Create payment methods

Find this screen

Open: Settings > Invoicing and Sales Orders > Maintain Payment Methods.

How to

Create a payment method

  1. Click Add.
  2. Enter a code and description.

  3. Enter the bank account the payment is taken from.

    Note: You can only select bank accounts in your base currency.

Change or delete a payment method

You can edit any of the details of the payment method except for the Name. Any changes you've made will be applied the next time the charge is added to an order or invoice.

You can delete a payment method at any time, regardless of whether it's linked to an invoice or order.

Set up payment methods

Before you can add any payments to the invoice or order, you must:

  • Allow payments to be recorded for invoices and full orders in the Invoice and Order Settings.

    • Open Settings > Invoicing and Sales Orders > Invoice and Order Settings | Invoice and Order Entry.
    • Select Allow payments to be recorded during invoicing and full order entry.
  • Specify the text to printed on invoices that are paid in full.
    • Open Settings > Invoicing and Sales Orders > Invoice and Order Settings | Invoice Printing.
    • Enter the text in Invoice Printing section.
  • Set up payments methods here in Maintain Payment Methods.

Useful info

About payment methods

If a customer pays at the same time as ordering something from you, you can create the invoice or order and enter the payment at the same time. This can be when a customer pays part of the value, as a deposit for example, or when the invoice is paid in full.

Payment methods are just a way for you group payments from the same bank account or that use a particular type of card, so you can report on this.

If you want to integrate Sage 200 with Opayo, an Online Card Payment payment method is automatically created, when you set up Opayo. See Take card payments using Opayo (formerly Sage Pay).

Payment methods work only in the base currency, so you can't enter a foreign currency payment with an invoice or order.

Taking payments with invoices

You enter the invoice details in the usual way and enter the payment details on the Payment with Invoice tab.

When the invoice is posted:

  • The invoice and payment are posted to the customer's account and allocated to each other.
  • The payment amount is posted to the bank account on the payment method.

Make sure any invoices with payments get posted soon after saving as HMRC rules require that the tax point date is the date the payment is received if this is before the invoice date.

Taking payments with orders

You enter the sales order details in the usual way and enter the payment details on the Payment with Invoice tab.

Invoicing payments immediately

HMRC rules state that VAT should be recorded on the VAT Return at the time of invoicing or on receipt of the payment, whichever is the first. When a payment is taken at the time of ordering, you need to decide whether the payment should be invoiced at the same time.

You don't need to select this if you're going to raise an invoice for the order more or less straight away, as the payment and the invoice will have a tax point date in the same period.

The value of the payment is recorded with the order, but payment is not posted to the VAT Return. The order is processed in the usual way; the goods are despatched, the invoice is printed, and then posted. When the order is posted, the payment is posted at the same time. This updates the customer's account, adds the VAT to the VAT Return and allocates the payment to the invoice. This also sets the tax point date for to be the same as the invoice date.

As the payment is linked to this order, you can't create an invoice from the order for less than the value of the payment. If the payment is just a deposit then this is fine, as the total goods value will more than the payment amount. If you receive full payment for the order, then you'll have to despatch all the goods before you can raise an invoice.

Select this when you need to include the payment amount on the VAT Return before despatching the goods. This allows you to despatch the goods and invoice the customer in the usual way whilst also including the VAT on the VAT Return. You can also partially despatch and partially invoice the order.

This process creates a special VAT invoice and a separate goods invoice for your customer.

  1. Enter the order, enter the payment, select Invoice Payment immediately and Save.

    A VAT invoice is created and printed. This shows the total goods and VAT values but indicates that it's for VAT purposes only.

  2. Post the VAT invoice. This creates the tax point date.

    • The payment is posted to the customers account.
    • The payment value is shown as Declared on the order.

    • The VAT invoice is posted to the customer's account, the VAT Return and to the Prepayment nominal account, as follows:

      Nominal Account Debit Credit
      Prepayments   Net
      VAT   VAT
      Debtors Control Gross  
    • The invoice is allocated to the payment.
  3. Despatch the goods as usual.

  4. Print an invoice for the goods as usual and send this to the customer.

    This shows the goods less the value of the payment. If the order was paid in full, the invoice value will be zero.

    This has a new invoice number, so you'll always have an additional VAT invoice associated with this order.

  5. Post the goods invoice.

    • The customers account is updated.

    • The net value is reversed out of the Prepayments account and posted to the correct sales account.

      Nominal Account Debit Credit
      Prepayments Net invoice value  
      Sales account   Net invoice value
What if there are still goods outstanding?

If the payment was a deposit, then the VAT invoice will only be for the amount of the deposit. Any remaining goods will be included on the goods invoice and will be outstanding on the customer's account, ready for you to allocate the remaining payment when you receive it.

Using Opayo

Opayo (formerly Sage Pay) is an online card service provider similar to PayPal. Opayo integrates seamlessly with Sage 200 making it easier for your customers to pay you and easier for you to process those payments.

Once you've subscribed and integrated Opayo with Sage 200, you can:

  • Take card payments from your customers and input them directly into Sage 200. This is useful when a customer pays you over the phone.
  • Add Pay Now buttons to invoices, statements and debtor letters, so your customers can pay you immediately. Your customer just clicks the button and enters their card details.
  • Import payments made using the Pay Now option, directly into Sage 200.

If you subscribe to Opayo and have set it up in Sage 200, you can choose process a card payment at the same time as entering the payment. Just choose Online card payment as the payment method and enter the customer's card details when prompted.

Sage is providing this article for organisations to use for general guidance. Sage works hard to ensure the information is correct at the time of publication and strives to keep all supplied information up-to-date and accurate, but makes no representations or warranties of any kind—express or implied—about the ongoing accuracy, reliability, suitability, or completeness of the information provided.

The information contained within this article is not intended to be a substitute for professional advice. Sage assumes no responsibility for any action taken on the basis of the article. Any reliance you place on the information contained within the article is at your own risk. In using the article, you agree that Sage is not liable for any loss or damage whatsoever, including without limitation, any direct, indirect, consequential or incidental loss or damage, arising out of, or in connection with, the use of this information.

See also

Setting up Invoicing

Setting up Sales Orders

Take card payments using Opayo (formerly Sage Pay)

Enter and amend invoices

Enter sales orders