How to decide which suppliers to pay
Pay what is due, approved and not in dispute. Build a payment run, see what to do when cash is short and weigh an early discount.
Task 1What goes in a payment run4 questions
Most businesses pay their suppliers in batches, called payment runs. This run is on 1 July and covers every invoice due on or before 7 July.
- Pay it if it is due, has been approved and is not in dispute
- Hold it if it is in dispute, until the query is settled
- Leave it if it is not yet due: the cash is more use in the bank
| Supplier | Invoice | Amount | Due | Note |
|---|---|---|---|---|
| Brook Couriers | B771 | 180.00 | 28 June | Overdue |
| Moor Engineering | M52 | 240.00 | 3 July | |
| Vale Print | V17 | 420.00 | 4 July | In dispute |
| Tor Packaging | T88 | 350.00 | 5 July | |
| Greenfield Imports | G230 | 660.00 | 20 July |
Every invoice in this list has already been checked against its order and its delivery note, and approved.
Task 2When there is not enough cash3 questions
Task 3Is an early discount worth taking3 questions