You can use Pay Types as a way of segregating payables you are preparing to pay.

When initializing payments to a payment batch in the AP Payment Posting form, you can specify which pay type transactions to add to the work file in preparation for the check run.

For instance, by using the Restrict by Payable Type option, you could set up the payment batch to only pay retainage payables or only pay job payables. Many contractors pay their subcontractors on a different payment schedule than material suppliers. This is an excellent reason to use a different pay type for subcontract payables.

Taking into consideration this selection capability, you may want to set up additional pay types (even if you assign several with the same GL liability account) so that you will be able to select categories of transactions for check processing.

For example, you might set up the following four Pay Types:

You can then assign the four pay types to the four Payable Type options in AP Company Parameters.