How to Make a Payment (Money Out)

Pay a supplier and clear their outstanding.

5 min read Updated Jun 2026 How-To

Purpose

Record a payment to a supplier and allocate it against their outstanding bills. Mirror image of the receipt voucher — same allocation logic, just outward.

Before you begin

Supplier master record.
List of supplier bills to be paid (or oldest-first allocation).
Paying ledger — petty cash, bank current account, or a corporate card.
For bank payments: the UTR / cheque number once generated.

Steps

Start → Accounts & Finance → Accounts → Payment Voucher.
Pick the supplier.
Enter the amount being paid.
Pick the paying ledger and enter the reference (cheque number / UTR).
In the Allocation grid, tick / partially allocate to the supplier's open bills.
If you are paying more than outstanding (rare — usually an advance), the balance is parked as Advance Paid.
Click Save & Print. The system posts the payment journal (debit supplier, credit cash/bank), reduces outstanding, and prints / emails the payment advice.
Optionally, generate a bank-advice file for a batch of payments via Bulk Payment.

What success looks like

Supplier's outstanding reduces by the allocated amount.
Cash / bank ledger reduces — visible in the dashboard cash-position tile.
A payment-advice PDF is sent to the supplier (good practice for B2B trust).
Aging report shifts the cleared bills out of the open buckets.

Troubleshooting

"Insufficient balance" warning on a bank ledger.: The bank ledger's system balance is below the payment amount. Verify the actual bank balance — either deposit more, or the bank-reconciliation is behind (see How to Reconcile a Bank Statement).
Supplier outstanding does not reduce.: Allocation was missed — the voucher saved as on-account. Re-open and allocate.
TDS / withholding row missing.: Supplier master does not have TDS section set. Fix the master then re-issue the payment voucher.

Tips

For monthly supplier payouts, use Bulk Payment — one voucher, many bills, one bank advice.
Always send the payment advice PDF — the supplier reconciles faster.
Warning. Cancelling a posted payment is recorded as a contra-voucher and is visible to auditors — correct rather than delete.