Introduction

Supplier (Vendor) Payment routines record payments made to Suppliers (Vendors) while the Supplier (Vendor) Bulk Payments program makes actual payments. These Payment routines allow the manual entry of payments already made. They do not undergo or have the protection of Payment Approval. 
 

You can find the following two programs in the blue banner, under Purchases. Both integrate fully with your Bank Account:

• Payments - Quick Entry
• Payments & Allocations

See:

Supplier Payments and Allocations (4.7) - AIQ Academy
 

How do I Prepare a Supplier's (Vendor's) Bulk Payment Run?‍ 

Payments - Quick Entry

In Payments - Quick Entry, you can enter the payments in a batch with Control Totals (although a single entry can constitute a Batch). 

Payments - Quick Entry lets you:

• Enter as many payments in a batch as you wish. 
• Close the window, without processing the batch. It will be saved and will display when you reopen the program. 
• Generate and allocate an Invoice against the Payment with an optional facility called Auto Invoice. You can use this to make Payments to Suppliers (Vendors) from whom you do not expect to receive an Invoice.

With Payments Quick Entry you cannot: 

• Allocate payments to specific Invoices/Credits in the Supplier’s (Vendors) Account. It merely posts the payments to the account. The allocation process must take place separately and subsequently. 
• Avail of Payment Discounts. 
• Use different Currencies. The Suppliers (Vendors) in the batch must all have the same Currency as the chosen Bank Account. 

Using Payments - Quick Entry

1. In the blue banner, go to Purchases > Payments – Quick Entry.
2. In the Supplier Payments – Quick Entry window, complete the following:
   • Bank A/C: Select the Bank Account for which you are preparing this batch of Supplier (Vendor) Payments.
   • Batch Date: Enter the Date of the batch (which will also be the date of each payment – but which you can change entry by entry). 
   • Add Bank Charges: If you know in advance of any Bank charges which might be levied against this batch of payments, click Add Bank Charges to open a related Bank Credit Journal for this purpose. The standard default System Account for Bank Charges is 4100.

• Auto Invoice: This allows you to create, generate, and post a corresponding Invoice for the Payment which are automatically allocated to each other. You can use this to pay a Supplier (Vendor) without an Invoice. For example, Monthly Rent, Broadband usage, and Rental Contracts. You can also use it to pay Employee Expenses. 

• Exchange Rate: In the case of payments to Foreign Currency Suppliers from your Foreign Currency Bank Accounts you can also enter the Rate of Exchange. This is used for immediate General Ledger Postings in your Base Currency and may be subject to revision.

3. When you have finished entering your Supplier (Vendor) Payments you can post all the Payments, and any auto-generated Invoices, to their respective Supplier (Vendor) Accounts by clicking Save and Process Batch.

Purchase Payments & Allocations

You can use Payments & Allocations to:

• Manually enter a Payment and allocate it against one or more outstanding transactions on the Supplier Account. 
• Just use the allocation facilities on their own. For example, if you’ve previously used the Payments Quick Entry, or want to allocate Credits or Discounts.
• Pay a Foreign Currency Supplier from your Base Currency Bank Account or from another Foreign Currency Bank Account.

Example

This first example involves entering a Payment Amount of £4,000.00 (“On Account”) and allocating it against two outstanding Invoices: one fully and the other partially.

1. Complete the following fields:

• Supplier: Select the Supplier (Vendor) Account from the dropdown. 
• Bank: The Bank Account will automatically default to the Bank Account associated with the Supplier (Vendor) Master Record. You can override it if necessary. 
• Payment Date: The date will default to today’s date, but you can override it. For ease of Bank Reconciliation purposes, you should keep this date as accurate as possible.
• Bank Charges: Bank Charges do not feature in this example. 
• BI Code: Choose a Department from its Drop Down if required. 
• Bank Ref/Cheque: Enter the Reference number of the Payment or the Cheque number, important in subsequent Bank Reconciliations. 
• Amount Withdrawn: This is the sum of the Payment Amount plus any Bank Charges. 
• Description: The Description is an optional field.

2. You can click Process to create a Payment Transaction on the Account with no Allocations.

Alternatively, you can allocate the Payment (fully or partially) by entering the relevant amounts against each Invoice under the Allocate column. This will then add each allocated amount to the Payment Amount. Make sure that the total Payment Amount shown is correct before Processing.
 

Process and Print will produce a Remittance Advice, or you can email it directly.
 

Allocations Only

You can fully or partially allocate previously entered Payments, and Credit Notes. 
 

