Add a Payable Account Type

Payable Account Types categorise the different types of Payable Accounts. These are then used to report the sections in the Payable Accounts Trial Balance and can also be selected as an option on the Manage Pay Accounts menu.

The Account Types help you to manage your due payments by categorising them in your Trial Balance for a helpful view of who you need to pay and how / when you need to pay them.

For your stock suppliers and general purchases, you may have payment terms of paying by the 20th of the next month. Some suppliers may want you to pay within 7 days, or you may have agreements to pay after 60 days.

Perhaps you have your utilities set up to be paid by automatic payments, though you still want to show them as creditors in your trial balance and have that flow through to your Cash book and Balance sheet.

If you are importing goods from overseas suppliers, you may need to pay in advance, in which case the account for that supplier may appear as a debit in your Trial Balance until the invoice has been processed.

If you have Cash purchases, these will generally not appear in your Payable Account Trial Balance, although you will still want the invoices to be recorded to update your stock records, and payments to be recorded through your cash book and on to the Balance sheet.

Account Types can work in conjunction with Payment Terms to help you manage paying your supplier invoices according to the due invoice dates as per your agreed terms.

Example Account Types could be something like this:

• • 30 days.
  • 60 days.
  • 90 days.
  • Cash.
  • Import (that you might pay in advance).
  • Direct Debit (for utilities that you may pay by automatic payments).

To set up a new Payable Account Type:

• Start at Payables > Account Type and click New Payable Account Type. (You can also access this from the Administration > Account Type menu.)
• Enter a Code and Description, and click Confirm.

On the next screen, you can select the options required for

• General ledger account settings,
• Account transaction types, and
• Default settings.
• Click Save to save the new Account Type.

Now you can assign Account Types your your Payable Accounts. Refer to Add a new Payable Account for information on how to do this.

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