Accounts Payable setup step-by-step

This table shows the order in which the setup steps should be performed. You can find details about concepts and procedures related to setup in these chapters and in the additional noted resources.


Setup	What is required?	For details, see
Currency application	In the Currency application, you define information about the base currency your company is using. If you operate in multiple currencies, you are required to define additional details that are used for currency exchange. If you have only one currency you are only required to define: A currency code	Currency setup The Currency User Guide
General Ledger application	You must set up the Lawson General Ledger application or General Ledger subset before you set up and use Accounts Payable. You are required to define at least one general ledger company and the accounts you will to post to.	The General Ledger User Guide
Cash Management application	You define your bank information and payment formats in the Cash Management application. At a minimum, you must define: At least one bank Bank account(s) at each bank A relationship between your general ledger company and each bank account Each bank transaction you will require, such as payment or deposits Each payment format you will use, such as checks or electronic files	Cash Management setup The Cash Management User Guide
Terms application	Optional. Use the Terms application to define special payment terms you have negotiated with your vendors. Terms are used to calculate invoice due dates and early payment discounts. While there is no required setup in the Terms application, defining the terms you use most commonly can save time and improve accuracy during invoice entry.	Terms setup The Terms User Guide
Tax application	You must define a tax company in the Tax application. Use the tax application to calculate and track taxes for taxed invoices. Required setup is dependent on your specific tax needs, but can include: A tax company A tax code master A tax table Tax code options Tax rates	Tax setup The Tax User Guide
Vendor Structure	An important part of managing accounts payable in your organization is efficiently and accurately maintaining your vendor records. The Accounts Payable application provides several options for organizing and categorizing your vendor records. The minimum vendor structure setup required is: One vendor group One vendor class for each vendor group	Vendor structure setup
Pay Groups	You define how you want to group your vendors for payment processing. You can define pay groups that let you consolidate payments from multiple AP companies to a vendor. You can also define process groups to streamline payment processing if you are dealing with large pay runs. A pay group is above vendor and process groups are defined at the vendor level. The minimum setup is one pay group	Payment structure setup
Company Structure	Your accounts payable company structure is made up of companies and process levels. This structure provides a framework for reporting and processing. You can use a combination of companies and process levels to reflect how your organization is structured: by physical location, division, departments, cost centers, or other groups. The minimum setup required is: One accounts payable company One process level	Company structure setup
Accounts Payable Codes	You can define a variety of codes to use when processing accounts payable. You assign these codes throughout the Accounts Payable application, such as when you define your company or specify invoices. These codes eliminate repetitive data entry, resulting in streamlined processing and fewer data entry errors. Two codes are required for setup: An invoice accrual code A discount code	Defining Accounts Payable codes
Vendors	You can add vendor records at any time, but often a mass add of existing vendor records is done as part of the setup process. A vendor is any company or person you remit payments to. You must define a vendor in the application before you can process an invoice for that vendor, unless you specify a one-time vendor invoice.	Adding and maintaining vendors