Accounting 2

CLASS DESCRIPTION

This class will review how the Vendor File is set up including how to use the memorize GLs function; discuss the AP Subledger including the information it contains; and lastly, how to enter a vendor AP bill.

TRAINING PHILOSOPHY

Our goal is to streamline your implementation and staff training. To make this process effective, we have created a training system designed specifically for your business. We ask for your commitment to preparation and training. Your commitment to Training will make a significant impact on your cash flow, processes & overall profitability.

KEY TERMS

Vendor File – Database for Vendor information. Accurately maintaining vendor information can improve vendor/supplier relationships, protect company assets and improve profitability.

GLs Function Button – Feature in the Vendor File to memorize GL account #’s and recurring monthly payments.

Accounts Payable – Accounts payable is an account within the general ledger representing a company's obligation to pay off a short-term debt to its creditors or suppliers.

Accounts Payable Subledger – The AP subledger is a detailed list of unpaid and paid bills managed through the AP GL. As soon as an item or a bill (with payment terms) is received, it is entered and listed as unpaid in the AP subledger. The bill payment is then managed based on cash management processes. Once paid, the bill is marked paid in the subledger, the bill amount is no longer part of the AP liability balance and the payment details are added to the bill.

NOTE – Not all payments are recorded in the Vendor or AP subledger. Cash purchases are entered directly in the check register and are not managed using the AP subledger. These pay-outs are not detailed in the Vendor records.

NOTES

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SECTION 1. MEMORIZED AP TRANSACTION

To review, the Vendor File is where we create and maintain vendor account information in Vision.

See class outline for Vendor File Training for additional details including data field definitions.

VENDOR FILE - GLs FUNCTION [F6]

Many features in Vision are built to add efficiency to business processes. One of those is the GLs Function in the Vendor File. GLs is designed to memorize recurring transactions (i.e. rent and loan payments).

There are 3 levels of memorization:

(1) GLs Only - When a new bill is started the memorized GLs will auto populate;

(2) GLs + Auto Payment - When a new bill is started the memorized GLs and Payment Amt will auto populate;

(3) Automate bill transaction entry - Automatically create a memorized bill in AP on the 1st of each month.

HOW TO SET UP RECURRING PAYMENTS:

Select a Vendor File and click GLs function button [HotKey F6]
The Auto Payment screen will pull up
Enter the following information in the Auto Payment window:
1. In Auto Payment, enter the monthly recurring payment amount
  1. Note - If the monthly payment amount may change, leave the field blank.
2. In GL Acct 1 G/L column, enter GL # xxx
3. In GL Acct 1 Amount column, enter amount of payment to apply to GL
4. Continue until the entire payment $ has been allocated to GLs
5. Click OK
  1. This message will pop up:

Select Yes – If you would like this payment to automatically create a memorized bill in AP on the 1st of each month - on the 1st day of each month a bill with memorized details will be created in AP

Select No – If you don’t want this payment to automatically create a memorized bill in AP on the 1st of each month - the default GLs will be automatically shown when manually creating a new bill transaction

NOTES

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SECTION 2. AP SUBLEDGER

The AP subledger is a detailed list of unpaid and paid bills managed through the AP GL.

Typical AP workflow:

Accounts Payable subledger can be reached from the Main Menu via Accounting or Vendor File.

NOTES

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Menu Review

AP subledger provides details of purchases made on credit. From the Accounting Menu, all vendor details are listed. When reaching the subledger from the Vendor File, the subledger of just that Vendor is represented.

Column Descriptions:

Vendor - Vendor ID as setup in the Vendor File

Invno # - Bill number as issued from vendor

Inv-Date - Bill date as issued from vendor

Inv-Amt - Bill amount as issued from vendor

Other Information - PO# if processed by Receiving or return amount and description

Pay-mrk -

O=Unpaid, entered in AP via Purchasing Receiving process, waiting for approval to pay

N=Unpaid, approved but not selected for payment

P=Approved, selected to be paid (if P + N in Open column, invoice has been paid)

H=Unpaid, hold, not approved to be paid

R= Payment less Return Amount

Openinv - If field is blank=Unpaid, If field has a N= bill has been paid

Due-Date - Due Date on the Payable invoice, as calculated by Terms data in Vendor File

Discount - Early pay discount deduction from bill

Balance - Inv-Amt minus Discount = Balance

Function Key Descriptions:

Ok - Exit Accounts Payable subledger

New [F2] - Enter a new bill for the Vendor shown in Vendor Name field

Find [F3] - Search all accounts payable records (unpaid + paid)

Edit [F4] - Edit the selected bill

Delete [F5] - Delete the selected bill

Pay [P] - Mark the selected bill to be paid on next check run

No [N] - Mark the selected bill to NOT be paid on the next check run

Options [F6] - Accounts payable management functions including auto pay, reports and sort

Print [F7] - Accounts payable printing functions including print checks, AP Aging and electronic documents

Batch [F8] - Batch print check functions

Pd/Cur [F9] - Toggle function to change subledger view from paid to unpaid bills

Srch [F10] - Search accounts payable database by vendor name

NOTES

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SECTION 3. ENTER A VENDOR AP BILL

Vendor AP bills can be added a few different ways:

Vendor File>AP
Accounting> B. Accounts Payable
Purchase Order Receiving
Memorized Monthly Bill. When set-up, recurring bills automatically entered on the 1st of the month.

Example 1. How to enter a bill from the Vendor File>AP

In the Vendor File>click AP [HotKey F8]>click New [HotKey F2]
Enter the following information in the ADDING/EDITING PAYABLES window (left column):
1. INVOICE NO… Enter bill # as issued from vendor (Vision will not allow duplicate #’s)
2. INVOICE DATE Enter bill date as issued from vendor
3. AMOUNT DUE… Enter bill amount as issued from vendor
4. Due Date… Auto calculated based on vendor file
5. Discount %... Auto calculated based on vendor file
6. Discount Date… Auto calculated based on vendor file

(Debit), (Credit, Invoice GL distribution area ( right column)
1. GL line 0. (Credit) = automatically credit to AP GL the amount due
2. GL line 1-15. (Debit) = Enter expense GL in (Debit) column until debits = credit (amt due)
When you have the GL list on the screen you can search for the account you want two different ways. First right click on the ‘Lname’ column to pull up the grid search option

Type as many numbers as you know, such as ‘4’ will show all GL numbers starting with that sequence
If you know the name on the account type, type the first few letters such as ‘cost’ to bring up all cost accounts or ‘tax’ to bring up all tax related accounts

NOTES

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