The goal of accounts payable processing is to control cash flow, realize allowed discounts, simplify clerical tasks, and create accurate documents and records. You need to be aware of your cash requirements along with your projected cash receipts to properly manage your cash position.

Again, simply by automating your accounts payable processing you greatly improve your control of cash management. You can view vendor purchase orders that have been received on the screen to compare to the vendor's invoice. By posting vendor invoices each day you can print an accurate cash requirements report each day, if necessary. Accounts payable checks with detailed check voucher stubs help you to receive proper credit from your vendors.

An important factor that determines how your Purchasing and Accounts Payable programs work is whether or not your purchase orders are "tied" to the accounts payable. GENESYS has an optional feature that links the Purchasing system with Accounts Payable. If a flag was set in the system control file during the configuration of your system and this feature is active, then liabilities occur the moment a purchase order is received and a receiver number is created. This liability is coded to the A/P-Pending account. If, however, you do not have this flag set, then liabilities for received purchase orders are not recorded until the respective invoices are entered in the Vendor Invoice Entry program.

You've seen that the Vendor Insight program gives you quick access to the status of your vendor accounts, as well as open purchase order and receiver information. When a vendor's invoice arrives, check it against the "closed" purchase order (receiver) records displayed in the Vendor Insight.

All vendor invoices should be approved and expensed before they are entered into the computer. The clerk should run a tape of the invoices to get a proof total to compare to her computer entries. Then enter each invoice using the Vendor Invoice Entry program.

In the Vendor Invoice Entry program you will be moving any purchase order transactions out of the A/P-Pending account and into the Accounts Payable account. After entering the vendor number, vendor’s invoice number, invoice date and amount (you cannot enter an invoice number that is already on the system), you may enter the purchase order number the invoice is referencing.

The terms code stored in the vendor master record is in effect unless the code is changed for this invoice. The terms code automatically computes any available cash discount, a discount date and net due date. If necessary, these can be changed by the operator. You may post to either the current fiscal period (month) or to the prior month when invoices are received shortly after month-end closing.

The prompt, "Select a FIELD NUMBER to change", will allow you to go back and make any changes. If all of the above are correct, then (END) to bring up the pop-up RECEIVERS window. The receiver window reveals the receiver for the purchase order number that was entered in field number 4. If field number 4 is left blank and a purchase order is not referenced, then all the open receivers for that particular vendor will appear in this window.

In this receiver window, select the line that this payment will be applied towards. If this is a partial payment towards a receiver, the program will note this, assign a "-1" to the receiver number and leave the amount owing in the A/P-Pending account. If the payment is greater than the receiver, the difference must be distributed amongst the appropriate G/L accounts.

If the message, "NO RECEIVERS AVAILABLE" appears, then either this invoice is not for a purchase order or the purchase order was never received and is not in the A/P-Pending account (a purchase order must be received before its applicable invoice may be entered).

If this invoice is not referencing a purchase order then simply (END) back to the first screen for the correct G/L distribution. An invoice amount may be distributed to up to ten debit accounts. The common debit account number for any vendor can be stored in the vendor master record. It serves as the default debit account number whenever you're entering invoices for this vendor.

The sum of the debits must equal the A/P credit. The prompt, "IS THE G/L DISTRIBUTION CORRECT? (Y)/(N) will let you go back and correct any miscodings.

Accounts payable records are stored on an "open item" basis identical to the accounts receivable records previously discussed. Each vendor has an accounts payable ledger which lists A/P open items in invoice number sequence.

After entering a batch of vendor invoices, print the Purchase Journal. It lists each posting in vendor sequence and provides a general ledger summary of totals for accounts payable and all debit accounts. A third section lists the debit accounts and shows the detail of each debit posting. This could be used to trace any questionable posting to a debit account. The journal update finishes the purchase posting task by posting to general ledger and subsidiary (vendor) accounts.

You may enter transactions for a "miscellaneous vendor" without creating a new vendor master record each time. Set up in the Vendor master file one or more vendor records with a vendor number beginning with MISC. Then, use this vendor number when adding new A/P transactions. The program keys on the MISC and lets you manually type a vendor name and address. This name and address is retained with the transaction throughout its life on the computer. If a check is printed, this name and address is printed on the check. The same name appears on the check register.

