How do I pay a supplier and allocate the payment across bills?

You transfer the supplier an amount covering several bills. The screen is built to do the splitting for you, and carries a built-in explanation you can open from Important: how supplier payments work — image 1.

Steps

1. Open Purchasing → Supplier Payments and press + Create.
2. Pick the supplier, or add a new one with the button beside it.
3. Choose the payment type: distribute across bills or general payment (on account).
4. Choose the payment method and set the payment date.
5. Under allocate to bills: pick a bill from the list — it shows the number and remaining balance — and the amount pre-fills with that balance; edit it for a part payment.
6. Press + Add line for each further bill.
7. Write the reference — the transfer or cheque number — and the notes, then Save.

The amount field updates itself

Do not add it up yourself: every time you type an amount on a line, the total amount field updates automatically. If you want a total larger than the allocations, type it after allocating — the difference becomes an advance credit with the supplier, as the next article explains.

Notes

• A payment cannot be allocated to a draft or cancelled bill; the list hides them and the system refuses even a direct request — a draft was never posted and a cancelled one had its entry reversed, so paying either would unbalance the supplier ledger.
• No bill can be allocated more than its remaining balance.
• One supplier's bill cannot be allocated to another supplier's payment; the check is automatic.
• Always write the reference — it is what ties the payment to the bank statement at reconciliation.
• The payment date is the day the money actually left, not the day you typed it in.
• Each payment has a Print button to issue a payment voucher for the supplier.