Supplier defaults and settings

Find this screen

Open: Purchase Ledger > Utilities > Ledger Set Up > Supplier Defaults and Settings

  • Select Amend to edit any of these settings.

Options

Electronic bank payments

If you want to use the Sage e-Banking facility to make electronic bank payments to your suppliers, enable Electronic bank payments.

Note: Before you can select this option, you must first set up e-Banking for the bank account you intend to use for electronic banking.

You need a subscription to an electronic banking service that is compatible with Sage e-Banking.

To link Sage 200 to your electronic banking service you must:

  1. Set up e-Banking for the bank account you intend to use for electronic banking (in the Sage 200 desktop).
  2. Enable Electronic Bank Payments in the Supplier Defaults and Settings.

  3. Set up a payment group that supports electronic payment in the Payment Groups section of the Supplier Defaults and Settings.

If you disable Electronic Bank Payments, payment groups are no longer linked with e-Banking. Payment groups that were previously linked with e-Banking will not be linked with any payment method. You must ensure that you correct the payment method on all payment groups, before you try to pay suppliers.

Allow batch processing

  • Enable Allow batch processing if you want to enter multiple transactions in batches for suppliers.

Once you've enabled this setting, you can then use these features for suppliers (in the Sage 200 desktop):

  • Batched Transactions: Enter transactions for batches that were created by your user account only.
  • Batched Transactions (Manager). Enter transactions for batches created by all users.

We recommend that you use batch processing if you frequently enter a large number of transactions. When you use batch processing, you can:

  • Handle multiple transactions of the same type, e.g. invoices, and processes them in one session.
  • Change individual transactions before the batch is posted.

  • Check that your transactions match the batch total.

You can only disable Allow batch processing if there are no outstanding batches that haven't been posted.

Automatically generate supplier numbers

  • If you want Sage 200 to generate your supplier account Code automatically, enable Automatically generate supplier numbers.

    The account Code will automatically increase by one each time you create a supplier account.

    • Enter the number you want your supplier accounts to start from in Begin automatic generation with.

  • If you already use a numbering system for your supplier accounts and want to assign the account Code manually, disable Automatically generate supplier numbers.

    If you are manually setting your account codes:

    • An account code can contain both numbers and letters, and be up to eight characters in length.
    • Use account codes of the same length to ensure accurate results when searching account records.
    • Sage 200 does not differentiate between upper and lower case letters, so an account code of abc is considered the same as ABC.

We recommend that you don't change the Automatically generate supplier numbers setting after you have started to create supplier accounts. If you change this setting, it may have an adverse effect on how Sage 200 searches for and locates your existing account records.

Allow additional transactional analysis

If you want to include additional nominal transaction information when you enter supplier transactions, enable Allow additional transactional analysis.

Note: To enable this setting, you must first enable Allow additional transaction analysis in System Settings (in the Sage 200 desktop).

If you enable Allow additional transaction analysis, a new Transactional analysis option is displayed when entering the following transactions (and on the transaction enquiry):

  • Purchase Invoice.
  • Purchase Credit Note.
  • Purchase Payment.
  • Purchase Receipt.
  • Authorise Supplier Transactions.
  • Batched Transactions (in the Sage 200 desktop).

Note: You can change the Transactional analysis name to something more meaningful (in System Settings), so it may be set to a different name for your company.

Changing the Allow additional transaction analysis setting will only affect new transactions that you enter, and it will not affect existing nominal transactions that have been posted or are in the waiting postings files.

If you disable this setting, the Transactional analysis column will be removed and you will no longer be able to see analysis codes that you have previously entered.

Supplier defaults

You can enter default settings for your supplier accounts and purchase transactions.

Defaults entered for the supplier settings are passed on to each new supplier account. Defaults entered on supplier accounts are passed on to transactions.

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

The following table shows how information is passed from settings to accounts, and from accounts to transactions.

Supplier settings   Supplier account   Transaction
Default VAT code > Default VAT code > VAT code
Settlement Discount > Settlement Discount > Settlement Discount
Payment Terms > Payment Terms > Due Date (Payment Terms)
Terms Agreed > Terms Agreed    
    Default Nominal Account > Nominal Account

Supplier settlement discount values

If your suppliers offer you similar settlement discounts, entering the details here can save you time when creating new supplier accounts. Settlement discounts also affect how VAT is calculated on invoices and credit notes.

