Purchases - Pay Suppliers

Purchases - Pay Suppliers

INTRODUCTION

After raising PO's, receiving goods into stock, adding invoices and credits there comes the time when these suppliers want payment for the goods and this is the process in Agility Professional.
You can do this manually through Step Through Suppliers or automatically using the Pay By Batch functionality

STEP THROUGH SUPPLIERS

This option allows you to manually select suppliers and invoices to be paid. You will first be asked to confirm the date up to which payments are due.






The default will be the current processing day but you can amend this is required.

Agility will now look for all suppliers that are due payment by the date entered and will load the data onto the screen

The screen will be loaded with the first supplier in alphabetical order for whom payment is required. The Bank Account will be pre-selected if you have set the default bank parameter in Agility System Parameters. Payment Type is taken from the supplier record and is one of the following:
  1. Manual Cheque: Indicates individual action will be taken to make this payment i.e. write a cheque or as is more common make payment electronically
  2. Print Cheque: This is used if cheques are printed to cheque paper supplied by your bank. You will need to ask Agility to format the cheque layout for you.
  3. BACS: This option will allow you to process a BACS (SEPA) file to make payments in batch electronically.
The credit limit, account balance and amount to pay are also to displayed. The amount to pay is a summary of all invoices requiring payments less any credit notes and excluding any invoices on query.

Payment Reference: Enter the cheque number in this field if paying by cheque or some other indicator such BACS if paying by electronic means
Navigation Keys:  use these or the function keys to move between suppliers.

We will use supplier VIK for our example.












The grid at the bottom of the screen loads with details of unmatched transactions on the system.
Tran Type: This indicates the type of the transaction on the account. The most common of these will be
  1. INP/IND: Invoices for PO’s and Direct Invoices
  2. RNA: Credit note for purchase returns
  3. CRO: Direct credit notes
  4. CPP: Cash Payment
Date: The date of the transaction
Their Ref: Supplier’s invoice or credit note number
Our Ref: Our transaction number
Original Amount: Original amount on the invoice or credit note or amount paid
Due Date: As per terms on supplier account. (NOTE: this is calculated when an invoice is added to the account. Changing the terms after adding the invoice will NOT amend the due date.
Amount: Amount due for payment/credit. This can be different to the Original Amount if part payment has been made or part of a cash payment has been matched to an invoice leaving a part unmatched.
Qry: Will be set to Q if the invoice is under query and not authorised. If you try to select an invoice under query for payment by clicking on it you will get the following message


If however the query ref is 99 (Invoice awaiting credit) because a debit note has been issued the message displayed is


The Selected Now will be populated with the value of the invoice less any open debit notes.
Selected Now: All invoices past their due date will be selected automatically unless they are under query. Any cash payments and credit notes are automatically selected whatever the transaction date. If you want to deselect a payment click on this column and the payment will be automatically deselected. (and the total to pay at the top of the screen adjusted) You can opt to pay invoices still within their terms by clicking on this column to select.
Disc Amount: If there was settlement discount on the invoice this will be calculated and entered to this column. The value in Selected Now is decreased by the Settlement Due. To enter a settlement discount manually click on the Selected Now field, type in the amount to be paid and TAB to the next field to enter the settlement discount.

At the top of the screen are a number of buttons that act as follows
Query: If the invoice is under query click on this screen to see the reason.






If there is a debit note associated with the invoice click on the Debit Note button to display the note. You can also put an invoice on query by clicking on this button selecting a query reason and clicking OK.

Show Details: Click on this button to see the nominal ledger transaction

From this screen you can click on Ledger to go to the purchase transaction details from which you can drill down much further. These enquiry screens are covered in more detail later.

Match: You can use this button to match transactions. If the transactions, you select come to a total of zero to pay press this button to Match them. 
Pay: Press this button to process the payment. Agility will check if there are any outstanding debit notes and let the user know.



Click yes to display the Browse Debit Notes Screen.  Whether you click Yes or No you will then be prompted.

Allowing you to abandon the payment.
A transaction for the amount to be paid will be posted to the supplier’s account and matched automatically against all the transactions selected on the screen.
A remittance advice will be printed/emailed for the payment.
If you are paying a supplier with a foreign currency you will be prompted to enter the value in your currency before the transaction is posted.
Agility will use the default exchange rate to suggest a total.
You should amend this to match exactly what will be taken from your bank so that the bank can be reconciled correctly later.

PAY by BATCH

This option allows you to automatically pay all outstanding invoices in one process. Select this menu option to display


Click the Payable Now Report to print a list of payments that need paying. The following screen is displayed first

  1. Enter the date up to which Agility will select all invoices that are due for payment.
  2. Enter the Bank account which will be used to make the payment
  3. Enter the Payment type
    1. All:  all types
    2. BACS: Just suppliers that are paid by BACS (SEPA)
    3. Non BACS: Suppliers paid by cheque or individually by EFT (Electronic Funds Transfer)
  4. Agility Will now display the Payments Due Report


Print this report and if you wish to exclude any invoices from payment use the Query button in Pay By Suppliers to flag the invoice as under query.
(It is recommended to run this report again if you do choose to query any invoices)

Process Payments: Click this button to process the payments 


Click Yes to continue. You will now be prompted to enter information depending on the payment type


If you are printing cheques enter the first cheque number to be used. 


If you are creating a BACS file enter a reference to appear on the supplier bank statement.

Payment Ref is used to identify the payment in your bank reconciliation.
Press OK and the system will display a message showing each account as it is processed.
When finished the screen will close and remittance advices printed or emailed.

BACS/SEPA

If you pay by BACS or SEPA the final stage is to create the payment file to be sent to the bank.
Although this functionality is in the Nominal Ledger it is covered here as it logically follows on. In Nominal/Cash Book/BACS there are two options

Run unprocessed payments: This will create a BACS/SEPA file to be sent to your bank
Re-run previous batch: Re-create a file in the event that it is corrupted or accidently deleted.

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