Cash disbursements usually occur on a periodic basis, either weekly or semi-monthly, with the open items accumulating between periods. You also need to create checks each day for miscellaneous payments. These are usually hand written checks for invoices delivered in person (freight deliveries, repairmen). Maintain a hand written check register for the manual checks until the next disbursement period, or even month end, then enter these into the computer as manual checks.

You can choose one of three methods for paying vendors: automatic, selective, or direct disbursements. Automatic is the quickest and easiest, selective allows the operator to view each vendor's ledger to selectively choose items to pay, while direct lets you enter the vendor's invoice and create the check transaction all at the same time. This latter method eliminates the accrual of liability, but is the best way to enter those manually written checks, or to generate a computer check as needed.

Automatic disbursements checks the due date on each vendor invoice to select items for payment. The operator gives the payment date and number of days until the next pay period. After the program finishes, run the Payment Selection Report to see exactly what has been chosen for payment. Any invoice that you choose to exclude from payment can be removed and returned to "open" status.

With Selective Disbursements, an operator sits at the video terminal and calls up each vendor's ledger to the screen, much like using the Cash Receipts Entry program. Then you create a check transaction by selecting line numbers corresponding to vendor invoices. Use Selective Disbursements to adjust any invoice, or to apply vendor credit memos to open invoices. Again, run the Payment Selection Report before printing checks. You can combine automatic, selective, and direct disbursements in the same payment batch.

Direct Disbursements lets you enter the vendor's invoices and create checks immediately, bypassing the accrual (purchases) phase. To use this method exclusively is practical only in small volume situations. Use the direct method to enter those manually written checks that you have recorded by hand. If you desire, you could rely on the system to generate a check when you would normally hand write one. The Direct Disbursements program is fast, but loading check forms into the printer anytime someone walks into your office desiring payment, can possibly take too much time to be practical.

After using any or all of the disbursement programs, after printing the Payment Selection Report, reviewing it, and possibly deleting (removing) selected invoices from the payment batch, you can print the checks. Load the forms into the printer and run the Check Printing program. It uses a test pattern option to help you align the forms correctly, then requests the check date and starting check number. Each check includes a voucher, a list of invoices paid.

The final step of the disbursement process is running the Cash Disbursements Journal and Update. The journal lists each check transaction and the invoices paid, then summarizes the general ledger postings to accounts payable, cash and any debit account of the directly disbursed invoices. A third section serves as a check register. The update posts to the general ledger and subsidiary vendor accounts, as well as vendor payment history.

The aged Vendor Trial Balance can be printed any time you request, and should be printed at the end of the month. The GENESYS system is designed to be closed each month, on the last day of the month. But, late arriving vendor invoices and their debit postings (expenses) can be posted back to the prior month. For example, if you continue to post invoices to the through the fifth of the month, you can then print the Trial Balance on the fifth, accurate as of the first (including invoices for prior month posted during the current month)

The vendor record contains information for creating 1099 forms at year end. You can store the vendor's federal ID number, and the system accumulates the total amount paid each vendor during the calendar year.

A Vendor Purchase History report is available to list the 13 month history of accounts payable purchases by each vendor.

Occasionally, you will need to void a check that has been printed and updated. The system retains the detail of each check until you are able to reconcile it to the bank statement using the Check Reconciliation program. Therefore, voiding a check is merely a matter of calling up the check by check number using the Void Check program. The accounting is reversed, the check is marked void on the check register, and the paid invoices become "open" again.

This is the data entry program for inputting Accounts Payable transactions.

You may (A)dd, (C)hange, or (D)elete a vendor invoice, or (END)

Select "A" to add a transaction. "A" is the default value. The word "ADD" appears in the upper right corner of the screen.

As mentioned before, GENESYS has an optional feature that links the Purchasing system with Accounts Payable. If a flag was set in the system control file during the configuration of your system and this feature is active, then liabilities may already exist for Trade Accounts Payable (Pending) due to Purchase Order receiving.

If you do not have this feature, skip to "A/P Account no".

