You purchase goods for resale from your suppliers. The Accounts Payable module lets you manage your suppliers, and is therefore a vital part of your enterprise.

Accounts Payable Overview

You purchase goods for resale from your suppliers. The Accounts Payable module lets you manage your suppliers, and is therefore a vital part of your enterprise.

Ageing Periods

You design the terms and ageing periods that you use in the company. These could be monthly, weekly, and so on. Ageing periods determine:

Supplier Payment Terms

You specify for each supplier the number of ageing periods within which you pay suppliers.

Age Analysis

The system uses these terms to calculate aged balances for suppliers. You use these to determine when and how much to pay your suppliers.

When you enter a supplier transaction, the system allocates it to a financial period according to the financial calendar you set up in the General Ledger module. For details about the financial calendar, click here.

The transaction will never move from that financial period. However, the ageing period into which the transaction fits adjusts continuously. The system never stores aged balances. Instead, it calculates aged balances dynamically when they are required. The ageing calculations are relative to the transaction's date, the ageing method, and the computer system date.

There are two ageing methods:

Date of Invoice

The system calculates the age of the invoice relative to the invoice date.

Date of Statement

The system calculates the age of the invoice relative to the date on which you print the remittance.

Settlement Discounts

You can define settlement terms. These let you specify a settlement, or early payment discount, based on payment for an invoice within a time limit you define.

You define the time limit as a number of days relative to either the invoice date or the next statement date.

When you process a payment to the supplier, you can link to a list of invoices with discounts the supplier offered you, that fall within the payment date. When you select an invoice, the system enters the discount automatically.

Accounts Payable Groups

Accounts payable groups let you group suppliers for better reporting purposes. For example, you could use groups to differentiate different classes of suppliers.

If you wish to differentiate these classes in the general ledger, you have the option of specifying an accounts payable general ledger account per account group.

You can use the group code to sort and filter supplier records in various places in the system. Just about every accounts payable report allows you to range on groups. If you create groups that accurately reflect the way you categorise your suppliers, the group structure will make it easier for you to manage your supplier database.


You create area codes that you attach to supplier records. You can then use the area code to sort or filter various reports. Besides using these codes for geographic areas, you can of course use the code for any other type of grouping.

The use of areas is optional.


The people database lets you keep track of key people in your supplier's company.

Sometimes you deal with one person only in each company. Other times, you may deal with many people in the same company. You can create a record for each person you have contact with, and you link that person to his or her company. You can also link a person to more than one company. For example, you may have a consultant who sources product from more than one supplier.

The use of people is optional.


The supplier master file is the heart of the Accounts Payable module. All processing revolves around suppliers.

The supplier record contains links to most of the elements we have looked at so far. In this section, we cover a few other key fields on the supplier master file.

Open Item and Balance Brought Forward Processing

You purchase from suppliers and you then pay them. You have to match all debits and credits for each account. These are usually invoices and payments. There are two ways to do this.

Pricing Matrix Add-on Module

If you need flexibility and control of prices, at a group or supplier level, you can purchase the Pricing Matrix add-on module.

Multi-Currency Add-on Module

If you use the Multi-Currency add-on module, you can create foreign suppliers. You can process the supplier's transactions in their currency. The system tracks foreign and home currency values for every transaction, and calculates any foreign exchange profit or loss when you pay the supplier.

Putting an Account on Hold

You may have a supplier with whom you are having issues, such as quality of goods. In this situation, you can put a supplier on hold. This prevents agents from purchasing from the supplier, although you can still process debit transactions for them.

You can also use this facility should you cease to do business with a supplier. You cannot delete the supplier for some time, as they have transactions. By putting the supplier on hold, you prevent agents from using them in error.

Accounts Payable Processing

In the Accounts Payable module, you can process many types of supplier transactions. However, you do not process inventory-based transactions such as goods received vouchers and supplier returns in this module. Instead, you use either the Inventory Control or the Order Entry module.