Setting Up the ACCOUNTS
PAYABLE Module
Slideshow 3
List of Topics
Slide No.
The ACCOUNTS PAYABLE Module
Activating the A/P Module
Accounts Payable Setup
Step 1: Define Options
Step 2:
Step 3:
Step 4:
Step 5:
Define Account Sets
Define Distribution Codes
Define Distribution Sets
Define Terms of Purchase
3
4
5
5
6
7
8
9
Setting Up Vendor Groups
Setting Up Vendor Records
Accounts Payable Batches
Entering Vendor Opening Balances
How Posting Works in A/P
10
12
13
14
15
Deleting the Opening Subledger Batch in the G/L
Setting Up the Accounts Payable Control Account
Correcting an A/P ERROR Batch
Aged Payables Report
16
18
19
20
The ACCOUNTS PAYABLE
Module
Click and study the types of transactions
processed in the A/P Module.
A/P maintains vendor information for
processing the transactions given at
the right. With the company, vendor
and transaction information entered in
the A/P system, reports may be
generated to help in business problem
solving and management decisions.
Cheques for payments to vendors can
be automatically generated and
printed, taking into account available
discounts.
Like in the G/L Module, you will
continue to use Collegiate Computer
Systems Limited (COLLEGIATE) as
your sample company.
The procedure for activating the A/P
Module is similar to the procedures to
activate the G/L, Bank Services and
Common Services. You cannot
activate A/P unless you have
activated Bank Services and Common
Services.
Click to continue.
Types of Transactions in the A/P
Module
•
Purchases
•
Debit/Credit notes
•
Adjustments
•
Payments/pre-payments to vendors
•
Cash disbursements, monthly
payments
•
Tax remittances
Accounts Payable Setup
Click Step 1 below:
Step 1: Define Options
Study what the A/P Options define
as shown at the right.
Click.
Study the COMPANY page. It
displays the information you
entered previously when you set
up Common Services.
Click the other tabs from left to right,
starting from the PROCESSING tab.
Pay particular attention to the
special notations and fields to
which gold arrows point.
When finished going through all
the pages, click to continue.
Calculate instructs ACCPAC to automatically calculate
taxes. If the tax amount on the vendor invoice differs
from the tax amount that ACCPAC calculates, you
would simply change the tax amount on the Taxes
page
Checking this
boxupon invoice entry.
A/P Options define:
•
How batch processing functions
forces the user to
ACCPAC will calculate the invoice subtotal on which
in A/P.print the batches
before posting.
taxes will be based.
•
How A/P statistics are kept.
•
How invoices are processed
in
When
payments,
Checking this box will allow the user
to processing
use the DRILL
DOWN feature.
ACCPAC will include whatever you
A/P.
select in this field in Pending
•
How payments are processed in
A/P.
Checking these two options allows the user to change
batches before posting.
Amounts.
Standard aging are shown; can be changed if the
checking
this box,
you can
make
company is onBy
a shorter
or longer
payment
cycle.
This is where you would corrections
set the numbering
for the various
or adjustments
to vendor
documents in A/P. As youinvoices
create documents,
ACCPAC
in the Payment
window; thus
saving the step of creating a separate
updates the numbering on this page.
adjustment entry.
•
Additional vendor data fields, if
necessary.
•
How A/P integrates with G/L.
Accounts Payable Setup
(continued)
Step 2: Define Account
Sets
Account Sets are codes that link
a vendor to a specific set of G/L
accounts. When an appropriate
previously-designed Account Set
code is entered in the vendor
record, the system knows which
accounts should be debited or
credited when a transaction that
pertains to the particular vendor is
entered. This saves keystrokes
and help avoid errors.
Before you can add account sets,
you must have the necessary
accounts in the G/L Chart of
Accounts.
Click and study a sample of a
completed Account Sets window.
When ACCPAY (the Account Set
code) is attached to a vendor,
ACCPAC will debit/credit to the
accounts under General Ledger
Account for any of the vendor’s
transactions.
Click to continue.
Accounts Payable Setup
(continued)
Step 3: Define
Distribution Code
A Distribution Code is a code of
one to six characters that you can
associated with a G/L account.
They can be a great timesaving
feature, as it is generally easier to
remember a code than it is to
remember account numbers. For
example, it is easier to remember
RENT than 6030.
A Distribution Code, when entered
in a vendor’s record, tells
ACCPAC which account must be
debited or credited when a vendor
invoice is posted.
Click and study the Distribution
Codes used by COLLEGIATE and a
sample Distribution Codes window.
Click to continue.
Accounts Payable Setup
(continued)
Step 4: Define
Distribution Sets
Distribution Codes can be
grouped into Distribution Sets.
You would use this option to
further improve efficiency of data
entry. For example, if a purchase
from a vendor is typically recorded
using the same Distribution
Codes, you can assign a
Distribution Set to the specific
vendor using the Distribution
Codes.
Click to view a completed
Distribution Set window.
