Short answer
If the supplier balance was brought into Balansix as an opening subledger item, match the later bank payment against that opening balance. Do not post the payment again to current-year expense simply to remove the creditor.
Steps
- Open the bank payment or supplier settlement workflow.
- Locate the supplier opening balance or brought-forward creditor item.
- Allocate the payment against the opening item. Partial settlement is allowed where only part has been paid.
- Confirm the supplier balance reduces and the creditor/control position agrees.
- If the opening balance is not available for matching, review the opening subledger setup rather than posting a compensating expense.
What should happen
The supplier opening balance should reduce by the amount allocated. A fully settled opening creditor should clear from the supplier balance and the related control position.
If it still does not clear
Check that the opening supplier detail agrees to the creditor control total and that the bank payment has been allocated to the opening item rather than coded as a new expense. If the opening item is missing from the allocation list, contact support with the client, period and supplier.
Why posting to expenses is wrong
An opening supplier balance is a liability carried forward from the prior year's balance sheet. The cost was already recognised in the earlier year, so paying the supplier now reduces the creditor. It is not a new expense.
If the payment is coded to a current-year expense account, costs are counted twice, profit is understated and the old creditor stays on the balance sheet. Allocating the payment to the opening item keeps the supplier ledger, the creditors control account and the profit and loss account correct.
Frequently asked questions
Where should opening supplier balances come from?
From the aged creditors or purchase ledger listing at the previous year end. The total of the individual supplier items should agree to the creditors figure in the opening trial balance.
Can I allocate one payment to several opening invoices?
Yes. Allocate the payment across the opening items it settles. Partial settlement is allowed where only part of an item has been paid.
What if the supplier was paid less than the opening balance?
Allocate the amount actually paid. Any genuine difference, such as a settlement discount or disputed amount, should be dealt with as a separate, documented adjustment.