IMOS - Third-Party Payments

Making Third-Party Payments

You can make the following types of third-party payments:

Vendor pays another Vendor on behalf of the Company
Vendor receives from another Vendor on behalf of the Company

To perform the above, select Vendor to Vendor Transaction in the Payment Instructions form.

In the Payment and Receipts form the Mode will be automatically filled as “VV” and the Third-Party Transaction checkbox checked. Enter the name of the third-party vendor in the Third Party field and proceed to save.

When making a vendor-to-vendor payment, the payment invoice is created from the perspective of the vendor receiving the money. Such invoices will have a transaction number that ends with the letter 'T'.

The account used to facilitate the vendor-to-vendor payment is specified in the following configuration flag, CFGThirdPartyTempAcc. The account code configured in the configuration flag is 21115 by default.

This account (21115 in this case) will always be balanced because VIP will debit a Vendor on one side of the vendor-to-vendor payment and then credit the other.

Below is an illustrated example of what it will look like in the account analysis.

	Trans No.	Vendor	GL A/C	Debit	Credit
1	0001N	Vendor A	21000	10,000
		Vendor to Vendor	21115		10,000

2	0001T	Vendor B	21000		10,000
		Vendor to Vendor	21115	10,000

Note: Vendor to vendor payment will only work properly if you create one payment for all your ARs and one for all your APs.