Purchase payments

You've bought something from a supplier and want to record the payment in Sage 200. You can enter payments in a number of ways to enter payments - the one to use depends on whether the supplier has an account on Sage 200 and the number of invoices being paid.

Paying a regular supplier

There are a number of ways available for you to pay regular suppliers:

  • Record payment of a single invoice.

    When you enter payment of a single invoice you select the supplier account of the supplier being paid, specify the payment amount and then immediately post the transaction to the supplier's account. You can also allocate the payment to an invoice or invoices.

  • Use the automatic supplier payment feature.

    The automatic supplier payment feature enables you to select a group of invoices based on criteria such as the date on which the invoices are due, those that are a specific number of days overdue or those that would attract an early settlement discount. You then review the suggested payments for individual suppliers and can specify the amount to be paid against individual invoices. The final step is to generate the payments. In this stage you can nominate a single supplier or pay multiple suppliers (you even have some control over which suppliers are included in this group). Sage 200 posts payment transactions to supplier accounts and can even print remittances and cheques.

    Sage 200 will allocate the specified payments to the invoices but you can specify the allocation date that is held on the system.

  • Enter a group of transactions.

    Use this to enter a single amount paid into your bank account that consists of several supplier transactions. This is useful if you've paid in a number of cheques for different suppliers at once and which appear as single receipt on your bank statement.

Paying a supplier who has no account on Sage 200

When you buy goods or services from a company you don't have a supplier account record for there will be no invoice details to link the payment to. This would be the case if you made a one-off purchase from a company you do not make regular purchases from.

In these cases you enter the payment details as a cash (nominal) payment. There are separate screens on which you can enter the details of payments that have an element of VAT and payments that have no VAT.

Paying a supplier who is also a customer

Use this if you do business with a company who both buys from and sells to you (they act as both supplier and customer), and you want to offset a sales invoice against a purchase invoice. The purchase invoice effectively becomes a payment. This is often referred to as a Contra Entry.

To make contra entries there must be both a customer and supplier account for the company and the two accounts must operate in the same currency.

To make a contra entry you select outstanding invoices on the supplier's account to offset against the customer's account. Sage 200 creates a supplier payment and a customer payment which are then allocated to the selected outstanding invoices.

These payments are posted to the nominal account for the bank account but are not posted to the cash book and will not appear on your bank statement.

What if I make a mistake

To maintain the integrity of your data, you can't delete transactions once they're posted. However, you can make corrections which creates a reverse transaction with the same details as the original and a new transaction with your changes.

See Correct posted supplier transactions