Supplier Bills and Payables

Plenty of suppliers let you take the goods now and pay later: Net 30, or plain utang. Set the purchase order to On credit and Kassly opens a supplier bill when the goods arrive: what you owe for that delivery, when it is due, and what you have paid on it so far. Purchasing → Payables adds the bills up, by supplier and by how late they are.

An order you pay for at the door works as it always has: it is recorded as paid the day it is finalised, and no bill is opened.

Needs the Inventory Pro add-on (₱500 per branch each month), or any bundle that includes it, the same as purchase orders. Bills, deposits and cheques are money, so they also need See Cost Prices on top of Create / Submit / Cancel Purchase Orders & Suppliers. Owners and Managers have both by default.

When you pay the supplier

Every purchase order has one of three answers to When do you pay the supplier?:

Option	What happens when the order is fully received or closed short
Pay on delivery	Recorded as paid that day, less any deposit you paid ahead. The default.
On credit (pay later)	A bill opens for what arrived, due the number of days you set. You pay it from Payables.
Some items on credit	You tick the items on credit. One bill opens for the whole order, and the items not on credit are recorded as a cash payment on it that day, so the bill shows only the credit part as left to pay.

For On credit and Some items on credit, the form also asks Due ___ days after receiving: a whole number from 0 to 365. 0 means the bill is due the day it opens.

The days count from when the order is finalised, which is the day the last item arrives or the day you close it short. On an order delivered in three lots, the clock starts at the third delivery, not the first.

Setting it on a purchase order

On the purchase order form the choice sits below Payment terms and Estimated freight (see Purchase orders). Three things fill it in for you:

• The supplier's credit days. If the supplier record has Credit days set (see Suppliers), picking that supplier starts the order On credit with those days. A supplier with no credit days starts on Pay on delivery. Once you pick an option yourself, changing the supplier no longer changes it.
• The Net and COD quick picks under Payment terms. Clicking Net 30 sets On credit with 30 days; COD sets Pay on delivery. Typing your own wording in the Payment terms box does not change anything here: that box is text printed on the PO for the supplier.
• Some items on credit puts an On credit tick on every line. Tick at least one, or Kassly asks you to choose Pay on delivery instead.

Changing it later

While the order is a Draft, Submitted or Partial, open it and click Change on its Payment card. It needs no amendment and no approval, because it changes only what happens to the money when the order is finalised. The amendment form does not carry it.

Switching to Pay on delivery is refused while a cheque is waiting on its date for the order. Void the cheque first.

Once the order is Received or Closed, there is no Change: the money is settled by then. Change the bill's due date instead or, for an order recorded as paid that wasn't, use Move to Payables.

Deposits: paying before the goods arrive

A supplier who wants money up front, a down payment with the order or the whole amount before they ship, is paid with Record deposit on the order's Payment card. It is there while the order is a Draft, Submitted or Partial, on any of the three payment options.

Field	Notes
Amount	Up to the order total, less deposits already recorded on it
Paid on	Can't be in the future, or before the order was raised
Paid with	Cash, Bank Transfer, Cheque, GCash or Maya
Reference (optional)	A receipt, transaction or cheque number

The deposit reaches your books the day it was paid, and it is listed under Paid ahead on the Payment card. When the order is finalised:

• On credit: the deposit moves onto the bill and counts as paid.
• Pay on delivery: the payment recorded that day is the order's value less the deposit.
• Less arrived than you paid ahead, or the order was cancelled: the difference becomes a supplier credit the supplier owes you, marked Deposit not used. Refund it, apply it to another order or bill, or write it off.

A draft with a deposit on it can't be deleted: Kassly asks you to cancel it instead, so the deposit becomes supplier credit rather than vanishing.

The supplier bill

When an order on credit (or with some items on credit) is fully received or closed short, Kassly opens its bill, numbered BILL-000001 and counting up per business. On an order On credit, the receive dialog says so when you are about to receive the last of it, and so does Close Short.

The bill shows on the purchase order, as a Supplier bill card, and on its own page, reached from Payables.

Figure	What it is
Amount	What arrived, at the PO's prices, less any supplier credit already set against the order while it was open
Paid	Payments and deposits recorded on it
Credits	Supplier credits taken off it
Left to pay	Amount, less Paid and Credits

Under the figures: how soon it is due (Due in 12 days, Due tomorrow, Overdue by 3 days), the due date, the date it was billed, and the supplier's invoice number once you add it. Below that, the bill's history: every payment and deposit, with its method, reference, date and who recorded it, and every supplier credit taken off it.

Status	Means
Unpaid	Nothing paid or credited yet
Partially paid	Some paid or credited, a balance left
Paid	Payments and credits cover the whole amount
Overdue	Unpaid or partially paid, and past its due date. Shown in place of the other two.

