Purchase Payments Module

Overview

The Purchase Payments module is your pharmacy's accounts payable system. It tracks all payments made to suppliers for purchase orders. Think of it as your digital checkbook specifically for paying drug suppliers. This module ensures you have accurate financial records, helps you track what you owe, and provides proof of payment for auditing purposes.

Navigating to Purchase Payments

1. Look for the Inventory Management section in your left sidebar menu
2. Click on Purchase Payments (usually at the bottom of the group)
3. You'll see a chronological list of all payments made to suppliers

Understanding Purchase Payments

What is a Purchase Payment?

A Purchase Payment is a record of money paid to a supplier for goods received through a purchase order. Each payment record:

• Links to a specific purchase order
• Records the exact amount paid
• Documents when and how payment was made
• Provides proof of payment for accounting

Why Track Payments Separately?

• Financial accuracy: Know exactly what you've paid and what you owe
• Supplier relationships: Maintain good records for supplier disputes
• Cash flow management: Track outgoing payments
• Audit compliance: Provide proof of payment during audits
• Budget tracking: Monitor spending against budgets

The Payment Process Flow

Complete Order-to-Payment Cycle:

Create Purchase Order → 2. Receive Goods → 3. Verify Invoice →

Record Payment → 5. Update Purchase Order Status

Recording a New Payment

Section 1: Payment Details

The core information about the payment:

Required Information:

• Purchase Order: Select which order you're paying for
  • Search by order number
  • Shows related supplier automatically
• Amount Paid: How much money you're paying (in UGX)
  • Enter the exact payment amount
  • Should match invoice amount
• Payment Date: When the payment was made
  • Use actual payment date, not invoice date

Important Note:

Each payment is linked to one purchase order. If paying multiple orders with one payment, you may need to:

• Split the payment across multiple records, OR
• Create separate payments for each order

Section 2: Payment Method & Reference

How the payment was transmitted:

Payment Method Options:

• Cash: Physical cash payment
• Mobile Money: Digital payment (M-Pesa, Airtel Money, etc.)
• Bank Transfer: Electronic bank transfer

Reference Information:

• Reference Number: Transaction identifier
  • For cash: Receipt number
  • For mobile money: Transaction ID
  • For bank transfer: Bank reference number
• Always record references: Essential for tracking and disputes

Section 3: Additional Notes

Extra information for internal use:

• Notes: Any special information about this payment
  • Partial payment explanations
  • Discounts applied
  • Payment terms notes
  • Special arrangements with supplier

Automatic Recording:

• Created By: System automatically records who entered the payment
• Timestamp: System records when the payment was entered

Viewing Your Payment Records

Main Columns Displayed:

• Purchase Order: Which order was paid
• Amount: Payment amount (UGX)
• Payment Method: How payment was made
• Reference Number: Transaction identifier
• Payment Date: When payment occurred
• Created By: Who recorded the payment

Hidden Columns (Available if needed):

• UUID: Unique system identifier
• Organization ID: Internal system code
• Timestamps: Created/updated dates (for auditing)

Sorting and Filtering:

• Default sorting: Most recent payments first
• Sort by: Amount, date, or payment method
• Date filters: Find payments within specific date ranges
• Search: Find by purchase order number or reference number

Payment Status Management

Understanding Payment Status:

Payments affect the status of purchase orders:

Payment Situation	Purchase Order Status	Payment Record Action
No payment yet	Payment: Pending	No payment record
Partial payment	Payment: Partial	Record partial amount
Full payment	Payment: Paid	Record full amount
Overdue payment	Payment: Overdue	Record late payment

Payment Amount Guidelines:

• Full payment: Amount = Purchase Order Total Amount
• Partial payment: Amount < Purchase Order Total Amount
• Multiple payments: Create separate records for each payment

Quick Reference Guide

Payment Method Details:

Method	Reference Example	Best For
Cash	"REC-001234"	Small amounts, immediate payments
Mobile Money	"MMT123456789"	Quick payments, remote suppliers
Bank Transfer	"BT2024-00123"	Large amounts, formal payments

Payment Status Indicators:

Icon	Status	Meaning
🔴	Pending	No payment recorded
🟡	Partial	Some payment made
🟢	Paid	Full payment made
⚫	Overdue	Payment past due date

Payment Documentation Requirements:

Payment Method	Required Info	Keep Copies Of
Cash	Receipt number	Supplier receipt
Mobile Money	Transaction ID	SMS confirmation
Bank Transfer	Bank reference	Bank statement

Best Practices for Payment Management

Before Making Payment:

1. Verify goods received: Only pay for what you received
2. Check invoice accuracy: Match invoice against purchase order
3. Confirm payment terms: Know when payment is due
4. Get approval: Ensure payment is authorized

When Recording Payment:

1. Record immediately: Don't wait - record same day
2. Enter exact amounts: No rounding or estimates
3. Include all references: Complete transaction details
4. Add clear notes: Explain any special circumstances

After Recording Payment:

1. Update purchase order: Change payment status
2. File documentation: Keep physical/digital copies
3. Reconcile accounts: Match with bank/cash records
4. Follow up if needed: Ensure supplier confirms receipt

Common Payment Scenarios

Scenario 1: Full Payment on Delivery

Situation: Supplier delivers goods and you pay immediately

Process:

