Financials 102. Accounts Payable

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Financials 102

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Copyright

Copyright © 2013 ACS Technologies Group, Inc. All rights reserved. Reproduction of any part of this publication by mechanical or electronic means, including facsimile transmission and e-mail, without the express permission of ACS Technologies Group, Inc. is strictly prohibited.

Version 11.3

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Unit 1: Starting Accounts Payable

The ACS Accounts Payable module makes the accounts payable process more efficient and can help you to better manage your organization’s finances. With its many features, you can:

• Manage invoices and write checks for regular or one-time vendors.

• Process regular, recurring, or one-time invoices, including memorized invoices due on specific dates and invoices created from purchase orders.

• Print reports at any time and show the status of payables and payable cash requirements.

• Print checks automatically by due date and void checks if necessary.

• Generate 1099 forms and use the 1099 Adjustments utility to add accumulated totals for each 1099.

By the end of this unit, you’ll be able to

• Set up Accounts Payable and General Ledger interface options • Define custom vendor types

• Add vendor records

Meet Callie

Walking into her office at Fellowship Community Church and armed with her cinnamon streusel pastry, Callie Mead is ready to set up the Accounts Payable module.

Since she’s set up and used General Ledger, she feels a bit more comfortable with the Financial Suite and knows how important initial setup is for ACS products. She closes the office door, turns on her favorite easy listening radio station, and takes a deep breath before the task at hand.

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Setting up Accounts Payable

In Accounts Payable Setup, Callie’s ready to select options to make processing transactions easier and quicker.

In Setup, you define the AP posting month and year. These dates are the period to which transactions originating from Accounts Payable are posted, and you can make the Current AP Month and the Current AP Year different from the G/L Period.

When you print checks and post them to the General Ledger, they post to the month in which they originate from Accounts Payable. Therefore, balances do not reflect these payments until the current month and current year in the General Ledger module matches the date of the Accounts Payable transactions.

Callie also plans to write checks from Accounts Payable once it’s set up, rather than General Ledger.

To set up Accounts Payable

1. Under Advanced Tools, click the Settings tab.

2. In the drop-down list, select Accounts Payable and click Go .

3. In the Accounts Payable window, click the A/P Setup tab. In this window, you can select the current AP month and year, as well as:

• Warn on Duplicate Invoices to receive a warning when a duplicate invoice number is entered for the same vendor.

• Prompt to void invoices when void check to void an invoice associated with a voided check.

• Print invoice detail on Vendor Check Stub to print the invoice account distribution on the vendor’s check.

• Print Overflow Checks on Plain Paper to prompt you to use plain paper for all overflow distributions at the end of a check run and not skip checks.

• Auto Save Default GL Accounts to save the first account used for a vendor to the vendor’s Account tab.

• Auto Assign Next Vendor Code to assign a numeric code to each new vendor. 4. In the Accounts Payable window, click the G/L interface tab to choose the way you want

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• The Accounts Payable Module must be set up to use either accrual or cash accounting. If you use accrual-basis accounting, you must select Track Discounts Taken and identify a default accrual transaction source. If you use cash-basis accounting, tracking discounts taken is optional.

• If you Enable Fund Accounting, you can use different checking accounts, associated with a single bank account, in the same transaction. If you select this, the Default A/P Checking Account, Default Accrual Account, and Default Discounts Taken Account fields are disabled.

Cash vs. Accrual Accounting

Let’s review the differences between cash and accrual accounting:

Cash-basis accounting records financial events based on cash flows and cash position. Revenue is recorded only when cash is received, and expenses are recorded only when cash is paid. You are liable for the invoice amount once you cut the check, which displays in General Ledger. Accrual-basis accounting records financial events based on when they occur. Under accrual accounting, revenue is recorded when it is earned and realized, regardless of when the payment is received. Expenses are recorded when goods are received, regardless of when they are paid.

Now it’s your turn

Help Callie set up Accounts Payable using the following options. Some options may already be set up. Familiarize yourself with this area; you may need to make changes to your software.

1. Set ACS to assign vendor codes and alert you if duplicate invoice numbers are used. 2. Vendor checks will be written beginning in the current month and year.

3. Choose to have ACS prompt to void invoices when you void checks, print invoice details on vendor check stubs, and print overflow checks on plain paper.

4. Set Accounts Payable to operate on a cash basis.

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Defining Vendor Types

Since Callie’s church uses three food and drink providers for the concession stand, she wants to add a vendor type for them. Vendor Types let you categorize vendors by description. Defining Vendor lists before adding vendor records makes data entry easier.You can group vendors by type in the vendor list, which helps you find vendors and sort them for reports. To add a Vendor Type

1. Under Advanced Tools, click the Define Lists tab.

2. In the drop-down list, select Accounts Payable and click Go . 3. Under Available Lists, select Vendor Types then click Add.