When a GENESYS purchase order is received using P/O Receipts Confirmation, then updated at the conclusion of the P/O Receipts Journal, the following posting occurs:

Perpetual inventory:
DR Inventory (asset)
CR Accounts Payable - Pending

or

Periodic inventory
DR Purchases (expense)
CR Accounts Payable - Pending

At the same time a transaction record is added to the Vendor Invoice (open A/P) file with the receiver number serving as a reference. If you view a vendor's Accounts Payable screen using Vendor Insight, you may see such transactions. If you see a number preceded with two asterisks (**) in the Invoice Number column, this is a "receiver" transaction. The asterisks indicate that the transaction has not yet been assigned an invoice number and is still coded to A/P-Pending.

When the vendor's invoice is received and you want to enter it into the Accounts Payable system, you must determine if it is a Trade A/P posting. This means that the invoice represents a purchase of inventory using the GENESYS Purchasing programs. If it is, then reference the purchase order number in field number 4. A pop-up window will appear, featuring the corresponding receiver number for selection. If a purchase order number is not referenced in field number 4, then all open receivers for that particular vendor will appear in this pop-up window.

You may enter a vendor's invoice without referencing a receiver number, for non-trade purchases, simply by pressing (RETURN) at this point and entering the appropriate G/L account distribution.

Press (END) to cancel and return to the first prompt.

Enter the 6-character vendor number for whom you want to make your entries. After your first entry, the default value for this field will be the last vendor number entered. You may press (RETURN) to use the default value. The vendor's name and address and current A/P balance appear.

You may press (END) to cancel and return to the first prompt.

You can enter a "miscellaneous" vendor by typing a vendor number beginning with the letters "MISC". At least one such vendor record must be in the Vendor master file.

You have up to 8 characters or digits for the transaction number. This would be the invoice or debit memo number, or perhaps the check number if you are entering a pre-payment transaction. If you enter less than 8 characters, the system puts blanks at the end of the number.

At this point, the system uses the vendor number, and invoice number to look into the A/P Vendor Invoice file for an existing transaction. If it finds this transaction, a message displays:

The VENDOR'S INVOICE is already in the file, cannot be added!

The information for the transaction is displayed and you can either change some of the fields or delete the transaction. Skip to the section for "Change a Transaction" or "Delete a Transaction".

If the transaction is not in the file, then proceed to enter the following fields of information.

Enter the actual date of the transaction using an MMDDYY format.

You may press (RETURN) for the default value which is the "as of" date you entered when beginning the session.

Enter the amount of the transaction using a numeric format of 999999.99. This represents the credit to the A/P Account entered as the first step.

Debit Memos, when regarding inventory, are entered through the Purchase Order Entry program as a VR (Vendor Return) or RA (Return Authorization), if your Purchasing program is "tied" to the Accounts Payable program. If not, then all debit memos are entered in Accounts Payable, entering a preceding minus sign (-).

Following this entry, the program skips to the prompt "Select a FIELD NUMBER...". The essential information for this transaction is entered. You can select a field to change if you desire.

You may enter any description you wish using up to 25 characters.

You may enter as many as 8 characters for your purchase order number. If a purchase order number is not referenced in field number 4, then all open receivers for that particular vendor will appear in this pop-up window.

Enter a valid 2-character TERMS code from the Codes file. The terms code will help define the cash discount percent, discount date, and net due date for the transaction.

Enter the portion of the transaction amount on which an earned discount may be calculated using a 999999.99 numeric format . You can press (RETURN) for the default value which is the INVOICE AMOUNT. If no cash discounts are offered by the terms of this invoice, this field is not applicable.

Enter the cash discount percent using a 99.99 numeric format. If the cash discount percent is 2%, for example, enter "2.00".

The INVOICE TERMS code will place a default value in this field.

Enter the number of days from the INVOICE DATE used to calculate the DISCOUNT DATE. Again, the TERMS code will place a default value in this field.

Enter the number of days from the INVOICE DATE used to calculate the NET DUE DATE. The TERMS code will place a default value in this field.

Enter the posting period (fiscal month) that should be affected by this transaction. Either the current period or the prior period may be entered.

The current posting period is the default value for this field.

You may place the invoice on payment hold. This means that the invoice will NOT be selected for payment by the Automatic Disbursements program until the hold is removed. Type "Y" to hold, otherwise type "N". The default value is "N".

The program calculates an available cash discount amount based on the DISCOUNT ON and DISCOUNT PCT fields. You may enter a discount amount using a 999999.99 numeric format, or press (RETURN) for the default value.

