4.5.4 Record Supplier Invoice Payment details

4.5.4 Record Supplier Invoice Payment details

Access via the menu option: Suppliers -> Supplier invoices Lookup
To pay an invoice:
  1. Select the invoice using the [Details] option and then [edit] the invoice
  2. Payment details can then be entered – Either the full amount or a partial amount
To pay an Opening Balance:
Go to the Supplier Invoices area of the system: Suppliers -> Supplier invoice Lookup. In the Filter Area change the From 'Invoice Date' to 01/01/2000. All Opening Balance invoices will then be visible with BF as the 'Number' and the payment details can be entered in the usual fashion.

How should I treat a credit note / refund from a supplier?
Sometimes, after a supplier has issued an invoice, they may need to correct it or issue a refund. There are three scenarios:
  1. If the supplier re-issues the invoice, then you can simply edit and correct the original invoice that was loaded in the system.

  2. If the supplier issues a credit note and pays you a refund, then record a new Supplier Invoice with the Invoice Type set as 'Credit Note'.  When funds are received from the supplier (i.e. the refund is received) then you can record these as 'payment' details on the invoice. A credit / receipt will be recorded in the bank statement.

  3. If the supplier issues a credit note that is to be used to offset an existing invoice, then you should update (i.e. edit) the original invoice. Add a new line to the supplier invoice (e.g. with a description of credit note CR1234) and record the credit amount as a negative figure. As an example, if you have a supplier invoice for £100 and the supplier issues a £20 credit to adjust that invoice then you should enter a second line on that invoice with a value of -£20. This would leave a balance to pay of £80.
To carry out Direct Debit payments:
Often a Direct Debit (DD) can be set up to make payments to Suppliers. This is usually the case with EDF, British Gas etc. 
To show this on the system, these are the steps involved. We will be using EDF Energy as an example:

1. Load the provisional invoice (you may not get an actual invoice so you load it as a provisional) into the system with a description of 'Provisional electricity bill'

So let's say EDF Energy's provisional electricity bill is £30. 

2. You can then record your DD payments when they come in.

  1. £10 on the 1st January 2020
  2. £10 on the 1st February 2020
  3. £10 on the 1st March 2020
They are all loaded as Direct Debit being the payment method. Now the invoice is fully paid and it will appear correctly on your bank statement with all the DD payments. 
However, EDF Energy may come back and state that your final bill for the first quarter is actually £34. This leaves a difference of £4 that is outstanding to pay.
This balance needs to be carried forward into the next bill as your first quarter DD payments have completed.
Therefore, you add another invoice item line and enter the £4 as a negative balance carried forward and also change the Description to something like 'Balance carried forward'.
You also rename the first line from 'Provisional electricity bill' to 'Final electricity bill'

You then use the Copy function to generate another supplier invoice for EDF Energy for the next quarter payments.
In this invoice you will be changing the invoice item lines to (in this order):
  1. Balance brought forward - this is £4
  2. Provisional electricity bill - let's say the provisional bill is £30  again


You then record your DD payments again but this time these are the payment dates:
  1. £12 on 1st April 2020
  2. £12 on 1st May 2020
  3. £12 on 1st June 2020
The invoice is higher this time and therefore the DD payments are higher. 


Again the final bill comes through and you find out, it is actually £25. So you change your provisional bill to £25 and change the description to 'Final electricity bill'. 
You then add another line below called 'Credit carried forward' and assign -£7 onto it as you have made more payments than due based on your DD payments (£36 - £4 brought forward from last invoice and £25 final bill for this invoice which equals to £7). 


This is how it should be carried out for the other 2 quarter bills as well. The credit carried forward will go on the next quarter bill and then you have your provisional bill and repeat the same process. 

In the supplier invoice lookup screen, you can filter  to have a quick view of invoices. 


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