4. Enter a description for the type of vendor. If the vendor type is inactive, clear the Active check box.

5. To add another vendor type, select Add Another. 6. Click OK.

Now it’s your turn

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Invoice Frequencies

In Accounts Payable, you can select an invoice frequency option whensetting up a memorized invoiceor scheduling a memorized invoice.Many frequencies are already defined in AP, but you may want to set up invoice frequencies if you pay invoices on a different schedule. The predefined frequencies include:

• Annual – once per year

• Bi-Monthly – every two months • Bi-Weekly – every two weeks • Daily – every day

• Monthly – once every month • Quarterly – once every quarter • Semi-Annual – twice a year • Semi-Monthly-twice a month • Weekly – every week To add invoice frequencies

1. Under Advanced Tools, click the Define Lists tab.

2. In the drop-down list, select General Ledger and click Go . 3. Under Available Lists, select Frequencies and click Add.

4. Enter the information in the appropriate fields. To add another frequency code, select Add Another.

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Adding and Editing Vendors

Now that Callie’s set up her initial AP settings and defined a new vendor type, it’s time to add vendor records to track invoices and payments. If you pay a business or individual for services rendered, you should add a vendor record for them as well.

Some vendors may provide a service, while other vendors may provide supplies such as office equipment or robes for the choir. Your utility companies are vendors as well. Vendors can be set up for payment of invoices with Check, ACH (Automatic Clearing House), or online payments. If you use ACS People, Organizations, or HeadMaster, you can import vendor records from those programs.

To add a new vendor record

1. Under Manage Records, click the Records tab.

2. In the drop-down list, select Add/Edit Vendors, and click Go . 3. Click Add.

4. Enter information in the appropriate fields under Name Information. If a vendor is not an individual, make sure to select the Company check box in the Name Information area. Enter the company name in the Last Name field, and leave the First Name and Middle fields blank. When searching for vendors, search in the Last Name field to include all vendors.

5. Enter the information in the appropriate fields on each tab, and click OK.

About Vendor records

If an individual has a record in the ACS Financial Suite, you can click Lookup in the Name field to display the Global Name List and select the name. If you want to change the way a particular vendor name displays, select Retain and enter the desired format in the Display Name field If the vendor is not an individual, select the Company check box under Name Information in the Add Vendor window.

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11 The Profile Tab

The Profile tab tracks the vendor's type, 1099 status, and terms. A 1099 vendor must have a Social Security or Federal ID number.

If a vendor qualifies as a 1099 vendor, select Vendor is 1099. A 1099 vendor receives a payment of more than $600 for the year. You must also obtain a signed W9 form for a 1099 vendor. You can also enter the state abbreviation where the vendor does business in the 1099 State field. If your vendor is an individual doing business for a company, select Use Company as DBA on 1099. If you select Vendor is 1099, you can select this option and enter an individual's name to print in the recipient box of the 1099. When you print the 1099, the individual's name displays as well as the vendor's name.

You can also attach documents to this tab, such as the vendor's Form W-9. The vendor's contact information also displays on the Profile tab so you can access this information quickly.

Determining 1099 Vendors

According to IRS guidelines, you must file a 1099 form for any non-employee who receives $600 or more in compensation during the calendar year.

When you select the vendor as a 1099 vendor, all invoices for that vendor are marked as 1099 invoices.

If the vendor received any compensation that does not meet 1099 requirements, clear that distribution or invoice as 1099 so it is not included in the totals at the end of the year.

The Addresses Tab

You can add a primary and mailing address for each vendor. You can add as many addresses to a record as necessary and assign an address type to help differentiate between multiple addresses.

The Phones/E-mails Tab

You can enter as many phone numbers and mail addresses as necessary. Each number or e-mail address is noted as Listed or Unlisted.

The Accounts Tab

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If the vendor is normally paid from the same General Ledger account, click Lookup to enter the default account. This account is automatically entered when adding an invoice to the vendor.

Enter the Vendor Account # to have the vendor account number display in the Memo field of invoices. The vendor’s account number also prints on the memo field of the check.

When you select the vendor for an invoice, the expense account is automatically assigned to the invoice. If necessary, you can change the expense account on the invoice.

The Comments Tab

Comments can help a new employee working in Accounts Payable, or if you want to keep track of special circumstances for this vendor.

The Contacts Tab

You can add as many contacts as you need and assign a type to the contact. You can add multiple phone numbers for each contact and assign a type to each phone number.