ADVERT is used by
COLLEGIATE to process
transactions involving
Advertising Expense. Manual is
selected for Distribution Method
so COLLEGIATE can allocate
advertising expense based on the
specific content of each
advertisement.
Click to continue.
Accounts Payable Setup
(continued)
Step 5: Define Terms of
Purchase
A/P Terms are conditions
established by the vendor or
negotiated with the vendor for
payment of invoices. You would
define the various terms used by
all vendors then assign a term
code to each vendor when you
create individual vendor records.
Click and study the various Terms of
Purchase used by COLLEGIATE.
Click again to view a sample A/P
Terms window.
Excluded is selected for
Calculate Base for Discount
with Tax to NOT include tax
amounts when calculating
discounts.
Days From Invoice Date for Due
Date Type and Discount Type
instructs ACCPAC to base the
calculation of due date and
discount amount on the invoice
date.
Click to continue.
Setting up Vendor
Groups
Vendor Groups is a method of
grouping vendors that have
common characteristics; e.g., you
can set up a vendor group for
vendors from whom you purchase
products, and another that supply
you with services.
Before you can add vendor
records, you must add at least
one vendor group.
Click and study the GROUP page of a
vendor group.
SUP is the Vendor Group Code
used for general suppliers of
goods. Notice that Account Set,
Terms Code, Bank Code and
Payment Code are specified for
the group.
Click the Invoicing tab.
Setting up Vendor
Groups (continued)
Notice that when you select
Distribution Code for the
Distribute By field, a Distribution
Code box appears. The other
choices are Distribution Set, G/L
Account or None.
Click.
Duplicate Invoice Checking helps
prevent the entry of the same
invoice twice. Selecting Warning
for Vendor and Amount and
Vendor and Date provides a
warning when two identical
invoices with the same date is
entered and allows the user to
choose whether or not to enter the
second invoice. The other
selection, Error, would not allow
you to enter two legitimate
separate invoices with the same
date.
Click.
Note the Tax Group. Selecting No
for Tax Included instructs
ACCPAC add tax to the taxable
subtotal.
Click to continue.
Setting up Vendor
Records
Vendors in ACCPAC are identified
by Vendor Number. It is
important that your numbering
scheme allows for the addition of
new vendors. Once you have
entered and saved a vendor
record, the vendor number cannot
be changed. If no transactions
have been entered, you can
delete the vendor record and reenter the vendor information with
a different number.
Click and study the ADDRESS page
of a vendor record.
Notice that a Vendor Group Code
is entered.
Click the PROCESSING page.
Click the other tabs from left to right.
Click to continue.
This page cannot be viewed until after the vendor
These
show
This page
as defaults
is
record is added. You would use
thisfields
pagewill
to save
when you
process
automatically
invoices or
important notes about the particular
vendor.
payments for themaintained
particular by
vendor.
ACCPAC and can not
be revised. Study the
type of information
that you can find on
this page.
What you enter on this page will be the defaults used when
This page
is automatically
maintained
by
entering
invoices
from this particular
vendor.
ACCPAC and can not be revised. Study the type
of information you can find on this page.
Accounts Payable
Batches
There are three different types of
batches used to enter transactions
in the ACCPAC A/P Module.
Click and study the different types of
A/P batches.
As you have learned earlier, a
batch may consist of one or more
transactions. For efficiency, you
would collect similar transactions
(e.g., invoices, credit notes, etc.)
and process them together in one
batch.
Processing batches in A/P is very
similar to processing batches in
the G/L Module.
Click and review the steps in
processing an INVOICE batch.
Click to continue.
Steps in Processing an Invoice Batch
1. Establish control totals – Manually add the invoice
amounts of all invoices to be entered in the batch.
Types of A/P Batches
2. Create a new batch – Compare the batch total to the
manual total
to ensure
thatto
allenter
invoices
are entered
Invoice
Batch
– used
vendor
invoices,
correctly.
credit
notes and debit notes
3. Enter and add invoice data.
Adjustment Batch – used to make corrections
4. Print the batch listing – After the batch is entered and the
tototal
vendor
accounts and to correct distribution
verified, it should be printed or displayed to further
errors.
Adjustments
do not affect period-to-date
check for
errors.
statistics.
5. Edit the batch if necessary, then reprint the batch listing.
Batch
– used
to–enter
manual
6.Payment
Set the batch
Ready
to Post
remember
that you need
to print the
first beforecash
you can
set the batch
cheques
forbatch
payments,
invoices
and Ready
to Post.
prepayments,
and to print cheques/advices. A
7.payment
Post the batch
invoiceis
batch
Posting permanently
updates
also–generated
automatically
vendoraaccount
information,
so be sure to back up your
during
system
check run.
data before posting.
8. Print the Posting Journal – It is important to print batches
posted in the system and properly file them for the audit
trail.
Entering Vendor
Opening Balances
After the A/P setup is completed,
you can enter the opening
balances for each vendor based
on the Schedule of Accounts
Payable at the time of conversion
to ACCPAC. Study the Schedule
of Accounts Payable for
COLLEGIATE.
