Vendor Bill Payment

Created by Level 1 Support Team, Modified on Fri, 29 Sep 2023 at 06:36 PM by Level 1 Support Team

What is Vendor Bill Payment?

This screen is the central screen to handle all vendor related payments. This is a very powerful screen that helps you to manage vendor payments very easily.

Vendor Bill Payment shows only the vendors who has pending bills to be paid and makes it easy to do any payments against them.

This screen allows you to pay singe or multiple bills at a time for the selected vendor with great ease.

Prerequisites:

Vendor bill payments can be done against payables created in the below screens

Purchase Order -> Purchase Invoice
Purchase Invoice
Bills payable

Vendor bill payment screen shows only bills that are pending and the bills can be created using Purchase Order---> Purchase Invoice or Bills Payable.

The above image describes how to make payment to the vendor.

Note: If a vendor has any outstanding advance (paid from Vendor Advance screen) you can select the Pay From account as the Vendor Advance account and make payment from the advance amount.

Linked Advance

You have the option to do an advance payment to the vendor using Vendor Advance screen and link it to to a Purchase Invoice or a Bill Payable.

In such cases, the entry is tracked automatically and any linked advance would show during payment against the corresponding Purchase Invoice or Bill Payable.

The balance payable amount will now be calculated as:

Balance = Total - Payments - Linked Advance

Discount During Payment

There will be cases where the entire amount is not paid to a vendor.

Sometimes the vendor himself would give a discount on the bill raised. In such cases, you can use the discount field to offset the balance amount.

For example, if the Total pending value is 1000, you could put 950 as payment and 50 as discount to close this bill.

You can also use Discount in case of dispute to not pay this vendor and enter the entire amount as discount and close the bill.

How to pay multiple bills?

This screen can also be used to pay multiple Purchase Invoice/bills for a selected vendor very easily. If a vendor has more than 1 Purchase Invoice/bill pending, all of them would show in the grid below on selecting the vendor.

To make payment to multiple Purchase Invoice/bills, either enter payment amount on top of the grid in the Total Field or enter the amount in the payment column in the grid item wise.
If you enter the amount in the total field above the grid, it will automatically match the amount being entered and smartly apply the payment to your Purchase Invoice/bills.
In many instances, you would pay the vendor as a bulk amount across many Purchase Invoice/bills. In such a case, you can enter the bulk amount on the top of the grid, and the amount would get split automatically and apply from top to bottom in the grid.
if you enter a smaller amount, the system will try to match any Purchase Invoice/bill with the exact amount and apply to it. You are still free to change the amounts in the grid as you would do in excel.

Partial Payment

You can also pay the vendor a partial payment. In such cases, the balance would carry over. When you select the same vendor again, the outstanding bills with their balance amount would show.

If you have any approvals configured, then this entry would only post to accounts once the approval is done.

Click on ADD button to make payment to the vendor.

Once the payment is created, the associated Purchase Invoice/Bills are closed if the amount is paid in full. In case of partial payment, they would carry over to the next payment until they are paid/discounted in full.

Note: You can also use this screen as a quick way to find out how much is due against a given vendor instead of looking into a report.

In case you have made an accidental payment, you can delete the entry to VOID the payment. When you VOID, the status of this document gets updated as VOID and the corresponding ledger entries are removed from the system.