Supplier settings

Find this screen

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings.

How to

Set defaults for your supplier accounts

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Supplier Defaults.

This is where you can enter default settings for your supplier accounts and purchase transactions.

Defaults entered here are passed on to each new supplier account. Defaults entered on supplier accounts are passed on to transactions.

The following diagram shows how this works.

Why set defaults?

Setting defaults can save you time when create accounts and also helps to prevent errors.

Set default settlement discount details

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Supplier Defaults.

If your suppliers offer you similar settlement discounts, entering the details here can save you time when creating new supplier accounts. Discount details entered here are added to new supplier accounts by default and then on transactions. You can change these on your supplier accounts as you set them up.

Early settlement days - the default number of days to qualify for the discount.

Discount percentage - the default settlement discount percentage.

If you don't want to set default settlement discount details, leave these options blank.

Set a default VAT rate

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Supplier Defaults.

This is the default VAT rate to be used on your accounts and then passed to your transactions.

If most of your transactions are going to use standard VAT, leave the standard VAT rate selected in the drop-down box.

If the majority of your suppliers are going to use a different VAT rate, for example if they're all in the EU, select an alternative VAT rate here.

This helps you to make sure that the correct VAT rate is used when entering transactions.

For example, when you create an account for an EC supplier, you can set the correct VAT rate on the account, this in turn makes sure that correct VAT rate is used on all invoices.

Set default terms agreed

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Supplier Defaults.

Select this if you want to agree terms on most of your new accounts. You can still change this on individual accounts if you need to.

Don't select this if you want to individually choose whether your supplier accounts have agreed terms.

If the Terms Agreed box isn't selected on a supplier account, you'll see a Terms have not been agreed prompt when entering transactions.

Set a maximum payment value

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Supplier Defaults.

Sage 200cloud has a process for automatically creating payments for your suppliers. This calculates the total value of invoices due to be paid and then creates a single payment for each supplier. This saves you having to work out how much you owe each supplier.

If you're using this process, you can make sure you don't pay out large amounts by entering a maximum amount for a single payment here.

Set default payment terms

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Supplier Defaults.

You can set default payment terms on the Ageing tab. These are passed on to your supplier accounts. The payment terms set on an account are used to calculate the Due date of an invoice.

If you try to agree the same payment terms with most of your suppliers, entering a default here can save you time when creating accounts.

If you need to, you can change the payment terms on individual supplier accounts and the Due date on individual invoices.

To set your default payment terms:

  1. Choose the Basis of terms. This is when the credit period starts from.

  2. Enter the default Number of days. This is the number of days credit that you are allowed before payment of your invoice is due.

Set ageing periods

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Ageing.

Ageing periods are used to show how old your outstanding transactions are.

On the Ageing tab, you choose the number of ageing periods you want to use and the number of days in each period. Generally, debts are aged over 3 periods, which are typically 30, 60 and 90 days, so this is already set up for you. However, you can have from 3 to 8 periods of any length (in days). The last period shows any debts for that period or older.

  1. Enter the Number of periods your want to use.
  2. In the Creditors periods start after grid, enter the length (in days) of each ageing period.

Transactions are aged from their transaction date and not their due date.

These ageing periods are used on Aged Credit reports.

Set due date periods

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Ageing.

Due date periods are used on the Due Date report .

The Due Date report shows the total amount owed to a supplier, based on the number of days the transactions are past their due dateThe date by which an invoice should be paid. This is calculated from the Payment Terms set on the customer or supplier account..

Your due date periods are automatically set to be the same as your ageing periods but you can change them if you want to.

To change the due date periods:

  • In the Due date periods start after grid, enter the length of each due date period (in days).

Set up authorisation for invoices and credit notes

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Processing.

If you require purchase invoices or credit notes above a certain value to be authorised before they can be processed, you can set up purchase invoice authorisation.

  1. Select Use Authorisation to enable purchase invoice authorisation.
  2. Enter the authorisation amount in the Require authorisation for amounts exceeding box.

    • All invoices or credit notes with a value greater than this amount must be authorised.

      When you create an invoice or credit note, the Requires authorisation option will be selected and cannot be changed.

      Tip: To authorise an invoice, open Suppliers > Enter transactions > Authorisation.

    • All invoices or credit notes below this amount are set to require authorisation by default, but you can change this if they don't require authorisation.

      When you create an invoice or credit note, the Requires authorisation option will be selected, but you can deselect it if required.

    • To require all your invoices to be authorised, do not specify an amount here and leave it as zero.

Note: This applies to purchase invoices and credit notes that you enter as a single item or as part of a batch.

Note: In addition to authorising purchase invoices, you can also set up authorisation for purchase orders. If you want to authorisation for purchase orders too, see Purchase order authorisation.

Set up payment groups

Open: Settings > Customers and Suppliers > Supplier Defaults and Settings | Payment Groups.

A payment group for each payment method is set up for you up by default.

You can change the description to make the payment group more relevant to your business.


Useful info

More about payment terms and due dates

This is the length of time you're allowed before payment of your invoice is due. Most businesses will allow a period of credit before invoices are due to be paid. You'll usually make these arrangements with each supplier as different businesses have different requirements.

In Sage 200cloud, you record these Payment terms on each supplier account. This is then used to calculate the Due date of your invoices. This helps you to see when you need to pay your suppliers and helps to manage your cash flow.

If you have the same payment terms for the majority of your suppliers, you can set this a default here. This is then passed on to your supplier accounts when they're created.

When you enter your payment terms you choose the number of days credit that you've agreed and when this credit period starts from. These are outlined below:

Due date calculations are only made for invoice transactions. Credit notes always retain the same due date as the entered transaction date.

More about payment groups

Sage 200cloud has a process for automatically creating payments for your suppliers. This calculates the total value of invoices due to be paid and then creates a single payment for each supplier. This saves you having to work out how much you owe each supplier.

Payment groups tell Sage 200cloud how to process these payments for each supplier, such as whether to print a cheque and/or remittance advice, pay via e-banking, or pay via Supplier Payments.

How to set up payment groups and add them to supplier accounts
  1. Set up payment groups here . You choose a payment method for a group and give it a description.
  2. Enter a maximum payment value (on the Details tab) if you want to set an upper limit for the amount you pay a single supplier in one go.
  3. Decide how you want to pay the supplier by assigning a payment group to the supplier's account.

About authorising purchase invoices

You can use authorisation for supplier invoices and credit notes that are entered directly to the Purchase Ledger (and not from a purchase order).

Note: This is separate to the authorisation process available for your purchase orders. If you're looking for purchase order authorisation, see Purchase order authorisation.

You can set up authorisation to be automatically selected if the purchase invoice or credit notes is above a specified value.

For all other invoices or credit notes below this value, you can choose whether they requires authorisation by selecting Requires Authorisation when the transaction is entered.

When you create an invoice or credit note that requires authorisation:

  • The transaction is assigned an unauthorised query flag (U).
  • The transaction is posted to the default nominal account for Unauthorised Purchases. If an Unauthorised purchases default nominal account is not specified, the invoice value is posted to the Suspense Account.

Once the transactions are authorised:

  • The unauthorised query flag (U) is removed from the transaction.
  • The nominal expense account (for profit and loss) is debited with the goods value according to the nominal analysis, and a corresponding credit value is posted to the default nominal account for Unauthorised Purchases (for the balance sheet).