Click Pro Craftware on the Schedule.
Study the DOCUMENT page for
Pro Craftware and where the
information from the Schedule of
Accounts Payable is entered.
Click the other tabs on the Invoice
Entry from left to right starting from
TAXES.
Click to continue.
The Terms of Purchase are
based on the Terms Code
entered in the Vendor record.
The Net
Payable in the
Invoice Entry
should equal
the vendor
balance in the
Schedule of
Accounts
Payable.
How Posting Works in
A/P
Study what posting an A/P batch
does (see right).
Posting permanently updates
vendor accounts, tax services
data and bank data. Corrections
to posted invoices may be made
only by entering the corrections in
an ADJUSTMENT batch.
Incorrectly posted cheques may
be voided in Bank Services.
Multiple
batches
Posting an A/P batch
does
themayfollowing:
be posted at once in
•
the Post
Batches
Updates Vendor records
and
statistics, except when
creating
one
posting Adjustment window,
Batches
(adjustments
do not
posting sequence.
update period-to-date and year-to-date statistics).
•
Creates a Posting Sequence Number that serves as a
reference in tracing posted amounts back to their
source documents.
Click.
•
Accounts payable batches may be
posted either in:
Creates a posting journal that should be printed and
used as an audit trail record of posted transactions.
•
Creates an AP subledger batch in the General Ledger
with details of G/L account entries, or stores G/L
transactions that can be later used to create a G/L
batch on request.
•
Creates an ERROR Batch if errors are found in the
entries; e.g., entries with incomplete distribution,
entries with duplicate document numbers, missing
Only one batch at a
departments, etc.
•
Disables the batch from being posted
a second
time.
in the Batch
List
• Batch List window.
• Post Batches window.
Study the windows at the right.
Click to continue.
time may be posted
window.
Deleting the Opening
Subledger Batch in the G/L
Earlier in the G/L Module, you entered
the opening balances of the
COLLEGIATE accounts. This included
the balance on ACCOUNTS
PAYABLE for $14,000 (see right).
Click.
Because you selected During
Posting under Create G/L
Transactions when you set up your
A/P G/L Integration earlier, ACCPAC
automatically creates an A/P
Subledger batch in the G/L every time
you post a batch in A/P.
When you posted the vendor
balances in A/P, ACCPAC posted
them to the individual vendor
subledgers and at the same time
created a subledger batch in G/L
totaling the same amount you posted
in ACCOUNTS PAYABLE in the G/L
earlier. Therefore, you need to delete
the A/P subledger batch in the G/L;
otherwise, ACCOUNTS PAYABLE will
be overstated (it will be doubled)!
Click to continue.
Deleting the Opening
Subledger Batch in the G/L
(continued)
You would delete the batch in the G/L
Batch Listing window.
You would highlight the batch
containing the vendor balances, then
click the DELETE button.
Although this procedure does not
need to be done immediately, it is best
to delete the A/P subledger batch
soon after you post it in A/P to be sure
that it is not missed later.
Click to continue.
Setting Up the Accounts
Payable Control Account
All vendor transactions are
processed in the A/P Module.
When A/P subledger batches are
posted, the G/L ACCOUNTS
PAYABLE account should be
debited or credited accordingly.
First, you need to designate a G/L
account as the A/P Control
Account – usually called
ACCOUNTS PAYABLE.
Entries to ACCOUNTS PAYABLE
after the G/L account balances are
entered must come from the A/P
subledgers. Entering such
transactions directly in the G/L will
make the A/P Control Account and
the A/P subledgers out of balance.
Click and study the DETAIL page for
the A/P Control Account, then click
the SUBLEDGER page.
Click to continue.
In order to set up ACCOUNTS
PAYABLE as the A/P Control
Account, the account must
already exist in the Chart of
Accounts.
You would enter AP, the
ACCPAC default Prefix for
Accounts Payable.
Checking this
box designates
the specific G/L
account as the
control account.
Correcting an A/P
ERROR Batch
If there were errors in the invoice
batch, an ERROR batch would be
generated upon posting the
erroneous batch. DO NOT
DELETE – an ERROR batch can
be fixed.
Click and study the procedure in
correcting an ERROR batch.
You can then deduce from this
procedure that the key is to print
Posting Errors report so you
would know what to fix.
Click to continue.
Steps in correcting an ERROR batch:
1. Go to the A/P Transactions Report window.
2. Double-click the Posting Errors icon.
3. Print the Posting Errors report to find out
what the errors were.
4. Open the ERROR batch.
5. Correct, i.e., fix the errors, and save the
entries.
6. Close the batch, print the batch and post
the batch.
Aged Payables Report
The A/P Aged Payables Report
is a very important report usually
printed at month-end or whenever
there is a need to find out what
payments are due within a certain
period of time.
The total of the Aged Payables
Report should be equal to the
balance of the ACCOUNTS
PAYABLE account in the Trial
Balance.
Click to continue.
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