Supplier debts

purchase invoice, payment deadline and method, supplier settlement.

After a purchase invoice has been received, the company must verify the information it contains, including the agreed payment terms and method. It then records the invoice in its accounting system. Finally, it proceeds to pay the supplier according to the defined terms.

Purchase invoice

A purchase invoice is a document sent by a supplier to a company detailing the goods or services sold, as well as the amount to be paid.

Here, the company MASOCIETE had an urgent need for fabrics to complete an order for a potential customer. To meet this need, it placed an order with its usual supplier, BELGIUM TEXTILE. The latter then issued a purchase invoice based on the order:

Item: 200 fabrics

Unit price: 12 euros

Total: 2,400 euros

Implementation

To create a purchase invoice, go to Purchase > Supplier Invoice > Purchase Invoices. Fill out the invoice according to the order.

Now save the invoice.

Payment deadline and method

In this case, it is the supplier who determines the payment deadline and method, as they issue the invoice according to their own terms and conditions.

Once the purchase invoice has been issued, the payment terms should be checked and recorded. To avoid any confusion or delays, BELGIUM TEXTILE specifies on the invoice that payment is to be made by bank transfer, with payment due upon ordering.

Implementation

If you are the supplier, to enter the Payment Method and Payment deadline, stay in the invoice form and go to [Payment]. Choose the Payment Method and Payment deadline.

Of course, you have to save.

Supplier Payment

A supplier payment is the amount paid by the company to its supplier, according to the chosen or predefined payment method, in exchange for goods or services provided to it, in accordance with its supplier order and within a period set by the supplier.

After validating the invoice and payment terms, MASOCIETE can proceed with payment to its supplier.

The invoicing service of the company MASOCIETE now processes the supplier payment after receiving the purchase invoice with the payment mode and deadline already set by BELGIUM TEXTILE.

Implementation

To create a supplier payment, go to Cash flow > Outflow Management > Supplier Payment.

Select the Supplier* to whom you need to make a payment, specify the Bank Account*, check the supplier payment line you want to pay, and the Amount* to be transferred will be filled in automatically.

Don't forget to save.