Create Make Payments for Purchase Proforma Invoices

Usually, a make payment document finalizes your purchase process and is a sign of closing a purchase. In this case, you can create the make payment document to clear the liability for an unpaid purchase invoice or to record an advance made before goods or services were received.

If you create the make payment to close an open purchase invoice, external reconciliation takes place - the liability amount is increased (liability account is debited) and the paid amount is recorded in the bank account (bank account is credited).

To create a make payment for a particular purchase invoice:

1. Go to the Purchase Invoice under the Purchase tab.

2. Open the purchase invoice for which you want to create the make payment document.

3. The make payment document can be created in one of the following ways:

  • Click the +(picture) button on the toolbar, and then select Make payment.


  • From the purchase documents flow, select Make payment.

Codejig ERP will copy all the relevant information from the purchase invoice and transfer it to the make payment. Fields of the make payment document will be populated from the purchase invoice fields. Still, you can change data in any fields, manually modify the purchase invoice data, add other purchase invoices to be closed, override liability and advance accounts, indicate the purpose of payment.

You can also create a make payment document for a purchase invoice or multiple invoices from scratch without reference to a particular purchase invoice. If so, all the payment fields are empty and you have to fill them in manually.

To generate the make payment document for a purchase invoice or multiple purchase invoices from scratch:

1. On the Codejig ERP Main menu, click the Banking tab.

2. Under the Banking tab, click Make payment.

A listing page of the Make payment document opens.

3. On the listing page, click + Add new.

A page for providing details of the make payment document appears.

4. In the payment section, select a relevant type of payment which, in this case, has to be Payment for the vendor, select a payee, specify bank accounts into which and from which payments are to be made; set a currency of the payment and indicate payment amount.

For more information about fields of the Make payment: General section, see Make payment: Payment details section.

5. If you want to close purchase invoices manually, turn on the Match purchase invoices option.

By default, the Match purchase invoices option is turned off. If you keep it turned off, the FIFO (the first in, first out) method is used to close the purchase invoices issued by a selected payee.

Purchase invoice closing according to the FIFO method entails:

The purchase invoices issued by a payee are bulk closed automatically, and the first purchase invoices raised are the first invoices to be closed with a make payment. The whole made payment amount is allocated to the unpaid purchase invoices matching the purchase invoice amount of payment. If the payment amount is insufficient to pay down all the open purchase invoices, some invoices (the last invoices raised) will remain unpaid or partially paid. The remaining unpaid amount will persist as a vendor liability. If an over-payment is made, the overpaid amount is recorded as an advance for the vendor.

6. If you turn on the 
Match purchase invoices option, you get access to the Open purchase invoices section. In this section, you can add and modify open purchase invoices you want to close or partially close with the make payment amount.

To do that:

1.Turn on the Match purchase invoices option.

2. In the Open purchase invoices section, do one of the following:

  • To add all open invoices together with their details, select Fill with open purchase invoices click the Fill button.


  • To add invoices manually, click + Add new

In either case, a single or multiple purchase invoices are added as line items. However, if you add all open purchase invoices by clicking the Fill button, all purchase invoice line item fields are auto-completed and you do not have to fill them in manually.

Purchase Invoice Line Item Fields


Used for

Purchase Invoice

Purchase Invoice which you want to close fully or partially.

Once a purchase invoice is selected, all other purchase invoice payment details are auto-completed. However, you can change them, if necessary.

Amount of closed liability

The amount of the liability for the specified unpaid purchase invoice to be closed with the make payment.

The amount of closed liability is calculated as follows:

Amount of closed liability = Amount of payment - Discount amount (if applicable)

Discount %

An early payment discount in %. It reduces the amount you owe the vendor if you pay before the due date indicated on the purchase invoice.

  • Conditions on which the discount is applicable are retrieved from the net terms specified in the purchase invoice.
  • The due date of the purchase invoice and the date of the make payment document are compared, and if the payment is made within the period for which the early discount is allowed/provided, the discount percentage is displayed in the field.

Discount amount

The amount deducted from what you owe the vendor if you pay before the due date indicated on the purchase invoice.

The discount amount is worked out as:

Discount amount = Amount of payment x Discount %

Amount of payment

Total amount of the purchase invoice after the discount for it is calculated.

After adding the purchase invoice or invoices you want to close, you can view and edit purchase invoice payment details, if required. If your modifications cause any discrepancies between the paid amount and the amount of payment, the difference between the amounts is displayed in the Difference field.

The Difference field is not editable and you cannot override it.  

If you create the make payment document from the purchase invoice, the 
Match purchase invoices option is turned on by default and the section includes the purchase invoice from which the make payment is being created.

Advanced mode
- turn on the advanced mode to view or override the vendor accounts for advances and liabilities which are affected by accounting transaction created by the make payment document.

If a payment is identified as a payment for an open purchase invoice, the make payment document clears your liability by crediting the selected liability account with the made total amount.

If the payment is identified as an advance payment, the advance account is debited with the made total amount. The amount can be also allocated to both accounts if the certain residual amount is left after clearing your liability.   

Use the advanced mode cautiously. Overriding the accounts may distort the purchase process or cause significant errors in the system if the mistake is made while altering the accounts.

When you are finished, save and post the make payment document. The posting will impact the transaction journal, the banking journal and the vendors journal. The liability amount will be increased (liability account will be debited) and the paid amount will be recorded in the bank account (bank account will be credited). The open amount of the purchase invoice becomes zero. Thus, the purchase invoice is treated as closed.  

More information