[FAQ] How do I offset payable invoices against a Payment on Account for a supplier

What is a payment on account (PoA)

A payment on account occurs when a payment is disbursed to a supplier, and there is no notation regarding which invoice is being paid. The amounts paid are debited against the Payables account, pending receipt of an invoice from the supplier.

How to apply a PoA to one or more supplier invoices

1. Navigate to Accounting>Payables>Payments 
2. Create a new payment and fill out the relevant details
3. Click the Pay Supplier Invoices option to bring up all payable invoices
4. This option also lists any unapplied PoA amounts. You can then select this PoA line along with one or more invoices.  Click the CALC button to calculate the total amount for this payment the record. In the example below, you'll see a 10,000 Payment on Account being offset against an invoice with the same amount, so the total payable amount is zero.