Learn Applications -> A/P -> Understanding Batches

Understanding Batches

An important accounts payable concept is the use of batches. A batch is a group of transactions posted to the AP-MASTER file. These transactions are summarized and can then be released to your general ledger. Grouping your posting transactions by batch number makes it easier to verify the accuracy of your postings.

Batch Numbers

A batch number is the number assigned to a batch. When you post invoices from vendors, you assign a group of transactions a batch number. When you release the batches using the Print A/P Batch function in the (QR) screen, a system-generated general ledger batch, numbered 9001, is assigned to the batches. This includes A/P invoices and voided checks. You assign different batch numbers to unreleased batches to simplify the effects of changing, adjusting, and deleting invoices.

The batch number you assign to unreleased invoices can consist of up to four numerals of your own choosing, as long as it does not begin with the number 9. (Numbers beginning with 9 are reserved for system-generated batches.) Develop a method of numbering batches that suits your specific business needs. Typical methods of numbering batches include the following:

• You can base the batch number on the day’s date. For example, if you are posting vendor invoices on March 21, the batch number is 321. (You cannot create a 4-digit batch beginning with the number 9, because system-generated batches use the 9000 series. Batches dated for September may have only three characters, such as 921.)
• Some vendors have multiple locations. In order to distinguish one location from another, you can base the batch numbers on location number. For example, if you have two locations, location one can assign batch numbers 1###, location two can assign batch numbers 2###, and so forth.

As you can see, there are many ways to assign batch numbers. You must come up with a method that creates an effective audit trail for your business. (An audit trail is a record of financial transactions, which you can later use to trace these transactions.)