Problem with Supplier Payments on account

I have a suppler that i send regular payments to i.e. at least on a day, this is to keep my account balance low with them, so due to the massive number of payments and them not matching any single one invoice, i have been applying them as payment on account.

But i have a big issue, if i bulk add payments on account and then start using the credit on account to pay them off, it uses the latest payment first for the earliest invoices, surely this is wrong as it shows my invoices being paid massively late several months, the only way i can get around it (not totally) is to do a few payments at a time as close to the invoice as possible and then use the credit and then go back and tag a couple more payments, however this is just as time consuming and renders the bulk tagging to supplier account pointless, even working backwards wont works as i would be left with credit on account that would be way out date wise.

is it supposed to use the latest dated credit on account ?

Im confused as to why it works in this way as earliest payments should and must pay off the earliest outstanding invoices with suppliers and not the other way around.

I had already tagged 300 or so payments and applied them before i realised, i only noticed when the suppliers control time said average time to pay was 300+ days

also invoices not shown as being paid off until way past issue would effect VAT returns ???

i.e. cant claim VAT off an invoice till its paid, but then again when applying it to the suppliers account it asks what VAT rate, so i maybe wrong about that bit.

I referred this to a developer earlier today, we will see what can be done. This has been the standard behaviour since the system was developed. Although it won’t make much difference to many accounting procedures.

If you’re on cash accounting the payment would go on the VAT return when it was lodged, not when it was allocated. So the date of allocation wouldn’t make any difference to the VAT calculations.

Ok i understand that, but from my view as a QF customer looking at my supplier control panel, it does display the metrics of average time to clear invoices/purchases with supplies as massively incorrect as the payment dates in the calculations are back to front.

For now, i’ll just stick to tagging the payments on account for the time frame around the invoice and apply them, as applying and searching to add each one to the earliest via the other tagging screen isnt really an option, too many clicks, and having to retype the supplier name each time, good feature which i assume would be easy to implement no? on the screen after clicking pay down multiple invoices, would be a small link to click and auto fill with last supplier used, i think im right in that the supplier is stored as its used to make an entry in the log saying where it went. but then again as i dont know how the backend works i may just be shooting in the dark lol.

either way anything that can be done to speed up the task of tagging/applying payments to the right invoices quicker can only be a good thing and less stressful :smiley:

We’ve now flipped the order around so that the earliest credits will be assigned to any invoice you mark as “paid from credit”. Please let me know if you have any further problems here.

OK great as usual, fast turn around, i have quite a few to sort in the next few days so i’ll give it a try and let you know the result.


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