This section relates to legacy Aged Trading accounts that were used in Version 5 of Phoenix and earlier. See Legacy Aged Trading Accounts |
Supplier transactions are invoices, payments (receipts) and credit notes.
Supplier Accrual Entry
Supplier accounts use the accrual accounting model. This means you allocate the invoice entries to one or more expense categories when the invoice is raised, that is, you record the expense incurred against the correct expense category as soon as the purchase is made. You do not need to allocate the expense later when the invoice is finally paid.
A later payment then simply involves a transfer between the supplier account and the bank, credit card or other account from where the payment is made. This payment transfer can be automated using a special Supplier Payments category setup for the purpose.
Entering a supplier transaction is therefore no different to entering a bank account transaction, except that the transaction types are Invoice, Payment and Credit Note instead of BPay, Cheque, Withdrawal, Deposit and so on. Invoices from suppliers are entered directly to the supplier account and sub-account as the invoices are received. When a payment is made to the supplier, the entry can be made in the account from which the payment was made. The entry can be automatically linked to the supplier. Alternatively, it may also be made from the supplier account where you can see the current balance for that supplier. Again, the entry can be automatically linked to the account making the payment.
