APGUIDE

Setting Up Tax Information

Defining Tax Levels

Description You can define up to four different levels of taxes. The names of the
tax levels you define in the Tax Setup menu item are represented on
tabs in the Tax Rate menu item where you can define an unlimited
number of tax rates for each level.

For example, if you purchase goods in all fifty states of the United
States, you might define your first level as “State.” You will define a
separate table for each state’s tax rate in the Tax Rate window.
During voucher entry, you can specify the appropriate state’s tax
table to be used for goods purchased in that state. Tax rates are
calculated on a line by line basis; thus, you can enter a different tax
rate for each line item.

As another example, if your business were in a particular province in
Canada which charged a provincial tax in addition to the national
GST, you might define your first level as National and the second
level as Provincial. Then, you can enter the Tax Authority Key of
GST as the first level authority, and QBPR (for Quebec province) to
the second.

Reducing tax levels If you want to reduce the number of tax levels you set up after you
have already processed transactions, modify each tax rate key by
deleting the levels that you will no longer be using and then delete the
tax levels. If you do not delete the tax levels on a tax rate key basis,
existing data and tax rates may not be calculated correctly.

Document Processing Options

Use Automatic Tax If you choose the option to use the automatic tax calculation feature
Calculation Feature taxes are automatically calculated on a line by line basis for inventory
option and non-inventory line items based on options set up for each vendor
in Accounts Payable, item location in Inventory, and in System
Manager. Taxes are entered on a Tax sheet on the Line Items tab in
document entry. Tax line types are not available in document entry.

If you choose not to use the automatic tax calculation feature, taxes
are entered manually as tax line items and the Tax sheet is not
available for entry.

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If you want to include taxes in the unit price of items, such as in the
case of value-added taxes (VATs) or Goods and Services taxes
(GSTs) you would want to use this feature.

Default Actual Tax If you choose to use the automatic tax calculation feature, this option
from Calculated allows you to automatically have the system fill in the system
Tax option calculated tax amount as the actual tax amount, which you can then
override.

If you plan to use the Tax Included in Price option when you set up
tax rate keys, the system calculated amount defaults automatically
regardless of whether you select this tax default option.

Tax verification If you choose to use the automatic tax calculation feature, this option
method allows you to have the system compare the total calculated taxes to
the total tax amount you enter and notify you if the difference exceeds
a tolerance percentage level you define. You can choose to have the
system display a warning message or an error message if any
difference is found. If you choose No Warning or Error, no tax
verification is performed and therefore you do not need to set a
tolerance level.

Tax verification If you choose a tax verification method of Warning Message on
tolerance Difference or Error Message on Difference, you can specify a
percentage tolerance percentage from 0-100, using whole numbers only.

Determining the Tax Rate Key Default Method

Description The Tax Rate Key Default Method field allows you to specify
whether the system should automatically fill in a default tax rate key
during document entry and if so, whether that tax rate key should be
obtained from the vendor record or the location record for the
inventory item, if Accounts Payable is interfaced to Inventory. If
Accounts Payable is not interfaced to Inventory, the default is Do Not
Default.

Note: If you are using Inventory, and your company uses value added
taxes that are included in the unit price of inventory items, you can
define a tax rate (that should default from vendor) that enables the
system to separate the tax amount from the tax-included item price.

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Setting Up Tax Information

From the Vendor If your tax rate keys will be set up to include the tax in the price of the
record items, do not choose the Do Not Default option.

From the Item In System Manager, you define the account to which taxes are to be
Location record posted for each level in each tax table in the Tax Rate menu item. In
the Vendor menu item, you can link a vendor class key and a tax rate
key to automatically default for a particular vendor during document
entry.

If you are using Inventory, you can link a default tax rate account to a
particular item in the IN Item Location menu item. Then, when you
enter the line item in document entry, the system automatically
defaults the item’s tax rate account, instead of the vendor’s default
account.

