Accounts Payable Setup Checklist


(1) MAKE SURE THAT GENERAL LEDGER IS ALREADY SETUP, IF APPLICABLE

IF YOU HAVEN’T DONE ANYTHING TO SETUP THE GENERAL LEDGER, YOU NEED TO DO THIS FIRST BEFORE ATTEMPTING TO USE THIS MODULE. PLEASE REFER TO THE "SETUP OF GENERAL LEDGER" FOR A STEP BY STEP SET OF INSTRUCTIONS AND HINTS.

IF YOU HAVE ALREADY SETUP THE GENERAL LEDGER, PLEASE TAKE A MOMENT TO MAKE SURE THAT THE FOLLOWING HAVE BEEN COMPLETED:

IF ALL HAVE BEEN SETUP, YOU’RE READY TO BEGIN ACCOUNTS PAYABLE AND START USING IT QUICKLY.

(2) ADD/EDIT TERMS

SETTING UP INFORMATION IN THIS SCREEN WILL SAVE YOU MUCH TIME AND POSSIBLY MONEY LATER ON. PROBABLY MOST OF YOUR VENDORS  HAVE ESTABLISHED PAYMENT TERMS AND MAY OFFER DISCOUNTS IF PAID EARLY. A COMMON DISCOUNT IF PAID WITHIN 10 DAYS, THE FULL AMOUNT AFTER THE PAID E TENTH DAY AND DUE BEFORE 30 DAYS". PAID WITHIN 10 DAYS, THE FULL AMOUNT AFTER THE TENTH DAY AND DUE BEFORE 30 DAYS".

ENTERING INFORMATION INTO THIS SCREEN WILL SAVE TIME (WHEN CREATING INVOICES, THE DUE DAY AND DISCOUNT DUE DAYS ARE AUTOMATICALLY CALCULATED FOR EACH VENDOR) AND MIGHT SAVE YOU MONEY (THE DISCOUNT AMOUNT IS AUTOMATICALLY CALCULATED FOR YOU. USING THE DISCOUNT DUE DAY REPORT WILL GIVE YOU ADVANCED WARNING OF WHAT INVOICE DISCOUNT DATES ARE COMING DUE).

PLEASE NOTE THAT YOU CAN ENTER JUST THE NUMBER OF DAYS FOR THE DISCOUNT AND DUE DATE OR USE THE MORE FLEXIBLE CUTOFF DAY AND DUE DAYS BASED UPON WHAT TIME OF THE MONTH THE INVOICE WAS RECEIVED.

(3) ADD/EDIT VENDORS

YOU HAVE A CHOICE. YOU CAN SETUP EVERY SINGLE VENDOR YOU HAVE EVER HAD DEALINGS WITH FOR THE PAST FEW YEARS OR JUST SETUP THOSE VENDORS WITH WHICH YOU HAVE A CURRENT BALANCE. IT IS RECOMMENDED THAT YOU DO THE LATTER. IF YOU TRY TO SETUP EVERYONE NOW, YOU’RE JUST DELAYING THE TIME WHEN YOU CAN START USING THIS MODULE FOR PAYMENTS AND BUSINESS DECISIONS. EVENTUALLY, ALL THE VENDORS WILL BE SETUP; BUT IT IS GENERALLY BETTER TO SETUP VENDORS AS THE NEW INVOICES ARE RECEIVED. AFTER A FEW MONTHS, YOUR MOST ACTIVE VENDORS WILL HAVE BEEN SETUP AND THE FREQUENCY OF NOT FINDING A VENDOR ALREADY SETUP WILL DECLINE.

THE ADDRESS MASTER PERMITS ASSIGNING NUMERIC OR ALPHA VENDOR IDS. THE ALPHA IDS ARE CREATED BY ENTERING AN ‘A’ AT THE ID PROMPT WHICH JOINS THE FIRST THREE LETTERS OF THE FIRST WORD WITH THE FIRST THREE LETTERS OF THE SECOND WORD. (FOR EXAMPLE: "MESA OFFICE SUPPLY" WOULD GET AN ID OF "MESOFF"). FOR NUMERIC IDS, ENTER A PERIOD ‘.’ AT THE ID PROMPT. IT IS RECOMMENDED THAT YOU USE ALPHA IDS CREATED BY THE ADDRESS MASTER; "MESOFF" IS A LOT EASIER TO REMEMBER AS "MESA OFFICE SUPPLY" THAN SAY THE NUMBER "1134".