The Payment Type Tab

You can select vendors for Payment Type Information of Check, Online, or ACH (Automated Clearing House).

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Now it’s your turn

Remember adding the vendor type for concessions stand vendors? Let’s go ahead and add vendor records for those providers.

• Jack Frost Ice Cream

1099 Vendor

Does business as Jack Frost Ice Cream, however the individual’s name is Andola Palmer

5300 East Palmetto Street, Florence, SC 29501 Phone: 843-662-1373 X5234

E-mail: [email protected] GL Expense Account: Food

Comments: Make sure you talk to Andola before placing your order. He gives accurate information and will inform you of any specials before you order.

Payment Type: Check Federal ID#: 678-32-2451

• Florence County Food Service 1099 Vendor

Federal ID# 632-62-8768

240 Dunbarton Drive, Florence, SC 29501 Phone: 843-661-1234

GL Expense Account: Food

Comments: Primary food provider for the concession stand. Payment Type: Online Payments

• Add Henry Scott from the Global list. (hint: Henry Scott is not a new vendor) One Time Vendor

SSN: 234-23-1533

GL Expense Account: Food

Comments: Provides barbeque sandwiches. Vendor Account #: 1234567

Use Vendor Account number as memo. Receives ACH Payments

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Starting Accounts Payable during the Year

After a busy morning entering vendor records, Callie hears a knock at her door as soon as she takes a break, and Abbie Shortt from the front desk pops in.

“Hey Callie! How’s it going?” Abbie asks.

“It’s going well! I’ve already set up our initial settings and added the concessions stand vendors in Accounts Payable,” she replied.

“That’s great! I was just wondering if we have any special concerns since we’re not starting with Accounts Payable at the beginning of the year? We need to make sure all of our tax adjustments like 1099s are correct,” Abbie says.

“Oh yes, Abbie! You are absolutely right. I know I can add adjustments, but thanks for the reminder that I need to do that,” Callie says.

Like Callie’s church, you can start using Accounts Payable at any time during the year. If you begin using the Accounts Payable module after the first of the year, you can enter the 1099 adjustments for each vendor. You can enter all accumulated dollar amounts for all applicable 1099 invoices without entering each invoice manually into the system.

To enter 1099 adjustments

1. Under Manage Records, click the Period End Procedures tab.

2. In the drop-down list, select 1099 & YTD Adjustments and click Go . 3. Click Lookup to select a vendor.

4. Change the appropriate 1099 totals.

5. In the Year field, select the correct posting year. 6. Click Post Adjustment.

7. In the Invoice# field, enter an invoice number or click Next to auto-assign the next available invoice number for the selected vendor.

8. Enter the Invoice Date, Due Date, and Post Date, or click the down arrow to select the date from the calendar.

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10. In the Chk. Acct and Exp. Acct fields, enter the checking and expense account numbers or click Lookup to select an account.

11. In the Post Month/Year boxes, select the correct posting period, then click Post Adjustment.

• You can enter each invoice for the vendor individually or enter a total of all 1099 invoices for the vendor.

• You can enter adjustments and update vendor records in the Accounts Payable – 1099 & YTD Adjustment window. These adjustments do not post to the General Ledger.

• Vendor 1099s printed at the end of the year contain adjustment totals plus 1099 check totals from Accounts Payable.

12. When prompted to create the 1099 invoice, click Yes.

Now it’s your turn

Callie’s church paid the groundskeeper, Tim Collins, four times this year before beginning Accounts Payable. The church paid him $75.00 each time.

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Unit 2: Accounts Payable Usage

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Unit 2: Accounts Payable Usage

Now that we’ve set up Accounts Payable, defined vendor types, and added some vendors, let’s work with invoices and checks.

At the end of this unit, you’ll be able to: • Add and post invoices

• Print posting reports such as the Invoice Proof List • Perform a check run to pay invoices

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Adding Invoices

You can add new invoices in Accounts Payable. Callie plans to add them as they are received, which many people find helpful.

The Add/Edit Invoices Window

First, let’s talk about the Add/Edit Invoices Window.

By default, the Add/Edit Invoices window displays Unposted Invoices by Entry Order. Use the drop-down list to display other invoices, such as Posted Invoices, Paid Invoices, and Partially Paid Invoices.

You can view invoices for All Users and/or All Periods by selecting All Users/All Periods. You can also click Filter to find specific invoices.

Before posting, you can view, edit, delete (if using cash basis accounting), or void an invoice. If you use an accrual basis accounting, you can void an invoice, but you cannot delete invoices.

