A/P Flow Of Events
At this point, you are ready to pay invoices with the Accounts Payable module and to enter new invoices as you receive them. Establish your own time frame for day-to-day procedures based on the volume of invoice activity in your office. The Flow of Events provides a general outline for these procedures.
Accounts Payable processing can be divided into six main activities:
1) maintaining the VENDOR MASTER file
2) entering invoices
3) paying invoices
4) printing monthly reports
5) month-end processing
6) year-end processing
The Flow of Events described below is a guideline of options to follow for Accounts Payable processing. When you are using an option for the first time, please read the entire Option Description for detailed instructions on using that option.
Maintaining The Vendor Master File:
As new vendors are used, add new Vendor Numbers to the VENDOR MASTER file.
Whenever changes are made to a master file, it is a good practice to reprint the master file report to have a current hardcopy on hand.
Before the calendar year end, make sure that you have entered Federal I.D. Numbers for all vendors for which you must print a 1099 form.
Entering Invoices: (Options from the A/P Processing Menu)
Use the Temporary Invoice Maintenance option to enter invoices as necessary.
Use the Temporary Invoice Report option to check for accuracy. This report should also be printed each time invoices are entered. If necessary, use the Temporary Invoice Maintenance option to make corrections.
Use the Temporary Invoice Posting option to post the entries to the OPEN PAYABLES file.
If you are using recurring payments, use the Recurring Invoice Posting option as necessary.
Deleting An Invoice Posted To The OPEN PAYABLES File
All corrections or changes to invoices should be made before posting invoices from the TEMPORARY INVOICE file to the OPEN PAYABLES file. After posting invoices, you cannot change or delete an invoice directly. To delete an invoice from the OPEN PAYABLES file, please follow the steps below.
Enter another invoice exactly as you entered the invoice you wish to delete (Vendor, Invoice Number, Due Date, G/L Numbers, etc.) except enter the Invoice Amount and G/L Disbursement amounts as negative numbers. (Use the Temporary Invoice Maintenance option.)
OR use the Reverse Unpaid Invoice option from the A/P Utilities Menu. This option will enter another invoice exactly as you entered the invoice you wish to delete (Vendor, Invoice Number, Due Date, G/L Numbers, etc.) except the Invoice Amount and G/L Disbursement amounts will be entered as negative numbers.
Verify you entered the invoice correctly using the Temporary Invoice Report. Next, post this invoice using the Temporary Invoice Posting option. When the negative invoice is posted to the OPEN PAYABLES file, it will match up with the positive invoice you wish to delete.
Use the Select/Deselect Invoice For Manual Checks option to assign the same fictitious manual check number to both the positive and negative invoices. Note that this manual check will net out to $0.00.
Print a Check Register and verify the fictitious manual check number is for an amount of $0.00.
Use Check Posting to post this manual check. Upon posting, the invoice will be removed from the OPEN PAYABLES file.
NOTE: We suggest that you do not attempt to remove an invoice in this manner while other invoices have been selected to be paid. Verify that all previous checks have been posted. It will be easier to run these invoices through while no other payment activity is taking place.
Paying Invoices: (Options from the A/P Processing Menu unless otherwise noted)
Print the Unpaid Invoice Report on the A/P Reports Menu to review and select which invoices you wish to pay.
Use one of the Select/Deselect Invoice For Computer Checks options to select the invoices you wish to pay with computer printed checks.
If necessary, use Select/Deselect Invoice For Manual Checks to enter Manual Check Numbers for invoices which you paid with manually written checks.
Print and review the Check Register. If necessary, use one of the Select/Deselect Invoice For Computer Checks options to remove checks from the Check Register. Don't forget to reprint the Check Register.
When ready, print the checks using the Check Printing option. Review the checks and verify they are accurate.
After verifying the checks, use the Check Posting option to post the checks to the MONTHLY CHECK and CHECK RECONCILIATION files.
Printing Monthly Reports: (Options from the A/P Reports Menu)
Reports in the Accounts Payable module may be run at any point in time. However, we suggest reviewing reports each time checks are posted. If this is not feasible, hardcopies of these reports should be printed, verified and filed at least once a month prior to month-end processing.
A/P General Ledger Report - is used to review the detail invoice activity processed throughout the month and verify disbursements that will be posted to the GENERAL LEDGER TEMPORARY file.
A/P Monthly Check Report - is used to review the checks with which invoices were paid throughout the month.
Month - End Processing:
To insure the integrity of the data in your Accounts Payable files, the following steps should be completed before entering any new invoices for the next month.
After invoices have been entered, and checks have been printed and posted, use the A/P To G/L Posting on the A/P Zeroing Menu to post Accounts Payable expenses to the GENERAL LEDGER TEMPORARY file in the General Ledger module).
Print and verify the A/P General Ledger Report and A/P Monthly Check Report.
Backup data (see the procedures provided with your backup device).
Year - End Processing: (AT THE END OF THE CALENDAR YEAR)
Use the A/P Vendor Paid YTD Report option on the A/P Reports Menu to verify total amounts paid to each vendor this year.
Verify you have entered Federal I.D. Numbers for all vendors for which you must print a 1099 form.
Use the A/P IRS 1099 Forms option on the A/P Reports Menu to print 1099 forms for your vendors.
Backup data (see the procedures provided with your backup device).
Complete the A/P YTD Zeroing option on the A/P Zeroing Menu.
Complete the A/P Paid Invoice Reorganization option on the A/P ZeroingMenu.