Invoices are selected for payment, usually on the basis of the due date for payment. Invoices may also be selected individually, or by creditor code - eg all unpaid invoices for a nominated creditor.

Once selected, invoices are then automatically grouped by Creditor and a single Check payment is made for each creditor. A remittance advice giving full details of the payment is printed to accompany the Check.

Quick payment may be made for just one creditor. There is a quick payment option on the Creditors enquiry screen.

Which payments should be made by the Creditors system?

All account invoices should be put through the Creditors system. ie all invoices which are to be paid at a later date.

Prompt (or immediate) invoices may also be paid easily though the quick (prompt) payment option.

One of the advantages of paying Checks through the Creditors system is the accumulation of the history of payments. A quick view of payments to a particular supplier may be made, either on screen or on hard copy. The history of payments may be of any length, and will span financial years.

Which payments are NOT be made by the Creditors system?

Cash payments and salary Checks are usually not made through the Creditors system.

The Payroll is the place to view accumulations of payments to employees.

Petty Cash reimbursement Checks, are usually entered directly into the General Ledger, and not into the Creditors system. Petty cash reimbursements might cover a number of Finance Codes, and the tracking of these expenses is best done in the General Ledger.  A history of cash Checks would not be a helpful management tool in the same way that a history of payments to one particular supplier would be. eg supplier of Art materials.