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Supplier Payment Without Invoice
02-04-2018, 06:32 AM, (This post was last modified: 02-04-2018, 06:37 AM by VortecCPI.)
#1
Supplier Payment Without Invoice
If I make a payment to a Supplier (Payments.php) without an invoice SupplierInquiry.php and SupplierAllocations.php shows the payment as unallocated.

Because there is no invoice it appears the payment can not be allocated. Am I doing something wrong or am I just missing a step or two?

Perhaps invoices must always be entered? In an enterprise environment this would definitely be the case.

Any help is greatly appreciated!
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02-04-2018, 08:39 AM,
#2
RE: Supplier Payment Without Invoice
By allocation it means allocating against an invoice, so yes an invoice is required. By making a payment you have simply done the following:
Dr Suppliers
Cr Bank
both of which are balance sheet accounts. The debit balance on suppliers will remain there apparently as an asset (as far as the system is concerned you made an unnecessary payment to the supplier and they owe you that money). By posting an invoice you have done:
Dr P&L account (I appreciate it could be for stock but eventually that will hit the P&L)
Cr Suppliers
thus removing the debit from the suppliers account, but the debit and the credit need to be "allocated" together in the purchase ledger so they no longer appear as outstanding.
Sorry if I have misunderstood and am stating what you already know, but I hope it helps,

Tim
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02-04-2018, 10:35 PM,
#3
RE: Supplier Payment Without Invoice
So in other words while technically this can be done it is bad practice in webERP (and in the real world).

I realize I should always be entering bills (invoices) from Suppliers first so we see what and when monies are due.

I must confess as a small business owner using QuickBooks I have picked up some bad habits that work okay in my context.

This is what happens when you have an engineering background instead of an accounting background. While I have had the wonderful experience of working with many amazing accountants during acquisitions and startups my knowledge is still very limited.

As always, thank you so much for your input here Tim.
https://www.linkedin.com/in/eclipsepaulbecker
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