Accounts Payable Setup

To set up your Accounts Payable system:

  1. Define A/P account numbers in the Chart of Accounts form.

    The account numbers are needed for all vouchers, adjustments, and payments in Accounts Payable. The Chart of Accounts must contain all Accounts Payable-related account numbers before transaction distributions and posting can occur.

  2. Define standard accounts for vouchers payable, duty, freight, and so on, using the Purchasing Parameters form.
  3. Set up inventory adjustment and variance accounts using the Product Codes form.

    The system uses the inventory adjustment account number for PO receiving transactions. The variance accounts are the accounts to which you want to assign variance expenses for a group of items identified by a product code.

  4. In the Accounts Payable Parameters form:
    • Specify vendor prefixes.

      The vendor prefix is used for alphanumeric numbering of vendors. The prefix is automatically added to the beginning of default vendor numbers for new vendors. If the user overrides the default value, the prefix is not applied.

    • Set up aging parameters, used as the default day range and titles on the AP Aging Report.

      Negative numbers represent days until due (the voucher will be due in the future). Positive numbers represent days past due. The Aging Report can be based on invoice date, due date, or discount date.

    • Set up default accounts for system-generated distributions.
    • Specify whether external expense reports are processed by the A/P system.
  5. Set up a bank code for each vendor using the Bank Reconciliations form.

    Bank codes are defined for each bank your company does business with. Each bank code requires a general ledger account number. Several bank codes may use the same general ledger cash account.

  6. Set up shipping codes using the Ship Via Codes form.

    Ship via codes are required for vendors and are used to reference a method of shipment on an order.

  7. Set up billing terms codes using the Billing Terms form.

    The Billing Terms Code displays on the Vendors or Multi-Site Vendors form and identifies the default billing terms. The default value can be overridden on the order. Billing terms calculate the due date, discount date and discount percent (if applicable) when the user provides the invoice date.

  8. Set up payment hold reason codes in the Payment Hold Reasons form.

    These codes explain reasons why vendor payment may be held.

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