Paying vendors

Payments to vendors are recorded on the bank statement, like payments from customers, and linked to the purchase invoices. The statement is created, approved and processed as described in Bank statements and payments.

✓Before you start

• The purchase invoice is processed.
• The vendor has a start balance for the current year.

The payment line

On the statement, with Lines, add the payment:

Field	What to enter
Entity type and Entity	Vendor and their name.
Debit	The amount paid. A payment to a vendor goes under Debit.
Remittance	The bank's payment code, for example 200 for payment for goods between legal entities.
Document type and Document	Purchase invoice and its number.

Then approve and process the statement. The payment itself can also be prepared as a bank order from the invoice: Paying by bank order.

⇄Effect on stock and ledgers

• The payment enters the vendor's balance (account ledger).
• A payment linked to an invoice reduces the invoice's remaining total. If it is less than the invoice, the difference stays open.

Where to see the payment

On the purchase invoice, in the Payment section, Payment status shows whether it is Paid or Partially paid, and Remaining for payment how much is still due. The remaining total is worked out from the Amount in the External document section, that is, from the vendor's invoice amount. Every linked payment is on the Payouts tab.

The balance per vendor is in PurchaseReportsVendor summary balance.

↺How to fix or reverse it

An invoice linked to a bank statement line can't be reversed. First correct the line or reverse the statement. See Correction and reversal.