NOTE: Whenever either the DISCOUNT ON or DISCOUNT PCT fields are changed, the discount amount is recalculated by the program, and any manual entry of the discount amount is lost.

The program calculates the cash discount date based on the INVOICE DATE and the DISCOUNT DAYS fields. You may enter a discount date using an MMDDYY date format, or press (RETURN) for the default value.

NOTE: Whenever either the INVOICE DATE or DISCOUNT DAYS fields are changed, the discount date is recalculated by the program, and any manual entry of the date is lost.

The program calculates the net due date based on the INVOICE DATE and the NET DAYS fields. You may enter a net due date using an MMDDYY date format, or press (RETURN) for the default value.

NOTE: Whenever either the INVOICE DATE or NET DAYS fields are changed, the net due date is recalculated by the program, and any manual entry of the date is lost.

Select a FIELD NUMBER to change, X to delete, or (END)

You may type a number corresponding to a field that you want to change. The cursor moves directly to that field and allows you to retype the data, or to press (RETURN) to leave the data unchanged.

Each time you change a field, the system again asks you to select a field number to change.

You may cancel the entire entry if you wish. Type (X) and press (RETURN) and the transaction is erased. This option is available only when you are adding a new transaction.

If all of the above are correct, then (END) to bring up the pop-up RECEIVERS window.

The receiver window reveals the receiver for the purchase order number that was entered in field number 4. If field number 4 is left blank and a purchase order is not referenced, then all the open receivers for that particular vendor will appear in this window.

In this receiver window, select the line that this payment will be applied towards. If this is a partial payment towards a receiver, the program will note this, assign a "-1" to the receiver number and leave the amount owing in the A/P-Pending account. If the payment is greater than the receiver, the difference must be distributed amongst the appropriate G/L accounts.

If the message, "NO RECEIVERS AVAILABLE" appears, then either this invoice is not for a purchase order or the purchase order was never received and is not in the A/P-Pending account (a purchase order must be received before its applicable invoice may be entered).

If this invoice is not referencing a purchase order then simply (END) back to the first screen for the correct G/L distribution. An invoice amount may be distributed to up to ten debit accounts. The common debit account number for any vendor can be stored in the vendor master record. It serves as the default debit account number whenever you're entering invoices for this vendor.

Debits: Account no

Enter a general ledger account number. It must exist in the G/L Account file. The account description appears.

If you are initially loading accounts payable from an old system, use the A/P Suspense account. This account has a G/L cross-reference code "A/P SUSP".

One field in the Vendor file is labeled "Debit Account No". This is set up so that a default account number will appear here whenever this vendor is used. If an account number exists in the vendor's record, you may press (RETURN) for the default account number.

PLEASE READ THIS CAREFULLY: A great number of your entries of vendor invoices are for replenishing your inventory. Normally, this would require then, a debit to either a Purchases expense, or an Inventory asset account. If, however, you are now using the "perpetual" method of inventory accounting, the debit to the inventory occurred during the Purchase Order Receipts process.

Let's review the journal entries for this two-part transaction:

Dr Inventory (asset account)
Cr Accounts Payable - Pending (liability account)

Vendor Invoice Entry

Dr Accounts Payable Pending
Cr Accounts Payable

The debit amount required to balance the transaction displays here.

When your debit entries equal the A/P credit amount, no more general ledger accounts and amounts are required.

Is the above correct? (Y)or(N)

You may change your debit entries, if necessary. Reply "N" and the debit entries are erased. Return to the "Debits: Account no" field. If the debit entries are correct, reply "Y" and the transaction is completed. These new transactions are not "official" until the Purchases Journal and Update have been completed. In other words, the transactions will not appear on the Vendor Insight screen, or on Accounts Payable reports until the journal and update are completed.

You are now in position to enter another accounts payable transaction. You may continue to make entries, or you can end the program.

If an A/P transaction is already in the A/P Vendor Invoice file, and the transaction has been updated by the Purchase Journal, you can change only these fields:

1.Invoice date

3.Invoice terms
4.P.O. number

5.Invoice terms 10.Posting period
6.Discount on 11.Payment hold
7.Discount pct 11.Discount avail
8.Discount days 12.Discount date
9.Net due days 13.Net due date

Thus, you can change the discount, discount date, and more significantly, the net due date. This has value when you want to alter your aged Vendor Trial Balance, placing certain invoices into new aging brackets.

