Guides

Record a payment

Money spent in any way by a business is a payment. Before one can be recorded, at least one bank account or cash account must be established. The Receipts & Payments tab must also be enabled.

Basic payments

Once at least one bank or cash account exists, payments are recorded in the Receipts & Payments tab by clicking on New Payment:

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Complete the entry:

  • Date is automatically filled with today’s date, but can be edited.
  • Type will automatically be set to Payment
  • Reference is optional and may be used for cheque numbers, bank confirmation numbers, or other internal sequences. If the box within the field is checked, Manager will number the transaction automatically. The program will search for the highest number among all existing receipts and payments and add 1.
  • Select the bank or cash Account to which the transaction is being entered.
  • If a bank account is selected, a Status field appears, in which Cleared or Pending can be chosen. For Cleared transactions, the date may be entered:

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    Status is set to Cleared by default for bank transactions. Another Guide covers cleared and pending transactions in greater detail. This field is absent for cash transactions.
  • Payee is the person or entity to whom money is being paid.
  • Description is an optional summary of the overall transaction.
  • Item field can be used to enter predefined inventory or non-inventory items. If you have no predefined items, this field will not appear. Making a selection here will prefill several other fields on the line.
  • Account is the account to which the payment will be posted.
  • Description on individual line items allows more specific information to be added.
  • Tax code and Tracking Code can be selected if any have been defined.
  • Location field appears if inventory locations are defined.
  • Amounts are tax inclusive controls how taxes are calculated. Check the box if taxes are included in unit prices. Uncheck the box if taxes are to be added to unit prices. This check box applies to the entire transaction.
  • A Custom theme can be selected. Available themes are selected in a dropdown box that appears if the box is checked.

Click Create to save the transaction. The completed form can be given to the Payee as a remittance or payment advice:

Payments against purchase invoices

Payments to suppliers against purchase invoices can be entered two ways:

  • As a basic payment
  • From a purchase invoice

As a basic payment

To enter a payment against a specific purchase invoice, post it to Accounts payable, the Supplier, and the Invoice:

Partial payments

When paying only part of the balance due on a purchase invoice, allocate the transaction exactly as above, but enter only the amount actually paid. Manager will apply the partial amount against the purchase invoice and show a reduced balance due. No other special steps are necessary.

Payments for multiple purchase invoices

When paying a supplier for multiple purchase invoices, leave the Invoice dropdown box blank. Manager will allocate the payment against the purchase invoice with a balance due that has the oldest due date first, then the next oldest, etc. However, if the payment is designated for specific purchase invoices, add lines and designate amounts for those invoices individually.

From a purchase invoice

To record a payment while viewing a purchase invoice, click on New Payment>:

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A payment entry form will appear. Select a bank or cash account. The remainder of the form will be prefilled with information to enter the full amount due on the purchase invoice. If the payment is for only part of the balance due, edit the amount paid by adjusting quantity or unit price.

Other situations

You are not restricted to using only simple expense accounts to post payments. For example, if money is paid to a business owner set up under the Capital Accounts tab, select the matching capital account and subaccount:

If a fixed asset is purchased the transaction can be allocated as below:

Employees are paid by allocating payroll amounts as follows:

Inventory and non-inventory items can also be directly purchased using payment forms. For more information on buying without purchase invoices, see this Guide.

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