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The Accounts Payable application allows you to maintain an accurate listing of monetary transactions for all your vendors. An accounts payable account represents the amount you owe a vendor for purchase orders or services. Through the A/P application, you can build and maintain a complete history of your accounts payable activity.
Using the A/P application, you can post invoices and credits from vendors. When you post to accounts payable, eNsite automatically posts debits and credits to the AP-BATCH file. You release the AP-BATCH file to the GL-BATCH file when you release A/P Batches through the (QR) Accounts Payable Reports screen at the end of the day. You release the GL-BATCH file to general ledger when you release the G/L Batch Reports throught he (W) General Ledger Reports screen.
You can pay invoices using system-generated checks or hand-written checks. When you enter invoices, you can assign your own voucher date or have eNsite assign a voucher date. The voucher date can be the date that the invoice is due or the date on which you want to print the check.
Payment terms are defined as voucher dates and net dates. While both are considered due dates, the voucher date represents the date the payment is due in order to receive the discount from the vendor. The net date represents the date when the total amount of the invoice is due.
If
you do not set up payment terms for a vendor, the voucher date defaults to
the invoice date.
When you enter invoices, you can assign your own voucher date or have the voucher date assigned automatically. The voucher date can be the date that the invoice is due or the date on which you want to print the check.
You can set the A/P parameters so voucher dates are automatically created according to each vendor’s terms. You do this through the (LC) Vendor And A/P Parameters screen. You can also specify the discounts for each vendor so that the discount amounts are deducted from your payments. You do this in the Vendor Master tab.
A history file of all checks written is maintained, and acts as a check register. It also provides a control mechanism for check usage.
If
this is your first opportunity to learn about Accounts Payable, refer to About
Accounts Payable, Understanding the Flow of Accounts Payable, and Understanding
Accounts Payable Files.
To begin using the Accounts Payable application, click one of the topics below.
The Accounts Payable application lets you set up payment terms for each of your vendors. Some vendors may require you to pay an invoice by a certain date in order to receive a discount, others may not.
Vendor payment terms are defined as voucher and net dates. While both are considered due dates, a voucher date represents the date that payment is due in order to receive a discount from the vendor. A net date represents the date when the total amount of the invoice is due.
The Accounts Payable application offers two different payment term methods. One method calculates the voucher and net dates based on a specific number of days past the invoice date. The other method calculates the voucher and net dates based on a specific day of the month. You set vendor payment terms in the Terms To Set Due Date section of the (LC) Vendor And A/P Parameters screen. Once payment terms have been defined in the (LC) screen, you enter terms for each of your vendors in the Terms box in the Vendor Master tab.
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.
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. A typical method of numbering batches includes the following:
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.)
When using the Accounts Payable application, you spend most of your time posting invoices from vendors. You can post parts of an invoice to more than one business period or general ledger account. You can post vendor invoices and post credit memos.
To begin posting, you must specify the following batch information in the Batch Information dialog box:
You then select the vendor. You can retrieve vendors by using the vendor's ID, Name or Contact. You can also use the Vendor Query dialog box to search for vendors.
Next, you specify the invoice or credit memo information, and any notes, and complete the posting procedure.
There are times when you receive merchandise from a vendor which is damaged or which must be returned. In this case, you can create a credit memo. Credit memos can be applied to a vendor's account, either to a specific invoice or as an open credit. The balance owed to that vendor is reduced by the amount of each credit memo. When you print checks, all invoices paid by those checks are shown. Each check amount is for the balance due on the corresponding invoice. As checks are released, the applied credit memos are marked as completed.
When
specifying a G/L control number in the G/L Control # box, you must use the
same G/L number to which invoices for this vendor are posted.
Specials let you add explanatory messages to convey information about a particular vendor account or an invoice. By using the vendor A/P special, you can provide your employees with special instructions about a vendor when they are posting invoices. For example, if your accounts payable department has any questions about an invoice, you can include a contact name and number from the vendor's accounts payable department. This eliminates the time it takes to research this information.
An invoice A/P special is also a helpful communications tool. For example, you can include information on the invoice that would notify the accounts payable department not to pay an invoice until all items are received.
There are four steps to posting a vendor's invoice:
You can print system-generated checks or checks for hand-marked invoices
only. System-generated checks are printed for all vendors for the following
types of invoices:
Invoices with voucher dates equal to or older than the specified date
Invoices with text vouchers.
A
maximum of 24 invoices appear on the check stub. If you are printing a check
for more than 24 invoices, the total amount for all of the invoices prints
on the last check. All previous checks are voided.
For example, if you are printing a check for 50 invoices, the first 24 invoices appear on the first check's stub. Invoices 25 through 48 appear on the second check's stub. The last two appear on the third check's stub, and this check contains the amount for all the invoices. The first two checks are voided.
To verify which checks will print, you should print and review the To Be Paid Report before printing checks.
If
the AP-PAY file was created when the To Be Paid Report was printed, you must
hand mark the invoices you want paid using the A/P Posting Payments tab. For
more information, see Marking A/P Invoices To Be Paid.
