FAQ: Payments on Cash Purchases
Quick answers to questions about payment accounts, currencies, and prepayments.
Q: What is the difference between a "payment account" and a "supplier account"?
A: A payment account is your bank or cash account (where money comes from to pay). A supplier account (or vendor account) is the supplier's record in Usystems (where the payment goes to). When you create a cash purchase, you select your payment account (e.g., "Main Bank - AFN") and the system tracks the obligation to the supplier account.
Q: If I do not choose a payment account when creating a cash purchase, what happens?
A: This depends on your system configuration. Some systems require a payment account and will not let you save without selecting one. Others default to a primary account (e.g., the largest bank account). Check with your admin if you are unsure. It is best practice to always explicitly choose the payment account to avoid mistakes.
Q: Can the same cash purchase have a payment account in AFN and a supplier who invoices in USD?
A: Yes. You can select a payment account in AFN and still purchase from a USD supplier. The system converts the USD purchase amount to AFN using the exchange rate you provide or the system-wide rate. The invoice is recorded in USD, and the payment is recorded in AFN, with the difference tracked as a foreign exchange gain or loss.
Q: If I change the payment account after saving a cash purchase, does the exchange rate change?
A: Not automatically. The exchange rate is recorded when the purchase is first created. If you later change the payment account and the new account is in a different currency, you may need to manually adjust the exchange rate or the payment amount. Consult your admin if you are unsure.
Q: How do I know if a vendor prepayment was automatically applied to my purchase?
A: Check the purchase form after saving. Some systems show a separate line or note indicating "Prepayment Applied: 2,000 AFN" or similar. Alternatively, check the vendor's balance by navigating to Contacts → Vendors Open in Usystems, selecting the vendor, and viewing their current balance. If a prepayment was used, the balance will be lower than the purchase amount.
Q: Can I use a vendor prepayment if the vendor has multiple accounts or products?
A: Prepayments are typically tied to the vendor (supplier) as a whole, not to a specific account or product. If your vendor has a prepayment balance, it is available for any cash purchase from that vendor. However, if the vendor has prepayments in different currencies, only those in the same currency as the purchase will be automatically applied.
Q: What if the vendor has a prepayment but I want to apply it to a different purchase instead?
A: Automatic application applies the prepayment to the current purchase. If you want more control, your admin may allow you to view prepayments separately or manually allocate them. In some systems, you can prevent automatic application if you leave a specific setting unchecked. Ask your admin how to handle custom prepayment allocation.
Q: If I pay the vendor in installments, how are exchange rate gains or losses handled?
A: Each installment payment is recorded separately, possibly at different exchange rates (depending on when payment is made). The gain or loss is typically calculated at the time of payment settlement, not at purchase creation. If multiple rates apply, your accounting report will show gains or losses for each installment. Consult your accountant for the right treatment under your local tax rules.
Q: Can I take a cash purchase in a currency that my payment account does not support?
A: No, you should select a payment account in the currency you intend to pay. If you do not have a payment account in the supplier's currency, you have two options: (1) create a payment account in that currency and link it to your bank, or (2) select a payment account in your home currency and let the system convert at the time of payment. Consult your admin about setting up new currency accounts if needed.
Q: What happens if the supplier's currency changes after I create the purchase?
A: The purchase remains in the currency you recorded it in. If the supplier changes their default currency, future purchases will be recorded in the new currency, but this purchase will not be affected. However, if you have a prepayment from an old purchase in a different currency, automatic application may not work. Your admin can manually allocate it if needed.
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