Posting A/P Invoices
This process allows you to create, review, edit and delete A/P invoices (nvoices are sometimes referred to as vouchers). You can create a single invoice (or voucher) or a paid invoice (or voucher). You can create an invoice and copy all of the data to the next new invoice; which is useful when entering a batch of invoices all similar (like utility invoices).
Invoices contain the vendor information (name and address) when they are created. This is because vendor names and addresses change but once a check is paid the information on the check is permanent and needs to be kept. Sometimes you pay a single vendor only once. These kinds of vendors aren't really companies, but are individuals. There is a special vendor no. that can be defined so that if used, the user needs to enter the "payee" information (the name and address of the payee). This allows you to minimize the number of vendors you maintain.
These invoices are the basis for the accounts payable module. All accounts payable accounting is derived from these invoices. Each invoice must be reviewed and approved before it can be paid. The following fields are presented on this form, along with a brief description of what these fields should contain.
Vendor No:
Enter the vendor number in this field, or click on the Vendor No link in order to select from a list. If you select the Special Vendor Record, you will be prompted to enter name and address information for the vendor. Note: If a non-1099 vendor doesn't have a business license then a message explaining this will be displayed when entering an invoice. If the invoice is within 10 days of the liability or worker's comp insurance expiration dates, a warning message will be displayed.
Invoice No:
Use this field to enter the invoice number that will be used. Either enter your own invoice number or click the New link to auto-assign a number to the invoice.
Client No:
Enter the client number in this field, or click on the Client No link to select from a drop-down list.
Bank No:
This field displays the default A/P Bank Number for the selected client automatically. You may click on the arrow next to the field to display a drop-down list in order to select an alternate bank account for the invoice.
Pay Type:
This field contains the various options that can be selected in order to define the payment type of the invoice. The invoice types that are available for use in the drop-down list are defined as follows:
- Regular - This payment type is a standard unpaid invoice.
- Credit Memo - This payment type is a negative invoice used to grant a credit amount or to off-set a previous invoice amount.
- Paid - This payment type is a pre-paid invoice that has been paid through a manual check. You will be prompted to enter the check number used and the date the invoice was paid.
- ACH - This payment type is a pre-paid invoice that has been paid through an electronic transfer. You will be prompted to enter the ACH number and the date the invoice was paid.
Approved By:
You can approve this invoice if you are a system administrator. Otherwise, approval is accomplished via the Cash Requirements check-writing process.
Inv Date:
This is where you will enter the date of the invoice. Click on the calendar icon to select a date.
Due Date:
This is the date the invoice will appear as payable. When the Cash Requirements Report or Pay Invoices utility is run the selected invoices will include all invoices with a due date earlier than or equal to the date specified in this field.
Priority:
This field contains the invoice priority which determines when the invoice will be posted to G/L. There are two options available in the drop-down list defined as follows:
- Post - This option is where the invoice is posted to G/L immediately. This is the most common option for clients using an accrual basis accounting system. In this type of accounting system, invoices are normally entered into A/P and posted to the financial statements for the month they are received. On the other hand, clients using a Cash Basis accounting system will see this priority option when a pre-paid invoice is being entered.
- No Post - This option is where the invoice is not posted to G/L until it is paid. This is the most common option for clients using a cash basis accounting system. For accrual basis clients, this can be useful for instances where invoices are received well in advance of the due date where you may want to enter the invoices into A/P, but not post to the financial statements until the month of payment.
Source:
This is the source of the invoice. Normally it's blank but you can use this field for anything. A source of 'AUTO' is automatically placed in this field when invoices are created automatically; for instance through T/R refunds, A/P recurring invoices, etc.
PO:
This field is for entering the PO number of a purchase order associated with this A/P invoice. This field is disabled unless the vendor has an open work order for the client entered. In this case the field will be enabled and you can select the work order you want associated with this invoice. You can enter the PO number manually, or simply click the PO link in order to select from an available list. If this invoice is the final invoice for the work order, then the Invoice Date will be used as the PO's completion date. When this invoice is paid, the PO will be closed with the check date as the closed date.
Terms:
This field is presently unused.
Gross:
Enter the gross amount of the invoice that is due in this field. You may only enter a negative value if this is a Credit Memo invoice. If you enter the wrong gross amount and then proceed to Save the invoice, then you will need to delete the invoice and re-enter it in order to correct the amount.
Inv Desc:
This field is used for entering the description of the invoice that will appear on the check stub and the check registers.
Invoice Allocations to G/L -- Accts/Amounts:
This table will help you assign G/L accounts to the invoice being entered. Click on the Acct # link to select the appropriate G/L account and then manually enter the amount being applied to that G/L account in the Amount column. If the vendor has default G/L account numbers that have previously been defined using the Vendor Information utility, then these will be displayed here.
When the Amount field is entered the remaining value of the gross amount entered will be displayed as a default. You can simply press [Enter] to accept this displayed amount or enter a new amount.
Note: if you use a G/L acct# that is associated with a bank account then the bank account the G/L acct# is associated with must be updated by hand, as the only bank that is updated is the standard bank account the check is issued from.
Finished?
After entering the invoice information, take some time to review your entry to make sure you have entered the correct information. At the bottom of this screen are five buttons that will finalize the invoice in one of the following ways:
- Save - Select this button in order to complete the invoice and save it to the system.
- Pay - Select this button in order to pay a pre-existing unpaid invoice. You will be prompted to enter the check number and date of issuance which will then change the pay type to Paid.
- Clear - Select this button in order to clear your selection and return you to the beginning of the A/P Invoice Maintenance entry screen. This also clears the last invoice saved data.
- Delete - Select this button in order to delete an invoice that has not yet been paid. In order to delete a paid invoice, use the Void Checks menu option.
- Save/Copy - Select this button in order to complete an invoice and make the currently entered data available for the immediately next new invoice creation. This is useful if you have to create multiple invoices for a single vendor, such as utilities, and the data changes very little from one invoice to another.