What are supplier payables, and how do you track them?

In short: Supplier payables, or accounts payable, are the amounts your shop owes suppliers for goods you have received but not fully paid for yet.

The full guide: Shop inventory management

Supplier payables, or accounts payable, are what your shop owes its suppliers. Most distributors in Jordan give shops time to pay: a week, two weeks, sometimes a month. Supplier balance = unpaid purchase invoices - payments - returns to that supplier. This figure is a commitment you have made, and knowing it helps you plan cash between what comes in and what goes out.

A typical shop deals with ten or more distributors: dairy, drinks, cleaning products, bread. Each visits on a different day and asks for a different payment. Without a clear record it is hard to know whether a given invoice is paid. In Ghalleh you receive stock against the supplier and type how much you paid now, the rest goes on their account, you see what you owe each one, and you record payments in cash or by cheque with its number and due date. Goods you return to them come off their account.

How to keep supplier balances straight

• Ask every supplier for a receipt when you pay, and reconcile the balance with them every month.
• Record returns straight away, since they reduce what you owe.
• Plan payments around due dates so supplies do not stop in a week when takings are low.
• Paying later helps cash flow but may cost you a discount the supplier would give for cash.

A shop example

Common questions