The discount details that you enter here are applied to new suppliers accounts by default, which are then applied to transactions. You can change these on your individual supplier accounts as you set them up, and also change them when entering individual transactions.

  • Early settlement days: Enter the default number of days (up to 999) an invoice must be paid in to qualify for the discount.
  • Discount %: Enter the default discount percentage offered by your suppliers.

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

VAT on an invoice is only discounted when it is paid within the settlement discount period.

On each invoice, VAT is calculated by default on the full invoice value. If the invoice is paid within the settlement discount period, a VAT adjustment is required, to account for the discounted VAT.

Note: In Ireland, VAT is calculated on the full value of the invoice regardless of any settlement discount.

Supplier Account history

Keep transactions for

Use this to decide how long you want to keep your individual supplier transactions. You can keep a history of transactions on a supplier account for a maximum of 36 months.

After this period, you can archive or delete the transactions (in the Sage 200 desktop).

Specify the default length of time (up to 36 months) you want to store transactions on your supplier accounts.

This is used as the default time when you create new supplier accounts, but you can change it for an individual account when required.

Changing this only affects new supplier accounts that you create, and not existing accounts.

Archive transactions after this period

Use this to decide whether to archive or delete the transactions after the period set in Keep transactions for.

  • Enable Archive transactions after this period to send the transactions to an archive file after the period you've chosen to keep them.

  • Disable Archive transactions after this period if you want to delete the transactions after the period you've chosen to keep them.

While the transactions are stored on the account you can view and print them as required.

The transactions can only be archived or deleted if they:

  • Have exceeded their specified duration.
  • Are fully allocated.
  • Have no query flag assigned to them.

To archive or delete the transactions, use Account Maintenance in the Sage 200 desktop. You can run Account Maintenance manually, or do this when you close a period.

You can delete transactions from the archive file. You may want to delete archived transactions that are over a year old, or more frequently depending on the disk space used.

If you store a large volume of transactions, you may experience a slower response time when enquiring and sorting transactions.

This affects transactions on your accounts the next time you run Account Maintenance in the Sage 200 desktop. It does not affect transactions already in the archive file. Archived transactions can be deleted using Purge Transactions in the Sage 200 desktop.

Show outstanding transactions only

Enable Show outstanding transactions only if you want to display only the outstanding transactions for suppliers by default in the Supplier Transaction Enquiry (the default for the Only outstanding option).

You can still choose which transactions to display by changing the Only outstanding option in the Supplier Transaction Enquiry.

This affects how transactions are displayed when you next use the Supplier Transaction Enquiry.

Other Supplier Defaults

Maximum payment value to be generated

This is only applicable if you use Generate supplier payments (in the Sage 200 desktop) to automatically create 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 the Generate supplier payments process, you can make sure you don't pay out large amounts by entering a maximum amount for a single payment here.

  • Enter the Maximum payment value to be generated value.

    You cannot generate any payments that exceed this value. If you amend the payments file, you will see a warning that the payment value has been exceeded.

Changing the Maximum payment value to be generated only affects new payments that you generate, and does not affect any that are already in the suggested payments file.

Default VAT code

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

  • Select a Default VAT code that will be used when you create new supplier accounts. The VAT rate on the supplier's account will also be passed on to their transactions.

If most of your suppliers are going to use standard VAT rate, just leave the standard VAT rate selected. But if the majority of your suppliers are going to use a different VAT rate, you can select an alternative VAT rate.

Each time you create a new supplier account, it will default to this code. But you can still change this VAT rate for individual supplier accounts, and also when entering transactions.

Default terms agreed

  • Enable Default terms agreed to automatically set new supplier accounts as having agreed terms (Terms Agreed will be selected by default). You can still change this on individual accounts if you need to.

  • Disable Default terms agreed if you want to choose when each individual supplier account has agreed terms.

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

Ageing

These Ageing settings help you manage your outstanding supplier debt.

