Payment Order in ERPNext
Payment Order is an internal document used to process bulk payments to suppliers in ERPNext.
It acts as an approval and execution layer between the purchase/finance team and the accounting team for releasing supplier payments in batches.
Payment Orders enable controlled bulk disbursement of supplier payments using approved Payment Requests.
Access Path
Home > Accounting > Accounts Payable > Payment Order
1. Prerequisites
Before creating a Payment Order, ensure the following exist:
- Purchase Invoice
- Purchase Order
- Payment Request
2. How to Create a Payment Order
- Go to Payment Order list and click New.
- Select Company Bank Account.
- Click Get From → Payment Request.
- Apply filters (Supplier, Date, Amount if needed).
- Select required Payment Requests.
- Fetch them into the Payment Order.
- Save and Submit the document.
3. Workflow
Payment Order typically follows this flow:
- Purchase Invoice → Payment Request → Payment Order → Payment Entry
4. Key Features
4.1 Bulk Payment Processing
- Combine multiple supplier payments in one document
- Reduce manual entry effort
4.2 Approval Control
- Separates approval (manager) and execution (accountant)
- Ensures better financial control
4.3 Bank-Based Payments
- Select company bank account for disbursement
- Ensures correct ledger posting
5. Accounting Impact
- Supplier liability is cleared via Payment Entry
- Bank account is debited
- Accounts Payable is reduced
6. Summary
Payment Order in ERPNext enables structured bulk supplier payments by consolidating multiple Payment Requests into a single controlled execution workflow, improving accuracy and financial governance.