PROMPT NUMBER 27 "TERMS" IS WHERE YOU ENTER THE TERM CODES SAVED IN THE ADD/EDIT TERMS SECTION.

(4) LIST OF VENDORS

TAKE THE TIME TO PRINT A LIST OF THE VENDORS JUST ENTERED. YOU HAVE A CHOICE OF THE SHORT OR LONG VENDOR LIST FORMAT. GENERALLY, CHOOSE THE SHORT VERSION OF THE REPORT. VERIFY THAT NAMES AND ADDRESS HAVE BEEN CORRECTLY SETUP. YOU CAN USE THIS LIST TO FIND THE NEW ADDRESS MASTER IDS FOR YOUR VENDORS; THOUGH THROUGHOUT THE ACCOUNTS PAYABLE MODULE, YOU CAN LOOK UP THE ID BY JUST ENTERING PART OR ALL OF THE FULL VENDOR NAME.

(5) ADD/EDIT INVOICES

YOUR CONVERSION DATE FOR THIS MODULE SHOULD BE THE SAME AS THE DATE YOU USED EARLIER TO SEED THE OPENING BALANCES FOR  THE GENERAL LEDGER. IN OTHER WORDS, IF YOUR STARTING BALANCES FOR THE GENERAL LEDGER WERE ENTERED AS OF DECEMBER 31ST, THEN YOU SHOULD CREATE A LIST OF ALL INVOICES THAT WERE STILL TO BE PAID OR ARE PARTIALLY PAID AS OF DECEMBER 31ST.

A SPECIAL NOTE ABOUT PARTIALLY PAID INVOICES AS OF THE CONVERSION DATE. ENTER THEM AT THEIR FULL ORIGINAL AMOUNT. LATER ON, YOU WILL ENTER ADJUSTMENTS TO SHOW THE AMOUNT OF THE PARTIAL PAYMENT AND FROM WHAT CHECK IT CAME. THIS WAY, IF YOU HAVE AN OCCASION TO INQUIRE LATER ABOUT WHAT HAPPENED WITH ONE OF THE PARTIALLY PAID CONVERSION INVOICES, THE COMPLETE HISTORY WILL SHOW; NOT JUST WHAT HAPPENED AFTER THE CONVERSION.

(6) LIST UNPOSTED INVOICES

GET INTO THE HABIT OF PRINTING A LIST OF YOU UNPOSTED INVOICES AND REVIEWING EACH ENTRY CAREFULLY. IT IS SO EASY TO CORRECT OR BLOW AWAY AN INVOICE "BEFORE" IT HAS BEEN POSTED. IF YOU MISS AN ERROR AND POST, YOU MUST USE INVOICE ADJUSTMENTS TO MAKE CORRECTIONS.

(7) POST INVOICES

POSTING INVOICES WILL MAKE THEM A PERMANENT PART OF YOUR ACCOUNTS PAYABLE MODULE. PLEASE REMEMBER TO POST. MANY  CLIENTS WILL CALL EXPLAINING THAT THEY HAVE A 10 PAGE LIST OF UNPOSTED INVOICES THAT ARE PERFECTLY CORRECT AND THEY CAN’T FIND THEM ANYWHERE WHEN THEY RUN THE AGED ACCOUNTS PAYABLE REPORT. ALMOST ALWAYS, THE CLIENT HAS FORGOTTEN TO POST THEM TO THE MODULE.

JUST A SHORT NOTE: WHEN YOU POST IN THE ACCOUNTS PAYABLE MODULE, THE GENERAL LEDGER IS NOT EFFECTED. THE DISTRIBUTIONS FROM YOUR POSTINGS ARE WRITTEN TO A SPECIAL HOLDING FILE AND MUST BE "COLLECTED" BY USING THE MENU SELECTION "COLLECT JOURNALS FROM MODULES" IN THE GENERAL LEDGER MAIN MENU.

