Payment Method

A Payment Method is a way of paying, with the accounts the money leaves from. On a payment, picking the method fills the account marked Default.

Where: Accounts Payable › Payment › Payment Method
Who uses it: The implementation consultant
When: At setup, and when a bank account is added
Needs first: The bank and cash accounts in the chart of accounts, banks in Cash and bank

What it is for

Each vendor carries a default method, and every Payment Through line of a payment names one. The method's accounts are what the payment credits.

Field	What it means	What to put
Payment Method	The code	Required, unique per company
Name	The name	Required
Payment Type	The kind of method	Required. Recorded only: nothing reads it
Required Instrument Number	Meant to make the cheque number required	Recorded only: payments do not enforce it
Block	Stops it being picked	Tick to block

Column	What it means	What to put
Account	The bank or cash account	Required
Bank	The bank	Optional. Picking a bank clears the Account
Default	The account a payment takes	Only one Default
Bridging Posting	Pay through an intermediate account first	Opens Offset Account
Offset Account	The bridge account	With Bridging Posting
Post Dated Cheque	Meant for post-dated cheques	Recorded only

One method per way of paying, at least one account each, one Default.

A company pays from two banks by cheque. Method Cheque with two accounts; Default the main bank. Pick the other on the payment line when needed.

Payment, Payment Request, Release Vendor In Legal Entity.
Bank Transactions - where payments made through a Bridging Posting line are cleared from the clearing account to the Offset Account.