To Add an Invoice

1. Under Manage Records, click the Transactions tab.

2. In the drop-down list, select Accounts Payable Invoices and click Go . 3. Click Add/Edit Invoices, then Add.

4. Select a Vendor. To do this, enter the name of the vendor and press Enter, right-click to select Lookup by Code and enter a vendor code, or click Lookup .

5. Optional: Click the up and down arrows in the Month and Year date boxes to select a different posting period.

6. Enter the Invoice #, Invoice Amt., Due Date, and Partial Amt.

• Invoice # — Enter the invoice number or click Next to assign the next invoice number for the selected vendor.

• Invoice Amt — Enter the total invoice amount. If amount is a credit to your account, you can enter a negative amount (no check is cut for the vendor until an invoice that exceeds the credit amount is entered- then, a check for the difference is created).

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• Partial Amt — If you are not paying the invoice in full, enter the amount you are

paying in this field.

7. Optional: In the drop-down list, select an Invoice Term. This information populates when you select the invoice's Due Date, but you can change it.

8. Optional: Select Autofill Text to display text from previous invoices in the Invoice Description and Comment fields. When adding additional invoices and entering text in those fields, entries from the previous invoices in the session display in a drop-down list for selection.

9. Optional: Enter an Invoice Description. This text prints in the check's memo field. 10. If applicable, select the Invoice Date. This defaults to the current date.

11. Press TAB, then enter the invoice disbursement information. To distribute the invoice to multiple accounts, enter the amount to distribute to the current account and press TAB. After you finish adding information related to this account, press ENTER to add a new line and select a new account to disburse some portion or the remaining portion of the invoice.

12. On the invoice, you can select to Pay Separate (individual check for that invoice), to Force (pay with next check run), or to Suspend (do not pay until suspension is removed). The 1099 option is automatically selected for vendors flagged as a 1099 vendors. If necessary, you can change it in this window.

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19 About Invoice Terms

When you select a term, the invoice due date is automatically set. If you enter a discount percent or amount on the term, the term's Discount Amount and Discount Date display as links next to the Invoice Term field. To change the amount or date, click the appropriate link. If you change either one, the Invoice Term changes to Other.

Discount amounts or percentages are based upon payment terms established between your organization and the vendor. If you set up a default discount for a vendor when you created the vendor's record, the percentage automatically displays.

About Invoice Distributions

The Accounts Payable module allows you to easily distribute amounts to more than one expense account. In the Distribution section, determine the number of expense and checking accounts you want to use and which accounts to use. If you assigned an expense account to the vendor, ACS populates the expense account field (Exp Acct) with the account code. To select a different account, click Lookup .

If you selected Enable Fund Accounting inAccounts Payable Setup, ACS populates the checking account field (Chk Acct) with the fund's account code. To change the Account Code in the distribution, click Lookup .

If you enter a checking account from a different fund, a crossing funds message displays. If you intended to cross funds, accept the message. Otherwise, you can make a corrected Journal Entry or void the check that displays on the report, then correct the invoice. You may also need to edit your chart of accounts if your accounts aren't flagged for the correct fund.

The Comment field is available for each line expensed and prints on check stub.

Now it’s your turn

Callie looks on her desk and sees that she needs to add three invoices today. Enter the following invoices for the current month and year. Use the next invoice number.

• One for the ACH vendor, American Insurance Company for $500.

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Editing Invoices

As soon as Callie finishes entering her invoices, she sees that she misread the amount for the invoice for Jack Frost Ice Cream.

“Oops! I’m catching on fast, but I guess this is what I get for entering those invoices so quickly. Hopefully, I can change this without having to enter many adjustments or explain anything to the vendor,” she thinks to herself.

In Add/Edit Invoices, you can edit invoices, and the invoice's status determines which fields you can change. You can change all information on unposted invoices.

On posted invoices, you can change the Invoice number, Due Date, Month and Year, Invoice Description, Invoice Date, Project Code, Comment, 1099 Box, and the Pay Separate?, Force?, Suspend?, and 1099 flags.

If you use a cash environment, you can edit a posted invoice's amount.

To edit an invoice

2. In the drop-down list, select Accounts Payable Invoices and click Go . 3. Click Add/Edit Invoices.

4. Use the drop-down list or Invoice Filter to locate the invoice you want to change. 5. Select the invoice, then click Edit.

6. Make the necessary revisions. 7. Click OK, then Close.

Now it’s your turn

Edit the invoice for Jack Frost Ice Cream. Change the invoice amount to $300, disburse the entire amount, and add an invoice description of “Popsicles for Youth Group Lock-In”.

