How to Record a Purchase Payment
Use this feature to record payments made to suppliers for one or more outstanding purchase invoices.
Purchase payments help you reduce supplier balances, update payment history, and maintain accurate supplier and financial records.
Before you begin: A Purchase Invoice must already exist for the supplier before a purchase payment can be recorded.
The system allows you to record payment for multiple purchase invoices in a single transaction.
Step 1: Open the Purchase Payment List
From the sidebar menu, click Purchases.
Select Purchase Payments.
The Purchase Payment List page will display all existing purchase payments.
Step 2: Create a New Purchase Payment
Click the Create button located at the top-right corner of the page.
The Create Purchase Payment form will open.
Step 3: Select the Supplier
Select the supplier you want to pay.
Once the supplier is selected, the system automatically displays:
| Field | Description |
|---|---|
| Total Purchase | The total value of all purchases made from the supplier. |
| Total Paid | The total amount already paid to the supplier. |
| Total Due | The total outstanding balance owed to the supplier. |
If the supplier has no outstanding purchase balance, the purchase selection section will not be displayed.
Step 4: Select Purchase Invoice(s)
If the supplier has outstanding purchase invoices:
Select the purchase invoice you want to pay.
The purchase details will automatically appear.
For each selected purchase invoice, the following information is displayed:
| Field | Description |
|---|---|
| Purchase Number | The purchase invoice number. |
| Total Amount | The total value of the purchase invoice. |
| Total Due | The remaining outstanding balance. |
| Payment Amount | Enter the amount you want to pay for that invoice. |
You can repeat this process to add multiple purchase invoices to the same payment.
The system automatically calculates the Total Payment Amount based on the payment amounts entered for all selected purchase invoices.
Step 5: Select the Payment Source
Choose where the payment will come from.
Account
Select Account if payment is being made directly from a business account.
Then choose the account used for payment, such as:
Cash Account
Bank Account
Mobile Money Account
Any other business account
Supplier Advance
Select Supplier Advance if the payment should be settled using money previously paid in advance to the supplier.
The payment amount will automatically be deducted from the supplier's available advance balance.
Step 6: Enter Payment Information
Complete the remaining fields:
| Field | Description |
|---|---|
| Cheque Number | Enter the cheque number if payment is made by cheque. |
| Receipt Number | Enter the payment receipt reference number if applicable. |
| Payment Date | Select the payment date. |
| Status | Select the appropriate payment status. |
| Note | Enter additional information about the payment. |
| Description | Enter a brief description of the payment. |
Step 7: Send Payment Notification (Optional)
If you want to notify the supplier that payment has been made:
Tick Send Email Notification before saving.
This feature will only work if:
The supplier's email address has been saved.
Your email configuration has been completed in Skillla.
Step 8: Save the Purchase Payment
Review all information entered.
Click Save to record the payment.
If you wish to clear the form and start over, click Reset.
The payment will automatically be applied to the selected purchase invoices.
Understanding the Accounting Effect
Purchase Invoice
When a purchase payment is recorded, the system will:
Reduce the outstanding balance of each selected purchase invoice.
Update the payment history of the purchase invoice.
Automatically mark an invoice as Paid once its outstanding balance reaches zero.
Payment Source
If Payment Source is an Account
The system will:
Reduce the balance of the selected cash or bank account.
Record the payment against the selected purchase invoices.
If Payment Source is Supplier Advance
The system will:
Reduce the supplier's available advance balance.
Apply the advance payment to the selected purchase invoices.
Update the supplier ledger automatically.
Supplier Ledger Effect
Every purchase payment automatically updates the supplier's ledger account.
The system will:
Reduce the supplier's outstanding balance.
Record the payment transaction in the supplier's payment history.
Update the running balance of the supplier account.
Reduce the supplier advance balance when Supplier Advance is used as the payment source.
This provides a complete history of all purchases, payments, advances, and outstanding balances for the supplier.
Impact on Financial Reports
Balance Sheet
Recording a purchase payment reduces:
Cash or bank balances when payment is made from an account.
Supplier liabilities by reducing the outstanding amount owed.
Supplier advance assets when Supplier Advance is used as the payment source.
Cash Flow Report
When payment is made from an account, the transaction appears as a cash outflow and reduces the balance of the selected account.
Supplier Reports
Supplier reports are updated automatically to display:
Total purchases.
Total payments.
Outstanding balances.
Supplier advances.
Payment history.
Purchase Reports
Purchase reports are updated to reflect:
Amount paid for each purchase invoice.
Remaining balance.
Payment status (Unpaid, Partially Paid, or Paid).
Profit & Loss Report
Recording a purchase payment does not affect the Profit & Loss Report.
The purchase expense or inventory value was already recognized when the Purchase Invoice was created. Recording a payment only settles the outstanding amount owed to the supplier.
Why Recording Purchase Payments Is Important
Recording purchase payments helps you:
Keep supplier balances accurate.
Track payments made against purchase invoices.
Monitor outstanding supplier liabilities.
Maintain accurate cash and bank balances.
Apply supplier advances correctly.
Prevent duplicate or missed payments.
Produce accurate supplier and financial reports.
Maintain a complete payment history for every purchase.
Best Practice
Record purchase payments as soon as they are made. Keeping supplier payments up to date ensures your purchase invoices, supplier ledgers, account balances, and financial reports remain accurate and synchronized.