Intro – Bill Payment #

After entering a vendor’s bill via Purchase → Bills, you can use Bill Payment to record the payment for due bills. You can pay multiple bills at once, make partial payments, and apply credits or prepayments to reduce outstanding balances.

• Bill Payment is a posting transaction.

Create a Bill Payment #

• Go to Purchase on the left sidebar, and select Bill Payments
• Click Add New button in the top right corner.
• The list of vendors with Outstanding Bills will appear. Select a vendor to proceed with the payment.
• Note that you cannot create “Bill Payment” if vendor does not have any outstanding bill. There are others 2 apps that let you record the payment: Payments and Prepayments.
• On the new payment page, fill in the following fields
  • Payment number is an auto generated number.
  • Date: default pay date is today.
  • Vendor: The vendor you choose.
  • Amount Paid: This is a calculated field that represents the sum of the values in the Payment column.
  • Currency: The transaction’s currency is automatically filled with the value defined in the vendor’s record.
  • Exchange Rate: for foreign currency.

• • Detail table
    • The system displays all outstanding bills or vendor credits associated with the vendor. Adding new line for other documents is not possible.
    • You can freely choose which bills to pay by entering the payment amount, while leaving others unchanged.
    • Read only fields
      • Due. Bill’s due date.
      • Doc: Document type and document number.
      • Gross: Total value of bill.
      • Open: Open amount is the remaining amount that has yet to be settled.
      • Balance: It equals Open amount – Payment.
      • Exchange Rate: The exchange rate of the foreign currency bill.
    • Input fields
      • Payment: The input amount can be negative for vendor credit, purchase return or prepayment.
      • Discount Taken: It cannot be greater than discount available amount.
      • Write-off: Used to remove uncollectible amounts, bad debt, or trivial balances from accounts.
      • Withholding Tax: for applicable vendor.

• • Payment tab
    • Payee: Enter payee’s name.
    • Payment Method: Cash, Check, EFT or others. You may add new method in Accounts -> Payment Methods.
    • Reference / Check No: optional
    • Check Date: optional

• • Account tab
    • Post with amount breakdown by bill: Select this option if you want to have detail of amount breakdown by bill in transaction journal.
    • Cash/Bank Account:  Select which account to use for payment.
    • Payable Account: Auto-filled when vendor is selected. However, the system typically uses the AP account specified on bill and only applies this account if none is found.
    • Withholding Tax Account: Tracks the amount the company owes to a tax authority such as the IRS.
    • Discount Account: Required if discount taken field is entered.
    • Write-Off Account: Required if write-off field is entered.
    • Exchange Gain/Loss Account: System records foreign exchange gain/loss when exchange rate of payment and bill is different.

• • Memo tab
    • Memo: Up to 1000 characters.

• Click Save