Payment to vendor is the advance payment you pay to the vendor for future transactions. For an example, you give 50,000 to your vendor and then pay different things with that amount. To create payment to vendor, click on “Payment to Vendor” Option from the drop-down list of the Finance Category.
When you click on “Payment to Vendor” Option, a new page appears on the screen that facilitate you in creating a purchase order for the vendor for the advance payment. To create an order, you have to:
- Select the date at which you are creating the sales order
- Select the data of the vendor from the Lookup option
- Amount you are giving to the vendor
- Method of the payment
- By which medium the money is deposited
- Reference and can add some notes about the vendor
After inserting all the essential details, click on “Save” button to save or create an order for the vendor.