Welcome to AlignBooks. We are happy to have you on board. In this help studio tutorial, we will explore the Vendor Payment preparation options.
Before we begin, let us understand about the need of Vendor Payment Entry and the relevance of this particular activity.
The basic purpose of Vendor Payment Entry is to account for the payment made to the Vendor and to generate a payment voucher.
AlignBooks has made this module more useful for you by providing following additional utilities:
If you are maintaining and tracking bill wise outstanding of Vendors, you can adjust the bill(s) against which this particular payment is made.
If you have made any deduction from total amount payable against any bill e.g. cash discount, TDS and Bank Charges, you can adjust the same without the need to pass any additional adjustment vouchers.
If are making any interest payment towards delay of payment, you can account for this interest without the need to pass any additional adjustment vouchers.
If there is any Currency fluctuation difference (in case of foreign dealings) the system will automatically calculate, adjust and account for the same without undergoing through any additional adjustment vouchers.
You can create a Vendor Payment through Payment menu under Purchase Module of AlignBooks.
The key functions of Vendor Payment Module are:
Creation of a New Vendor Payment,
Modification of an existing Vendor Payment;
Deletion of an existing Vendor Payment.
Configuration:
AlignBooks provide you the facility to configure your payment documents with respect to choice of maintaining multiple series of documents, choice of sending Email and SMS on creation/edit/approval of the document and for Approval System setting etc.
Click on “Configuration” to configure this document. Click here “How to Configure a Document”, to know more about this utility.
Let’s now understand how to create a new Vendor Payment in simple steps
You have three ways to prepare a Vendor Payment;
Enter fresh data for the first time;
Open an existing document and use the “Copy” feature of AlignBooks to make the necessary changes. This will save your time and efforts;
If you have data in an Excel Format, Import data and make the required changes.
Let’s enter the fresh set of data for the first time;
Location: If you are handling multi locations, select the required location from the dropdown menu. This field is available only if you have configured “Multi location “ON” in configuration ->Company Setup->General Setup”.If your desired Location does not exist in the menu, you can create a New Location by clicking on option within the dropdown menu. You can also Edit or Delete a Location from Here. Select a Location to be edited/deleted and then click on . The Location will be opened in Edit mode and you can edit it and save by click on . You can delete it by click on
Category : If you are classifying your document in different categories,select the applicable category from the drop down menu. This field is available only if you have configured “Document Classification - ON” in Configuration ->Company Setup->Purchase Setup->Basic.You can Add, Edit or Delete a Category by following the process described under Location Tab.
Date : Enter the date of Payment. By default, the system will take the current date. You can also pick a different date by just clicking on the calendar function.
Prefix : While configuring your document, if you have opted to “maintain manual prefix”, select a prefix from the drop down list. If the required prefix does not exist in the list, you are able to create a new one by clicking on Icon or option within the dropdown menu and input a name.
Number : While configuring your document, if you have opted to “maintain manual numbering”, enter a document number here.
Vendor : Select a Vendor from the drop down menu for whom you are preparing the Order. You can Add, Edit or Delete a Vendor by following the process described under Location Tab.
Cash / Bank : Select the Cash or Bank account where from the payment is made.You can Add, Edit or Delete a Cash Bank Account by following the process described under Location Tab.
Amount : Enter the amount paid. If the payment is made in foreign currency , enter the amount paid in that currency only (See the currency section below to opt for this facility) without converting it in local currency. For example if you have paid $ 41625, you should enter 41625
Cheque No. : Enter the cheque or other instrument number (if applicable). If payment is made through RTGS/NEFT you can enter RTGS/NEFT reference number.
Bank Ref. : Select a Bank, if applicable, from the drop down menu. You can Add, Edit or Delete a Bank Name by following the process described under Location Tab.
Dated : Enter the cheque date, if applicable. By default, the system will take the current date. You can also pick a different date by just clicking on the calendar function.
Currency : If you are making payment in a foreign currency, select a Currency from the drop down menu. This field is available only if you have configured “Multi Currency - ON” in Configuration ->Company Setup->General Setup.If your desired currency does not exist in the menu, you can add a new currency by clicking on Icon or option within the dropdown menu.
Conversion Rate : System will automatically get the conversion rate from currency master, if already created by you. If you wish to change the currency conversion rate for this particular document, you can do the same here.
Fluctuations : This represents currency rate difference arising due to timing gap between the Invoice and payment date.
For example – Your base currency is INR and you made an Invoice for $ 41625 on 01/01/2017 and rate of $ on that date was INR 30. So you have booked your bill for INR 12,48,750 i.e. 41625 x 30. Now you received payment on 15/01/2017 and rate of $ vs INR on that date was 31.50 and accordingly bank has credited your account by INR 13,11,187.50.In such circumstances in your books of account you will credit your Vendor by $ 41625 (INR 12,48,750) and balance of INR 62,437.50 will be directly credit to Fluctuations difference account.Once you adjust the payment received towards the bill(s) against which payment is received, the system will automatically pick the rate of conversion of those bills, calculate the fluctuations difference and will account for in default GL set at the time of company configuration.
