Supplier Payments

When you pay a supplier, record it as a Payment Entry. This settles the right invoices and updates your books.

Record a payment

Three entry points:

Path	When
Payment Entry → New	Direct entry
Open a Purchase Invoice → Create → Payment Entry	Pre-fills supplier and amount
From a Bank Statement	When you process your bank lines (see Bank Statements)

Fill in the form

Field	What
Payment Type	Pay (outgoing)
Party Type	Supplier
Party	The supplier
Posting Date	When the money left your bank
Paid Amount	What you paid
Paid From	Your bank account where the money came from
References	The Purchase Invoice(s) being settled

Applying against invoices

Picking the supplier loads their open invoices into the References table. Tick which ones this payment settles, ERPNext calculates allocation:

Exact — payment = invoice total → Paid
Partial — payment < invoice → Partly Paid
Overpaid — payment > selected invoices → excess sits as a debit (your credit with the supplier) for next invoice

SEPA / bank file export

For batch payments to many suppliers at once:

Create Payment Entries for each invoice
Open the SEPA Payment Order screen (provided by erpnext_netherlands on NL sites)
Select the Payment Entries, generate a SEPA XML file, upload to your bank's portal

See ERPNext Netherlands → SEPA Payments for details.

Foreign currency

If the supplier invoice was in foreign currency, set the Exchange Rate on the Payment Entry. Any gain/loss from exchange rate movement between invoice and payment date is posted to your exchange-rate accounts automatically.

Status

Same as customer payments: Draft → Submitted → Cancelled.

Common situations

Paid one invoice with one payment — single reference, exact match → Paid
Paid multiple invoices in one bank transfer — one Payment Entry with multiple references
Bank fee on the transfer — add a Deductions row for Bank Charges
Advance to supplier (before invoice) — Payment Entry without references; sits as a credit balance, applied later