This example allocates a remaining Purchase Payment and a new Debit Note to fulfill an Invoice transaction. You can use this method to allocate multiple Debits to multiple Credits.
 

After entering the Debit Note in the account, double-click on the relevant transactions. This allocates the multiple debits (Partial Payment and Debit Note) to the Invoice. 

Foreign Currency Payments

You can pay a Foreign Currency amount from either:

•  A Foreign Currency Bank Account. You must have established and set up Foreign Currency Bank Account facilities (for each Currency) with your Bank(s) and have set up such equivalent Bank Accounts in this system.
• the Base Currency Bank Account.

To access your Supplier’s bank details:

• Go to Purchases > Suppliers. Click on their number in the grid to open the Supplier Account Master Record. In the Account Details tab, find the Currency Code and Bank Account GL Account Code along with their currencies.

Foreign Currency Purchase Payments & Allocations

The foreign currency version of the Purchase Payments & Allocations screen opens if the Supplier Bank Account payee Currency and Supplier Base Currency are the same, but your company’s Base Currency is different.

1. Enter the relevant Foreign Currency Supplier and date of the Foreign Currency Payment.
2. In Payment Amt, enter the amount paid.
3. Enter any adjustments to the displayed Exchange Rate. This generates the Base Currency Amount (greyed out). If the adjustment is more than 10% of the original displayed rate, then this will give rise to an error when you click Process. To rectify this, change the exchange rate in the Currency table.
4. In this example, there are no Bank Charges. The amount in the Amount Withdrawn field is the same as in the Payment Amt field. 
5. Enter the BI Code if required, an optional Description, and finally a Cheque or Reference No.

Not maintaining Foreign Currency Bank Accounts

It’s possible that you may not maintain Foreign Currency Bank Accounts in your Company. In this case, you are paying a Foreign Currency Amount from your Base Currency Bank Account. There will almost certainly be Bank Charges. 
 

The Amount Withdrawn is the amount in Base Currency you were charged for the Foreign Currency payment excluding Bank Charges. The Amount Withdrawn plus Bank Charges are used to calculate the Rate of Exchange. This is the Bank Rate of Exchange and will differ from that in the Currency Table. This results in General Ledger Posting for FX Gains or Losses when you allocate the Payment to the Invoices.
 

In unusual circumstances, however, it is possible to pay a Foreign Currency Supplier (Vendor) from a Bank Account whose Currency is neither that of the Supplier (Vendor) nor the Base Currency. 
 

In this example, US$ is paid out of a Euro Bank Account.
 

The Amount Withdrawn is the Euro equivalent of the US$ amount and is used to calculate the Base Currency amount using the Rate of Exchange on the Currency Table.

See:

How do I Manage my Company Bank Accounts and Credit Cards?‍ 

How do the Multi-Currency Features of the System Work?‍ 

Other Functions 

Walkthrough tutorials

To view other Payment and Allocation facilities, click Show Me. This opens step-by-step walkthroughs.
 

Create a payment on account: Select this to create a Payment using a simple step-by-step approach by filling in the data in the entry window and clicking Next Step to continue.
 

Allocate Transactions: This allows you to make an allocation using, again, a simple step-by-step wizard. The list of Invoices available, other equally signed transactions, and Payments appear in respective dropdowns.
 

Currency Triangulation: Here you can complete details in the wizard followed by the step-by-step guide to populate the data into the original screen.
 

Filtering

Click Create Filter to filter your transactions.

• Click the Blue field to select a field. 
• Click the Green field to select an Operator which will then request a value or another field. 
• Click Plus to add another filter.
• Click X to remove a filter. 

Other Buttons

Pay: Click to pay outstanding transactions or chosen transactions.
 

Allocate: Click to allocate all Payments and Credit Notes to all outstanding transactions or chosen transactions. If there aren’t sufficient Payment and Credit Notes, a Payment for the Balance on the Account will be automatically created. Take care not to accidentally create an unintended Payment.
 

Process: Click to complete the process. Fully allocated transactions will then update in the system and disappear from this grid.
 

Clear All Allocations: This unallocates any allocated transactions shown on the grid. It will not restore fully allocated transactions that have disappeared from the grid due to processing.
 

Grid Options: This allows you to add and remove Columns from the grid display. 

See:

How do I Navigate the General Features and Facilities of the System?‍ 

How do I Use & Customise the Transaction Browser?‍ 

How do I Process Discounts, Refunds, and Rebates in the Purchasing System?‍ 

How Do I Amend, Cancel or Delete Transactions?‍