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Supplier payments and payments on account

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How to record a payment made to a supplier and match it to a purchase invoice in Sage Accounting.


This article shows how to record supplier payments and match them with invoices. This helps track unpaid invoices and supplier balances.


How this works

  • Only use this for money paid to a supplier on account or to pay a purchase invoice
  • To pay one or more invoices, enter the details of the payment and choose the invoices that it is paying
  • If you're unsure which invoice the payment is for, save the receipt as a Payment on Account. You can then allocate the payment to an invoice later
  • If you have overpaid the supplier:
    • You may be keeping the money on account to pay another invoice later. Save the overpaid amount as a Payment on Account and allocate it to another invoice later
    • If the supplier plans to issue a refund, save the remaining amount as a Payment on Account. Allocate it to the refund upon receipt.
      Read more about Supplier Refunds
  • For cash purchases and expenses where you do not have an invoice, use the Other Payment tab instead

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