The Creditor Payment document automates the selection of invoices for payment, acts as a remittance document, and generates the accounting entries to reflect the payment.
Prerequisites: The creditor that is to be paid must exist, there must also be a Purchase Invoice or Creditor Posting in the database.
1. Type the Creditor Key (or search for it with F12 or right mouse click) in the Main field. If paying by hand written cheque type the next available cheque number in the Ref field. If paying electronically strike ENTER and an incremental reference number will be generated.
2. Click the 'Suggest' button and LILAC will list the unpaid or partly paid invoices on the Creditors Account.
3. Tick to include particular invoices. Values can be altered if necessary.
4. The final step is to click the 'Apply' button which will create the accounting records, debiting the creditors account and posting a credit to Cash at Bank.
Page 2 Creditor Payment
Below is a completed Creditor Payment, the value marked as Paid, and Posted.
Creditor Statements and Remittance documents may be generated here.
Invoice Number.
The age of the invoice in days.
After the 'Suggest' and 'Apply' procedures have been followed the value will appear as paid.
To view outstanding creditor invoices, in relation to terms (days), run: > Reports > Creditors > Invoices Due
Prerequisites: The creditor that is to be paid must exist in the Lilac Database. There must also be outstanding Purchase Invoice or Creditor Posting in the database.
Context: Type in the creditors key and reference (cheque number). The system will automatically retrieve the outstanding invoices from the creditors account history together with the creditors details that are required to be paid.
Purpose: To provide for the recording of a payment of funds to a creditor. The 'Suggest' button is used to create a list of credit items on the account which the software considers are due for payment, based on the age of the items and the established payment terms of the creditor in days. The operator then accepts or amends the suggested entries and uses the 'Apply' button to post the debit (reducing the creditors balance) representing a payment in the database.
* If the creditor payment is to be made using the Bank Account field (BALANCE) : CASH AT BANK -> BALANCE : CASH AT BANK will be credited. A manual transfer of funds from the Bank Account will need to be processed to reflect the Creditor Payment.
* If the creditor payment is to be made using an ABA file uploaded to an Australian Bank, entries at: Documents > Creditor > Account, PayByEFT, Bank, BSB, and Bank Account fields each will each need to be filled in. An auto incrementing reference number (Ref) is obtained by entering past the reference number field. The Creditor Payment document will then use the Bank Account field (BALANCE) : EFT CLEARING -> a corresponding credit will be posted to the liability account BALANCE : EFT CLEARING.
After a session of PayByEFT creditor payments, Reports > Creditors > Electronic Payments (this report selects entries from the BALANCE : EFT CLEARING account), will create a file c:\work\creditor.aba containing data in the ACPA format suitable for import by various compatible banking software products such as National Online, Deskbank, etc.
Above Audit Trail example Document column.
* 42 Purchase Invoice 000001: Purchase Invoice generated from Purchase Order -> Goods Received -> Purchase Invoice This Purchase Invoice is paid using Creditor Payment via CASH AT BANK
* 30 Invoice Electric: Creditor Posting (Documents > Creditor > Posting) This Creditor Posting is paid using Creditor Payment via EFT CLEARING Reports > Creditors > Electronic Payments can be used to generate an ABA File for upload to Australian Banks.
Page 4 Creditor Payment
Creditor Payment
Head of the Document Main: Type in the creditor’s key (to search, click the right mouse button or strike the F12 key). Period: The current accounting period established at sign in is displayed here. Ref: Type in the corresponding cheque number. The system automatically assigns a reference number if omitted by striking the Enter key. Bank Account: The Default account appears automatically. This can be changed by striking the F12 key (search) Currency: This field denotes the currency this creditor trades in. The currency is automatically retrieved from the Creditor’s Master File. Buy Rate: Type in the current buying rate for this currency if applicable. Australian: This field shows the conversion to $AUS when dealing with foreign currency. This field is not accessible. Undo: Click with the left mouse button to undo the transaction. Gross: Amount of the invoice. This field is not accessible. Terms: Showing the Terms of Payment. The information is retrieved from Creditors Master Record. Pay By EFT: This shows you are paying by EFT. The Pay By EFT is checked in the Creditors Master Record. EFT Reference: Type in a reference number to tell payee what the payment is about. Fax For Payment: Type in an alternative Fax Number if different to main Fax number (eg: to "Accounts Section") Date: This field defaults to the working date. Payee, Bank, BSB, Account: The creditor’s banking details are retrieved from the Creditor’s Master Record. The information on these fields is used for EFT purposes. (these fields would be blank when paying by cheque). Value: This shows the total amount that is to be paid. Posted: This shows the amount posted. Un-Distributed: This shows the amounts that have not yet been allocated against purchase invoices.
Lines of the Document Date: This field is the date that the transaction or purchase invoice was processed on. Target Ref: This field refers to the transaction or purchase invoice number. Age: The number of days old this transaction or purchase invoice is. Gross: The original amount of the transaction or purchase invoice. Paid: The amount that has currently been paid. This field will automatically be updated upon processing of the payment, i.e.: after the Apply button has been clicked with the left mouse button. Total Deductions: The total discounts offered on the transaction or invoice, as processed via the creditor payments screen.
Value: The amount of the purchase invoice you are paying. This amount can be overwritten by striking the space bar and retyping the amount. Discount: Type in a discount if applicable. Taxable: If this purchase invoice or transaction is taxable this field will be ticked. Then Due: The value of this field is the Gross - (Paid + Value + Discount + Total Deductions). This field is updated automatically upon invoice selection. Balance: The Balance Outstanding. This field is updated automatically upon invoice selection.
Transaction Processing Button Description Suggest: Clicking the Suggest button will fill in the lines of the document with outstanding purchase invoices and transactions, and will fill in the Value field for that line, if the Age of the purchase invoice/transaction exceeds the Terms field. Apply: By clicking the Apply button you are satisfied with the value and allocation of the payment.
From Here: To view a summary of the creditors distributions run a Creditors Distributions Report. After a session of electronic payments use Reports > Creditors > Electronic Payments. This will create a file c:\work\creditor.aba containing data in the ACPA format suitable for import by various compatible banking software products such as National Online, Deskbank, etc.
