Leveraging the Versatility of Supplier Payments in QAD

Posted on: August 23, 2021 | By: David Kwo | QAD Financials, QAD Practice News, QAD Business Process

The fundamental ability to organize and keep track of supplier payments is a crucial characteristic of a successful company, and one that QAD makes accessible with its array of tools and flexibility that accommodate a wide range of complex needs.

QAD offers two main tools to leverage for supplier payments: Supplier Payment Create (used for manual AP payments) and Supplier Payment Selection Create (used for electronic AP payments). Within both functionalities, the processing of payments is tracked by their changing status codes, which are codes associated with different stages of the payment process. As a payment makes its way through the payment process, the user changes the status, triggering a posting that updates the relevant account.

The sequence of statuses is defined by the user to meet the unique needs of their implementation, creating flexibility that can handle a range of sizes, complexities, and needs. The statuses are creates using Supplier Payment Status Create.

While different forms of payment (such as checks, promissory notes, transfers, etc.) will have different payment sequences, each sequence must have at least a “Paid” and “Void” status. A traditional sequence of statuses will generally also have “Initial,” “Allocated,” “For Collection” (for payments sent to bank), and “Bounced” statuses. The “Initial” status is generally created for initial payment registrations and is not linked to account activity so the invoice can be modified. To update bank accounts easily and automatically with payments, less complex systems can move payments directly to “Paid.”

QAD provides the ability to create custom sequences of statuses, thus making easy and organized supplier payment systems accessible to businesses with a wide range needs and complexities, from detailed supplier payment processes to simple automatic bank updates.

 

Next Steps

If you are interested in learning more about supplier payments and/or maximizing your use of QAD software, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8810.

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