The Supplier ledger, also sometimes known as the Purchase Ledger or Trade Creditors Ledger, is where the accounting aspects of the relationship with suppliers comes together and can be referred to. Each supplier, once set up, will have a Supplier Account in which all transactions from bills, credit notes, payments to other miscellaneous items can be seen. Any balance should represent the true amount of money owed to your supplier; exceptionally it could represent an amount your supplier needs to repay to you.
Where to find a Suppliers Account?
A supplier account is found under the Accounts menu.
Accounts - Suppliers
In the actions box adjacent to the relevant supplier click VIEW. The screen will display the details of all transactions that have impacted and the balance on that Supplier Account between the selected dates.
What appears in the Suppliers Account?
Essentially any transaction recorded as between the Supplier and your organisation will be shown in the Supplier Account. Transactions are entered in the usual way as described in the topics or screen help.
|Supplier Credit Notes
|Paying Supplier Bills
|Add Journal Entry
In simple terms you can use these transactions to manage the accounting relationship with your supplier.
In the context of a Supplier Account in the Supplier ledger, receipts and journal entries are unusual transactions and care is required in their handling and understanding the implications. If you are in doubt please consult your accountant or advisor. Note that a journal entry transaction is not available to be consumed in the bill payments screen, unlike all the other cash type transactions mentioned above.
It is good practice to regularly review the balances on Supplier Accounts to ensure that the figures do represent the actual situation of what you owe (or you are owed) and that will be payable to your customer. To help you do this you can both look at the situation on the screen, as described above, or print out a hard copy report as described below.
Note: It is not considered good practice to post an transaction directly to the Supplier Ledger Control Account (The Parent account of all the Supplier accounts) so in any transaction screen where an account can be selected the control account will not be visible only the Supplier Accounts.
Allocations of cash to Bills
When cash is paid to suppliers it is allocated to bills in the pay bills screen. The details of the amounts allocated for any transaction can be viewed by clicking the linked transaction icon. A dialogue box is presented with the linked transactions.
The linked transactions may be de-allocated by ticking the box and clicking Submit. The Cancel button returns the user to the previous screen. Note a hard copy a Payment Allocations report is also available.
Reports - Suppliers - Payment Allocations
Getting a Supplier Account Transactions Report
A report showing all transactions, including the non-cash journal entry is available under the Reports menu.
Reports - Suppliers - Supplier Account Listing
Enter the date range required and select the Supplier or Suppliers required. The report can be output either as a hard copy PDF or exportable Excel or CSV file by licking the appropriate button and then GENERATE For Excel or CSV subsequently click the DOWNLOAD button.