Correcting a bill

The pencil on the bill edits three things:

Field	Notes
Supplier invoice no.	Their invoice number, for your reference and for searching
Due date	Not before the bill date. Use it when a supplier gives you more time.
Notes	Up to 2,000 characters

The amount can't be edited: it comes from what was received. To lower it, apply a supplier credit, for example from a return or a price adjustment. A supplier who underbilled is a positive price adjustment, which is its own charge (see Landed costs).

Paying a bill

Click Record payment on the bill, on its page or on the purchase order.

Field	Notes
Amount	Starts at what is left. Pay less and the rest stays on the bill. You can't pay more than is left.
Paid on	Can't be in the future, or before the order was raised
Paid with	Cash, Bank Transfer, Cheque, GCash or Maya
Reference (optional)	Receipt, transaction or cheque number

A down payment on the day of delivery, instalments, and the final balance are all just payments: record each one as it happens. The bill moves to Partially paid, then Paid.

A payment is recorded outside the cash register, so no drawer knows about it. If the cash came out of a till, that drawer comes up short at closing unless you account for it there. Don't record a Cash Out for it: a Cash Out is always booked as an expense, so the payment would count twice. A Drop to safe takes cash out of the drawer without booking anything. See During your shift.

A payment can't be edited or deleted once recorded, so check the amount and the date before you save. The only payments Kassly reverses are those of a cheque you mark returned (below).

Applying a supplier credit to a bill

If the supplier owes you money, from a return, a price correction or a deposit you didn't use, take it off what you owe them: Apply credit on the bill. Pick one of that supplier's credits with a balance, and the amount, up to the smaller of the credit's balance and what is left on the bill. It takes effect at once.

You don't always have to do it by hand. A return, or a price adjustment that lowers the cost, on an order whose bill is still unpaid comes off that bill automatically, as far as the bill still owes. Whatever is left stays on the credit.

Paying by post-dated cheque

If you hand the supplier a dated cheque, record it on the order so Kassly knows the money goes out on that date. Click Issue cheque on the order's Payment card while the order is open, or on its bill once there is one.

Field	Notes
Cheque no.	Required
Bank / account (optional)	e.g. BDO 1234. Named in the reminder, so you know which account needs the funds.
Cheque date	The date written on it. Not before the order was placed, and no more than a year ahead.
Pays for	The supplier's unpaid orders on credit, with the one you started from ticked. Tick every order the cheque covers and set the amount for each. Cheque amount adds them up.

One cheque can pay several orders from the same supplier. Each amount starts at what is left on that order: the bill's balance, or before the goods arrive the order total less deposits.

A cheque counts as paid on the date written on it. Until then it is Issued, nothing is in your books, and every bill it pays is due on the cheque date. When the date comes, each part is recorded as a cheque payment on its order's bill, dated the cheque date. If an order's goods haven't arrived by then, its part is recorded as a deposit and moves onto the bill when it opens. A cheque dated today or earlier is recorded as soon as you issue it.

Status	Means
Issued	With the supplier, its date not yet reached
Paid	Its date came and it is recorded as paid
Cleared	You confirmed your bank has debited it
Voided	Cancelled before anything was recorded
Returned	Bounced, or cancelled after its date. Its payments are reversed.

What you can do depends on the status:

Action	When	What it does
Edit	Issued, nothing recorded yet	Changes the number, bank, date, or the amount for each order. To change which orders it pays, void it and issue a new one.
Void	Issued, nothing recorded yet	Asks for a reason. Nothing was in the books, so nothing changes.
Mark cleared	Paid	Asks for the Cleared on date. A confirmation only: the payment was already recorded on the cheque date.
Mark returned	Paid or Cleared	Asks for the Returned on date and a reason. Each of its payments is reversed and the bills are owed again, so you can pay another way or issue a new cheque.

The rules to know:

• Only an order on credit (or with some items on credit) can take a cheque. On a Pay on delivery order, use Change on the Payment card first.
• One waiting cheque per order. An order already in a cheque that hasn't reached its date can't go on a second one. Void the first.
• A cheque for more than a bill owes is held back. If a short delivery or a return leaves the bill smaller than the cheque's part for it, that part is not recorded. The cheque shows why. Void it and issue one for the right amount.
• Cancelling an order voids its cheque if nothing has been recorded for it yet. Reissue for any other orders the cheque covered.
• Cheques are recorded once a day, at 06:00 Manila time, for every cheque whose date has come.

These are cheques you write. Cheques your customers give you are in the Cheque Register, which is a separate list.

The Payables page

Open Purchasing → Payables. It covers every branch of your business.

Card	What it shows
You owe suppliers	The total left to pay on unpaid bills, and how many bills that is
Overdue	The part of that past its due date
Due this week	Bills not yet overdue that fall due in the next seven days

How late sorts what you owe by days past the due date: Not yet due, 1–30 days late, 31–60 days late, 61–90 days late and Over 90 days late, each with an amount and a count of bills.

