Issuing Payment To Suppliers

This procedure aims at improving the following:
  • Quality Range and type of products in store
  • Cash flow of the company
  • Better service quality to the supplier

Normal Practice

Normally, the account department would prepare or gather the following documents for bosses to review when issuing payment to the suppliers:
  • Supplier Invoices
  • Internal Goods Received Note
  • Payment Voucher
  • Cheque
We recommend looking at a few more things to optimize how you manage your suppliers.

Recommended Practice

In addition to the normal practice, we recommend the following:

1) RMA (Warranty Report)
  • To ensure better customer service, and avoid suppliers taking too long to replace RMA items, payments to supplier could be issued only after products under warranty sent to suppliers longer than a certain number of days be resolved.
  • Users could generate this RMA report for stocks with supplier. Click here for more information.
2) Sell Thru / Stock Balance / Selling Price / Gross Profit Analysis
  • By looking at the stock balance and sell through report based on GRN, one will be able to decide whether certain stock could be returned to the suppliers if it is extremely slow moving. Certain suppliers do allow swapping of goods for different products for the sake of long term business relationship.
  • For businesses where selling price is negotiable, looking at selling price and gross profit generated based on the GRN would help sharpen decision in placing new Purchase Orders with suppliers in future.
  • For certain type of business, bosses want to know what they purchased have been sold to who, and other related details.
  • Useful reports related to this are:
3) Supplier Rebates / Price Protection etc
  • When there's price protection given by the suppliers, companies normally reset their stock cost to stay competitive. A Supplier Credit Memo is created to account for this price protection. Users could click on the Finance Module, create Payment Voucher function to check if there are CM that one can use to knock off the Supplier Invoice, instead of making payments.
  • For rebates, the steps are the same, the rebates promised by supplier should be checked regularly by generating the stock purchase report, and compare it with the targets set by the supplier
4) Purhcase Returns
  • A purchase return in Wavelet automatically generate a Credit Memo to the supplier in Wavelet EMP. By using the Create Payment Voucher function in Finance module, and select the respective suppliers, one can pull out a list of CM that is available to contra or knock off the supplier invoice.
5) Difference between GRN Price / Supplier Invoice / Purchase Orders
  • Sometimes, the supplier invoices may differ from the Purchase Order, even though the GRN price is the same as the Supplier Invoice.