Completing the Tax Authority Window

Description Completion of the Tax Authority window is required. It allows you to
define a key for each tax authority to whom taxes should be reported
in Accounts Payable and Purchase Order.

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Comparing tax key If you are using Accounts Receivable, the lookup window in the Tax
records in Accounts Authority Key field provides a list of the tax authority keys set up in
Receivable Accounts Receivable. This enables you to set up tax authority records
in Accounts Payable that match the ones set up in Accounts
Receivable. Since both applications retain records of the same tax
authority keys, you can include taxes paid out for each authority in
Accounts Receivable along with those received through Accounts
Payable when running the Tax report.

Make sure the same tax authority keys are defined in both Accounts
Receivable and System Manager.

If you have not installed Accounts Receivable, the lookup contains
tax authority keys defined in the Tax Authority menu item in System
Manager.

Completing the Tax Rate Window

Description Completion of the Tax Rate window is required. It allows you to
create a record for each tax table by which taxes will be calculated in
Accounts Payable and Purchase Order. Taxes are calculated based
upon the tax rate key entered during voucher, additional cost voucher,
debit memo, purchase order entry and purchase order receipt entry.
Tax tables allow you to specify which tax authority key should be
used and define simple straight percentage tax rates, like the
Canadian GST.

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Setting Up Tax Information

Procedure To complete the Tax Rate window, do the following:

Step Action
1 Select Tax Rate from the SM tab on the menu browser.
The Tax Rate window appears.
2 Complete the Tax Rate tab and the tax level tab for
each level you defined in the Tax Setup menu item.
3 Select Save.
4 Repeat Steps 1-3 for each tax rate key you need.
Need more information? Press F1.

Defining Tax Rate Keys

Relationship to It is helpful to develop an Accounts Payable tax rate key convention
Accounts that correlates to the Accounts Receivable tax rate keys. The Tax
Receivable reports can provide a comparison of the tax activity between a given
tax rate key in Accounts Payable and a tax rate key in Accounts
Receivable but only if both applications are using the same tax rate
key designations.

Taxes Included in Item Price

Description If you choose to use the automatic tax calculation feature, you can
choose to include taxes such as value-added taxes (VATs) or the
Canadian Goods and Services Tax (GST) in the unit pricing of line
items.

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Procedure To include taxes in the unit price, do the following:

Step Action

1 In the Vendor Class window in Accounts Payable,
define a vendor class key specifically for vendors who
charge the VAT.

2 In the Tax Rate window in System Manager, set up a
tax rate record, specifying the appropriate tax authority
key (for example, GST for Canadian Goods and Ser-
vices Tax) in the Tax Authority field and percent value
of the value-added tax in the Tax Rate field.

Need more information? Press F1.

When vouchers are posted, the system subtracts the amount of the tax
from the unit cost, and posts the tax amount to the GL account
specified for the appropriate level as defined in the Tax Rate menu
item.

Including Settlement Discounts

Description This option is used when the taxable amount of an item should be
reduced by the offered terms discount before taxes are calculated.
This option cannot be used in conjunction with the price included in
tax option.

Settlement discounts (predetermined percentage discounts) are
assumed taken during voucher, additional cost voucher, debit memo,
purchase order entry, and purchase order receipt entry. Any tax to be
calculated is based on the extended line amount. Settlement discounts
are applied to the document total or a specific line item depending on
whether you are using automatic tax calculation.

This option is used mainly in the United Kingdom for value-added
taxes (VATS).

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Setting Up Tax Information

Procedure To set up settlement discounts do the following:

Step Action

1 When you define a tax rate key in the Tax Rate window, select
Include Settlement Discount.

2 When you define a terms key in the Terms window in
Accounts Payable, specify the discount percentage in the Per-
centage field.

Need more information? Press F1.

When entering a voucher, additional cost voucher, debit memo or
purchase order for a vendor set up to allow settlement discounts, the
system defaults the appropriate tax rate and terms, and then
automatically reduces the entered line item extension by the discount
percentage before applying the tax rate.

