Understanding Accounts Payable Batches
An important accounts payable concept is the use of batches. A batch is a group of transactions that have been 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 that is assigned to the 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 of 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 you do not use the 9000 series. (9000 series batches are system-generated batches.) Develop a method of numbering batches that suits your specific business needs.
A typical method of numbering batches includes basing 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 using the 9000 series, because system-generated batches use this series. Batches dated for September may have only three characters, such as 921.)
While 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.)
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