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Posting Invoices

Since the invoice we edited wasn’t posted, Callie easily made her changes. Invoices entered into ACS do not affect account balances until they are posted and paid. You cannot issue checks forvendorsuntil the invoices are posted.

To Post Invoices

2. In the drop-down list, select Accounts Payable Invoices, then click Go . 3. Click Post Invoices.

4. In the drop-down list, select a Posting Date. This defaults to the current date. 5. To post invoices for a specific month, click the up and down arrows in

the Month/Year date boxes to select the posting period. To post invoices for all periods, select All Periods.

6. To post invoices entered by other ACS users within your organization, select All Users (Multiple users within your organization can process a check run at the same time). 7. Click Print to print the Invoice Proof List and verify your entries. You can also

click Preview to view the Invoice Proof List prior to printing.

• If you select Show Distribution, both the Account Detail and Line Item Comment print. If you do not select Show Distribution, only Vendors, Dates, and Amounts print.

• If you select Print Detail Headers, you can include Detail Headers to give you a customized proof list. You can customize the proof list and the distribution list by post month and year.

• If you select Use Selection, you can press Shift and click to select a block of

transactions, or you can press Ctrl and click to select specific transactions to post in batches. Only the selected transactions post.

8. When the confirmation message displays, click Yes to post the invoices.

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Cash vs. Accrual Environments

When you post an invoice in a cash environment, ACS links the invoice amount to the vendor. Nothing is posted to the General Ledger until the invoice is paid.

When you post an invoice in an accrual environment, ACS links the invoice amount to the vendor and to the expense account associated with the invoice. The invoice amount is posted to the Accrual Liability account in GL until the invoice is paid.

After the invoice is paid, the amount is cleared out of (debited) the Accrual Liability account and credited to the appropriate checking account.

Now it’s your turn

Remember the invoices we entered earlier? We’re going to work with them a little more now. First, clear Print Distribution and Print Detail Headers, then preview the Invoice Proof List for those invoices.

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Completing a Check Run, ACH, and Online Transactions

Now that Callie’s entered and posted her invoices, it’s time to complete a check run to pay the vendors. She needs to print and issue checks, proof her work, create an ACH file, and post the checks to General Ledger.

A check run consists of: • Paying invoices.

• Printing and reviewing the check proof list.

• Printing checks and posting them to the General Ledger.

Paying Invoices

When paying invoices, you can select which invoices to pay and the check date, pay through date, bank, and a check memo. Be careful selecting these options, as you cannot edit them after clicking Process Checks.

The check date is the date ACS uses to verify you are making the payment in time to honor a vendor discount (if applicable). If the check date is on or before the discount date, the discount is taken.

You may want toprint the Cash Requirements reportas a part of your check run. This report displays a list of unpaid invoices and the current amount due for each invoice and can help you determine if you have enough money in your accounts to pay all invoices that are due.

To Pay Invoices

2. In the drop-down list, select Accounts Payable Checks and click Go . 3. On the Print/Post Checks menu, click Pay Invoices.

4. Enter a Pay Through Date. Invoices with a due date on or before the Pay Through Date are paid unless they have been suspended. Or, you can select Show All Invoices to display all unpaid invoices.

5. Select or enter a Check Date as you want it to display on the checks.

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• If the invoice’s Discount Date is on or after the Check Date, the invoice is included in the discount taken.

6. In the drop-down list, select the bank account you want to pay invoices from. 7. The First Check Number and First ACH/Online Ref# to use when printing checks and

processing payments display. If necessary, enter a different number in these fields. 8. To print a separate check for each invoice, select Pay All Invoices Separately. If you do

not select this option and a vendor has multiple invoices in the check run, ACS combines the amounts of all the invoices and generates a single check for the invoices’ sum. 9. In the Check Memo Option field, select a memo option. This field is unavailable if you

selected Pay All Invoices Separately.

• First Invoices - Uses the memo from the first invoice. • Last Invoice – Uses the memo from the last invoice. • Generated – Uses a standard system generated memo.

• Prompt for Memo – A prompt to enter a check memo displays for each vendor that has multiple invoices to pay.

10. Optional: Right-click in the Invoices Grid to suspend or reinstate an invoice or to pay a partial amount of an invoice.

11. Select Pay? for each invoice to pay in this check run. To select all invoices, select Pay All Invoices, or right-click inside the grid and choose Select All.

12. Click Process Checks.

Useful Information

Multiple ACS users can process Accounts Payable check runs at the same time. Other users do not have to exit Print/Post Checks.

To preview the invoice information for each vendor before printing the checks, click Print Cash Requirements.

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Now it’s your turn

Let’s pay the invoices we posted earlier.