Note: During line item entry, if you enter a tax rate key that includes
the settlement discount, the default discount comes from the discount
entered for the terms key associated with the vendor. If you enter a
discount in document entry the system still uses the discount from the
terms key.

Tracking Nontaxable Items

Track for Tax The Track for Tax Reporting Purposes option allows you to track
Reporting Purposes nontaxable sales totals and include them in the Tax report.
option

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Completing the Vendor Class Window

Overview Completion of this menu item is required.

Introduction The Vendor Class window allows you to define GL posting accounts
for classification of vendors. The vendor class determines which GL
In this section accounts (cash, freight, discount, or variance) are updated when a
voucher or check is posted. Therefore, at least one vendor class must
be defined if you plan to track account balances.

This section contains the following topic: Page

Topic 95
96
How to Complete the Vendor Class Window 96
How Many Vendor Classes to Define 97
Usage in the Print and Post Distribution to GL Report 97
Categorizing Vendors
Description of Selected Vendor Class Fields

94 Accounts Payable User’s Guide

Completing the Vendor Class Window

How to Complete the Vendor Class Window

Description When you select Vendor Class from the menu browser, the following
window appears:

The window consists of four tabs containing the following
information:

Tab Used to...
Vendor Class
Define specific account numbers to be associ-
Inventory ated with each vendor class key.

Multi-Currency Define specific account numbers related to
inventory transactions.

Complete certain information related to multi-
ple currency transactions.

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CHAPTER 4 Setting Up File Maintenance Options

Procedure To complete the Vendor Class window, do the following:

Step Action
1 Select Vendor Class from the menu browser. The Vendor
Class window appears.
2 Complete the information on the tabs.
3 Select Save.
4 Repeat Steps 1-3 for each vendor class you define.
Need more information? Press F1.

How Many Vendor Classes to Define

Description A separate vendor class must be defined for each cash account you
use. Each vendor class defines the GL accounts to which cash, AP,
freight, discount, and variance (if interfaced to Inventory and using
the standard costing method) post.

If you are using accrual vouchers, you should additionally specify the
Accrued Inventory account in order to recognize inventory expense,
as well as payables, when posting accruals.

Note: Information on using accrual vouchers is presented in
Chapter 5: “Processing Vouchers”.

Usage in the Print and Post Distribution to GL Report

Description Account numbers in the Vendor Class window are also used by the
system to produce the Distribution to GL report. You can use the
vendor class functionality even if you do not have the General Ledger
application. For example, if your general ledger is processed by an
outside accountant you can enter the GL account numbers in the
Vendor Class window and provide a Distribution to GL report that
corresponds to the accountant’s account numbers.

If AP is interfaced to General Ledger, these account number fields are
index key fields into the GL Chart of Accounts file. The GL account
numbers in the Vendor Class window must be filled in before any
posting occurs. Otherwise, the amounts on the Distribution to GL
report do not correspond to an appropriate GL account number.

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Completing the Vendor Class Window

Categorizing Vendors

Description Vendors can be categorized to suit your business needs. For example,
vendors might be classified according to the commodity or service
they supply. A vendor class key can be linked to a vendor’s file to get
default vendor details in Voucher Entry. You can override the default
vendor class key in Voucher Entry.

Note: Remember to set up a class key for your one-time vendor in the
Application Setup menu item. More details on setting up for one-time
vendors are presented in “Setting Up Tax Information” on page 83.

Description of Selected Vendor Class Fields

Cash account The cash account in the Vendor Class window is used by the system
to post cash disbursements. The vendor class key determines the cash
account to which payments are credited. The cash account recorded
for a voucher can be overridden in Handwritten Check Entry and
Voucher Payment Entry when processing the payment.

Cash accounts are defined in the Cash Account file found on the SM
tab. Cash accounts must be setup prior to creating a Vendor Class. For
additional information, refer to Setting up Cash Accounts on page 63.