When you print checks, the AP-PAY file is deleted. If you need to reprint checks, you must start over by printing the To Be Paid Report and creating the AP-PAY file. You must also hand mark the invoices to be paid.
To request system-generated checks, go to the (QR) Accounts Payable Reports screen and select the [D] Print Checks report code. For instructions for using the (QR) screen to print A/P checks, see the DDMS Accounts Payable Manual.
If you did not enter the check number when you posted the invoice, and if you are paying an invoice with a hand-written check, you must mark the invoice as paid by manually entering the check number.
To enter the check number:
icon. The Accounts Payable Posting window opens, displaying the Invoice
tab.When you let the system generate checks, the system determines which checks to pay by comparing the voucher or net date and the specified pay date. The system pays invoices with dates equal to or earlier than the voucher or net date.
The system applies the check number to the invoice when the check is printed, and does not show the invoice as paid until the check is released.
To let the system generate checks, you should print the To Be Paid Report in the (QR) Accounts Payable Reports screen and print the checks. You may also need to change the voucher and/or net date.
To change the dates:
icon.
The Accounts Payable Posting window opens, displaying the Invoice tab.If you want to pay this invoice, enter the system date or text voucher in the Voucher box. (If you create the AP-PAY file so you can pay the invoice in the Accounts Payable Posting Payments tab, you must use a numerical voucher. You cannot use a alpha text voucher.)
If you changed the voucher date to be later than the net date, you must change the net date in the Net box. For example, if the net date is 09/15/01, and you change the voucher date to 09/17/01, you must change the net date to 09/17/01 or later.
An invoice is marked as paid when you post a check number for the invoice. You must release checks after they are marked as paid. The check numbers are automatically assigned for invoices paid with system-generated checks. You must manually enter the check numbers for hand-written checks. You should release checks as soon as possible after entering hand-written checks or printing system-generated checks to complete the process.
If
you do not release checks soon after they are printed, and you run checks
again, the same invoices are paid but are assigned different, system-generated,
check numbers.
When you release checks, three things happen:
- invoice number
- invoice date
- business period
- control and reverse general ledger account numbers
- check number
- voucher date
- net date
- posting remarks
- charge or payment amount
- discount amount
- invoice balance and status.
This report also includes a summary of all invoices in the following categories:
- outstanding
- system-paid
- hand check
- no voucher
- to be paid.
- AP-CHECK
- AP-MASTER
- V-AUX
- PR-BA-DAY
- PR-BA-YTD
- PR-BAINDEX.
To release checks, go to the (QR) Accounts Payable Reports screen and select the [C] Print A/P Reports function. For instructions for using the (QR) screen to release checks, see the DDMS Accounts Payable Manual.
Release your accounts payable batches to general ledger on a regular basis. Before you release batches, Silver Plus strongly recommends that you print the A/P Batch Report to determine whether your accounts balance. This report prints again when you release your A/P batches. Save this final report, because it provides a daily accounting record of your A/P activity. It is a valuable part of your audit trail.
The accounts payable batches are held in the AP-BATCH file. Accounts payable batches can consist of any accounts payable posting transaction: payments, adjustments, discounts, and voids. Once you select the batches you want to release, the batches are deleted from the AP-BATCH file.
Releasing batches is part of the day-end procedures. When you release batches, two things happen:
To
release the GL-BATCH file to General Ledger, you must release the G/L batches
through the (W) General Ledger Reports screen.
Releasing batches is a dedicated accounts payable function. Make sure that no one uses the Accounts Payable application or releases A/P or G/L batches until the procedure is complete. For more information about the A/P Batch Report, see the DDMS Accounts Payable Manual.
You release batches in the (QR) Accounts Payable Reports screen by using the [A] Print A/P Batch report code. When the cursor moves to the Release field, you type Y to release the batches. You will also be prompted for the release password before the procedure can be completed.
When you release batches, a version of the A/P Batch Report prints. You should print the report first without releasing the batches. (You do this by typing N in the Release field.) After the report prints, you can review the batches and make any necessary adjustments before they are released.
This function also clears the daily figures for the released batches from the AP-BATCH file.
Releasing
batches is a dedicated function. Make sure that no one uses the Accounts Payable
application or releases A/P or G/L batches until the procedure is complete.
Purging Accounts Payable Invoices
You can purge (delete) completed invoices through the (QR) Accounts Payable
Reports screen. Paid invoices have a balance of zero. You should purge paid
invoices from the system periodically to free space. The number of invoices
you create determines how often you should do this. By purging the AP-MASTER
file, you ensure that the file contains only current information, which helps
keep A/P procedures fast and efficient.
Purging
is a month-end procedure. For more information concerning month-end procedures,
see A/P Month End Procedures.
When you purge completed invoices, two things occur:
To purge invoices from the AP-MASTER file, go to the (QR) screen and select the [C] Print A/P Reports code. You will be prompted for a purge password as well as prompted to save the invoices to an accounts payable journal.
For
details, see the DDMS Accounts Payable Manual.
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