Data-Basics enables you to coordinate your payment of Pay-When-Paid vendors with your receipt of client payments pertaining to those vendors. The following rules must be observed:
On the PO, the AP terms must reference a terms id that is flagged as PWP
On PO only items on the SUBCONTRACTOR TAB can be used
On AP invoice, the AP terms must reference a terms id that is flagged as PWP
Pay-when-paid vendor invoices will be eligible for approval and payment when your client pays you and you enter the payment in the cash receipts journal. If you are creating manual invoices and entering a Sales Journal entry to generate AR, you will need to run the PWP Billed List to select which of your Sales Journal Entries pertain to Pay-When-Paid Vendors.
A. Download the Pay-When-Paid reports as specified by your Data-Basics support representative to the directory containing your database.
B. Go to the Define User Report function and then import the Pay When Paid reports into your database.
C. Create at least one AP Terms record with the Pay When Paid field checked.
D. In each exclusively Pay-When-Paid Vendor record, select a Pay-When-Paid AP Terms Id. This terms code will default to AP Journal entries and to Purchase Orders entered for this Vendor.
E. See Registry Entry Start PWP Approved for details on making the PWP Approved List more sensitive to the AR balance.
A. If your firm uses Purchase Orders, create your PO's for paid-when-paid vendors as you normally would
B. Receive pay-when-paid items in the Inventory Receipts journal as you normally would.
C. Record the Vendor Invoice in the AP Journal being sure to use a Pay-When-Paid AP Terms Code (this will default from the PO/Vendor record).
D. If you use automated invoicing, bill your Clients and post your invoices as you normally would. Of course, your pay-when-paid charges must be included on the jobs that you bill.
If you do not use automated invoicing (and instead create a manual invoice and enter a direct Sales Journal transaction), you must run the PWP Billing function to cross-reference your pay-when-paid charges with your sales journal entries.
E. When your client pays you and you make a Cash Receipts journal entry (that includes Pay-When-Paid vendor charges), these charges will now be eligible for approval and payment.
A. Run the Pay When Paid Report. This drill-down report lists invoices including pay-when-paid charges on them where
1. My client has paid the invoice and
2. My company still owes the Vendor money.
This report is sorted by Project Manager, and lists one line per job to show the amount Billed and Received (from my client) and the total amount owed Pay When Paid vendors for this job.
To view the detail on each job, double-click on the Invoice Id (displayed in red) on the report, and the Pay-When-Paid detail report will appear for that invoice.
B. The Pay-When-Paid Detail Report lists the following information for each Pay-When-Paid Vendor owed money on this job:
Vendor Invoice Number
Vendor Invoice Amount
Paid To Date
Outstanding (amount owed the Vendor)
Date to Pay
Amount to Pay
Typically, the last two columns (Date to Pay and Amount to Pay) will be blank so that the project manager can print and review this report, and then pencil in the desired values. The Pay-When-Paid Detail Report can then be used as the input document for the Pay-When-Paid Approval Function.
C. When you have decided which Pay-When-Paid Vendors to pay, run the PWP Approval Function. Typically, someone at the level of a project manager would be given the authority to run this function to release payment.
Note: if you have not billed your customer and your Pay-When-Paid Vendor is demanding payment, enter the Vendor Id in the PWP Approval instead of your Invoice Number. This enables you to approve payments to the Vendor in advance of your client's payments.
D. The next time you run the Date to Pay function, the Pay-When-Paid vendor charges that you approved will be included on the list. Note that you can reduce the amount to be paid, but the amount is not allowed to be greater than the Approved amount.