Project Costing If you selected the option to allow retention in the Project Costing
retention account Interface menu item, you must enter a retention account number in
the Vendor Class menu item for each vendor class.

Since it is possible that a retention amount may be held longer than
the current period, you may want to establish retention accounts
separate from your current payables.

Variance account This account allows you to track variances between the actual cost of
an item and its preestablished (standard) cost, for a specific class of
vendors. (For more information about costing methods, refer to the
Inventory User’s Guide.)

Natural currency You designate the vendor’s natural currency by entering a currency
key. You also designate a GL account to track the realized gains and
losses per vendor class.

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CHAPTER 4 Setting Up File Maintenance Options

Warning! Once you have set up the vendor, do not
change the currency type. To do so would cause the system
to add together amounts for different types of currency and
cause the history transaction totals for that vendor to be
meaningless. If you have a vendor for whom you need to
record transactions in more than one currency, a separate
vendor key must be set up for each currency type to be
used.
You can enter a description that specifies the type of vendor in this
class. If you are using the Multi-Currency Manager, you might
include the currency type in the description so that it is easier to select
the appropriate vendor class from a lookup.
You should specify an Inventory clearing account to apply the
difference between the cost of inventory based on the exchange rate
used when the items were put on hand, and the cost of inventory
based on the exchange rate when the invoice was distributed to
General Ledger.

Note: See your Multi-Currency Manager User’s Guide for
information regarding currency types, and gain and loss calculations.

Multi-Currency Rate Override
If you are using the Multi-Currency Manager to process in multiple
currencies and want to override the exchange rate linked to the
currency key specified for this vendor class, you can enter the
overriding exchange rate in this field. When vouchers are entered, the
system uses this rate as a multiplier to the default cost instead of the
rate maintained in Multi-Currency Manager.

Note: If you are using Multi-Currency Manager, specify a currency
key to use for all vendors who will be linked to a vendor class record,
and GL accounts to track gains, losses, and inventory cost
discrepancies.

98 Accounts Payable User’s Guide

Completing the Vendor Window

Completing the Vendor Window

Overview This window is the primary Accounts Payable window. Completion
of this menu item is required.
Introduction
The Vendor window contains a record of information about each
One-time vendor vendor for whom transactions (vouchers, debit memos, and checks)
In this section are processed. The information entered in the Vendor window is
critical to Accounts Payable processing, so it is important to read and
understand this section before adding vendors to your database.

Note: If you have followed the recommended sequence for setting
up the other Accounts Payable database files, the lookups can be used
to select certain vendor information.

Be sure to define a vendor key for your one-time vendor (as defined
in Application Setup.)

This section contains the following topics: Page

Topic 100
How to Complete the Vendor Window 101
Description of Selected Vendor Fields 103
Setting Up a One-Time Vendor 103
Deleting a Vendor

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CHAPTER 4 Setting Up File Maintenance Options

How to Complete the Vendor Window

Description When you select Vendor from the menu browser, the following
window appears:

The Vendor window contains three tabs as follows:

Tab Used to...
Vendor Information
Transaction Defaults Enter information about the vendor
such as name, address, and contact
Process Information information.

Select various defaults that are to be
associated with the vendor such as the
expense account, vendor class key,
location key, branch key.

Enter default information such as
whether the system should generate a
1099 for the vendor, tax, credit, and
other miscellaneous processing infor-
mation.

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Completing the Vendor Window

Procedure To complete the Vendor window, do the following:

Step Action
1 Select Vendor from the menu browser. The Vendor window
appears.
2 Complete the information on the tabs.
3 Select Save.
4 Repeat Steps 1-3 for each Vendor key you want.
Need more information? Press F1.

Defaults The defaults you assign are specific to each vendor. When defining
these defaults, be aware that during voucher entry any default can be
overridden.