Cheques issued, not yet dated lists the cheques you have written that haven't been recorded yet, soonest first: the cheque number and bank, the bills or orders it pays, the supplier, its date and amount, plus the total and how much falls this week. A cheque that is held back shows why under its date. Click one to open its bill or order.

By supplier gives each supplier's balance, largest first, with the number of bills, the next due date and how much is overdue. Click a supplier to show only their bills below; click again, or show all suppliers, to go back.

The bill list underneath has four tabs: Unpaid (the default, soonest due first), Overdue, Paid and All. The search box matches the bill number, PO number, supplier invoice number and supplier name.

Column	What it is
Bill #	The bill number. Click the row to open the bill.
Supplier	Who you owe
PO	The purchase order it came from
Due	The due date and how soon or how late, plus the cheque it is waiting on, if any
Status	Unpaid, Partially paid, Paid or Overdue
Amount	The bill's amount
Left to pay	What is still owed

Without See Cost Prices the page explains that it needs that permission instead of showing figures.

The Purchase Orders list also has a Payment column: the bill's status and what is left on it once there is a bill, or On credit for an order on credit that hasn't been finalised yet.

Bills that don't start as an order on credit

Freight and other charges on credit

A landed-cost voucher asks the same question, without the per-item option: Pay on delivery or On credit (pay later), with the days. Posting a voucher for a charge you owe, on credit, opens a bill for its total instead of recording it as paid, due that many days after posting, with the voucher's reference as the supplier invoice number. You pay it like any other bill. On credit makes no difference to a negative voucher, which issues a supplier credit as before.

Move to Payables

An order on Pay on delivery is recorded as paid the day it is finalised. If that didn't actually happen, open the order: its Payment card reads Recorded as paid on delivery: ₱… on …. Click Move to Payables, set the Due date, and confirm.

• A bill opens for the amount that was recorded as paid, dated the day the goods arrived.
• The due date must fall between that day and a year from today. It starts 30 days from today.
• The order becomes an order on credit.
• The recorded payment is taken back out of your books on the day you move it. On the Expenses page it stays, struck through and marked Moved to Payables.

It works on a Received or Closed order that has no bill yet.

Reminders

Every morning at 06:00 Manila time, Kassly notifies the owner, and the managers of the bill's or cheque's branch:

Notification	When
Bill to (supplier) due soon	Once, when the due date is two days away or less
Bill to (supplier) is overdue	The day after it falls due, then once a week while it stays unpaid
Cheque to (supplier) coming up	From two days before the cheque's date, once a day until it is recorded. It reminds you to have enough in the account.
Cheque to (supplier) needs a look	Its date has come but part of it can't be recorded. The message says why.

A bill that a waiting cheque will pay gets the cheque's reminders instead of its own. Changing a bill's due date starts its reminders again.

What lands in your books

Event	Entry	Dated
Order on credit received	DR Merchandise Inventory / CR Accounts Payable, as for any purchase order	When finalised
Payment or deposit in cash, GCash or Maya	DR Accounts Payable / CR Cash on Hand	The Paid on date
Payment or deposit by cheque or bank transfer	DR Accounts Payable / CR Cash in Bank	The Paid on date, or the cheque date
Supplier credit applied to a bill	No entry: both already sit in Accounts Payable
Cheque marked returned	DR Cash in Bank / CR Accounts Payable	The Returned on date
Move to Payables	DR Cash on Hand / CR Accounts Payable	The day you move it

Until a bill is paid, its balance stays in Accounts Payable, which is what you really owe. See Books of accounts.

Each payment and deposit also appears on the Expenses page as an approved Procurement expense, with the bill or PO number as its reference. It can't be edited there; it is managed from the bill. These are not operating expenses: the goods reach your Profit & Loss through cost of goods sold when they sell. A payment reversed by a returned cheque stays on the list, struck through and marked Cheque returned, and is left out of the total.

On the desktop and phone apps

• Kassly Desktop 1.15.0 and later has the same: the payment options on its purchase order form, the Payment section on an order (terms, deposits, cheques, the bill, Move to Payables), and Payables under Inventory in its sidebar.
• The phone app has no Payables, bills or payment options. Receiving an order on credit from the phone still opens its bill, because the bill is opened by the receipt itself, whichever app records it.

What this does not do

• No bill without a purchase order or a landed-cost voucher. You can't type in a supplier's invoice on its own.
• A payment pays one bill. Only a cheque can cover several orders at once.
• No undoing a payment, except by marking its cheque returned.
• No matching against the supplier's invoice. The invoice number is a reference. Nothing compares the invoice to the PO or the receipt, or blocks a payment over a difference.
• No withholding tax or input VAT on supplier payments. See Receiving purchase orders.
• No statement of account to print or send a supplier.

Where to go next

• Purchase orders: raising the order and its payment terms
• Receiving purchase orders: finalising an order, which opens the bill
• Supplier credits: refunds, credits applied to orders and bills, write-offs
• Suppliers: saving a supplier's credit days