Orax SDI Cloud Reference

Supplier Payables and Procurement

Managing supplier payments and ageing records are exactly like customer ageing, but in reverse.

Overview
Payable management concerns creating Purchase Invoices, receiving supplier statements and recording bank payments, discounts, debits and journal adjustments against your supplier accounts. In order to do start with this process, each supplier has to be setup with payment terms. This is done on the supplier account in the Update tab.

The process starts with a Purchase Invoice. An Invoice is a list of items (products/inventory) and/or services purchased from a specific supplier. Setup the Services and Products in the Company setup menu.

Purchase Invoices
Purchase Invoices can be created directly or processed from an approved Purchase Quotation Request or Purchase Order. A Purchase Order can be processed to several Purchase Invoices if the delivery of the Order is split over time or deliveries. In this case, process the Purchase Order to an Invoice and then change the quantities on the Invoice as needed. The Purchase Order will retain the fulfilment overview. You can also use the applicable fulfilment report in the Orders tab for detail related to pending purchase orders.

Supplier Invoices
The process of receiving invoices from a supplier and then making payment can be managed in the Supplier Invoice tab. You start by loading the invoice received from the supplier with all the important detail. The tab can be monitored to verify when an invoice should be paid based on the applicable terms. For more detail see Supplier Invoice Processing.

Purchase Debits
Inevitably you'll need to debit some of your purchase invoices (in full or partial). To do this, process the Purchase Invoice to a Purchase Debit and change the quantities. This will ensure the Purchase Invoice and Purchase Debit are linked to each other. If you created the Purchase Debit directly, link them in the Process button manually.

Cash
Purchase Invoices and Debits are the source documents for supplier payables. These show up on the payment advice and are posted to the supplier accounts. When suppliers are paid, or you receive a refund, it has to be recorded in bank account transactions. For more detail on managing bank accounts and reconciliation, see Banking and cashbooks.

Discounts and Adjustments
During bank payment capturing, discounts can be added to a payment directly. It is also possible to add journal adjustments to supplier accounts (eg. discount, foreign currency profit or loss, interest, etc). Use the applicable options in the supplier account GL or Financial tab.

Supplier Payables & Ageing
Always ensure that documents or transactions that are related to each other are correctly linked. If you have linking issues, the supplier account ageing (used on payment advices) will be incorrect. The ageing periods (30days, 60days, etc) are compiled using links between transactions. Eg. if you link a payment to an invoice that is 60days old, that payment will be allocated to the 60days period, otherwise it may be linked to the incorrect period.

Supplier Interest
When suppliers charge interest because of late payments, you are able to load interest to their accounts as an invoice or journal entry.

Supplier Payment Advice
Use the payment advice to compare or reconcile the account with the supplier's statement.

Debugging Ageing issues
When ageing is incorrect it is because of a linking issue between documents and cash or journal adjustments. In the next page we'll look at the tools to debug ageing issues.