Payables accounts creditor/payables accounts
Each supplier is linked to a creditor/payables account, or client account, in Financials. This link is important because all of the ledger transactions for the supplier are posted to this ledger account.
The creditor/payables account can be created by Supplier (SUS) by entering the required account code as part of the new supplier details. Alternatively, you can create the account using Chart of Accounts (COA) and then select this account for the supplier in Supplier (SUS).
You should take some time to consider the account code structure you will use for your creditor accounts.
Client Accounts
A supplier can be linked to a Client account in Financials, rather than a creditor/payables account. This is used when you purchase goods from, and sell goods to, a single account. This may be useful for inter-company accounts. During one period, you may make payment to clear the account. During the next period the account may be included in the payment collection run. If you are not sure what the balance on an account is going to be from week to week, you may want to designate it as a client account.