A "Remit-To" is an alternate vendor other than the vendor on the invoice where payment will be submitted. It is most commonly used when a vendor is paid by credit card. An alternative payment vendor allows the liability to remain on the books as due to the remit to vendor or the credit card instead of the original supplier.
To use this workflow, the Remit-to entity must be established as a vendor. (Link to set up a vendor)
For accurate inventory tracking, all saleable merchandise must arrive on a PO associated with the original supplier.
Set a remit-to on an invoice level
- Go to Accounting > Accounts Payable > Invoice Entry.
- Choose the vendor and enter the invoice number.
- Change the vendor in the Remit-To field to the alternate entity.
- Proceed normally through the rest of the invoice.
Set a remit-to on a vendor level
- The Remit-To must be specified as a vendor.
- Go to File > Vendor > Master > Setup > General.
- Enter the vendor who will receive the payments in the Remit-To field.
- Click Save to make the change.
Trace a payment
- The original Vendor Ledger will display the open invoice until the remit-to is paid. Note that the remit-to Vendor Ledger will not display the open invoice during this period.
- The A/P Check Print window will display the payment due under the remit-to vendor.
- The A/P Aging Report will display the balance due under the remit-to vendor.