First, preview the Cash Requirements report for those invoices. Select to Print Distributions and Print All Banks.

Now, process the checks for those invoices. Note how the invoices and payment types display in the bottom pane of the Checks tab. Go ahead and view each check.

We’ll finish the process of paying the invoices in the next few exercises.

Printing the Check Proof List

“Oh wow, that wasn’t too bad,” Callie thinks. “But I want to make sure everything’s accurate before I post to the General Ledger. I’m glad I caught my first mistake before posting those invoices, and I know it would be harder to correct a mistake on a check.”

Since Callie wants to double-check that the invoices were paid correctly, let’s print the Check Proof List. It displays a complete listing of all the checks in the latestcheck run.

To print the Check Proof List

1. After paying invoices, on the Checks tab, click Check Proof List.

2. Select or clear ACH, Online, and Check, depending on which types of transactions you want to print on the report.

3. Select a sort criteria (Unprinted, Unposted; Printed, Unposted; or All).

4. To preview the report before printing, click Preview. To send it to your printer, click Print.

Now it’s your turn

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26 Printing Checks and Posting to General Ledger

Now that we’ve double-checked everything, it’s time to print and post the checks to the General Ledger.

To print and post checks

1. On the Checks tab, under Payment Type: Check, select any check you want to preview. Once selected, the check displays at the top of the window, and you can edit

the Memo or Date, if necessary.

2. Optional: If the check has already been printed, select Printed?. 3. Click Print/Post Checks.

4. Under Posting Information, verify the Posting Date, Post Month/Year, Check

Transaction Source, ACH/Online Transaction Source, Discount Tracking Account, First Check Number, and First ACH/Online Ref#. The total number of checks that will print, along with the range of check numbers, displays at the bottom of the window.

5. To display printer properties before printing, select Show Printer Dialog.

6. To generate an extract of the check and check stub information, select Create Extract File. If you use a third-party source to print your accounts payable checks, you can submit this extract file to them for printing. If your third party source requests it, select Extract Check Numbers to include check numbers in the extract.

7. To view the checks and stub information before printing, click Preview. To print a sample check, click Print Sample.

8. To print the checks, click Print. A message displays to place checks or stock paper in the printer. Click OK to print the checks.

9. When the confirmation message displays, click Yes if the checks printed correctly, or No if they did not. If the checks did not print correctly, ACS prompts you to reprint them.

10. When the confirmation message displays, click Yes to post the checks to the General Ledger.

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Now it’s your turn

Go ahead and post the invoices we paid earlier. Since we can’t print them here in class, go ahead and mark them as printed. This is also the procedure for handwritten checks.

Creating an ACH File

After Callie writes the checks, she walks out to Abbie’s desk to give them to her to mail. “Thanks Callie!” Abbie says. “I’ll get these out today. However, what about our

insurance bill to American Insurance Company? We don’t pay them by check, but don’t forget to pay them.”

“I won’t forget, Abbie,” Callie replies. “I have one more step—creating an ACH file to pay them.”

“Oh wow, Callie! It sounds like you really know what you’re doing with ACS. I’m sure you’ll be an expert in no time” Abbie says.

If you only knew... Callie thinks to herself. “Thanks Abbie! It’s been quite a journey, but I’m definitely catching on,” she says.

Banks use the ACH (Automated Clearinghouse) transmission file to electronically deposit direct payment vendors' checks into the appropriate bank accounts. Since Callie’s invoice for American Insurance Company is an ACH vendor, we need to create this file.

If there are ACH vendors, be sure to select Create ACH File in the A/P Check menu after posting the checks. Make the desired selections, click Process, and click Create File.

To create an ACH File

1. On the Checks tab, click Create ACH File.

2. Select the Effective Entry date and the type of ACH file you want to create.

• Balanced File — To create a balanced ACH file, select this option. A balanced file shows the individual credit amounts going into vendor's accounts, as well as the debit amount coming out of your organization's account. Most ACH files you create will be balanced files.

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• Reversal File — To create a reversing ACH file entry, select this option. 3. Click Process.

4. Optional: To print an ACH Proof List, click Print. To delete an ACH entry, click Delete. 5. Click Create File to create the ACH file.

6. Enter the location to save the file and a file name. Click Save.

7. A message displays indicating the total number of direct payment records written to the file and the total amount of the transmission. To complete the process, click OK.

8. In the Pay Invoices window, click Close.

Now it’s your turn

Do you remember adding the invoice for the ACH vendor, American Insurance Company for $500? Go ahead and create an ACH file for this invoice.

