Pay against receipt, not against order
Payables built from goods received notes rather than purchase orders already account for short supply and rejections. The figure holds up when the supplier reads out their own ledger.
- Payable derived from received and accepted quantities
- Advances recorded against the supplier and adjusted on invoices
- Debit notes for rejections visible in the same balance
Ageing tells you where the pressure is
An outstanding total says little. The same amount split across what is overdue by 30, 60 and 90 days tells you which conversations to have this week and which supplier is quietly extending you credit.
One version of the balance
When purchasing, receiving and accounts read the same record, the supplier call takes two minutes instead of a file review - and the relationship stays commercial rather than defensive.
Takeaway
Derive payables from receipts, adjust advances and debit notes in the same place, and watch ageing rather than totals.
Topics in this article
- payables
- supplier outstanding
- advance
- debit note