The ageing periods are used to show how old your outstanding transactions are, and are used on your aged debts reports and statements.

The payment terms are used to calculate when invoices are due to be paid.

Generally, supplier debts are aged over three periods, which are typically 30, 60 and 90 days. The last aged period holds both the debts in the period and those debts that exceed that period.

Enter the Number of ageing periods you want to use.

You can have a minimum of 3 and a maximum of 8 ageing periods.

These default payment terms are used when you create new 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.

But you can also change the Payment Terms on individual supplier accounts, and change the Due date on individual invoices.

Basis of payment terms

This determines the due date for an invoice. Once set, you can monitor payments due and optimise the credit days available.

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

Invoices are due the specified number of days after the invoice date.

For example, if the Number of payment days is set to 15 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 18/10/2020.

Invoices are due the specified number of days after the start of the month in which an invoice is dated.

For example, if the Number of payment days is set to 30 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 31/10/2020.

Invoices are due the specified number of days after the end of the month in which the invoice was dated.

For example, if the Number of payment days is set to 15 days and you enter an invoice with an invoice date of 03/10/2020, the due date for the invoice will be 15/11/2020.

Invoices are due on the same day the following month.

For example, if you enter an invoice with an invoice date of 03/10/2020, the due date will be 03/11/2020.
Number of payment days

This is the number of days credit that you are allowed before payment of your invoice is due. You can enter up to 999 days.

Choose the number of days for each of your ageing periods.

Creditors periods start after

  • In the Creditors periods start after column, enter the length (in days) of each ageing period.

These ageing periods are used on Aged Creditors reports (in the Sage 200 desktop).

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

The next time you run the Aged Creditors reports, your aged balances will show in the new periods.

Your ageing periods are set up as follows:

  • Number of ageing periods: 3
  • Creditors periods start after: 30, 60 and 90 days.

An invoice has a transaction date of 30/04/2020 and a due date of 30/05/2020.

  1. Run the Aged Creditors report, and select:

    • Ageing method: By transaction date.
    • Base date for ageing: 29/05/2020.

    The invoice appears in the Current column.

  2. Run the Aged Creditors report, and select:

    • Ageing method: By transaction date.
    • Base date for ageing: 30/05/2020.

    The invoice appears in the 30 day column.
Due date periods start after
  • In the Due date periods start after column, enter the length of each due date period (in days).

Due date periods are used on the Due Date reports (in the Sage 200 desktop).

The Due Date reports show the total amount owed to a supplier, based on the number of days the transactions are past their due date.

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

Transactions are listed in the relevant aged period based on the number of days they are past their due by date.

Your ageing periods are set up as follows:

  • No of periods: 3
  • Due date periods start after: 1,31, and 61 days.

The due date on a invoice is 30/04/2020.

  1. Run the Due Date report, and select:

    • Base date for ageing: 01/05/2020.

    The invoice appears in the column for one day overdue.

  2. Run Due date report, and select:

    • Base date for ageing: 31/05/2020.

    The invoice appears in the 31 day overdue column on the report.

Processing

Use foreign currency revaluation

Enable Use foreign currency revaluation to revalue invoices paid in foreign currency to their value in base currency.

This uses the exchange rate set in the Currencies and Exchange Rates table (in the Sage 200 desktop). The foreign currency exchange rate table should be updated regularly to ensure the correct exchange rates are applied to transactions.

The current exchange rate is used by default for transactions, but you can override this when you enter the transaction. The transaction is converted to base currency using this exchange rate, and then posted to the Nominal Ledger.

Exchange rates can fluctuate, so there can be differences in the exchange rate when you enter the transaction and the actual exchange rate used when the invoice is paid.

  • If you enable Use foreign currency revaluation, the exchange rates on the two transactions (the invoice and the payment) are compared when they are allocated. If these are different, the exchange loss or gain is calculated and posted to the Exchange Differences and Creditor's control default nominal accounts.

  • If you disable Use foreign currency revaluation, then the exchange rates are not compared and no nominal account postings are made.

We recommend that you don't change Use foreign currency revaluation once you have started entering transactions, because this can cause difficulties in reconciling the purchase ledger to the nominal ledger.