1. Receive and check goods
2. Verify invoice matches purchase order
3. Make payment (cash/mobile money)
4. Record payment:
   • Purchase Order: Select the order
   • Amount: Full order amount
   • Payment Date: Today's date
   • Method: As used
   • Reference: Receipt/transaction number

Scenario 2: Partial Payment (Deposit)

Situation: Pay 50% deposit, balance on delivery

Process:

1. Record first payment (deposit):
   • Amount: 50% of total
   • Notes: "50% deposit as per agreement"
2. When goods delivered, record second payment:
   • Amount: Remaining 50%
   • Notes: "Final payment upon delivery"

Scenario 3: Multiple Payments for One Order

Situation: Paying large order in installments

Process:

1. Create separate payment record for each installment
2. Each record has:
   • Same purchase order
   • Different payment dates
   • Different amounts
   • Clear notes (e.g., "Installment 1 of 3")
3. Update purchase order status after final payment

Scenario 4: Payment with Discount

Situation: Supplier offers 5% discount for early payment

Process:

1. Calculate discounted amount
2. Record payment for discounted amount
3. Add note: "5% early payment discount applied"
4. Verify purchase order reflects discounted total

Scenario 5: Late Payment

Situation: Payment made after due date

Process:

1. Record payment as usual
2. Add note: "Payment delayed due to [reason]"
3. Consider updating supplier rating if chronic issue
4. Update purchase order to show overdue resolved

Financial Management Tips

Cash Flow Management:

• Schedule payments: Don't pay everything at once
• Use payment terms: Take advantage of credit periods
• Track due dates: Avoid late payment penalties
• Plan for large payments: Budget accordingly

Supplier Relationship Management:

• Pay on time: Build trust with suppliers
• Communicate delays: If payment will be late, inform supplier
• Keep records: Avoid disputes with clear documentation
• Review terms: Negotiate better terms with reliable payment history

Audit Preparedness:

• Complete records: Every payment documented
• Supporting documents: Receipts, bank statements, etc.
• Clear trail: From order to payment
• Regular reconciliation: Monthly review of all payments

Troubleshooting Common Issues

Problem: Payment Doesn't Match Order Amount

Solution:

1. Check if discounts or credits applied
2. Verify partial delivery/partial payment
3. Contact supplier for clarification
4. Document discrepancy in notes

Problem: Missing Reference Number

Solution:

1. Check payment method documentation
2. Contact bank/mobile money provider
3. If truly missing, note: "Reference not provided"
4. Request confirmation from supplier

Problem: Wrong Purchase Order Selected

Solution:

1. Edit payment to correct purchase order
2. If already paid, contact supplier to reallocate
3. Add note explaining correction
4. Ensure accounting records updated

Problem: Duplicate Payment

Solution:

1. Identify duplicate immediately
2. Contact supplier for refund
3. Document in notes: "Duplicate - refund requested"
4. Monitor until refund received

Connecting with Other Modules

With Purchase Orders:

• Payments update purchase order payment status
• Total payments tracked against order amount
• Due dates managed through payment records

With Suppliers Module:

• Payment history contributes to supplier rating
• Payment terms tracked from supplier records
• Performance analysis based on payment patterns

With Financial Accounting:

• Payment records feed into accounts payable
• Cash flow reports generated from payment data
• Budget tracking against actual payments

Reports and Analytics

Useful Payment Reports:

• Payment summary by supplier: Who you're paying most
• Payment method analysis: How you're making payments
• Payment timing report: Early vs. on-time vs. late payments
• Monthly expenditure: Total payments by month
• Outstanding payments: What's still owed

Generating Financial Reports:

1. Use date filters for specific periods
2. Export to spreadsheet for analysis
3. Group by supplier, payment method, or status
4. Create charts for visual representation

Security and Compliance

Financial Security:

• Access control: Limit who can record payments
• Approval workflows: Require authorization for large payments
• Audit trails: Track all changes to payment records
• Backup regularly: Protect financial data

Regulatory Compliance:

• Tax documentation: Keep records for tax purposes
• Audit readiness: Maintain complete payment trails
• Supplier documentation: Verify supplier legitimacy
• Financial reporting: Generate required reports

Need Help?

Quick Tips for Success:

• Always record payments immediately after making them
• Double-check amounts before saving
• Keep all reference numbers - they're your proof
• Reconcile weekly to catch errors early
• Communicate with suppliers about payment issues

Common Questions:

Q: Can I delete a payment record if I made an error? A: Better to edit it with correction notes than delete it

Q: What if I pay multiple orders with one transaction? A: Create separate payment records for each order, note they're part of one transaction

Q: How do I handle supplier refunds? A: Create a negative payment record or note in the original payment

Q: Should I record bank charges separately? A: Include in notes or as separate line item if significant

Getting Support:

• System auto-saves all entries
• Audit trail tracks every change made
• Export functionality for backup and reporting
• Restore capability for accidental deletions
• Training available for financial best practices

Glossary

• Purchase Payment: Record of money paid to supplier
• Payment Method: How payment was transmitted (cash, mobile money, bank)
• Reference Number: Unique identifier for the transaction
• Payment Date: When payment was actually made
• Partial Payment: Less than full amount paid
• Payment Terms: Agreed conditions for payment timing
• Accounts Payable: Money owed to suppliers
• Reconciliation: Matching payments with bank/cash records
• Audit Trail: Complete record of all payment activities