Understanding Pay When Paid Processing

Pay when paid is the process of paying your suppliers only after receiving payment from your customers. This is useful if you want to pay your subcontractors after you have been paid by your customers. For example, a subcontractor submits an invoice to you for payment and you enter a voucher at a hold payment status. You create and send an invoice to your customer and when the customer pays the invoice, you then release and pay the voucher to the subcontractor.

While pay when paid processing helps you to manage cash effectively, it can be time-consuming to manually track when an invoice is paid so that you can release a voucher for payment. The Financial Management system automates this process.