Overview:

Bank Supplier Payments option can be used to pay supplier purchase invoices or to send payment on account to suppliers.  Payment on account are often referred to as pre payments.

A number of records are created in the system when you post a Supplier Payment or  a Payment on Account, which will reduce the balance owed to your supplier,decrease the balance in your bank account and reduce the balance of your Credits Control Account.

When you post a Supplier Payment in Zumzum Financials, several records are created in the system to record the transaction. The Supplier Payment posting will create new records in Zumzum financials:

Also, when a Supplier Payment is posted to the ledger, the system will create a Batch Bank Payment record in the system.

You can find the  Batch Bank Payment Tab to view the Bank Payments posted in Zumzum Financials. Batch Bank Payment record the relevant information you added when posting a Supplier Payment (amount, currency, bank account, date, etc.).  The Batch Bank Payment record contains the following child records;

1. Each Batch Bank Payment record will contain one or more Bank Payment Records, to store the details of the customer payment.
2. Each Bank Payment Record will contain one or more Bank Payment Line Items to display one record for each Purchase Invoice Line Items that the supplier payment payment is allocated to.

Pay Supplier Purchase Invoices with Bank Supplier Payments

To pay a supplier invoice and allocate the payments to each purchase invoice line item, please follow these steps:

1. Go to the Bank tab.
2. Select Supplier Payments.
3. Select the Bank that the payment will be paid from.
4. Enter the name of the Supplier in the Account field.
5. For Type of payment choose which payment method was used to make the payment.
6. Select the Date of the receipt, today’s date is auto selected but can be edited by selecting the field and choosing a new date from the drop-down calendar.
7. Now select the Tax Rate to be applied to the Amount
   • This is only used when processing a Supplier Payment On Account. When allocating payment to a purchase invoice line item, the transaction and ledger records will default to the tax rate used on the Purchase Invoice line item.
8. If being paid by cheque then at this point enter the Cheque Number (Cheque No.)
9. Enter the Amount paid including Tax.
10. Select the Payment Type from the drop-down menu.
11. Now choose how much has been paid off each Invoice, the Invoice must be posted for it to appear in the list.
    • You manually enter how much has been paid off each purchase invoice line.
    • The Automatic button will split the amount paid between all the invoice working down the list. It will pay each in full.
    • The Pay in Full button will pay the invoice you have selected in full.
12. Click Save

Send Payment On Account to Suppliers

To send an advance payment or deposit to a supplier, without allocating to a supplier purchase invoice, enter a Supplier Payment On Account with these steps:

1. Go to the Bank tab.
2. Select Supplier Payments.
3. Select the Bank that the payment will be paid from.
4. Enter the name of the Supplier in the Account field.
5. For Type of payment choose which payment method was used to make the payment.
6. Select the Date of the receipt, today’s date is auto selected but can be edited by selecting the field and choosing a new date from the drop-down calendar.
7. Now select the Tax Rate to be applied to the Amount
8. If being paid by cheque then at this point enter the Cheque Number (Cheque No.)
9. You manually enter the Amount you wish to book against a payment on account (do not enter any values against the Purchase Invoice Line Items).
10. Click Save or Save and New to post the Supplier Payment on Account.
11. A message dialogue will appear including the “Amount” you have entered – “There is an unallocated balance of <Amount> Do you want to post this as Payment on Account?”
12. Select OK to proceed and your Payment on Account will be posted to the system.

Learn more about cash management in Zumzum Financials.