Accounts Payable Key Operating Tasks

Introduction

The basic functions of the Advantos Enterprise Accounts Payable System are very easy to understand and can be performed by relatively inexperienced operators. The main functions of the A/P module maintain vendors, create and maintain invoices, perform check preparation and check voiding, and are discussed at length below.

Maintain Vendor Records

One of the main features of the Advantos Enterprise Accounts Payable System is the ease with which you can set up and maintain a vendor data base. This feature has been made easier by consolidating Names information into one system-wide central Address Book. All name records, mailing addresses and phone numbers are now set up and maintained in the Address Book. Prior to adding a vendor to the system, the user should look the vendor up in the Address Book to make sure the vendor has not already been added.

If the vendor is already in the address book, you should verify that the address is the one to be used in Accounts Payable. If the vendor name and address information is correct, then the vendor does not need to be created, since the vendor is already on file. If the vendor is not on the system, then simply add the ?new? vendor into the address book, file the address and then add the additional information on the vendor, including contact name and phone number, tax identification numbers and license numbers and expiration dates, etc. If the Address Book information is not correct, then a new Address Book entry can be added.

Vendor Numbers
A vendor number will automatically be assigned in A/P when a vendor is set up. The numbers will reflect only in what order the name was added as a vendor. Old numbers can be retained in the system, but are no longer used to alphabetize the vendor on reports.
Special Vendor Number
The system allows the operator to set up a vendor record to be used for special purposes, and code the number anything up to five characters. Usually, vendor ?9999? is used at setup to designate this special vendor. The special vendor is usually set up to be used for one-time transactions, where a 1099 will not have to be given and where vendor transaction history is not needed. A separate check will be issued for each A/P invoice created for to this special vendor.
1099s
If you are required to issue a Federal 1099 to a vendor, you can flag that in the vendor record. These vendors are usually Non-Corporations. When you create a vendor record, you decide whether to issue a 1099 by simply flagging the vendor record.
Licensing Information
you will be able to track expiring or expired licenses in order to contact vendors and request updated information. If a vendor workmen?s comp or liability expiration date has expired, and the vendor has been flagged as receiving a Federal 1099, then a warning message will be displayed when an invoice to that vendor is entered through Accounts Payable. Specific reports are available to track this information.
Deleting Vendor Information
One of the maintenance functions in Vendor Setup lets you delete a vendor record. The Vendor History Files maintain vendor records for a configured number of months so users cannot delete vendors who have had activity within the configured number of months. In other words, if you keep vendor payment records for three years, for example, then you cannot delete this vendor until there is no longer any payment history maintained on the vendor.

Post and Maintain Invoices

When an A/P invoice is entered on the system, an unlimited number of GL accounts can be used for that invoice. If you discover an incorrect account number was used and a check has not yet been written for that invoice, you can simply change the gl account through the invoice entry and maintenance screen. The software will automatically post a reversal to the incorrect account number and a posting to the correct account number.

If a check has been issued (but not released) and an incorrect G/L account has been used, simply void the check. This process will allow you the option to recreate the invoice automatically or not. If you elect not to recreate the invoice automatically, then enter it manually with the corrected information.

Special Invoice Types - the operator can also create Credit Memos (a negative invoice) or Prepaids (an invoice already paid by handwriting a check). A Credit Memo will not generate a check, unless there are other invoices for it to net out against. It will stay on the system as an unpaid invoice until it can be processed. Make sure the Prepaids are immediately booked to the system in order to update the bank accounts and G/L accounts.

Check Preparation

Prior to a check run, all entered invoices should be reviewed prior to printing checks. This is done by reviewing a ?Cash Requirement Report? on-screen. This report selects for review unpaid invoices due ON or PRIOR TO a selected Due Date. This Due Date is entered when each invoice is entered on the system. Therefore, whether the invoice shows up on the Cash Requirement Report depends on its Due Date. If the invoice due date is in advance of the Due Date you select, it will not be displayed on this report.

Once the invoices show up on the Cash Requirement Report, you can either approve or disapprove each invoice for payment. This Cash Requirement Report lets you review current bank balances on each property, move invoices to future Due Dates if necessary (so that it doesn?t show up on the cash requirement report at all, or make decisions about moving funds to cover checks. The entire process is designed to eliminate mistakes BEFORE checks are written.

Because the checks are formatted and printed on a laser printer which uses special toner, the MICR characters can be printed directly on the check at preparation time. All checks for all clients can be processed in one check run. This eliminates the need for changing check stock in the printer.. It even eliminates the need for expensive, printed checks for each client. This feature significantly reduces the time required to process checks.

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