However, if the transaction is in the A/P Vendor Invoice file, and it has not been updated, then you are allowed to change ALL fields (1 though 13), and the G/L Distribution below.

To retrieve a transaction from the A/P Vendor Invoice file, you must enter the vendor number and invoice number that you want to change.

You may (A)dd, (C)hange, or (D)elete a vendor invoice, or (END)

Select "C" to change a transaction. The word "CHANGE" appears in the upper right corner of the screen.

Vendor no :

Enter the 6-character vendor number for the vendor for whom you want to make your entries. After your first entry, the default value for this field will be the last vendor number entered. You may press (RETURN) to use the default value. The vendor's name and address and current A/P balance appear.

You may press (END) to end the program.

Invoice no :

You have up to 8 characters or digits for the transaction number. This would be the vendor's invoice or debit memo number, or perhaps the check number if you are entering a pre-payment transaction. If you enter less than 8 characters, the system puts blanks at the end of the number.

If the transaction is in the A/P Vendor Invoice file, it displays for your review.

Select FIELD NUMBER to change, or (END)

You may type a number corresponding to a field that you want to change. The cursor moves directly to that field and allows you to retype the data, or to press (RETURN) to leave the data unchanged.

Each time you change a field, the system again asks you to select a field number to change.

Press (END) when you have completed all your changes and they appear to be correct. The transaction is saved in the Accounts Payable file, replacing the old information.

Type "N" to leave them unchanged. The transaction is completed and you are returned to the initial prompt.

If you have not changed the INVOICE AMOUNT, then the prompt will ask you, Re-Enter (R)eceivers or (G)/L? You may then choose to reapply the invoice to a different receiver or change the G/L distribution.

Debits: Account no

Enter a general ledger account number. It must exist in the G/L Account file. The account description appears.

If you are initially loading accounts payable from an old system, use the A/P Suspense account. This account has cross-reference code "A/P SUSP".

One field in the Vendor file is labeled "Debit Account No". This is set up so that a default account number will appear here whenever this vendor is used. If an account number exists in the vendor's record, you may press (RETURN) for the default account number.

Amount

Enter the debit amount using a 999999.99 numeric format. You can press (RETURN) for the default value which is equal to the unapplied balance.

Unapplied balance:

The debit amount required to balance the transaction displays here.

When your debit entries equal the A/P credit amount, no more general ledger accounts and amounts are required.

You may change your debit entries, if necessary. Reply "N" and the debit entries are erased. Return to the "Debits: Account no" field.

If the debit entries are correct, reply "Y" and the transaction is completed.

Your changes to the transaction take place immediately. The Purchase Journal and Update are not required to cause the changes to become effective.

You can delete an A/P transaction if it is one you have just entered using the Vendor Invoice Entry program, and it has not been updated by the Purchase Journal. Thus, you can correct your input errors by deleting transactions, but you cannot delete a transaction that has been updated.

To retrieve a transaction from the A/P Vendor Invoice file, you must enter the vendor number and vendor's invoice number that you want to delete. If the transaction you retrieve has been updated, you will not be given the opportunity to delete it. The system will display this message:

Purchase update completed for this invoice, cannot delete!

You may (A)dd, (C)hange, or (D)elete a vendor invoice, or (END)

Select "D" to delete a transaction. The word "DELETE" appears in the upper right corner of the screen.

Vendor no :

Enter the 6-character vendor number for the vendor for whom you want to make your entries. After your first entry, the default value for this field will be the last vendor number entered. You may press (RETURN) to use the default value. The vendor's name and address and current A/P balance appear.

You may press (END) to end the program.

Invoice no :

You have up to 8 characters or digits for the transaction number. This would be the vendor's invoice or debit memo number, or perhaps the check number if you are entering a pre-payment transaction. If you enter less than 8 characters, the system puts blanks at the end of the number.

The system retrieves the transaction and displays it for your review.

Reply "Y" to delete the transaction, removing it from the Accounts Payable file. A message appears when the record is deleted. Reply "N" to retain the transaction.

Your deletions of transactions take place immediately. The Purchase Journal and Update are not required to cause the deletions to become effective.

