Documenting journal entries during the process of transactions on vendor payment portals works at a different pace altogether.
Even if your accountants are perfect at their job, human errors are unavoidable and that can ultimately cost the company big.
To prevent this, getting automated vendor payment solutions is the best available option.
In this blog, we break down the concept of vendor payment entry and the best way to go about doing it.
Table of Contents
A record of the vendor payments for multiple invoices comprises Vendor payment entry.
Before the creation and usage of vendor payment entry, it is important to create a list of the customer, supplier and bank accounts.
Vendor payment entry can be for different types of transactions. Examples are Purchase Order, Sales Invoice, Expense Claim, Purchase Invoice, Sales Order, and Internal Transfer.
As a business owner, irrespective of the size of your business, you might find yourself forced to make multiple vendor accounts payable.
It is when this number rises that the complexity increases for maintaining records of the same.
There are countless examples of organizations crashing and shutting down due to the huge rate of cash burn.
This is because their traditional banking platforms do not provide them with advanced analytics to track the spending patterns of the entire organization.
Huge MNCs might be able to plough through huge amounts of funds and still be relatively unaffected by it. But for a Startup/SME business owner, you need to have a hawk’s eye on the spending patterns of your company.
This is when keeping a record of the vendor payment entry becomes inevitable.
Journal entry is a crucial part of accounting as it shows the firm’s current liability. It will have all the information about the amount receivable or payable from the vendor including
An accounts payable is a ledger record that displays the money that the company owes to its creditors. It is generally a short-term debt for all goods and services that were credited by the vendors before payments were made.
An accounts payable process is an important part of vendor payment entry since it ensures only the most authentic invoice payments are fulfilled.
Control is an inherent need in financial operations. Control means monitoring, allocation, and usage of the business’s financial resources. This can be achieved only through an intelligent system that enables smart decision-making.
Making payments in paper or checks is a very time-consuming, slow process, which also poses a threat to sensitive information.
Consequently, in the last 5 years, there has been an exponential rise in demand for secure online payments, which is what you should be looking out for too.
As there has been unprecedented growth in payments technology worldwide, vendor payment portals have cropped up to aid in vendor payment entry.
Many are legitimate and secure.
Others, not so much.
This is where Karbon Payout comes into play.
Sometimes you may have to wait for your vendor to furnish their account details to add them to the accounting software. Once you get the details from your vendors, there is a further waiting period to add beneficiaries’ details to your payment system. This entire process is highly unoptimized and time-consuming.
Therefore to solve this very problem, we have revolutionized the process by introducing Payout Links. You or your accounts payable team will never have to add another vendor manually again.
Here’s how it works:
It is that simple! But this is not all. Karbon payout serves a much larger purpose and acts as a complete vendor management solution.
Payroll, vendor payments, and partner payments are integrated and can be viewed on one dashboard to access and track all the funds flowing out of the company. Track your spending from only one place and generate meaningful insights into your spending trends.
Depending on the payment amount and the time of day, our intelligent Payout system automatically shortlists a payment method out of all available options.
Automatically generates PDFs and sends them to the vendors, post vendor payment process.
Its main features are:-
The views expressed in the blogs on this page are solely the opinions of the authors and do not constitute expert advice. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. We disclaim any liability for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.