Description of Selected Vendor Fields

Vendor key A discussion of how to plan your specifications is presented in
Chapter 2: “Preparing to Set Up Accounts Payable”. Because the
vendor key is used extensively as a sort key in Accounts Payable, it
may be helpful to review that section before setting up the vendor
records.

Default project If you are interfaced to Project Costing, the Default Project Reference
reference field is available for entry. A project reference allows you to indicate
the job or project to which a voucher, debit memo, or additional cost
voucher should be assigned.

You can use the special lookup in the field to select the individual
segments that make up the default project reference you want
associated with each vendor.

Note: The project reference contains the segments that are defined in
Project Costing.

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CHAPTER 4 Setting Up File Maintenance Options

Hold payment You can assign a project reference in any of the following ways:
Generate 1099s
Credit limit • At the vendor level so that a default project reference is
automatically filled in for you for a particular vendor when you
enter a voucher, debit memo, or additional cost voucher

• At the document level if there is no default project reference
associated with the vendor or if you want to change the default
project reference associated with the vendor

• On a line-by-line basis

If a vendor has an assigned default project reference, when you enter
a purchase order, voucher, debit memo, or additional cost voucher,
the default project reference is automatically filled in for you. You
can change it if desired.

You can choose to put an account on hold so that checks are not
printed for a specific vendor, even if the vouchers are selected or are
due.

If the vendor requires a 1099 form, you can specify whether the
vendor should be included when printing 1099 forms. You can also
enter a default 1099 box number which is displayed in the Voucher
Entry window.

Indicate your credit limit with the vendor (if applicable).

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Completing the Vendor Window

Setting Up a One-Time Vendor

Description The one-time vendor information entered in the Vendor window is
the vendor key used to enter Accounts Payable transactions for one-
time vendors. A one-time vendor is a vendor that you may need to
print a check for, but do not want to keep all of the vendor
information (such as address, phone, voucher entry defaults) in the
vendor menu item.

The vendor key assigned in this file is the same key that was
identified in Application Setup. When entering the one-time vendor
record, be sure to assign the vendor class defined for this purpose.

Example
Your regular office supply vendor does not carry an orthopedic chair
you need to purchase, so you order the chair from another vendor.
This is the only time you will be purchasing from the second vendor
so they are a one-time vendor and should be addressed as such in
Voucher Entry. (For complete instructions on entering a one-time
vendor voucher, refer to Chapter 5: “Processing Vouchers”.)

Procedure For setting up records to process one-time vendor transactions, there
are three tasks that need to be completed:

Task Action

1 Identify the one-time vendor key in Application Setup.
2 Define a vendor class for one-time vendors.
3 Define a vendor record, using the vendor key assigned in

Application Setup and default information for processing one-
time vendor transactions.

Deleting a Vendor

Description You can delete a vendor if the vendor has no current activity. When
you choose to delete a vendor, the system looks at the Current
Transaction file to determine if there is current activity. If a record is
found, you cannot delete the vendor.

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Completing the Vendor Item Window

Completing the Vendor Item Window

Overview If Accounts Payable is interfaced to Inventory, the Vendor Item menu
item appears in the menu browser. This window allows you to set up
Introduction records that identify which vendors supply the items maintained in
your inventory and the vendor’s item number. Completion of this
In this section menu item is optional.

This section contains the following topic: Page

Topic 104
How to Complete the Vendor Item Window 105
Description of Selected Vendor Item Fields

How to Complete the Vendor Item Window

Description When you select Vendor Item from the menu browser, the following
window appears:

Accounts Payable User’s Guide 104



































CHAPTER 5 Processing Vouchers

Procedure To enter a new voucher, do the following:

Assigning the Step Action
voucher number
1 From the menu browser, choose Voucher Entry.
Controlling
duplicate invoice 2 Enter information in all applicable fields on the header tabs
number (Voucher, Miscellaneous, Vendor). When a vendor key is
entered, many defaults are displayed. You can override any
of the defaults. Once you have identified the vendor’s key,
you need to complete the remaining fields on the header
tabs, as appropriate. The voucher must contain all date
information before it can be saved.

