Supplier defaults and settings

Find this screen

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

  • Select Amend to edit any of these settings.

Options

Default allocation date (suppliers)

You can choose the default allocation date recorded for supplier transactions.

  • Use payment/receipt date: The allocation date for the transaction is set to the same date that you enter for the receipt or payment.

    For example, if you enter a receipt dated 5 November, then allocate the receipt on 12 November, the allocation date for the transaction will be 5 November.

  • Use system date: The allocation date for the transaction is set to the date when you record the allocation in Sage 200.

    For example, if you enter a receipt dated 5 November, then allocate the receipt on 12 November, the allocation date for the transaction will be 12 November.

The default allocation date will be applied when you use the following features:

  • Enter Supplier Receipt.

  • Enter Supplier Payment.

  • Generate Payments.

  • Amend Suggested Payments, for Pay Now.

  • Correct Transactions, for Correct and Reverse.

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.

How default settings are applied to accounts and 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.

  • In the UK, 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.

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

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.

Note: Changing this setting: 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.

  • 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.

  • 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

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.
Note:

Changing this setting:

  • 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.

View payment groups

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

  • You can change the payment group Description to make it more appropriate for your business.

  • 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.

Set payment groups on suppliers

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

Open: Suppliers > Create & Amend 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.

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

Reference

Payment details (supplier account)

Authorise supplier transactions (purchase invoices and credit notes)