Paying a Purchase Invoice or Supplier by Cheque

You can pay a Purchase Invoice or a Supplier by cheque in Daftra in two different ways: add a payment to the invoice using the Cheque payment method, or issue a payable cheque from the Cheque Cycle. This guide explains both methods, the difference between them, and when to use each one.

Method 1: Payment Using the Cheque Payment Method

1. Enable the Cheque payment method from Payment Methods if it isn’t already enabled.
2. Open the Purchase Invoice from Purchase Invoices, and click Add Payment.
3. In Payment Method, select Cheque, and select the Treasury (bank account).
4. Enter the cheque number in Transaction ID, then enter the amount and the date.
5. Save; the invoice becomes paid or partially paid.

This is a regular payment, like cash or a bank transfer, and Cheque is just the name of the method; the Journal Entry is created immediately: debit the Supplier, credit the Treasury, and no cheque is created in the Cheque Cycle.

Method 2: Issue a Payable Cheque

1. Open Issue Cheque.
2. Select the chequebook, and enter the amount, the issue date, and the due date.
3. In Receiving Account, select the Supplier’s account, and enter the Supplier’s name in Name on Cheque.
4. Click Issue and Deliver.
5. When the bank cashes the cheque, click Collect.

The Supplier’s account is affected upon delivery, and the bank account is affected upon collection. However, the cheque isn’t linked to the Purchase Invoice, so the invoice’s payment status doesn’t change.

The Difference Between the Two Methods

	Payment Using the Cheque Payment Method	Issue a Payable Cheque
Link to the invoice	Yes, the invoice becomes paid.	No, the invoice status stays as it is.
Link to the Supplier	Automatic from the invoice.	By selecting the supplier’s account as the receiving account.
Journal Entry	Immediately: debit Supplier, credit Treasury.	On delivery: debit Supplier, credit Notes Payable. On collection: debit Notes Payable, credit Bank.
Bank balance	Decreases immediately when you make the payment.	Decreases only when the cheque is collected.
Cheque details	The cheque number is stored only in the ID number field.	Chequebook, cheque number, and due date.
Status tracking	None.	Issued, delivered, collected, rejected, canceled.
Bounced cheque	You delete or edit the payment manually.	The Reject button reverses the effect on the supplier.
Requires the Cheque Cycle	No.	Yes.

Which method should you use?

• A payment with the cheque payment method: Use this if the cheque is cashed immediately or you don’t need to track it, and you want the invoice to show as paid.
• Issuing a paid cheque: Use this if the cheque is postdated and you want to track it until it is collected, and to adjust the bank balance according to the cashing date. You track payments to the supplier from the supplier’s account statement, not from the invoice status.

Avoid duplicate payments

Frequently asked questions

Does selecting cheque as the payment method create a cheque in the Cheque Cycle?

No. It is a regular payment linked to the invoice.

I issued a cheque to the supplier. Why is the invoice still unpaid?

Because paid cheques are not linked to invoices. The payment appears in the supplier’s account statement.

How do you track a postdated cheque to a supplier?

Issue it from Paid Cheques with a due date, and collect it when it is cashed.

Can you link a cheque to a purchase invoice?

There is currently no direct link.