3 Enter all line items, tax information, and GL accounts.

4 Return to the Voucher tab and save the voucher.

5 To enter another voucher, select New from the File menu
and repeat steps 2 through 4.

Need more information? Press F1.

When you enter a voucher, the Voucher Number field displays [New]
until the voucher is saved. When you save the voucher, the system
assigns the next voucher number, using the mask if one exists, as set
up and maintained in Auto Number Setup. However, you can enter
the voucher number if you do not want to have the system assign the
number.

Note: If you override the voucher number, the mask is not used.

For each voucher, you can enter a vendor invoice number if
applicable. If you enter a duplicate vendor invoice number for the
current vendor, a warning message displays when you save the
record.

You can continue adding the voucher with a duplicate invoice number
or you can enter a new vendor invoice number. The system checks the
current and history transaction files and the voucher entry file for
duplicate invoice numbers.

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Entering Vouchers

Verifying hash Voucher Entry allows you to enter the document amount total for a
totals voucher. The Document Total field acts as a hash total. If you enter an
amount in the field, when the voucher is saved, the system checks to
make sure that this hash total is equal to the amount in the Voucher
Total field on the Line Items tab. A message is displayed if they do
not balance. This feature is activated in the Voucher Processing Setup
menu item by selecting the Verify Voucher Total option.

Single Voucher Per On the Misc tab, there is an option that allows you to tag a voucher to
Check print on its own check. The Single Voucher Per Check option is
assigned to a vendor so that it automatically defaults when entering
vouchers for a vendor. On a voucher-by-voucher basis, you can
determine if the voucher needs to be printed on a single check, or if
the voucher can be printed with multiple vouchers on a check.

Processing the Prior to posting the voucher, you may want to generate an Unposted
voucher Voucher and Debit Memo report (explained in Chapter 6: “Posting
Vouchers and Debit Memos”). This report allows you to check the
voucher entries for accuracy or to have responsible parties approve
the vouchers before posting.

How to Enter Handwritten Checks

Introduction You can enter full or partial payments, issued as handwritten checks,
on a voucher in Voucher Entry. You can enter the payment
information only if the voucher has not been posted. For example,
you may have to pay a COD shipment with a handwritten check.

Although payments for vouchers are normally made in Handwritten
Check Entry or Voucher Payment Entry, this feature allows you to
record the payment at the same time as you enter the voucher.

Note: Handwritten check entry for posted vouchers is discussed in
Chapter 9: “Processing Voucher Payments”.Procedure

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CHAPTER 5 Processing Vouchers

To enter a handwritten check on an unposted voucher, do the
following:

Step Action

1 Select the Manual Check tab on the Voucher Entry window.

2 Enter the check number, check amount, check date, and dis-
count taken.

If one of these fields has a value all fields must be entered,
except discount taken.

3 Save the voucher.

Need more information? Press F1.

When the voucher is posted, an invoice transaction (credit to accounts
payable and a debit to expense) and a payment transaction (debit to
accounts payable and a credit to cash) are recorded in the Distribution
to GL and Current Transaction files.

Assigning a Status to a Voucher

Introduction In Voucher Entry, you can:

• Select a voucher for posting

• Unselect the voucher from being posted

• Place a voucher on hold to prevent it from being selected for
posting until the hold status is removed

Default status You can establish a default status in Voucher Processing Setup. Once
the default is entered, each new voucher assumes this default. You can
override the default when you enter the voucher by selecting a
different status.

Assigning a status to a range of unposted vouchers can also be
performed in the Select Voucher or Debit Memo to Post menu item,
explained in Chapter 6: “Posting Vouchers and Debit Memos”.