(8) ADJUST POSTED INVOICES

ONCE YOU HAVE POSTED THE NEW INVOICES, YOU NEED TO USE THIS PART OF ACCOUNTS PAYABLE FOR TWO POSSIBLE REASONS: (1) YOU’VE MISSED A MISTAKE AND AN INVOICE IS EITHER TOO HIGH OR TOO LOW OR SHOULDN’T BE THERE AT ALL. (2) YOU’VE ENTERED EVERYTHING JUST FINE; NOW YOU NEED TO ADJUST THOSE PARTIALLY PAID INVOICES TO SHOW THE EFFECT OF A PREVIOUS CHECK.

JUST A QUICK NOTE: MANY CLIENTS HAVE CALLED AND ASKED HOW THEY CAN "BLOW AWAY" A POSTED INVOICE BECAUSE IT SHOULD HAVE BEEN SETUP FOR ANOTHER VENDOR. ONCE AN INVOICE HAS BEEN POSTED, GENERAL LEDGER DISTRIBUTIONS HAVE BEEN GENERATED AND MAY ALREADY HAVE BEEN COLLECTED AND POSTED TO THE GENERAL LEDGER. "BLOWING AWAY" A POSTED INVOICE LEAVES YOUR GENERAL LEDGER HIGH AND DRY WITH NO KNOWLEDGE THAT A PARTICULAR INVOICE NO LONGER EXISTS. THE ONLY WAY TO "BLOW AWAY" A POSTED INVOICE IS TO ADJUST IT OUT OF EXISTENCE WITH AN ADJUSTMENT WHOSE DISTRIBUTIONS ARE EXACTLY THE OPPOSITE OF THE ORIGINAL TRANSACTION.

TO ADJUST A PARTIALLY PAID INVOICE, ENTER A NEGATIVE DOLLAR FOR THE AMOUNT PREVIOUSLY PAID OR ADJUSTED AND THEN ENTER A SMALL NOTE IN THE REFERENCE SECTION OF THE SCREEN WITH THE CHECK NUMBER OR REASON FOR THE PREVIOUS ADJUSTMENT. IF THE ENTRY SCREEN DOES NOT OFFER THE GENERAL LEDGER DISTRIBUTIONS, YOU MUST ENTER A DEBIT TO ACCOUNTS PAYABLE AND A CREDIT TO CASH (IF PAID BY CHECK) OR TO EXPENSE ACCOUNTS (IF AN OLD ADJUSTMENT).

(9) LIST UNPOSTED ADJUSTMENTS

AS WITH THE SECTION TO LIST UNPOSTED INVOICES, GET INTO THE HABIT OF ALWAYS PRINTING UNPOSTED ADJUSTMENTS AND THEN CAREFULLY REVIEW THE PRINTOUT FOR ANY MISTAKES REQUIRING CORRECTION.

(10) POST INVOICE ADJUSTMENTS

POSTING THE ADJUSTMENTS WILL MAKE THEM A PERMANENT PART OF THE ACCOUNTS PAYABLE MODULE. 

DON’T HESITATE TO USE THE INVOICE INQUIRY SCREEN ON THE UPPER RIGHT PORTION OF THE ACCOUNTS PAYABLE MAIN MENU TO VERIFY THAT THE INVOICES HAVE BEEN ADJUSTED.

(11) ACCOUNTS PAYABLE AGING REPORT

THIS REPORT WILL REVEAL EVERYTHING THAT YOU HAVE ENTERED INTO THIS MODULE AND WILL LET YOU CHECK TO SEE IF THE TOTAL AMOUNT OWING TO VENDORS AGREES WITH THE AMOUNT YOU SEEDED INTO GENERAL LEDGER.

FOR REPORT OPTIONS, IT IS RECOMMENDED THAT YOU SELECT THE FOLLOWING:

