SAV Academy · Banking & Cash
Supplier payment
Purpose
Record money paid to a supplier and settle it against outstanding purchase invoices.
Who uses it
Accountants with the Banking permission.
Prerequisites
- •A supplier with an outstanding payable
- •The paying bank or cash account
Step by step
- 1Open Banking → Payments → New.
- 2Select the supplier and the paying account.
- 3Enter the amount and method.
- 4Allocate to open purchase invoices.
- 5Post the payment voucher.
Key fields
| Paying account | The cash/bank account credited. |
| Allocation | Which purchase invoices the payment settles. |
Practical example
You pay a supplier 525 AED and allocate it to the purchase invoice, clearing the payable.
Accounting impact
On posting: Debit Accounts Payable 525; Credit Bank/Cash 525.
VAT impact
A payment has no VAT impact.
E-invoice impact
No e-invoice document is produced by a payment.
Warnings
- •Do not post a payment to a supplier without an allocation unless it is an advance.
Common mistakes
- •Paying the gross twice by not allocating the first payment.
Tips
- •Group payments with a payment batch where supported.