Accounts Payable

Introduction

The Accounts Payable system (AP) in 1ERP is a comprehensive system that enables businesses to effectively manage their payables and maintain strong vendor relationships. It streamlines the entire accounts payable process, from entering and tracking invoices to making payments and maintaining accurate financial records.

AP Module Setup

To access the 1ERP Initial Setup video demonstrating the step-by-step process for setting up General Ledger Accounts, please click on the following link: 1ERP Initial Setup Video. .It is recommended to set up the Accounts Payable Journal accounts before utilizing the Accounts Payable system.

Processes in AP System

Bills

The "Bills" screen provides the functionality to manually and automatically generate bills.

1. Automatically: Bills can be received automatically from subsystems such as Expense Report, Payroll, and Fixed Asset. This integration streamlines the bill entry process, capturing relevant information seamlessly from these subsystems.

2. Recurring bills can also be automatically generated and tracked through the "Recurring Bill" screen. This feature enables the system to create periodic bills based on predefined schedules, reducing manual effort and ensuring accurate billing for recurring expenses.

3. Manually: Additionally, bills can be entered manually on an ad-hoc basis. This allows for the flexibility to handle unique or one-time expenses that may not be captured through automated processes.

A sample bill from the Payroll system is shown for reference,

It is highly recommended to import the original or imaged bill when entering the bill information. This practice facilitates easy reference and provides necessary documentation during audits or when addressing inquiries related to the bill. By maintaining a comprehensive record of bills, including the original or imaged bill, organizations can enhance transparency, compliance, and overall financial management.

Create payments for a Vendor Bill

Once a bill is entered and finalized, a corresponding record will appear in the "Pay Bills" screen. In this screen, you have the option to select the payment date and determine whether to make a partial or full payment for the bill.

1. Choose the appropriate “Vendor” or leave it blank so bills from all vendors can show up. This brings up all the outstanding bills associated with the selected vendors

2. Click on the “Full Pay” checkbox to pay all the bills at the same time.

3. Alternatively, click on the line item in the grid to pay individual bills at a time. Partial Payments for a bill can be made entering the amount in the “Partial Payment” field. It can be left empty if the bill is being paid in full.

4. Click on Save to create payments for bills which have the “Full Pay” checkbox selected in the grid or partial payment fields that are not empty.

If there are multiple bills with the same payment date and payees, the system will automatically group them into a single payment by default. This grouping simplifies the payment process and helps streamline financial transactions.

However, if you there are specific bills that need to be paid individually, this can be specified as "Pay Individually" option for those bills in the Vendor Centre. This ensures that such bills are treated separately and not grouped with other bills during the payment process.

The "Pay Bill" screen provides the flexibility to manage payments efficiently, allowing you to choose the payment date, determine the payment amount, and control how bills are grouped for payment. This functionality enables better control over your organization's cash flow and enhances the accuracy and convenience of bill payment procedures.

Make Bill Payments

The final stage of the payment process is the "Payments" screen. To retrieve the appropriate payment records, select "No" for both the "Finalized" and "Voided" criteria, and choose "All Dates" in the Quick Filter option.

A Bill Payment is setup by selecting the bill for the vendor which is to be paid and entering the Bank Account and the Pay Method, a corresponding record will appear in the " Payment" screen.Click on “Finalize” button to finalize this payment and to be posted in the G/L

Exercise caution when pressing the "Finalized" button, especially for payments made via EFT/ACH. It should only be pressed when you are certain that the payment has been successfully processed. In the case of the "CHECK" payment method, finalizing the payment will prepare the cheque.

The "Payments" screen also provides an option to enter a prepaid expense to a vendor without a bill. By pressing the "NEW" button on this screen, you can enter the relevant details for the prepaid expense. To review all prepaid vendors and their amounts in their respective currencies, click on the "Show Prepaid(s)" icon.

By following these steps and utilizing the available features, you can effectively manage payments, print checks, and handle prepaid expenses within the payment system

Print Checks

In the "Payments" screen, you have the ability to modify the payment date and method for the selected payment record. If the payment method chosen is "CHECK," a corresponding cheque record will be prepared.

The initial count for the number of times the cheque has been printed starts at zero. This count is incremented only when the cheque is printed using a designated cheque printer that is marked as "Y" in the RCDesign.dbo.Printer.UpdatePrinted database field.

It is important to ensure that the RCDesign.dbo.Printer.PrinterPath matches the exact name on the LAN, particularly for cheque printers that have authorized signatures burned into the MICR cartridge filled with a special toner powder designed for check printing.

Please use the “Check Details” screen under the “Miscellaneous” menu to see details about each individual check.

If needed, you can access the "Print Checks" screen to print checks that have not been printed yet (i.e., with a # of Times Printed value of 0) or enter a range of cheque numbers to be printed again. Select the designated printer for the check printing process.

Accounts Payable Reports

The Accounts Payable module provides numerous reports that provide up-to-date information of all your AP related activities.

Vendor Reports

Vendor list can be exported from the vendor information screen.

Use Vendor Center from Miscellaneous menu and leave the search bar empty. Now click on the export button to get a list of all vendors in an excel.

Aging Summary Report

Use the Aging summary report to review and analyze outstanding payables.This report helps users in every period, to understand outstanding payables, interest charges and identify discrepancies if any .

The Aging report groups transactions and balances by their due dates into the aging categories you specify for a given as of date.

UnPaid Bills Report

The collection report is a powerful report to get a list of unpaid bills for a given period. The report provides the user the ability to choose a single Vendor or by leaving the vendor field empty, all vendor who satisfy the conditions are shown in the report.