Payment Methods and Account Mapping
When recording a payment against a bill, you need to specify both the payment method and the account the payment should be posted to. This guide explains how these two concepts work together.
Available Payment Methods
The Payment Transaction form provides a dropdown of payment methods. The standard methods available include:
- Check — A physical or electronic check sent to the vendor
- Cash — Cash payment delivered to the vendor
- Credit Card — Payment made using a company credit card
- Bank Transfer — A wire transfer or electronic funds transfer
- ACH — Automated Clearing House electronic payment
- Other — Any payment method not covered by the standard options
The payment method is recorded with each payment for audit purposes and reporting. It does not change how the payment is posted to the general ledger.
Account Mapping
The Account dropdown on the Payment Transaction form lists all general ledger accounts available for posting payments. Selecting the correct account ensures your financial records accurately reflect where money is being spent.
Common account categories used for bill payments include:
- Accounts Payable — The standard liability account for vendor bills
- Operating Expenses — For bills related to day-to-day business operations
- Utilities — For utility bills
- Rent — For lease or rent payments
- Supplies — For office or operational supply bills
The account you select determines which general ledger account is credited or debited when the payment is recorded.
Payee Types
The Payment Transaction form includes a Payee Type dropdown that categorizes who is being paid:
| Payee Type | Description |
|---|---|
| Vendor | Payment to a vendor or supplier. This is the default when paying a bill. |
| Employee | Payment to an employee, such as reimbursement for a bill they paid on behalf of the company. |
| Other | Payment to any other entity not classified as a vendor or employee. |
When you open the payment form from a bill, the payee type is automatically set to Vendor and the vendor name is pre-populated from the bill.
Default Account Selection
The account dropdown loads all available accounts when the payment form opens. If you frequently post payments to the same account, you can select it quickly from the dropdown. The system remembers the accounts available to your location.
For split payments where the total is distributed across multiple accounts, each split line has its own account selection. This is covered in detail in the Split Payments article.
Matching Payments to Vendors
When you record a payment from the bill form, the system automatically links the payment to the correct vendor. This linkage allows you to:
- View all payments made to a specific vendor
- Generate vendor payment history reports
- Reconcile vendor statements with your payment records
What to Read Next
- Split Payments Across Multiple Accounts — Distribute a single payment across multiple GL accounts
- Recording Payments on a Bill — Step-by-step payment recording guide
- Bills Report — Detailed and Summary Views — View payment data in reports