Lesson 2 of 4 · 2 min

Paying your suppliers

Pay from your bank as you always do, then record it: against one bill, several, or as an advance.

  1. Pay a supplier

    Ledger doesn't send money: pay the supplier from your bank, by cheque or in cash as you always do, then write it down, with Pay on the bill or Pay a supplier in Purchases → Payments made: the Amount, which account it was Paid from, the Date and How.
  2. Their bills come in with the amount spread across them, the soonest due first; change any bill's share by hand, or press Fill oldest first to put it back. Part of a bill reads Part paid, and anything over what you owe (or all of it, as An advance) stays with the supplier as an advance, for their next bill.

  3. What the payment posted

    In the books, what you owe the mill comes down and your bank comes down by the same amount. Your profit doesn't change: the rice became a cost when it was sold, not when it was paid for.
  4. The Overview reminds you of supplier bills due this week and any overdue, and Reports → You owe suppliers lists every supplier by how long their bills have been due, so nothing slips.

Try it

Opens Ledger. You'll be asked to sign in first; new businesses get a free week, no card needed.

Pay a supplier

Quick check

One quick question. Pick an answer and Leo will tell you how you did.

1. You pay a supplier's bill. What happens to your profit?

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