So far we have entered the basic details of the Vendor Payment. We will now see to adjust Bills against this payment;
Fill Outstanding Bills : When you will click on “Fill Outstanding Bills”, the system will display all the unadjusted Debit / Credit entries of the selected Vendor , for selected Branch (If applicable) and for selected currency (if applicable).
Before adjusting the bills, let us understand each columns of display list:
Bill No
Here the unadjusted bill no./payment no. are displayed.
Bill Date
Here the bill/payment date is displayed
Due Date
Here payment due date is displayed.
Bill Amount
Here Bill/payment amount is displayed.
If your bill is in foreign currency this column will appear twice (one column showing the Bill Amount in foreign currency and other showing bill amount in local currency).
Conversion Rate
Here the currency conversion rate taken at the time of Bill/invoicecreation is displayed
Outstanding
Here the net outstanding amount i.e. Invoice amount less amount
already adjusted earlier against this bill/invoice, is displayed.
If your bill is in foreign currency this column will appear twice (one column showing the outstanding amount in foreign currency and other showing outstanding amount in local currency).
Adjust Now
Here you have to enter the amount to adjust against this Bill /
payment out of the present payment.
Cash Discount
If you have deducted any cash discount against this document, enter the cash discount amount. If payment is in foreign currency the amount deducted should be entered in FC only.
Net Receipt
The system will display the net receipt i.e. Amount less Cash Discount.
Reference No.
Here document reference number is displayed
Reference Date
Here reference document’s date is displayed.
Once the document amount is equal to amount adjusted, the document will disappear from the outstanding list and the Outstanding Report generated thereafter will help you in proper payment planning and effective utilisation of available funds.
Attachment : You may upload any supporting documents, which can be used for the future reference. You can browse the location to find the document and attach the same. Click on “X” to remove the attachment.
Total Bill Amount : Based on the data filled in the table, system will calculate the total amount Adjusted against various bills, DN, CN or on account payments, and will display here.
Less Cash Discount : Based on the data filled in the table, system will calculate the total cashdiscount deducted in various documents, and will display here.
Less TDS Deducted : If you want to deduct TDS out of this payment, Enter the relevant details in TDS section at the right bottom of this document, the system will take the TDS amount from there and will adjust and display here
Net Bank Impact : This represents the actual outflow from the Bank after deducting Bank Charges.
The on account payment will appear in the windows of unadjusted payments against the Vendor Payment number and can be adjusted at later stage.All the adjustments made above i.e. cash discount, TDS Deducted, Interest paid, Bank Charges and fluctuation gain/loss shall be posted directly in respective default ledgers as defined by you at the time of Company Setup.The system will not accept the over adjustment of Bills i.e. negative on account.
Attribute : This field is available only if you have selected to use attributes in General Ledgers (Configuration -> Company Setup->Finance ->Attribute) and the a GL where attribute is linked is effected by this Debit Note.For Example if you have allocated an attribute with GL “Delivery Charges” and an amount is going to be debited / credited by creation of this Debit Note, the system will ask to select an attribute to be linked with Delivery Charges.
TDS Details : This section is available only if you have kept TDS applicable “ON”, in Configuration->Company setup->Finance. Also, if at the time of creating vendor master, if you have kept “TDS applicable – Off” for this vendor, the section will be inactive.
TDS Section : System will trace and auto fill the TDS Section under which TDS is required to be deducted automatically from the Vendor master. You can make changes if you wish to.
TDS Rate : AlignBooks has inbuilt the Rate of TDS prescribed under various sections of the Income Tax Act and based on the Section selected by you, the system will automatically pick the TDS rate prescribed under that section
: Before clicking this option make sure that the data entered is no more required by you; the moment you click on this option the system will erase all the data and give you an empty screen to enter fresh data.
Net Bank Impact : This represents the actual outflow from the Bank after deducting Bank Charges.
Attribute : This field is available only if you have selected to use attributes in General Ledgers (Configuration -> Company Setup->Finance ->Attribute) and the a GL where attribute is linked is effected by this Debit Note.For Example if you have allocated an attribute with GL “Delivery Charges” and an amount is going to be debited / credited by creation of this Debit Note, the system will ask to select an attribute to be linked with Delivery Charges.
TDS Details : This section is available only if you have kept TDS applicable “ON”, in Configuration->Company setup->Finance. Also, if at the time of creating vendor master, if you have kept “TDS applicable – Off” for this vendor, the section will be inactive. 
Click on 
to print the document prepared by you. Click here “Print Utility”, to know more about this utility.
Import : Click on 
to Import Data and select a file from which Data is to be imported. Click here “Import Utility”, to know more about this utility.
Schedule : If you want to create a schedule for this document, click on 
. Click here “Schedule a Document”, to know more about this utility.
Open : Click here to open an existing Payment. Click here “Open a Document”, to know more about this utility.
Copy : Click here to copy the values from an existing Payment. Click here “Copy from a Document”, to know more about this utility.
option within the dropdown menu. You can also Edit or Delete a Location from Here. Select a Location to be edited/deleted and then click on 
. The Location will be opened in Edit mode and you can edit it and save by click on 
. You can delete it by click on 
to save the document prepared by you.
beside Mail and click on Email or SMS.
