---
title: "Supplier Payments"
space: "ERPNext"
url: "https://www.prilk.com/docs/erpnext/supplier-payments"
updated: "2026-05-15"
---

## 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](/docs/erpnext/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](/docs/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