Set a supplier invoice to be paid in 30/60/90 days

Great great great software. As most of the people here we have a really small business so cant afford an expensive accounting software. So first of all Thank you!

Something which I hope its really simple. one of my suppliers wants to be paid

30 days - 30%
60 days - 30%
90 days - balance

how is it possible to set it up so that it can be shown correctly?
Thank you in advance

Two ways:

  1. Put the terms into the notes of the purchase invoice. When you make a partial payment, Manager will show the amount applied and balance remaining.

  2. Create 3 separate purchase invoices with different due dates, all referencing the original supplier invoice.

Personally, I’d go with #1.

thank you for your reply.
it all sounds great but #1 I wont be able to know when the payment is due.
so I guess I will have to go for #2 so I can schedule the payment.
it just sucks because I dont have three different invoices but just one.
but again appreciate a lot your help!

True, but how big a problem will that be? Will this happen frequently? If it is a one-time thing, I would list the 30-day due date. The invoice will show as overdue in the listing, but that in itself will be a reminder.

Or here is another approach. While I don’t usually recommend altering accounting records, I think in this case it would also be all right to change the due date to the 60-day date after the 30-day installment has been paid. And likewise after 60, change the date to the 90-day final due date. After all, the purchase invoice is an internal document, so it would not be like altering the supplier’s invoice. Meanwhile, the Accounts payable balance would always be accurate. With this approach, even the Aged Payables report would be accurate so long as you made your payments on time.

What do others think? @Abeiku? @Brucanna? How would you handle this?

We are building a new small hotel so at this stage all the suppliers will have this kind of payment terms.
Even if altering the date sounds like a good plan my payment due will never reflect the real situation and this could put my cashflow at risk.

I would be really curious to see what other people things.

You have been a legend so far.

hopefully somebody can come with some other idea.

Yeah, I guess in the situation you describe, my first idea would not be a good one. Keeping your eye on one invoice vis-a-vis your cash flow is one thing. Dozens would be something else.

Still not that difficult to set up. Create the first purchase invoice for 30% of the total, putting all terms into the notes. Then clone it and change the due date. Clone it again, changing the due date and the final balance due.

sounds like a plan.

if I dont hear from others this is for sure the only solution.

too bad we cant create payments term for suppliers invoices.

also, since we are here

is there a report that can show me my due payments grouped per week/months?

@Tut I think you have mentioned all the way possible to handle this situation based on the tools available on
The other way round i guess is to create a custom field where you will be updating the payment due date. You must enable "show custom field as a column and on printed documents. unfortunately “show custom field” as a column on purchase invoice is not available but wouldn’t take a lot for it to be added.
I am therefore requesting that @lubos add it to help our user here.

In the future we have to have a better system for checking. A reminder module will be helpful where users can ask Manager to remind them when entering due dates or enter reminders generally if possible

Great Great
This would actually work like a charm

Hope @lubos can do the magic.

Thank you @Abeiku and @Tut
amazing help!

Firstly, Trading Terms aren’t accounting transactions, they are merely a reference point to when a supplier expects to be paid.

Secondly, is the transaction a single supply/purchase with scheduled payments or does the transaction have multiple supply/purchase points which has progress payments.

Thirdly, you state “I don’t have three different invoices”, well you do, just photocopy the invoice twice and then add a character (say a, b, c) to either the start or end of each invoice number, put amended dates on the two photocopies and amended the invoice values on them all. Now there is 3 invoices, The added character will held to identify where the invoice/payment schedule is at.

My only question would be, does Manager have any inbuilt restrictions on processing dates in advance, if yes, just put the duplicates in a folder for later processing, or do that anyway so that the related reports only show past dated and not future dated invoices.

As I don’t use the Supplier/Purchase Tabs, I can’t comment on how processing future dated invoices may impact the reports but to solve your issue “my payment due will never reflect the real situation and this could put my cash flow at risk” perhaps you need to either a) don’t process any invoices before their date and/or b) build a spreadsheet which would reflect the cash flow management for the project.

What you are asking for is more aligned to Project Management/Job Costing software which unfortunately Manger is not

Alternatively, you could request the supplier to provide progressive invoices based on the dates of the trading terms.

Manager will store future-dated transactions and they will not show in the Summary until the date is reached. However, I question whether that would be wise in these circumstances. Consider that the supplier has sent an invoice, so the liability (the account payable) has been created when the invoice was received, not when it is due.

thank you @Brucanna really clear and helpful.

does @lubos have any say on this?

Lubos will add the custom feild and comment on this soon. I am sure he hasn’t been online to read this yet :slight_smile:

As the suppliers original invoice isn’t being processed, the total liability hasn’t been created. Only the separately dated sub-invoices are processed, therefore three separate liabilities have been created each with their own due date.

With Manager storing future dated transactions and not listing them on the summary until there actual date, by only processing the sub-invoices, this fits perfectly into Carlos’s needs without needing any changes to Manager.

The supplier has sent the invoice but wants to make the payment flexible. There is only one liability

While that is technically true, day to day management can adopted flexibility as long as it achieves the expected obligations.

Taking all these comments into account, I think my original suggestion #2 meets @Carlos_O_Neill’s requirements:

  1. Create three purchase invoices, all with the same issue date, but three different due dates. The clone feature makes this quick.

  2. Follow @Brucanna’s recommendation to make copies of the supplier’s invoice if paper documentation is desired. If the electronic record is sufficient, all can reference the same supplier invoice number.

  3. Explain circumstances in detail in the notes. That way, if a different person processes the 2nd and 3rd payments, all relevant facts will be available.

Good luck with your hotel. Where is it?