How to Make a Third-Party Payment for an Invoice
A supplier of yours might be a customer of one of your clients, which can make paying your purchase invoices through a third party a possible scenario.
In this case, you can pay an outstanding invoice to one of your suppliers using the balance owed to you by one of your clients, if the supplier owes the same client a financial amount.
Set up the Settings
Click on “Sales Settings” from the dropdown under “Sales” in the main menu, then click on “General Invoice/Estimate Settings.”
Enable the setting “Auto Pay Invoices if the Client Has Available Credit.”
Then, click on “Accounting Settings” from the dropdown under “Accounting” in the main menu, and then click on “Account Routing.”
Click on “Treasury” and select the allocation type “Specify per Each.” Then, click the “Save” button.
Paying a Supplier Purchase Invoice via a Client Sales Invoice
Adding a Treasury
Click on “Treasuries & Bank Accounts” from the dropdown under “Finance” in the main menu, then click on “Add Treasury .”
Enter the name of the treasury and select the client account through which you wish to pay the purchase invoice as a third party.
Sales Invoice
In this example, we have added a sales invoice for the client Adam with an amount of $1000.
Purchase Invoice
Then we added a purchase invoice amounting to $1000 for the supplier ‘National Company.’
We want to pay this purchase invoice using the outstanding balance owed to us by the client Adam.
In the purchase invoice screen, we activated the ‘Already paid to the supplier’ feature and selected the treasury ‘Adam’s Treasury.’ After completing the purchase invoice details, we saved it.
We find the purchase invoice, after saving, in the ‘Paid‘ status. We click on the ‘Payments‘ tab to view the payment details.
We’ll find in the payment details the treasury “Adam’s treasury“.
