Supplier Payments

You process supplier payments in the same way as customer payments. Like AR payments, manual AP payments are completed using Supplier Payment Create, and electronic AP payments consisting of electronic files to be transferred to your bank are completed using Supplier Payment Selection Create. You can also use supplier payment selections for paper checks and drafts. See Supplier Payment Selections.

Supplier payments are associated with status codes, which are used to manage the payment process through final collection and updating of accounts. You process the payment by changing the payment status from one status to the next in the sequence that meets your business requirements. Different payment instruments follow different status sequences. The number of statuses you need depends on your particular implementation.

Create payment statuses for each stage in the payment sequence, and move the payment from one status to the next by changing its status. Each status change generates a posting that updates the accounts you defined. The default accounts used in supplier payments are the relevant supplier payment account and the supplier control account. The system uses the payment account are defined in Supplier Payment Status Create for the entity, bank, payment instrument, and status. See Supplier Payment Statuses.

To complete the process, you can create a banking entry to record the payment. However, in some countries, such as the US, payments are created directly at the Paid status, without using banking entry.

Note: You can also generate customer and supplier payments in the system from the transaction messages contained in imported bank files. See Processing Incoming Bank Files.