Office Practice N4 | Payment methods used to pay suppliers

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Question

Name the payment methods that a management assistant can use to pay suppliers.

Petty Cash

Petty cash is a small amount of physical money kept on hand to cover minor, day-to-day expenses. A management assistant may use petty cash for small supplier payments such as stationery or urgent office supplies where issuing a cheque or doing a bank transfer would be impractical.

Cheque

A cheque is a written, dated, and signed instrument that directs a bank to pay a specific amount of money to a supplier. Management assistants may use cheques for formal payments that require documentation, especially when electronic systems are unavailable or the supplier prefers this method.

Cash on Delivery

Cash on delivery (COD) is a method where the supplier is paid immediately when goods are delivered. Management assistants may use this method when dealing with trusted vendors or in cases where urgent supplies are needed and prepayment isn’t possible.

Electronic Transfer

Electronic transfer involves moving funds directly from the organisation’s bank account to the supplier’s account. This is a fast and secure method often used by management assistants to settle invoices or large payments with proof of transaction.

Online Banking

Online banking allows management assistants to pay suppliers through a digital platform using a computer or smartphone. This method is convenient, enables quick transactions, and provides a record for tracking and reconciliation purposes.

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