How to Pay Vendors and Allocate Payments to Bills in CrmLeaf
Worksuite, Manufacturing CRM, Construction CRM and Solar CRM editions. Requires the Purchase add-on module to be enabled for your account by an Administrator.
Availability: Worksuite, Manufacturing CRM, Construction CRM and Solar CRM editions. Requires the Purchase add-on module to be enabled for your account by an Administrator.
Overview
A vendor payment records money paid to a vendor and allocates it across that vendor's bills. Recording the payment is what moves a bill from open to partially_paid or paid, so an unallocated payment leaves bills looking unpaid.
Recording a vendor payment has two automatic effects: an expense labelled "Payment to vendor" is created, and if you pay more than the bills you allocate to, a vendor credit is created for the excess.
How It Works
You record the payment against the vendor with the bank account, the amount and the date, then allocate it across the vendor's bills. Bill statuses recompute from the allocations.
Record payment → Allocate across bills → Bill status recomputes → Expense created → Excess becomes vendor credit
- One payment can be allocated across several bills for the same vendor.
- Each bill's status recomputes to
open,partially_paidorpaidfrom what has been allocated to it. - An expense labelled "Payment to vendor" is created automatically, so the outflow appears in expense reporting without a second entry.
- If the payment exceeds what you allocate, a vendor credit is created automatically for the excess and can be applied later.
Who Can Use This Feature?
User
- Record a vendor payment with the bank account, amount and date.
- Allocate the payment across the vendor's open and partially paid bills.
- Review the resulting bill statuses and the vendor's outstanding balance.
Access depends on the modules and role assigned by your Administrator.
Prerequisites
- The Purchase module is enabled for your account.
- At least one bill exists for the vendor with a balance outstanding.
- The bank account you are paying from is available for selection.
- You have access to the vendor's bills under your permission scope.
For Users
Step 1: Open the vendor payments list
Check whether the payment has already been recorded before adding it again.
Step 2: Record the payment
Select Add and choose the vendor. Select the bank account the money was paid from, enter the amount and the payment date.
Step 3: Allocate the amount across bills
Allocate the payment to the vendor's outstanding bills. Allocate to the oldest bills first unless your finance process says otherwise, and make sure the allocated total is what you intend before saving.
Step 4: Save and check the bill statuses
Select Save, then open Bills and confirm each allocated bill now reads partially_paid or paid as expected.
Step 5: Check the automatic records
Confirm the expense labelled "Payment to vendor" has been created for the payment. If you paid more than you allocated, check Vendor Credits for the automatic credit raised for the excess.
Field and Option Reference
| Field / Option | Description | Required |
|---|---|---|
| Vendor | The vendor being paid. Determines which bills can be allocated to. | Yes |
| Bank account | The account the payment was made from. | Yes |
| Amount | The total paid to the vendor in this payment. | Yes |
| Date | The date the payment was made. | Yes |
| Allocation to bills | How much of the payment is applied to each of the vendor's bills. | Yes |
Expected Result
The payment is saved, the allocated bills move to partially_paid or
paid, an expense labelled "Payment to vendor" is created, and any excess appears as a vendor
credit.
Service Organisation Context
This is the step where third-party delivery cost enters a service organisation's cost picture. Recording the payment creates an expense labelled "Payment to vendor" automatically, so subcontractor, associate and licence cost appears in expense reporting and in the same expense data the Budget add-on reads when it derives project actuals - without a second entry. Paying a vendor more than you allocate creates a vendor credit for the excess rather than losing track of it. Note that the expense is created by the payment rather than by the bill, so expense reporting reflects money actually paid out. Product and site-based businesses gain the same effect.
Important Notes
- Menu names and their position can differ between product editions and can be customised for your account, so your sidebar may not match these paths exactly. Use Search or your Quick Access items if you cannot find a screen.
- Vendor payments belong to the Purchase add-on module. Confirm it is included in your plan.
- The automatic expense means you should not also enter the vendor payment manually in Expenses, or the outflow will be counted twice.
- A payment that is recorded but not allocated leaves bills reading open. Always check the allocation.
Common Scenarios
Example: one transfer settling three bills. A manufacturer pays a vendor one amount covering three bills. The payment is recorded once and allocated across all three; two move to paid and the third to partially_paid.
Example: an advance that overpays. A construction firm pays more than the bill balance to secure supply. The bill becomes paid and the excess is raised automatically as a vendor credit, ready to apply to a later bill.
Troubleshooting
| Issue | Possible Cause | Resolution |
|---|---|---|
| The bill still reads open after the payment | The payment was saved without being allocated to that bill | Open the payment and allocate the amount to the bill |
| The bill you want to pay is not listed | The bill belongs to a different vendor, is already paid, or is outside your permission scope | Confirm the vendor on the payment and ask your Administrator to widen your scope if needed |
| There is no bill to pay at all | The purchase order has not been billed yet | Create the bill from the delivered purchase order first |
| The expense total looks doubled | The payment was also entered manually as an expense | Remove the manual expense and rely on the automatic "Payment to vendor" record |
| A vendor credit appeared unexpectedly | The payment amount exceeded the allocated bill total | Check the allocation. If the payment amount was wrong, correct it and review the credit |
Frequently Asked Questions
Can one payment cover bills from two vendors?
A vendor payment is recorded against one vendor and allocated across that vendor's bills. Record a separate payment for each vendor.
Do I need to create the expense myself?
No. Paying a vendor creates an expense labelled "Payment to vendor" automatically.
What happens if I overpay?
A vendor credit is created automatically for the excess.
Can I pay a vendor before the goods arrive?
A payment is allocated to bills, and a bill exists only once a delivered purchase order has been billed. Agree the handling of advance payments with your finance team.
Related Articles
Our support team answers on business days. Reference PRC-06 so we can jump straight in.