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Entering Vouchers

Placing a vendor on You can place individual vouchers on hold by entering a hold status
hold in the Status field in Voucher Entry. You can also place all vouchers
for a vendor on hold in the Hold Payment field in the Vendor window
to prevent a check from printing for any of the vouchers.

Placing a vendor on hold prevents any checks from being printed for
that vendor whether or not there are vouchers that qualify for
payment.

To allow checks to print again, clear the Hold Payment option.

How to Enter Comments

Introduction You can enter a free-form comment on any voucher. The comment
prints on the Unposted Voucher and Debit Memo report, directly
under the voucher line item information. The comment can also print
on the check stub if you enable the Voucher Comment on Stub option
in Check Printing Setup.

Procedure Use the following procedure to print comments on the check stub:

Step Action
1 Select the Misc tab on the Voucher Entry window.
2 Type your comment in the Comment field.
3 Save the voucher.
Need more information? Press F1.

Comments for You can also create comments for individual vendors that can be
individual vendors printed at the bottom of the check stub by creating a comment key in
the Comments menu item and then assigning that comment key to the
vendor in the Vendor menu item.

How to Enter Nontaxable Freight Charges

Introduction You can enter nontaxable freight charges for a voucher if the vendor’s
invoice contains the freight charges.

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CHAPTER 5 Processing Vouchers

Procedure Use the following procedure to enter nontaxable freight charges:

Step Action

1 Select the Voucher tab on the Voucher Entry window.
2 Enter the freight amount in the Nontaxable Freight Amount

field.
3 Save the voucher.

Need more information? Press F1.

Note: If you are entering only a freight amount on the voucher, you
must enter at least one comment line item in order to save the
voucher. The line item should be a comment with a description like
“Invoice for Freight Only.”

Freight charges as Alternatively, you can enter freight charges as non-inventory line
line items items. Refer to the section on entering non-inventory line items for
additional information.

How to Set Up Recurring Vouchers

Introduction A recurring voucher is a voucher that is automatically generated by
the system on a regular basis.

If you have vendors for whom you generate the same voucher on a
regular basis, you can set up a voucher to be automatically generated
at any recurring interval you specify so that you are not required to
enter the same voucher information repeatedly.

For example, if you owe a vendor a rental payment each month, a
voucher can be set up to automatically recur every month for the
rental amount.

Which vouchers can You can make any standard voucher recurring as long as it has not

recur been posted yet.

Note: Additional cost vouchers, accrued receipt vouchers, and
vouchers for one-time vendors cannot be set up to recur.

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Entering Vouchers

When to enter the A recurring voucher should be entered on the first day of the cycle
voucher type you choose. For example, if the voucher is to be set up with a
cycle that recurs every 7 days on Friday of each week, the original
voucher should be entered on a Friday. The original voucher entered
represents the first payment owed. The first automatic recurrence of
the voucher represents the second payment owed.

Procedure Use the following procedure to set up a recurring voucher:

Step Action

1 Select the Misc tab on the Voucher Entry window.
2 Select a recurring cycle in the Recur Cycle Key field.
3 Save the voucher.

Need more information? Press F1.

Each time a recurring cycle voucher is posted, the system
automatically increments the voucher dates according to the cycle
type selected and generates the next recurrence of the voucher. The
newly generated voucher is assigned the next available voucher
number.

Locating a To look up the newly assigned voucher number, you can generate an
recurring voucher Unposted Voucher and Debit Memo report. You are able to identify
the recurring voucher by the vendor, invoice date, item description,
and amount.

How to Cancel a Recurring Voucher

Introduction A recurring voucher continues to be generated by the system until it is
canceled either manually by you or automatically by the system. You
can cancel a recurring voucher at any time.

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Procedure Use the following procedure to manually cancel recurring vouchers:

Step Action
1 Select Voucher Entry from the menu browser.
2 Recall the voucher to the screen.
3 Do either of the following:

• To cancel the current voucher, select Delete from the File
menu.

