Pay a supplier

When you pay a supplier by bank transfer, cheque or cash, record it with a Payment Entry. Link it to the supplier's invoices so OLY ERP knows what is still owed.

Before you start

• A submitted Purchase Invoice (or a Purchase Order if you pay in advance).
• The bank or cash account you pay from. See Bank and cash accounts.
• The bank transfer reference or cheque number and its date.

Steps

1. Open the submitted Purchase Invoice.
2. Click Create > Payment. A Payment Entry opens with Payment Type "Pay", the supplier and the outstanding amount.
3. Set the Posting Date to the date the money left your account.
4. Choose the Mode of Payment, for example "Bank Transfer" or "Cheque".
5. Check Account Paid From. It is the bank or cash account you paid from.
6. Check the Paid Amount. If tax was withheld on the invoice, the outstanding amount is already reduced.
7. Enter Cheque/Reference No and Cheque/Reference Date from the bank transfer or cheque.
8. In Payment References, check the Allocated Amount for each invoice.
9. Click Save, then Submit.

Pay several invoices at once

1. Go to Accounting > Payment Entry > + Add Payment Entry.
2. Set Payment Type to "Pay", Party Type to "Supplier" and choose the Party.
3. Enter the Paid Amount, reference number and date.
4. Click Get Outstanding Invoices, choose the range and confirm.
5. Adjust the Allocated Amount per invoice to match what you are paying.
6. Save and submit.

Partial payments

Pay part of an invoice by entering the smaller amount. Example: the invoice is 115,000 ETB and you pay 60,000 ETB now. The invoice becomes Partly Paid with an Outstanding Amount of 55,000 ETB. Record the rest later in the same way.

Good to know

• Your company may need a manager to approve payments before they are submitted. Your consultant sets up any approval steps.
• An advance payment can be made from the purchase order with Create > Payment. It is linked to the invoice later.
• Always enter the bank reference. It makes bank reconciliation easier.
• Use the Accounts Payable report to plan payments by due date.

Related

• Record a supplier invoice (with VAT and withholding)
• Buying reports: what you owe and what you bought
• Bank reconciliation