Process supplier payments

Use this to pay all or selected suppliers listed in the Suggested Payments file.

The payments are processed by individual supplier or by Payment Group. Payment groups are set up on the Purchase Ledger settings Payment Groups tab.

If you have selected Update for the payment group:

• The supplier's account on the Purchase Ledger, the Nominal Ledger and Cash Book are automatically updated.
• Payment documents are produced.

If you have not selected Update for the payment group, only a payment document is produced.

You can assign a reference (Second ref) to each payment so that you can trace it back if there is a query raised on the payment at a later date.

When you generate the payments you can choose to:

• Add a remittance messages to remittance advices as they are printed.
• Print the remittance advices and cheques separately.

• If you have selected Update for the supplier's Payment Group:

  • The supplier's account balance is updated (decreased) by the value (including any discount taken) of the payment posted.
  • The bank account (for the balance sheet) in the Nominal Ledger and Cash Book if used, is credited with the value of the payment.
  • The settlement discount taken account (for profit and loss) in the Nominal Ledger is credited with the value of the settlement discount, if included.
  • The creditors control account (for the balance sheet) in the Nominal Ledger is debited with the value of the payment plus any settlement discount.
• The entries in the suggested payments file are marked as paid.
• Remittance advices and cheques are printed.

• If you are using the Sage e-Banking facility, a payment file is generated. You use this file to transmit the payments to your bank in accordance with the electronic bank service you are using.

• If you are using Supplier Payments, the payment will be submitted to your Supplier Payments account approver for authorisation.

You must have:

• Created the Payment Groups in the Purchase Ledger settings.
• Assigned Payment Groups to the relevant supplier accounts using the supplier account Payment tab.
• Generated the Suggested Payments file.

• If you intend to use electronic banking you must have:

  • Subscribed to an appropriate electronic banking service which is compatible with Sage e-Banking.
  • Selected to use Electronic Bank Payments in the Purchase Ledger settings Options tab.
  • Set up an electronic payment group in the Purchase Ledger settings Payment Groups tab.
  • Enabled the electronic bank service setting with the Cash Book module.

• If you have a Supplier Payments account, you can pay your suppliers directly from Sage 200 using Supplier Payments.

  • You can only pay suppliers (payees) that have been approved by your Supplier Payments account approver.
  • You can pay single suppliers, or pay multiple suppliers from the same payment group (Supplier Payments or Supplier Payments and Remittance).

  • You can only use the generate payments feature to pay suppliers which operate in pound sterling. This is because the generate payments feature only pays suppliers which use the same currency as the selected bank account (which is pound sterling for Supplier Payments).

    You can still make individual payments to foreign currency suppliers using Supplier Payments, you just cannot use the generate payments feature.

You cannot make payments to suppliers when the payment value is greater than the supplier's account balance.

If you still want to make these payments, when you generate the payments you can enable the option Allow cheque balance to exceed account balance.

You cannot make payments to supplier accounts that are on hold.

To change a supplier account status, use Purchase Ledger > Purchase Accounts > Amend Account Status.

If the list of suggested payments includes suppliers that use different currencies, the generated payments will only be made to suppliers which use the same currency as your selected bank account. If you have set up bank accounts for different currencies, you would run generate payments separately for each bank account (currency).

Note: If you are going to make payments from a Supplier Payments account, you can only use the generate payments feature to pay suppliers which use the pound sterling currency.

You can only pay a supplier (payee) if they have been approved by your Supplier Payments accounts approver, via the Supplier Payments portal.