Set up vendors for payables

Every bill, debit note and payment takes its currency, due date and payable account from the vendor. Set these once on the vendor, and each document you raise for them starts right.

Set a vendor’s payment details

1. Go to Purchase ‣ Master data ‣ Vendors and open the vendor.
2. Click Edit and open the Financial details tab.
3. Pick the Currency the vendor bills you in.
4. Pick the Payment term you buy on, so each bill’s due date is worked out for you.
5. Pick the Posting profile, which names the payable account their documents post to.
6. Click Save.

The vendor’s page shows their Balance, Currency, Payment term and Posting profile. Bills you enter from now on take these values; bills already saved keep theirs.

Note

A vendor with no Subsidiary is shared by every subsidiary. Their payments are made from the subsidiary of the user who records them, so a user who can switch between subsidiaries cannot pay them; give the vendor its Subsidiary when only one company buys from it.

Give new vendors their defaults

1. Go to Settings ‣ Configuration ‣ System settings, then open the Purchase tab.
2. Pick the Default currency, Default payment term and Default posting profile.
3. Click Save changes.

Every vendor created from then on starts with these values, which you can change on the vendor. Vendors that already exist keep theirs.

Example

A trading company buys most of its stock locally on 30-day terms, and a few lines from abroad in US dollars. It sets the defaults to the local currency, Net 30 and its trade payables profile, and changes only the currency on the handful of foreign vendors.