5.2
Accounts Payable
Setting Up Company Data Files
Slideshow 5
List of Topics
Slide No.
The ACCOUNTS PAYABLE Module
Activating the A/P Module
Accounts Payable Setup
Step 1:
Step 2:
Step 3:
Step 4:
3
4
5
Define Options
Define Account Sets
Define Distribution Codes
Define Distribution Sets
5
6
7
8
Step 5: Define Terms of Purchase
Setting Up Vendor Groups
Setting Up Vendor Records
Accounts Payable Batches
9
10
12
13
Entering Vendor Opening Balances
How Posting Works in A/P
Deleting the Opening Subledger Batch in the G/L
Setting Up the Accounts Payable Control Account
14
15
16
18
Correcting an A/P ERROR Batch
Aged Payables Report
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
(CCSL) as your sample company.
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
Activating the A/P
Module
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.
Your text will give you step-bystep instructions on how to
activate A/P from the
Administrative Services desktop.
Click to continue.
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, click to continue.
A/P Options define:
•
How batch processing functions
Checking this box
forces the user to
in A/P.
print the batches
before posting.
•
How A/P statistics are kept.
•
How invoices are processed in
A/P.
•
How payments are processed in
A/P.
•
Additional vendor data fields, if
necessary.
•
How A/P integrates with G/L.
Selecting this option instructs
Checking this box allows corrections and adjustments
ACCPAC to automatically create A/Pto vendor invoices in the payment window. This saves
Checking these two options allows the user to change
subledger batches in the G/L when the step of creating a separate adjustment entry.
batches before
Do Not
posting.
Consolidate instructs ACCPAC to post
batches are posted in A/P.
transaction details to G/L instead of a
Checking this box will
Invoice
allow
consolidated
Entry
the user
Options
tosummary.
usedefine
the DRILL
whether
DOWN
taxes
feature.
on
Do not check this box. A
vendor invoices are calculated manually or
mistake in changing a
automatically.
cheque payment in
Distribute for DefaultSelecting
progress
Tax Amount
Document
caninstructs
createNumber
ACCPAC
to
automatically
instructs
problems.
distribute
ACCPAC
taxto
amount
show
This page allows additional
entered
to
the
correct
the
tax
Invoice
accounts.
No.
or
Cheque
optional fields to be added to
No. in the Reference Filed in
Tax Base instructs ACCPAC
vendor records. Calculate for Defaultthe
G/L.
Standard aging
to automatically
are shown;calculate
can be changed
the invoice
if the
subtotal
company is
before
on a shorter
taxes. or longer payment cycle.
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 a particular vendor is
entered. This saves keystrokes
and 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 Set 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 CCSL 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 CCSL to
process transactions involving
Advertising Expense. Manual is
selected for Distribution Method
so CCSL 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
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 CCSL.
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 and Bank 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 a saved a vendor record,
the vendor number cannot be
changed. If no transactions have
been entered, you can delete the
vendor record and re-enter 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.
Notice that the Statistics and
Comments tabs are greyed out
until the vendor record has been
recorded.
Click the other tabs from left to right.
Click to continue.
ACCPAY is the default for
Account Set.
The default for Terms Code is
the first you entered (N30 for
CCSL). Vendors have different
terms. Make sure to enter the
appropriate terms for the
vendor.
Data on this page is
maintained by
You can set
a Credit Limit if
For larger companies, the information
on
ACCPAC
cannot
Selecting
Noand
for
TaxIf
Duplicate Invoice
Checking
helps
prevent
the
the
vendor
gives
you
one.
this page may be different from those
on
the
be
edited.
Included
instructs
entry of the same
invoice twice.
a warning is given
ADDRESS
page. Selecting you do,ACCPAC
to add
Warning for Vendor and Amount and Vendorwhen you try to enter
antax to
and Date provides a warning when two
invoice the
thattaxable
would subtotal.
make the
identical invoices with the same date is
vendor balance beyond the
entered and allows the user to choose
credit limit.
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.
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 CCSL.
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 from left to right
starting from TAXES.
Click to continue.
Distribute
Calculate
The information on this
page is automatically
entered by ACCPAC
according
to previous
The
Distribute
option for Tax
setup
entries.
ForACCPAC
example,to
Amount instructs
TERMS
was
automatically
automatically distribute the Tax
taken from
Amount
that the
youparticular
enter on the
vendor’s
record
detail line to GST (see
PAIDright).
ON
ACCPAC
calculated
DUE
PURCHASES.
DATE according to the
date of the invoice and the
terms.
Calculate instructs ACCPAC
to calculate the taxable
amount of the invoice based
The
information
on this page
on the
detail lines entered
automatically
entered
on the DOCUMENT
page. by
is
ACCPAC based on the previous
pages. Make sure the OUT OF
BALANCE amount is zero.
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.
Posting an A/P batch
does the following:
Multiple batches may
•
be posted
once in
Updates Vendor records
andatstatistics,
except when
the Post Batches
posting Adjustment window,
Batches
(adjustments do not
creating one
update period-to-date
and sequence.
year-to-date statistics).
posting
•
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.
time may be posted
•
Disables the batch fromwindow.
being posted a second time.
• Batch List window.
• Post Batches window.
Study the windows at the right.