You can also revalue any outstanding transactions by running Foreign Account Revaluation in Period End Routines (in the Sage 200 desktop).

Authorisation of invoices and credit notes

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

  1. Select Use authorisation to enable purchase invoice authorisation.

  2. Enter the authorisation amount in Require authorisation for amounts exceeding.

    • 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.

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

      When you create an invoice or credit note, the Requires authorisation option is 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.

  • You can't allocate a payment to the invoice until it's authorised.
  • You can't allocate an unauthorised credit note to an invoice.
  • You can't reverse an unauthorised invoice or credit note.
  • Transactions that have not been authorised are assigned an unauthorised query flag (U). You can see this flag on the Supplier Transaction Enquiry.
  • Invoices or credit notes that require authorisation are posted to the default nominal account for Unauthorised Purchases. Make sure that you select a default nominal account for Unauthorised Purchases, otherwise postings will be made to the Suspense Account.
  • When you authorise the transactions, the original postings (to Unauthorised Purchases) are automatically reversed. You can then apply your usual nominal analysis.
  • When you first enable Use Authorisation, the authorisation settings will only apply to new purchase invoices and credit notes, and not existing documents.
  • If you disable Use Authorisation while there are invoices still waiting to be authorised, you will not be able to authorise these as the Authorise Supplier Transactions menu option will not be enabled.

Payment groups

Sage 200 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.

You use payment groups to choose how to process the payments for each supplier, such as whether to print a cheque or remittance advice, or to generate electronic payments using e-banking or Supplier Payments. When you create a supplier account, you can choose the payment group method on the account Payment tab.

Set up payment groups

If you want to set up payment groups with different payment methods, disable All accounts use the same payment method. To use only one payment method for all your suppliers, enable All accounts use same payment method

To set up a payment group:

  1. Enter each payment group as a separate Group line. You can add up to a maximum of 9 payment groups.

  2. Chose whether to post payments to the supplier's account.

    • Select Update to post payments to the supplier's account, when you automatically generate payments. If Update is selected, the payment is posted to the supplier's account, the Nominal Ledger and Cash Book.

    • If you don't select Update, you can print payment documents without affecting the account balances. You can then enter payments manually for the supplier accounts. However, you must use Delete Suggested Payments (in the Sage 200 desktop) before entering and allocating payments to invoices.

  3. Select Summarise to post a batch of payments to the Cash Book as a single entry.

    Note: To select Summarise, you must first select Update, and be using one of the following documents: Remittance only (Paper / Email), Electronic payment, Electronic payment remittance (Paper / Email).

  4. Set the Payment document to the required payment group method.

    Payment group / document  
    Remittance and cheque Prints remittances and cheques together or separately at the time of the payment run.
    Remittance only (Paper) Prints remittances only at the time of the payment run.
    Remittance only (Email) Sends remittances by email, to the supplier contact with the role SendRemittanceTo.
    Cheque only Prints cheques only at the time of the payment run.
    Electronic payment Sends electronic payments via e-Banking to the supplier's bank account.
    Electronic payment remittance (Paper) Sends electronic payments via e-Banking to the supplier's bank account, and prints remittance advice notes.
    Electronic payment remittance (Email) Sends electronic payments via e-Banking to the supplier's bank account, and emails remittance advice notes to the supplier.
    Supplier Payments Pays the supplier using a Supplier Payments account.
    Supplier Payments and Remittance Pays the supplier using a Supplier Payments account.

  5. Enter a Description for the payment method that is appropriate for your business.

Set payment groups on suppliers

Once you have set up your payment groups, you can use them with your supplier accounts.

When you set up a supplier account, you can select the payment group to choose the payment method for that supplier.

Open: Purchase Ledger > Purchase Accounts > Amend Supplier

  1. Move to the Payment tab.

  2. Select the Payment group.

See Payment details (supplier account).

Tip: You can set a limit on how much you pay a supplier in one go by entering the Maximum payment value to be generated here in Supplier defaults and settings.

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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

Reference

Payment details (supplier account)

Authorise supplier transactions (purchase invoices and credit notes)