Supplier payments and payments on account

Summary

How to record a payment made to a supplier and match it to a purchase invoice in Sage Accounting.

Description

This article shows how to record supplier payments and match them with invoices. This helps track unpaid invoices and supplier balances.

Resolution

How this works

Only use this for money paid to a supplier on account or to pay a purchase invoice
To pay one or more invoices, enter the details of the payment and choose the invoices that it's paying
If you're unsure which invoice the payment is for, save the receipt as a Payment on Account. You can then allocate the payment to an invoice later
If you've overpaid the supplier:
- You'll be keeping the money on account to pay another invoice later. Save the overpaid amount as a Payment on Account and allocate it to another invoice later, or
- If the supplier plans to issue a refund, save the remaining amount as a Payment on Account. Allocate it to the refund upon receipt
  Read more about Supplier Refunds
For cash purchases and expenses where you don't have an invoice, use the Other Payment tab instead

Create payments from a bank feed or import from a statement

If importing transactions directly from a bank feed or your bank statement, you can:

Save the payment as a payment on account and match it to invoices later
Match the payment to purchase invoices
Save any overpayment as a payment on account to match it to a refund later

Save as a payment on account

From Banking, select the Transactions link on the relevant bank account.
Find the payment.
Choose the supplier from the For drop-down list.
Choose Payment on Account from the What drop-down list.
Select Create.

This saves as a Payment on Account. You can match this to purchase invoices later.

Match a payment to invoices

From Banking, select the Transactions link on the relevant bank account.
Find the payment.
Select Match.
Select the invoice or invoices you want to pay.
If you're part-paying an invoice, change the Payment amount in section 2.
Once you've fully allocated the receipt, select Match.

Save an overpayment

From Banking, select the Transactions link on the relevant bank account.
Find the payment.
Select Match.
Select the invoice or invoices you want to pay.
Select New Transaction in section 2.
Choose Payment on Account - This allows you to match to another invoice or refund later.
When you fully allocate the receipt, select Match.

Enter a supplier payment

From Banking, open the required bank account.
Choose New Entry then Purchase / Payment, then select the Supplier Payment tab.
Complete the details of the payment.
- For a new supplier, choose Add a Supplier from the drop-down list
- To change to a different bank account, choose the new account from the Paid From Bank drop-down list
- Add a Reference to help you track the payment and match it with your bank statement
Enter the Amount paid.
Leave the amount blank, to calculate the total payment amount from the invoices paid.
Select the check box next to each invoice that you want to pay.
To pay all outstanding items, select the check box in the top left.
As you select each invoice, the Left to allocate value updates.
Save the payment.

Part pay an invoice

Select the Paid column for the invoice you want to part pay.
Enter the amount of receipt as the Amount to pay.
Choose Apply.

Add a discount

If the supplier has offered you a discount, you can record this when allocating your payment:

Select the Edit icon next to the Outstanding amount.
Enter the amount to pay less the discount and choose Apply.
Select the Edit icon next to the Discount amount.
Enter the amount of the discount and choose Apply.

This explains what to do when you overpay a supplier. You can either save the remaining amount as a Payment on Account. Use this to pay a future invoice. If your supplier sends you a refund, record this as a refund transaction and match it to the overpayment.

Save the overpayment

Choose the invoices you want to pay and Save.
Choose Yes to save as a Payment on Account.

Edit the payment on account

From Banking, locate the Payment on Account.
Drill down into the transaction.
Edit transaction as needed.
Select Save.

Delete the payment on account

From Banking, locate the Payment on Account.
Select the checkbox next to the date.
From the options before the activity list, select delete.
It will ask for confirmation, select Yes.

Records a refund

If the supplier sends you a refund, create a Refund for the overpaid amount and match it to the Payment on Account.

From the Bank account, choose New Entry, then Sale / Receipt.
Select the Supplier Refund tab.
Choose the Supplier and complete the remaining details.
The details of the Payment on Account show in the rows at the bottom. Choose the check box for the Payment on Account and Save.
Read more about Supplier refunds.

You’ve successfully recorded the supplier payment and discount. The invoice now shows as either paid or part-paid if there's anything left to pay.