DETAIL OR SUMMARY: DETAIL

WANT BALANCE DUE EQUAL 0: NO

AGING BY INVOICE OR RECEIVED DATE: RECEIVED

CUTOFF DATE: YOUR CONVERSION DATE

IF YOU FIND THE TOTAL OWING AT THE BOTTOM OF THE REPORT DOES NOT AGREE WITH THE GENERAL LEDGER OPENING BALANCES, REVIEW CAREFULLY EACH VENDOR AND MAKE CORRECTIONS (ADD MORE INVOICES OR ADJUST OTHERS). IF YOU KNOW YOU’VE ENTERED AN INVOICE AND POSTED IT AND STILL CAN’T FIND IT ON THE REPORT, GO TO THE INVOICE INQUIRY AND TRY TO LOOK IT UP ON THE SCREEN. IF THE INVOICE EXISTS, CHECK THE INVOICE AND RECEIVED DATES. MANY TIMES, THE DATES ENTERED HAVE BEEN ACCIDENTALLY PUT INTO THE FUTURE (YOU MEANT TO ENTER NOVEMBER 11TH AND YOU ENTERED APRIL OF THE NEXT YEAR). SINCE YOU ENTERED A CUTOFF DATE, ANY INVOICES AFTER THAT DATE WILL NOT SHOW ON THE REPORT. TO CORRECT A WRONG DATE, ADJUST THE INVOICE TO ZERO, AND SETUP ANOTHER INVOICE WITH THE CORRECT DATE AND WITH A SLIGHTLY DIFFERENT INVOICE NUMBER (EG: ORIGINAL INVOICE NUMBER WAS 1123-4; SETUP THE CORRECT INVOICE AS 1123-4A).

(12) SYSTEMS SOLUTIONS REMOVE CONVERSION DISTRIBUTIONS

IF YOUR ACCOUNTS PAYABLE AGING REPORT BALANCES

EXACTLY WITH THE SEEDED ACCOUNTS PAYABLE TRADE BALANCE ENTERED INTO YOUR GENERAL LEDGER, CONGRATULATIONS.

AS YOU CREATED INVOICES AND MADE ADJUSTMENTS IN ORDER TO GET THE ACCOUNTS PAYABLE MODULE TOTAL TO AGREE WITH THE ACCOUNTS PAYABLE TRADE SEEDED BALANCE, THE SYSTEM WAS GENERATING GENERAL LEDGER DISTRIBUTIONS. YOU HAVE ALREADY ENTERED INTO YOUR GENERAL LEDGER THE BALANCES FOR ALL YOUR ACCOUNTS AS OF THE CONVERSION DATE. IF YOU WERE TO COLLECT AND POST THESE DISTRIBUTIONS ON TOP OF THE SEEDED BALANCES, YOU WOULD BE DUPLICATING MANY BALANCES. TO AVOID THIS, YOU NEED TO CALL SYSTEM SOLUTIONS AND HAVE THEM REMOVE THESE CONVERSION DISTRIBUTIONS FROM YOUR SYSTEM. YOUR MODULE NOW BALANCES EXACTLY WITH THE GENERAL LEDGER.

(13) ADD/EDIT RECURRING

SETTING UP INFORMATION IN THIS SCREEN WILL SAVE YOU MUCH TIME AND POSSIBLY MONEY LATER ON. PROBABLY MOST OF YOUR VENDORS HAVE ESTABLISHED PAYMENT TERMS AND MAY OFFER DISCOUNTS IF

MOST BUSINESSES HAVE CERTAIN PAYMENTS TO VENDORS THAT ARE DUE MONTHLY AND HARDLY EVER CHANGE IN AMOUNT. AN EXAMPLE MIGHT BE RENT OR JANITORIAL SERVICE. RATHER THAN HAVING TO ENTER THESE INVOICES EACH AND EVERY MONTH FOR EXACTLY THE SAME AMOUNT, IT IS RECOMMENDED THAT YOU CREATE RECURRING INVOICES.

THE ADD/EDIT RECURRING WILL ASK SEVERAL QUESTIONS AND BUILD A STANDARD INVOICE FOR EACH RECURRING TRANSACTION. ONCE A MONTH, RUN THE "GENERATE RECURRING INVOICES" MENU SELECTION AND TEMPORARY INVOICES FOR ALL RECURRING WILL BE CREATED. IF THE AMOUNTS CHANGE OCCASIONALLY, REMEMBER THAT THESE ARE TEMPORARY INVOICES THAT CAN BE CHANGED JUST AS IF YOU HAD CREATED BUT NOT POSTED A NEW INVOICE. AFTER YOU HAVE MADE ANY CORRECTIONS, JUST POST THESE NEW INVOICES TO MAKE THEM A PERMANENT PART OF THE ACCOUNTS PAYABLE MODULE.

