How to check the debt to the supplier, make a payment and reconcile the balance

For running a trading business, it is important not only to sell goods, but also to clearly control the processes of purchasing them and settling accounts with suppliers. Losing control over debts, confusion with advance payments, or incorrect settlements for goods taken «on consignment» can lead to financial losses.

Torgsoft offers a powerful goods and cash balance (GCB) system that records the value of goods you received and how much money you paid to the counterparty, allowing you to control finances at both macro and micro levels.

Flexible debt search: overall balance

All work with suppliers is carried out in the «Payments» — «Balance with Partners» mode. To avoid reviewing the entire list of counterparties, the program offers flexible debt filters. You can choose:

• Whom I owe — will show only those suppliers to whom you still owe payment for goods.

• My debtors — will show suppliers to whom you made an advance payment (prepayment), but the goods have not yet been received, or if an overpayment occurred.

• There is an opening debt — for monitoring debts that were recorded at the moment you started working in Torgsoft.

• No debts — to check partners with whom settlements are fully closed.

Detailed breakdown and reconciliation statements

If you need to understand where a specific debt amount came from, a regular overall balance is not enough. Torgsoft offers two tools for micro-control:

1. Settlement card. This is a chronological list of all transactions (receipts, payments, returns). For the convenience of reconciliation with the supplier’s accounting, this report displays the supplier’s original invoice number in parentheses next to your internal invoice number. From here, you can also print «Print financial settlements», which serves as a full reconciliation statement.

2. Balance with partners breakdown. This is a powerful window that divides the relationship history into three areas:

•    Invoices — a list of all deliveries showing the debt for each specific invoice.

•    Payments and Goods — allows you to select an invoice and instantly see below exactly which goods were in it and by which transactions it was paid.

•    Payments not linked to invoices — a separate critically important table. This is where your advance payments or general debt repayments transferred to the supplier simply to the balance, without linking to a specific delivery, are recorded.

Entering payments: cash desk vs personal money

You can repay a debt directly from the «Balance with Partners» window by clicking «Add cash transaction» or «Add payment». The program will then ask for the source of funds, and there is an important nuance here:

• Cash desk / Current account — the money will be written off from the store’s cash desk or the company’s account. An official financial document will be created, which will reduce the overall profit / cash balance in the program.

• Personal money — this method is ideal for simplified accounting. The program will reduce your debt to the supplier, but it will not create an outgoing financial document for the cash desk. This is used when the owner takes money out of their own pocket and settles directly, without affecting the store’s working capital.

Specific settlements: particular invoices, currency, and consignment

 Payment for a specific delivery. If you want to pay not the total debt, but a specific batch, go to «Warehouse — Incoming Invoices Register», select the document, and click «Make payment to supplier». The money will be linked exactly to that invoice.

 Currency settlements. If goods were purchased in dollars or euros, the debt is recorded in that currency. To settle it, you need to go to «Payments — Financial document», perform a «Currency exchange» (systemically buy currency for hryvnias into the cash desk), and only then enter this currency as a payment to the supplier.

 Goods on consignment. If you pay only for what was actually sold, use the «Analysis of supplier consignment goods sales» report. Using the FIFO algorithm (first in — first out), it calculates the debt amount only for sold items. Important: this report only performs the mathematical calculation of the amount due. The actual payment of these funds to the supplier after reviewing the report must be made in the standard way — through the «Payments — Financial document» mode.

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