Posting Vendor Payments and Applications

Overview

After the Vendor Payment entry is applied and the check is printed, you can post the Vendor Payment. Posting Vendor Payment will post the applications automatically.

Posting the Vendor Payment

When the Vendor Payment is posted, several entries will be created as GL Entries, Vendor Ledger Entries, and Detailed Vendor Ledger Entries.

Result of Posting a Vendor Payment

General Ledger Entries

The following GL Entries will be created:

Credit to the Bank Account entered on the Vendor Payment.

Debit to the Account AP Account set up in the Company Setup.

Vendor Ledger Entries

A Vendor Ledger Entry is created for the Vendor. You'll notice the Remaining Amount of the entry is the total amount of the Vendor Payment entry.

Vendor Detailed Entries

A Vendor Detailed Entry is also created with Entry Type = Initial Entry.

Result of Posting an Application

GL Entries

After the Application is posted, if the total Discount taken is not 0, the following GL Entries will be created:

Credit to the Account Vendor Payment Discount set up in the Company Setup

Debit to the Account AP Account set up in the Company Setup

Vendor Ledger Entries

You'll notice the Remaining Amount of the Vendor Ledger Entry is updated.

Vendor Detailed Entries

A Vendor Detailed Entry is also created. You'll notice the Entry Type is Application.

Unposting the Vendor Payment

When the Vendor Payment is unposted, all related GL Entries, Vendor Ledger Entries, and Detailed Vendor Ledger Entries are reversed, and the application is restored.

Posting the Application

Alternatively, you can post a Vendor Payment without any application. You can then later apply to vendor invoices. Click the Apply button on the Vendor Payment, and then click the Post Application button.

You will not be able to post the application if the Applied Balance is a negative number.

If you unpost the Vendor Payment, the applications for the Vendor Payment will be recreated.

Understanding Apply and Unapply

Apply

The system creates GL Entries if the discount taken is not 0. The Vendor Payment Discount Account is set up on Company Setup.
The system creates Vendor Detailed Entry with Entry Type = Application.
VDE and GL have a new Application No. populated.
The Remaining Amount, Applied Amount, and Payment Status (Fully Paid, Partially Paid, Unpaid) on the Purchase Invoice are updated. You will not be allowed to unpost a Purchase Invoice if it is Fully Paid, or Partially Paid.

Unapply

If you find an issue, you need to Unapply the Application. Select the Unapply button on the Vendor Payment or Vendor Ledger Entry
The system looks for VDE with Entry Type = Application and gathers all Application No.
Look for other VDE with the same Application No.
Delete all VDE with the same Application No.
Look for GL with the same Application No. and creates reverse GL entries.
The Remaining Amount, Applied Amount, and Payment Status (Fully Paid, Partially Paid, Unpaid) on the Purchase Invoice are updated.