payment on account, or you pay in cash with the register closed.
• The payment in the bank reconciliation: the tender doesn't post to that bank account's G/L account. Check it in Point of sale › Setup › Tender types.