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Purchase Payment on Account

Updated 31 October 2026

A Purchase Payment on Account (Purchase POA) records money you have paid to a supplier when there is no invoice to set it against yet. For example:

  • a deposit or prepayment the supplier asked for before invoicing;
  • a payment to a new supplier before their first invoice;
  • a payment where you can’t yet tell which invoices it covers.

Once posted, a payment on account behaves like a Purchase Credit: you can allocate it to the supplier’s invoices when they arrive, or record a refund if the supplier pays it back.

A posted Purchase POA showing its buttons, reconciliation status and bank account line

  • The buttons(1) let you Allocate, UnAllocate or Refund the payment on account, and download or send it.
  • Reconciled Status and Bank Feed(2) show whether it has been reconciled and to which statement line.
  • The line(3) shows the amount and the Bank Account it was paid from.

Posting rules

Code Transaction Debit Credit
PA Purchase Payment on Account Accounts Payable [Bank Account]

The debit always goes to Accounts Payable. The credit goes to the nominal code of the bank account the money was paid from. A Purchase Payment on Account has a single line.

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