You are now in position to add, change, or delete another transaction.

You may (A)dd, (C)hange, or (D)elete a vendor invoice, or (END)

Press (END) to return to the Selector.

Print the journal as an audit trail of your entries using the Vendor Invoice Entry program. Save it for future use to track errors.

The journal lists the detail of each transaction, then lists a G/L Distribution, showing the debit account postings, and finally shows a G/L Summary.

After the journal is printed, you may update the entries. The new accounts payable transactions are not "official" until this update is completed.

There are no report options for this program. Press (RETURN) to start the report.

Notice that the first part is an audit trail detailing the entries you have made since the last update. The second part lists each debit account and the transactions on which the account appears. This is used to quickly spot the occurrences of an account, usually when auditing. The third part summarizes the General Ledger entries to be made by the update.

You should keep this report for future reference.

After the journal printing has concluded the system displays this message:

Do you want to update the Purchase Journal? (Y)or(N)

Check the journal BEFORE you respond to this question. Make sure all printing is legible and that the journal is complete and in balance.

Type "Y" to proceed with the update. Type "N" to return to the Selector without updating.

The update program scans the journal file and updates the Accounts Payable file. When completed, the Purchase Journal file is cleared for the next batch of postings. The information is retained for the Monthly Purchase Journal, however.

Check writing is normally a batch operation. That is, you've accumulated vendor invoices in your Accounts Payable file, taking advantage of the terms given by your supplier, and you choose an appropriate time to go back through the vendor invoices and pay those that are due. In addition, you should attempt to earn early-payment cash discounts if possible.

There are three ways to generate Accounts Payable checks. You can allow the computer to scan the Accounts Payable file and pull out invoices that are due for payment. This is the Automatic Disbursements program. You can call up any vendor to the screen, view the invoices from that vendor, and selectively choose which ones to pay. Use the Selective Disbursements program. Or, you may simultaneously enter invoices and select them for payment with the Direct Disbursements program.

Each of these three programs generate A/P check records in a transaction file. This file is the source of the actual check writing, and the Disbursements Journal and Update.

Use any or all of the three methods of writing A/P checks to select vendors and their invoices for payment. Then run the Payment Selection Report to preview the checks that will be written. This gives you an opportunity to select additional vendors and invoices to pay, or to delete selected invoices from the check voucher, thus retaining them as "open" invoices.

The Automatic Disbursements program scans the unpaid vendor invoices and selects those due for payment, or if a discount can be earned. A check transaction is generated for each vendor with at least one invoice that should be paid and the invoices accumulate on a "voucher".

Although this program does not print a report, you are allowed to set up Report Options in a manner similar to a report program. These options are identical to the Cash Requirements Report so that you can vary the criteria for selecting invoices for payment and see the cash requirements before actually selecting invoices for payment.

The results of the program are cumulative. That is, you can run the program more than once during any batch. Any invoices selected during a second run that were not selected on the first run will create another check transaction record. Invoices selected on the first run will not be selected on subsequent runs. They are considered "paid".

Miscellaneous vendors, those with a vendor number beginning with "MISC", are skipped during this program. You must use Selective Disbursements to prepare checks for miscellaneous vendors.

RANGE: First vendor number

You can select a range of vendors to include in this pass through the Accounts Payable file.

This entry determines the first vendor to be included. Leave the field blank to start at the beginning of the Vendor Invoice file.

RANGE: Last vendor number

This entry sets up the last vendor to be included in the scan. Leave the field blank to print through the end of the Vendor Invoice file.

SPECIFY Payment date (MMDDYY)

Enter the date you expect to write this batch of A/P checks. Use a numeric MMDDYY (month, day, year) format.

SPECIFY Payment interval (days)

Enter the number of days until the next scheduled A/P check writing. The system now knows the date of the next check writing batch. Any invoice with a net due date prior to the next check writing, will be selected for payment now.

If you choose to take discounts, any invoice with an available discount that will expire prior to the next check writing, will be selected for payment now.

Take discounts? (Y)or(N)

If you select to take discounts, the system will use the Discount Date of each transaction rather than the Net Due Date. If no discount is available for a transaction, then the net due date is used in either case.

If you do not want to take discounts, then invoices are considered due on the net due date, regardless of available discounts. Doing so lessens your immediate requirements for cash, but also increases your net outflow.

