Paying suppliers

Applies to : Office Accounting Express, Professional
You pay your suppliers using the Pay Purchase Invoices worksheet where you can select the individual purchase invoices you want to pay:

The idea is that you can get an overview of all your purchase invoices at once and pick the ones you want to pay based on your available funds, the due date and the early payment discounts.

This is how you use the pay purchase invoices worksheet:
  • Select an account to Pay from and a Payment method (these will be remembered the next time you use the pay purchase invoices worksheet).
  • Use the Filter section of the worksheet to only see purchase invoices before a certain date, for a certain supplier or using a certain preferred payment method.
  • Sort the purchase invoices by clicking any column in the grid – most people sort on either due date, discount date or early payment discount.
  • Select the purchase invoices you want to pay by checking the checkbox next to the purchase invoices or select all purchase invoices by clicking the checkbox in the top of the grid.
  • You can edit the early payment discount amount for each purchase invoice by clicking on the link in the Early payment discount column (for penny differences).
  • You can apply supplier credit notes to a purchase invoice by clicking the link in the Credits column and selecting the supplier credit notes you want to apply
  • When you have selected the purchase invoices to pay, click the Save and Close button to create the supplier payments. You can also choose to issue payments right away.
  • If the payment method is cheque and the cheques are marked for printing, you can go to the Issue Payments form to print the cheques.
  • Office Accounting supports paying purchase invoices by cash, by cheque, BACS or by credit card.
  • You can go directly to issuing the supplier payments by clicking the Issue payment button on the pay purchase invoices worksheet.

Supplier Prepayments
Some of your suppliers may request full or partial payment up-front before sending a product or commencing work. This payment may include VAT. Office Accounting offers the ability to create a VAT-inclusive prepayment.

To create a VAT-inclusive prepayment, simply check the This is VAT-inclusive checkbox and specify the VAT code. Office Accounting will then calculate the VAT fraction (in the example above £347*17.5/117.5 = £51.68) and the prepayment will then show up on the next VAT return. When the prepayment is settled with a purchase invoice, the VAT return will reflect the actual VAT amount on the purchase invoice.