Customer and Supplier Payment Method

As the name implies, the payment method identifies the method that is used to pay a supplier, or collect payments from a customer. The payment method is set for each customer and supplier in Customers (CUS) and Supplier (SUS).

A payment method is also chosen in Payment Run and Payment Collection Run to determine the type of payments to be generated by the run.

Note: The payment method set for a supplier or customer must match the payment method chosen in Payment Run or Payment Collection Run for the supplier or customer to be considered for payment.

There are four possible payment methods.

Method	Use
Cheque Payment	For accounts paid by cheque.
Single Payment	To print one-off cheques for each transaction on an account. This allows you to identify a number of accounts as 'miscellaneous' or 'one-off purchase' accounts. Payment Run produces a separate remittance and/or cheque for each transaction line using the transaction description as the payee's name.
Bank Payment	For accounts settled using an automated bank payment or collection method. This option can only be used if the Automated Bank Payments in Ledger Setup is not set to Unused. Also, Bank Details must be defined for the customer or supplier to hold the necessary bank account information.
Other, Not Specified	For accounts settled by any other payment method.

You can produce payment documents, for example remittance advices, for all creditor/payable and client accounts, regardless of payment method, provided payment is made using Payment Run.

See How is the Payment Method Used? for further information.