Supplier Payment

Supplier payment is a transaction that records the payment of funds to a supplier toward one or more bills. In Tigg, you create a supplier payment to settle outstanding bill balances. Payments can be made at the point of purchase, at the end of a credit term, or even in advance, and can cover bills fully or partially. Recording a payment decreases the supplier’s Accounts Payable balance.

Essential Requirements
To create a Supplier Payment the following items should already be set up in Tigg:

• Supplier
• Product/Service

These records are required because the Bill must be linked to a supplier and must include the products or services being purchased.

Supplier Payment List
The Supplier Payment List can be accessed by navigating to Purchase → Supplier Payment. This page displays all Supplier Payment created in the system and allows users to quickly manage and track them.
By default, the list displays the latest Supplier Payment, including both Draft and Approved bill. These bills can also be viewed separately through their respective Draft and Approved tabs.

Searching, Filtering, and Sorting
Users can easily locate bill in the list by using the following options:

1.Search – Find Supplier Payment quickly by entering relevant details such as number or supplier name.

2.Filter – Apply filters to narrow down supplier payment based on specific criteria.

3.Sort – Sort the list based on columns such as date, supplier name, or number.

      1. In the Purchase module, select Supplier Payment.

      2. Click + Add New

      3.  Paid To: Click this field and select the supplier from the dropdown to whom payment is made. (If the supplier isn’t created, use Add New to create it) 
     4.  Paid  From: Choose the Cash/Bank account from which the payment will be made. You must select from existing accounts.
     5.  Enter the Payment Number :

• The payment code can be automatically generated if the code is set to Auto in configuration.
• It can also be entered manually if numbering is set to Manual.

     6. Payment Date: Select the date the payment was made
     7. Amount: Enter the amount of the payment made to the supplier.
     8. Select the Currency and enter the Conversion Rate if the customer needs to be prepared in a currency different from the organization’s base currency.
    9. Payment Mode: Select how the payment was made (e.g., Cash, Cheque, Online Transfer). If additional payment modes are required, users can add them from Configuration → Payment Mode for better tracking and customization.
   10. Payment Reference: Enter any reference (cheque number, transaction ID, etc.) for this payment.
  11. TDS: Enter the tax deducted at source (if applicable) to reflect the net amount received.
  12. Bank Charge: Record any bank charges deducted (if applicable) to ensure the correct net payment amount
  13. Payment Allocations: Payment allocation is the process of applying a supplier payment to their outstanding bills. In TIGG, when a payment is made, a list of the supplier’s open purchase bills is displayed. By default, TIGG allocates payments to the oldest purchase bill first, following the FIFO (First In, First Out) method.

• Users can also enter amounts manually in the This Allocation column to ensure accurate tracking of paid and unpaid purchase Bills.

  14. The Notes field allows users to add additional information or comments related to a transaction. This can be used for internal references, clarifications, or any details that are not captured in other fields.
 15. Reporting Tags:Reporting Tags are used to categorize transactions for better tracking and reporting. Users can assign tags based on departments, projects, locations, or any custom category. This helps in generating more detailed and filtered reports for analysis.
  16. The supplier payment  can be saved as:

• Draft – Can be reviewed or modified later.
• Approved – Indicates that the supplier  payments are finalized.

The TDS option is available in Supplier Payment to record tax deducted by the customer at source while making the payment. When this option is enabled, the user needs to select the TDS Account, which is the ledger where the deducted tax is recorded. This is typically a current liability account, as the TDS represents a tax credit that can later be adjusted against income tax payable. The TDS Type refers to the classification of the TDS based on the applicable revenue or tax code, helping in proper tracking and compliance reporting. The TDS Amount field captures the actual amount of tax deducted by the customer, which reduces the net amount received while recording the payment.

• TDS Account: The ledger account (usually a current liability) where the deducted tax is recorded and tracked as a payable.
• TDS Type: The applicable tax/revenue code used to classify the nature of TDS for reporting and compliance.
• TDS Amount: The actual amount of tax deducted  at source.

Once all fields are completed, proceed to save the Supplier Payment.

Bank Charge in Supplier Payment
The Bank Charge option is available in Supplier Payment to record any charges imposed by the bank while processing the payment to suppliers. When this option is enabled, the user must select the Bank Charge Account, which is the ledger where these charges are recorded. This is typically an expense account, as bank charges represent a cost incurred by the business during the transaction.
The Amount field captures the value of the bank charge applied by the bank. This amount increases the total cash outflow from the bank, even though it does not form part of the payment made to the supplier.
Bank Charge Account: The expense ledger where the bank charges are recorded.
Amount: The actual amount charged by the bank during the payment transaction.

When you save a supplier payment, Tigg immediately lists all unpaid purchase bills and expense bills for that supplier in the allocation section. By default, Tigg applies the payment amount to the oldest outstanding bills first (FIFO order). To override this, simply edit the “This Allocation” amounts for specific bills. For example, you might manually allocate different portions to different bills. If the payment exceeds the total of the selected bills, any unallocated remainder stays as a credit on the supplier’s account.

If you save a payment without fully allocating it, or if you have existing unallocated payments, go to Allocate Supplier Payment (under the Purchase menu). On this page, two tabs list payments: Allocated (fully matched) and Unallocated (partially or not matched). To allocate an unallocated payment, select it on the Unallocated tab – Tigg will suggest matching bills. You can then enter the allocation amounts manually or click FIFO to apply it to the oldest bills.

To make a partial payment on a supplier’s bill, simply enter the actual amount paid (which is less than the full bill amount). For example, if a bill is NPR 100 and you pay NPR 60, enter 60 in the Amount field. Tigg will apply NPR 60 to the bill and leave the remaining NPR 40 outstanding. The unpaid NPR 40 stays due on the bill for future payment. This lets you keep track of the remaining balance owed to the supplier, ensuring accurate accounts payable records.

For any supplier payment record, Tigg provides action options once the payment is opened. Common options include:

• Edit Payment – Modify any details of the existing payment (e.g. amount, allocations, references). This helps correct mistakes without creating a new payment record.
• Make Duplicate – Create a copy of the selected payment. You can then adjust and save the duplicate as a new payment record, useful for recurring similar payments.
• Void Payment – Void or cancel the payment. This invalidates the transaction; it cannot be undone once voided.
• Print / PDF / Email – Generate a printable or PDF version of the payment voucher. You can preview, print, or email this document to the supplier. Tigg provides a template by default, which you can customize under Configuration → Printing Templates.

For draft supplier payments, there may also be a Quick Action button (e.g. Approve) which allows you to finalize the payment from the list view without editing it fully.

In the supplier payment screen (bottom-left), you have additional sections for collaboration and audit trails:

• Tasks: You can link tasks or follow-up actions to a specific supplier payment. For each task, include details like title, description, assignee, due date, and status. This helps coordinate team activities (e.g. requesting approvals or clarifications related to the payment).
• Documents: Upload and attach supporting files (e.g. bank remittance advice, payment confirmations) to the supplier payment record. These documents stay linked to the payment, making it easy to reference proof of payment or related agreements whenever needed.
• Activity: This audit log records every action taken on the payment. It shows who created or modified the payment, user comments, approval steps, and any related emails. Reviewing the Activity section provides a clear history of all updates and communications for that payments.

What's Next?

Learn how to allocate supplier payments against specific bills for accurate accounting.

➡️ Learn more: Allocate Supplier Payments