Useful Information

Banks use the ACH (Automated Clearinghouse) transmission file to electronically deposit direct payment vendors' checks into the appropriate bank accounts. These bank accounts must be set up as ACH accounts in General Ledger Define Lists before you can create ACH Files.

Before beginning the direct deposit process, check with your banking institution for specific transmission requirements. Your bank may require you to send a prenotification file before you create an ACH file. The bank uses the prenotification file to verify that vendor data is transmitted correctly.

Printing the Check Register

The check register report prints a list of checks after posting. You may want to print this report for your records.

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If you issue checks, the check register clears, even if you click Cancel.

To print the check register report

2. In the drop-down list, select Accounts Payable Checks, and click Go . 3. Click Check Register.

4. Select or clear ACH, Online, and Check, depending on which types of transactions you want to print on the report.

5. Click Preview to view the check register, or click Print to send it to the printer without previewing.

Now it’s your turn

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Other Check Options in Accounts Payable

Let’s discuss a few other check options in Accounts Payable: voiding, reprinting, and manually issuing checks.

Voiding Checks

In Print/Post Checks, you must issue a void for any voided check issued from Accounts Payable. You can do this through the Void Checks option.

For example, suppose Callie posts checks to the General Ledger and finds that she posted checks for the wrong amount. She could void the checks for that amount, then repost them to the General Ledger.

Reprinting Checks

Use the Reprint Checks option if you experience printer problems after you have already printed a number of checks. This lets you resume printing at the point where the problem occurred instead of restarting the check run and reprinting the entire batch of checks. However, if you need to reprint the batch, you have that option as well.

Reprint checks when:

• The printer contained plain paper instead of checks. • The check run was sent to the wrong printer.

• The check run was interrupted (such as a printer jam) and some of the checks did not actually print.

Useful Information

If the check was damaged in the printer, you may think you should include the name of the intended payee. However, since the check was not actually sent to the payee, there is no benefit of including the name.

If the check was damaged in some other way, there was no intended payee. ACS suggests that you use a generic term such as VOID and enter a zero check in General Ledger.

Issuing Checks

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flexibility of being able to print one or more checks "on the fly" or enter information from handwritten checks into ACS.

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Performing a Vendor Inquiry

After completing the check run, Callie decides to look around at some other ACS features, and her eyes light up when she finds Vendor Inquiry.

“This is great!” Callie says, glowing with a smile. “If Abbie or any of the pastors call with questions about outstanding or suspended invoices, voided checks, or purchase totals, I have that information at my fingertips.”

In Vendor Inquiry, you can view invoice or check information as well as summary totals. You can also find a check or invoice in this window and change the 1099 invoice flag for a specific

invoice.

To perform a vendor inquiry

1. Under Run Inquiries, click the Inquiry Type tab.

2. In the drop-down list, select Vendor Inquiry and click Go . 3. Click Lookup and select the correct vendor.

4. The vendor’s invoices display. To view checks, click the Checks tab.

Useful Information

The month and year default to the current posting period in Accounts Payable. To locate a specific invoice, click Find and enter the invoice information.

In Inquiry, you can double-click the invoice to change the 1099 option for the invoice, even if it is already posted. You can double-click on a check to display the distributions.

To view vendors’ statistical information

1. In the Vendor Inquiry window, click the Totals tab. 2. If asked to update vendor totals, click Yes.

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4. With the Vendor Totals option selected, the following information displays in the Inquiry window:

• The number of active vendors. • The number of inactive vendors.

• YTD purchases and 1099 totals. If you select One Vendor, the totals for the selected vendor display. If you select All Vendors, the aggregate total from all the vendors displays.

5. With the Invoice Totals option selected, the following information displays in the Inquiry window:

• Number of outstanding (unpaid) invoices • Number of suspended or forced invoices

• Total dollar amount of outstanding or suspended invoices • Total dollar amount of forced or discount items

6. With the YTD Check Totals option selected, the following information displays in the Invoice window:

• The number of checks written • The number of voided checks

• The total dollar amount of checks written, discounts, and voided checks When you select MTD Check Totals, each month and total dollar amount of checks written display in the Invoice window.

Now it’s your turn

1. Perform a vendor inquiry for American Insurance Company. Customize the inquiry to display invoices for the year-to-date.

2. Perform an inquiry for Able Printing and Supplies, and customize the inquiry to display all invoices, including open and voided ones.

3. Calculate the vendor totals for all vendors.

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Unit 3: Using Accounts Payable Reports

The ACS Accounts Payable module has many reports that you can preview or print. These reports include lists (such as the Invoice Frequency List and the Vendor Master List) and journals (such as the A/P Cash Requirements Report and the Open A/P Report).