Review the report options and if all selections are correct, press (RETURN) to start the scan through the A/P Vendor Invoice file.

With Selective Disbursements, an operator sits at the video terminal and calls up each vendor's ledger to the screen, much like using the Cash Receipts Entry program. Then you create a check transaction by selecting line numbers corresponding to vendor invoices. Use Selective Disbursements to adjust any invoice, or to apply vendor credit memos to open invoices.

Bank Acct No:

Press (RETURN) to default to your pre-set Cash In Bank account number. This is the account with the G/L cross-reference code "BANK1". The account number appears.

Your firm may write checks out of more than one bank account. If this is the case, you can select the G/L account number of the bank account from which this check will be written.

Vendor no:

Select the desired vendor to be paid. Enter the 6-character VENDOR NUMBER.

The system retrieves and displays the vendor's remittance name and address, current A/P balance, and one line for each accounts payable (vendor invoice) record in the file. As many as 10 lines can be displayed at one time, each with an associated line number. The system creates a temporary file of all the vendor's A/P records at this point, and a pause of 3-5 seconds may occur.

You may press (END) at this point to end the program.

Is this transaction for a manually written check? (Y)or(N)

The system needs to know if the check transaction record that you want to create is for a check that has already been written outside the computer. Then it can update the vendor invoices, accounts payable, and cash accounts without actually writing a check.

Most manually written checks are for invoices that have never entered the computer files. Use the Direct Disbursements program for such checks. But, in those cases when the vendor's invoice(s) are already in the file, and you choose to manually prepare a check, then you can update the computer system in this manner without printing a new check.

Manual checks appear on the Disbursements Journal and Check Register.

Reply with "N" if you want the computer to print a check. Skip past the next few instructions.

Enter "Y" for a manual check and proceed with the next three sections.

Check number:

Enter as many as 5 characters for the check number. You should try to avoid using a number that has already appeared on a Check Register printed by the system.

Check date:

Enter the check date using an MMDDYY (month, day, year) format.

Is the above correct? (Y)or(N)

This gives you an opportunity to correct your entries for a manual check.

Respond with "Y" if the check number and date are correct. Proceed with the next step.

An "N" response takes you back to the prompt "Is this a manual check?". Then you can change your entries.

Current line proof:

Initially this line displays zero (0.00). When you select accounts payable records to pay, this proof amount will assure that debits and credits are equal before the posting is accepted.

Total A/P debits:

Initially this line is also zero. When accounts payable records are selected for payment, the debit to Accounts Payable accumulates and displays. This is not necessarily equal to the check amount.

LINE NO: {PF=page fwd, PB=page back, XX=cancel

Select one of the lines displayed by entering the desired line number between 1 and 10. If you do, the cursor moves up to the line for your entries to several G/L accounts (see below).

You may wish to select invoices not currently displayed on the screen. If the screen displays this message:

"Page forward for add'l invoices"

then you know that more lines can be displayed for this vendor. Enter "PF" to page forward one or more pages. If you page beyond the end of the vendor's A/P records, the first page is redisplayed.

You can enter "PB" to page backward one page. If you page backward beyond the first page, the last page is displayed.

If, for any reason, you want to cancel this check transaction before it is completed, enter "XX". Even if several lines have been entered, the entire entry for this check is erased and you may begin again, or begin another activity.

Press (END) if you have selected all the lines and wish to complete the check transaction. The system pauses momentarily to update the vendor's accounts payable records, then returns to the prompt "Vendor no:". You may proceed with another vendor, or end the program and return to the selector.

Suppose you have selected one of the lines displayed for this vendor. Note the current accounts payable balance displayed for the invoice prior to making the following entries. The current line proof also changes as each amount is entered to indicate the amount required to balance the posting. It is important to note that any line may only be posted to once during each check transaction. You cannot select to pay a line, then select the line again for an additional posting.

Debit A/P

Press (RETURN) to debit Accounts Payable for the balance of the transaction. That is, if the Invoice Amount shows "1392.55" for the transaction, then the A/P debit amount will be "1392.55."

You may enter an amount other than the default amount. Your entry may be up to 999999.99 and may be preceded by a minus sign (-) indicating a negative debit (credit).

Credit Disc