(14) HELPFUL HINTS

AS STRESSED EARLIER, USE THE THREE INQUIRY MENU SELECTIONS TO VERIFY YOUR ENTRIES. AVAILABLE TO YOU ARE THE VENDOR PAYABLES, INVOICE, AND CHECK INQUIRIES. ALSO DON’T FORGET THE INQUIRY FEATURES AVAILABLE IN THE ADDRESS MASTER.

IF YOU SETUP RECURRING INVOICES, BE SURE TO MARK WHEN YOU RUN THEM EACH MONTH. THE SYSTEM DOES NOT STORE THE DATE LAST RUN AND WILL NOT WARN YOU IF YOU ATTEMPT TO CREATE RECURRING INVOICES TWICE OR THREE TIMES IN THE SAME MONTH. IF YOU SHOULD INADVERTENTLY GENERATE AN EXTRA SET OF RECURRING INVOICES, SIMPLE BRING UP THE EXTRAS TO THE ADD/EDIT INVOICES ENTRY SCREEN AND ENTER AN "FD" AT THE MODIFICATIONS PROMPT TO DELETE THEM.

MANY TIMES, A VENDOR WILL ISSUE YOUR FIRM A CREDIT FOR AN INVOICE LONG SINCE PAID. WHAT YOU WANT TO DO IS ENTER THIS CREDIT INTO THE ACCOUNTS PAYABLE MODULE FOR USE LATER WHEN YOU OWE MONEY AGAIN TO THIS VENDOR. THE TRICK IS TO CREATE AN INVOICE FOR A NEGATIVE AMOUNT. AFTER A WHILE WHEN NEW INVOICES HAVE ARRIVED AND YOU WANT TO PAY THIS VENDOR, CHOOSE THE INVOICES YOU WANT TO PAY AND ALSO CHOOSE THE NEGATIVE INVOICE. THE SYSTEM WILL PRINT A NET CHECK FOR THE DIFFERENCE BETWEEN THE AMOUNT YOU OWE THIS VENDOR AND THE AMOUNT OF THE NEGATIVE INVOICE.

HOW MANY TIMES HAS THIS HAPPENED? YOU’RE PRINTING TEN CHECKS (LET’S SAY THE CHECK NUMBERS ARE FROM 120 TO 129). UNFORTUNATELY, YOUR PRINTER SHREDS CHECK NUMBER 124 AND COMES TO A HALT. HOW DO YOU REPRINT THE CHECKS? FIRST, THE CHECK PRINTING PROGRAM ACTUALLY THINKS THAT ALL TEN CHECKS HAVE BEEN PRINTED. THIS IS BECAUSE THE CHECKS TO BE PRINTED ARE FIRST SPOOLED TO A FILE. ONLY AFTER THE PROGRAM HAS COMPLETED SENDING THE PRINTING INFORMATION FOR ALL TEN CHECKS TO THIS FILE, WILL THE CHECK PRINTING START. THIS IS WHAT YOU DO: REENTER THE CHECK PRINTING PROGRAM AND SELECT THE REPRINT OPTION. IT WILL ASK YOU THE BEGINNING AND ENDING CHECK NUMBERS. IN OUR EXAMPLE, YOU SHOULD ENTER 124 FOR BEGINNING AND 129 FOR ENDING. (REMEMBER, CHECK 124 WAS SHREDDED AND 125 THROUGH 129 ARE PRINTED AS FAR AS THE CHECK PRINTING PROGRAM IS CONCERNED, NOT AS FAR AS YOUR CHECK STOCK IS CONCERNED).

WHEN THE PROGRAM ASKS YOU FOR THE STARTING CHECK NUMBER (THE FIRST CHECK NUMBER ON WHICH TO PRINT), YOU SHOULD ENTER 125. YES, 125! YOUR CHECKS 125 THROUGH 129 ARE PERFECTLY USEABLE FOR PRINTING; WE JUST NEEDED TO SHIFT THE SYSTEM CHECKS OVER ONE CHECK SO WHAT HAD BEEN PRINTED ON CHECK NUMBER 124 WILL NOW BE PRINTED ON CHECK NUMBER 125 AND SO ON. YOUR LAST CHECK WILL NOW BE 130 INSTEAD OF THE ORIGINAL 129.