Click to continue.
in the Batch List
Deleting the Opening
Subledger Batch in the G/L
Earlier in the G/L Module, you entered
the opening balances of the CCSL
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 Options earlier, ACCPAC
automatically creates an A/P
Subledger batch in the G/L every time
you post a batch in A/P.
Click.
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.
Collegiate Com puter System s
TRIAL BALANCE
As of October 31, 2009
Account
1000
1010
1200
1300
1400
1500
1600
1610
1700
1710
1800
2000
2200
2250
2260
2280
2900
3000
3400
4000-10
4000-20
4200-10
4200-20
4300-20
5000-20
5100-20
5300-20
5500-20
6000-10
6000-20
6010-10
6010-20
6010-30
6020-10
6020-20
6020-30
6030-10
6030-20
6030-30
6040-10
6040-20
6040-30
6050-20
6060-10
7000-30
7010-30
7020-30
7030-30
7040-30
7050-30
7090-30
7095-30
8000-30
Description
Cash
Petty Cash
Accounts Receivable
Merchandise Inventory
Supplies on Hand
Prepaid Expenses
Service Equipment
Office Equipment
Accum Amort - Service Equip
Accum Amort - Office Equip
Incorporation Costs
Bank Operating Loan
Accounts Payable
GST Charged on Sales
GST Paid on Purchases
PST Payable
Note Payable
Common Stock
Retained Earnings
Service Revenue
Product Sales Revenue
Sales Discounts - Service
Sales Discounts - Product
Sales Ret and Allow - Product
Opening Inventory - Product
Purchases - Product
Purch Ret and Allow - Product
Closing Inventory - Product
Advertising Expense - Service
Advertising Expense - Product
Salary Expense - Service
Salary Expense - Product
Salary Expense - Office
Benefit Expense - Service
Benefit Expense - Product
Benefit Expense - Office
Rent Expense - Service
Rent Expense - Product
Rent Expense - Office
Utility Expense - Service
Utility Expense - Product
Utility Expense - Office
Delivery Expense - Product
Supplies Expense - Service
Insurance Expense
Bank Charges Expense
Amortization Expense
Bad Debt Expense
Office and General Expense
Telephone, Fax, Internet Expense
Miscellaneous Expense
Vendor Discounts Taken
Interest Expense
Debit
35,650
450
28,800
78,265
9,100
2,260
31,000
9,000
Credit
6,250
700
2,000
11,000
14,000
2,100
1,400
550
50,000
50,000
41,559
144,825
321,825
1,125
3,775
3,740
76,625
242,593
8,702
78,265
7,000
14,000
29,840
38,753
19,688
3,581
4,650
2,363
10,800
21,600
3,600
4,366
8,732
1,456
3,773
4,382
11,500
460
2,750
250
750
7,638
2,689
4,750
732,465
732,465
Deleting the Opening
Subledger Batch in the G/L
(continued)
You would delete the batch in the G/L
Batch Listing window.
Click.
You would highlight the batch
containing the vendor balances, then
Click.
…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
Collegiate Com puter System s
TRIAL BALANCE
As of October 31, 2009
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.
Account
1000
1010
1200
1300
1400
1500
1600
1610
1700
1710
1800
2000
2200
2250
2260
2280
2900
3000
3400
4000-10
4000-20
4200-10
4200-20
4300-20
5000-20
5100-20
5300-20
5500-20
6000-10
6000-20
6010-10
6010-20
6010-30
6020-10
6020-20
6020-30
6030-10
6030-20
6030-30
6040-10
6040-20
6040-30
6050-20
6060-10
7000-30
7010-30
7020-30
7030-30
7040-30
7050-30
7090-30
7095-30
8000-30
Description
Cash
Petty Cash
Accounts Receivable
Merchandise Inventory
Supplies on Hand
Prepaid Expenses
Service Equipment
Office Equipment
Accum Amort - Service Equip
Accum Amort - Office Equip
Incorporation Costs
Bank Operating Loan
Accounts Payable
GST Charged on Sales
GST Paid on Purchases
PST Payable
Note Payable
Common Stock
Retained Earnings
Service Revenue
Product Sales Revenue
Sales Discounts - Service
Sales Discounts - Product
Sales Ret and Allow - Product
Opening Inventory - Product
Purchases - Product
Purch Ret and Allow - Product
Closing Inventory - Product
Advertising Expense - Service
Advertising Expense - Product
Salary Expense - Service
Salary Expense - Product
Salary Expense - Office
Benefit Expense - Service
Benefit Expense - Product
Benefit Expense - Office
Rent Expense - Service
Rent Expense - Product
Rent Expense - Office
Utility Expense - Service
Utility Expense - Product
Utility Expense - Office
Delivery Expense - Product
Supplies Expense - Service
Insurance Expense
Bank Charges Expense
Amortization Expense
Bad Debt Expense
Office and General Expense
Telephone, Fax, Internet Expense
Miscellaneous Expense
Vendor Discounts Taken
Interest Expense
Debit
35,650
450
28,800
78,265
9,100
2,260
31,000
9,000
Credit
6,250
700
2,000
11,000
14,000
2,100
1,400
550
50,000
50,000
41,559
144,825
321,825
1,125
3,775
3,740
76,625
242,593
8,702
78,265
7,000
14,000
29,840
38,753
19,688
3,581
4,650
2,363
10,800
21,600
3,600
4,366
8,732
1,456
3,773
4,382
11,500
460
2,750
250
750
7,638
2,689
4,750
732,465
732,465
More…
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