Accounts Payable Overview

The following list briefly describes how to handle payables from initiating a PO to running the Vendor History Report and provides links to additional information for each step.

If some or all of your Vendors are reimbursed on a Pay-When-Paid basis, click PWP Overview to review this topic.

1. Set up your Vendor, AP Terms, and Location records.

2. Create, release and print a PO (click Purchase Orders for further details).

3. Receive the items in the Inventory Items Receipts Journal, since items cannot be vouchered until they have been received.

For Subcontractor PO's, the Amount/Percent Earned should be adjusted in the PO SUB tab as work progresses.

4. When you receive the vendor's invoice, record the transaction in the AP journal.

Credit Card Processing: see AP Journal Credit Card Processing for recommended procedures.

If you are paying by manual check, record the check number.

When you enter the appropriate PO number, the system will automatically enter the Purchase Order Inventory detail into the AP Journal INV Tab . Subcontractor charges will appear on the AP Journal SUB Tab .

Enter any miscellaneous charges (e.g., freight) on the AP Journal's GEN Tab.

5. Run the Cash Requirements Report to view vouchers payable. This can be created to list all vouchers not already paid, or by selected vendors and/or next pay dates. This report will total all vouchers selected.

6. If you are not issuing manual checks, use the AP Date to Pay List (Select Invoices for Payment) to track when AP checks are to be issued, take a discount, or make a partial payment.

Vendor Insurance and Blocked Payments

If the Vendor’s insurance is expired, and the Insurance Required flag is set in the Vendor record AND the Block Payments flag is set in the Insurance record, you will not be able to pay the vendor. To override the Block Payment and cut a check for the vendor:

Go into the vendor viewer and uncheck the Insurance Required box for this vendor and save. This will release the lock placed on the vendor during the Select Invoices for Payment processing and allow you to enter a pay date and pay the invoice.

After finishing the payment you should go back into the vendor viewer and recheck the Insurance Required box and save.

7. Use the Report AP Check function to print the AP check(s). To print a check to pay only one of the Vendor's Invoices, select the Single Write AP Check function instead. The Single Write AP Check function may also be used to print a check that had been skipped in the numerical sequence.

The AP Check Detail Report should also be run to provide an attachment document for checks exceeding 23 lines of invoice detail.

8. Print the Vendor History Report on a regular basis as needed by your company.

9. When your Vendor checks are returned to you by your bank, run the Clear Checks function to mark them as such in the system.

10. Vendor 1099’s may be printed for eligible vendors. See Registry Entry Federal EIN and Registry Entry Vendor 1099 Report for details on setting up the correct registry entries for this function.

AP Processing in a Multi-User Environment
Previous releases allowed you to change the Vendor invoice number when the check report was open - but the user had not confirmed / posted the run. If you then ran checks again, a check for the 'new' invoice # would appear. To prevent this problem, validations have been added to prevent records that are ‘in use’ by Print AP Check from being changed. The AP Check run skips any records already in use.  Records not already in use that qualify for the check run are then marked to prevent other users from using them.  When the check printing process terminates, the in-use condition is cleared for all relevant invoices.

The following functions are also sensitive to the in-use condition:

- Select Invoices for Payment (Start Vendor Date to Pay List) skips in-use Vendor Invoices

- The AP Journal viewer denies changes to transactions that reference in-use Vendor Invoices.

- The Vendor Invoice viewer denies changes to transactions that reference in-use Vendor Invoices.

- Start AP Payment Approved List skips any records already in use.

- Start PWP Approved List skips any records already in use.

During the login process, an attempt is made to clean up the in-use Vendor Invoices in the event a previous SAMPRO session terminated abnormally.

A Special Note on Credit Memos
The AP Journal includes a tab for Credit Memos. The CM tab should be filled in when previously received inventory is being returned to the vendor for credit. When the CM tab is filled in for a Credit Memo, the system will automatically adjust the inventory item levels and GL Accounts to adjust for the return.

Voiding AP Checks
The Void AP Checks function should be run if an AP Check must be voided.