Overview

The Accounts Payable Module in DIGITZ ERP manages all supplier-related financial obligations. It consolidates supplier invoices, expense-based payables, payments, ageing schedules, and all reporting required to monitor outstanding dues.
Every Purchase Invoice, supplier-linked Expense Entry, Payment Entry, and Debit Note is automatically reflected in the Supplier Ledger, ensuring accurate and real-time visibility of liabilities.

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Purpose

To systematically record and track all amounts owed to suppliers, ensuring timely settlement, improved cash-flow planning, and accurate financial reporting.
The module centralizes payable operations and integrates with purchasing, expenses, and accounting workflows to maintain complete financial transparency.

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How It Works

When Purchase Invoices or supplier-linked Expense Entries are submitted, DIGITZ ERP automatically creates corresponding postings in Accounts Payable.
Payment Entries reduce supplier outstanding, while Debit Notes and adjustments update the payable balance.

All key computations — including outstanding, ageing, itemwise summaries, and expense-related dues — are derived from:

• Supplier Ledger Entries
• Purchase Invoices
• Expense Entries
• Payment Entries
• Debit Notes
• Company credit terms and configurations

All reports reflect real-time figures derived from GL postings.

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Key Fields

• Supplier – Vendor associated with the payable.
• Posting Date – Date on which the liability is recognized.
• Invoice / Bill Number – Supplier reference for reconciliation.
• Payable Amount – Net amount due after taxes and adjustments.
• Taxability – Determined by Item Tax and Company Tax configurations.
• Project / Cost Center – Tracks procurement and expenses by segments.
• Payment Mode – Used when purchases or expenses are settled immediately.

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Payable Creation via Purchase Invoice

Purpose

To record supplier bills for goods/services and automatically create liability postings.

How It Works

• Submitting a Purchase Invoice posts the payable amount to the supplier.
• Taxes, expenses, and valuation entries are updated as per configuration.
• Credit Purchases → Post to Accounts Payable.
• Immediate Payment Purchases → Post to the linked Cash/Bank account.

This ensures accurate accounting whether purchases are paid instantly or on credit.

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Payable via Expense Entry

Purpose

To record indirect expenses involving supplier invoices and capture them as liabilities.

How It Works

• Supplier-linked rows in Expense Entries create payables.
• Each such row contributes to supplier outstanding until settled.
• Tax and expense postings occur automatically.

This allows handling multiple supplier-related expenses in a single document.

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Debit Note Handling

Debit Notes help manage:

• Purchase returns
• Price corrections
• Supplier credit adjustments

Submitting a Debit Note reduces the supplier liability and updates all Accounts Payable reports.

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Posting Behaviour

• Purchase Invoices create supplier liability.
• Payment Entries reduce outstanding and update cash/bank ledgers.
• Debit Notes reduce payables.
• Supplier-linked Expense Entries create outstanding entries.
• When Rate Includes Tax is enabled, the system extracts the tax portion before posting.
• Stock and valuation postings occur when Purchase Invoices include stock items or update stock.
• Ageing calculations follow the Due Date or Posting Date, based on company settings.

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Reports Included in Accounts Payable

DIGITZ ERP provides a comprehensive suite of reports to manage supplier obligations, expenses, and payment analysis.

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1. Supplier Outstanding Report

Displays pending amounts supplier-wise and invoice-wise, helping identify outstanding dues.

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2. Supplier Statement of Account

A complete ledger of transactions with each supplier, including:

• Purchase Invoices
• Payments
• Debit Notes
• Adjustments
• Running Balance

Critical for vendor reconciliation and audit purposes.

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3. Supplier Ageing Report

Breaks outstanding payables into ageing brackets based on the invoice posting or due date:

• 0–30 days
• 31–60 days
• 61–90 days
• Above 90 days

Useful for prioritizing payments.

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4. Purchase Payment Analysis Report

Analyzes:

• Supplier-wise payments
• Payment modes
• Paid vs outstanding amounts
• Credit purchase patterns

Essential for cash-flow planning.

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5. Periodic Purchase Analysis Report

Summarizes total purchases over selected periods — Monthly, Quarterly, or Yearly.
Helps analyze vendor spending trends and seasonal purchasing behavior.

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6. Purchase Register

A detailed listing of all Purchase Invoices submitted during a period, showing:

• Supplier
• Invoice amount
• Taxes
• Posting date
• Payment mode or credit details

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7. Purchase Itemwise Summary

Summarizes purchases aggregated by item:

• Total quantity purchased
• Total purchase value
• Item-level spending analysis

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8. Purchase Itemwise Register

A transaction-level breakdown of item entries within Purchase Invoices, showing:

• Quantity
• Rate
• Discounts
• Tax components
• Valuation impact

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9. Expense Detailed and Outstanding Report

A combined report that provides detailed visibility into all supplier-linked Expense Entries and their pending outstanding amounts.

What it includes:

• Every Expense Entry with line-item details
• Expense Head breakdown
• Linked Supplier and invoice references
• Amount, tax, and payment mode
• Paid amount and outstanding amount
• Ageing of outstanding expenses
• Project / Cost Center segmentation
• Consolidated view of unpaid, partially paid, and settled expense-related liabilities

This report merges both expense analysis and payable tracking into a single unified dashboard, making it easier to manage supplier-related expense dues.

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Integration

Purchasing

Purchase Orders, Receipts, and Invoices directly generate payables.

Expense Entry

Supplier-linked expenses feed directly into payables and outstanding tracking.

Payment Entry

Reduces supplier outstanding and updates related cash/bank ledgers.

Inventory

Stock valuation updates occur when purchases involve stock items.

General Ledger

All liability movements reflect in Trial Balance, Profit & Loss, and Balance Sheet.

Projects / Cost Centers

Purchase and expense postings tied to projects support accurate project costing and profitability tracking.