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Check/Invoice Cross References Report

The Check/Invoice Cross References reports display vendors’ checks and the corresponding invoices for a selected month.

To view the Check/Invoice Cross Reference report 1. Under Generate Reports, click the Reports tab.

2. In the drop-down list, select Accounts Payable and click Go . 3. Expand Journals, and then select Check/Invoice Cross Reference. 4. Select the Report View you want, then click Customize.

5. Select the appropriate Sort By order.

6. If necessary, select the appropriate Vendor Options.

7. If you want to limit the report to specific vendors, range of check numbers, or range of vendor codes, use the fields on the Vendor Search tab.

8. Click OK.

Now it’s your turn

Since Callie needs it for her records, preview the Check/Invoice Cross Reference report for the last six months. When the report displays, see if you can locate the invoices and checks we entered earlier.

Useful Information

If you’d like to include the report in another document (such as a Power Point presentation), click Copy to Clipboard , then switch to the other document and paste the report.

Aging Journal Report

The Aging Journal report displays all invoices due but not paid by the Pay Through Date on the Options tab. The Detail report groups invoices by Vendor Name/Code and sorts them by invoice number. The Summary report contains totals only for each Vendor Name/Code.

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1. Under Generate Reports, click the Reports tab.

2. In the drop-down list, select Accounts Payable, and click Go . 3. Expand Journals, then select Aging Journal – Detail or Summary. 4. Select the Pay Through Date you want to view, then click Customize. 5. Select the appropriate Sort By order and Bank Account.

6. To limit the report to specific vendors or range of vendor codes, use the fields on the Vendor Search tab.

7. Click Preview to display the report.

Now it’s your turn

Preview the Aging Journal – Summary through the end of the month , sorted by Vendor Code, but only for the Church of Great Training Bank account.

YTD Purchases List Report

The YTD Purchases List report lists all vendors and includes vendors' phone numbers, social security numbers, tax year's 1099 purchases, and fiscal YTD purchases. At the end of the year, we recommend printing this report before printing the 1099s to verify 1099 totals for vendors. To include any one time vendors, make sure to include inactive vendors. All AP List reports flag inactive vendors with an asterisk (*).

To view the YTD Purchases List report

2. In the drop-down list, select Accounts Payable, and click Go . 3. Expand Lists, then select YTD Purchases List.

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5. On the Report Options tab, select all appropriate options and click Preview.

6. Enter the appropriate dates that you want to display totals for on the report and click OK.

Now it’s your turn

Preview the report for the current year.

Check Register

You can view a Check Register from General Ledger that displays only Accounts Payable checks. To limit the checks to a specific date range or vendor, use the fields on the Additional Options tab.

2. In the drop-down list, select General Ledger and click Go . 3. Expand Journals, and then select Check Register – Check Order. 4. Set the View to this month, then click Customize.

5. Under Transaction Options, select AP, then click OK.

Open A/P Report

The Open A/P Report displays all unpaid invoices, including those not yet due. You can print the report using one of three available formats- by account distribution, by summary, or by detail. To display the Open A/P Report

2. In the drop-down list, select Accounts Payable and click Go . 3. Expand Journals, then select the Open A/P Report.

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Voided Check List Report

The Voided Check List report displays all voided checks for a specified check date range.

To view the Voided Check List report

2. In the drop-down list, select Accounts Payable and click Go . 3. Expand Journals, then select Voided Check List.

Financials 102. Accounts Payable

Financials 102

Contents

Unit 1: Starting Accounts Payable

Meet Callie

Setting up Accounts Payable

Now it’s your turn

Defining Vendor Types

Now it’s your turn

Invoice Frequencies

Adding and Editing Vendors

Determining 1099 Vendors

Now it’s your turn

Starting Accounts Payable during the Year

Now it’s your turn

Unit 2: Accounts Payable Usage

Adding Invoices

Now it’s your turn

Editing Invoices

Now it’s your turn

Posting Invoices

Cash vs. Accrual Environments

Now it’s your turn

Completing a Check Run, ACH, and Online Transactions

Useful Information

Now it’s your turn

Now it’s your turn

Now it’s your turn

Now it’s your turn

Useful Information

Now it’s your turn

Other Check Options in Accounts Payable

Useful Information

Performing a Vendor Inquiry

Useful Information

Now it’s your turn

Unit 3: Using Accounts Payable Reports

Check/Invoice Cross References Report

Now it’s your turn

Useful Information

Aging Journal Report

Now it’s your turn

YTD Purchases List Report

Now it’s your turn

Check Register

Open A/P Report

Voided Check List Report