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Supplier payments and payments on account

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Summary

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

Description

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

Resolution

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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