• To make the current voucher the final one, select the Misc
tab and delete the recur cycle key.
Need more information? Press F1.

Note: To locate the number of the latest voucher, use the Unposted
Voucher and Debit Memo report, which can list unposted vouchers
by vendor.

Canceling recurring The system can cancel the recurring voucher based on information set
vouchers up in the Recur Cycle window. The system automatically cancels the
automatically voucher when either of the following occurs:

• The cancellation date is reached
• The tracked balance reaches zero

Note: If the remaining balance is less than the recurring voucher, the
recurring voucher amount is adjusted to reflect the lower amount.

How to Enter Vouchers for One-Time Vendors

Introduction A one-time vendor is a vendor whose product or service is purchased
only once, and who does not require a 1099 form. For these reasons,
it is not necessary to set up a permanent record for these vendors.
When creating a voucher, you select a miscellaneous vendor key
defined in the Vendor window and assigned as the default for one-
time vendors in Application Setup.

Refer to Chapter 4: “Setting Up File Maintenance Options”, for
instructions on setting up a miscellaneous or one-time vendor key.

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Recurring voucher A recur key cannot be assigned to a one-time vendor. A voucher for a
one-time vendor cannot recur. If you want to recur the voucher, create
a record for the vendor using the Vendor menu item.

Procedure Use the following procedure to enter a voucher for a one time vendor:

Step Action

1 Select Voucher Entry from the menu browser.

2 Enter the miscellaneous vendor key (MISC) in the Vendor
Key field.

3 Complete the remaining header and line item tabs, as applica-
ble.

Since this specific vendor’s information is not set up, you may
have to enter much of the voucher detail information manu-
ally. Default information may not be available for many of the
fields or may not be applicable to this vendor.

4 Save the voucher.

Need more information? Press F1.

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Files updated Information entered for one-time vendors is recorded in the Alternate
Vendor Address file, which serves as a temporary holding file.
During period-end closing, all one-time vendor records for paid
vouchers are purged from this file. The purge allows you to avoid
cluttering your reports with vendors you do not expect to buy from
again and to conserve disk space.

Since the period-end close purges the one-time vendor records, you
may want to print a Pay To Vendor Address listing before the closing,
to provide an audit trail of one-time vendors.

Accrued Receipts Vouchers

Posting receipts If you have installed Purchase Order and have selected to accrue
receipts, an unposted accrued receipts voucher with an accrued status
is created when you post receipts in Purchase Order. At the same
time, a GL accrual distribution is made into the AP accrual account
defined for the vendor class associated with the vendor.

For inventory line items, the accrued Inventory account is debited;
and for non-inventory line items, the expense account is debited.

How to recognize In Voucher Entry, a field indicating that the voucher is an accrued
receipts voucher is displayed at the top of the Voucher tab.

Deleting, Accrued receipts vouchers cannot be deleted. They cannot be
reaccruing, reaccrued or unaccrued since reversing entries are not generated in
unaccruing the next period.

Posting vouchers The amounts in the accrued payables account are transferred to the
regular Accounts Payable account and the amounts in the accrued
inventory account are transferred to the Inventory accounts.

For inventory line items, the expense is credited to the accrued
inventory account and debited to the Inventory account; and for non-
inventory line items, the expense account is unchanged, the accrued
payables account is debited, and the Accounts Payable account is
credited.

You can post accrued receipts vouchers to a future period and the
Distribution to GL file and the Distribution History file are used to
track future dated accruals.

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Modifying costs You can modify costs on all inventory and non-inventory line items.
However, the last cost is only updated during Print and Post Purchase
Order Receipts, not during Post Voucher and Debit Memo. No
reversing entries are made for either inventory or non-inventory line
items when the receipt is posted. Adjustments occur when the
voucher is posted.

Inventory line items You cannot add or delete inventory line items, and you cannot modify
quantities. When you modify the cost to reflect the actual cost a Cost
Adjustment transaction is created in Inventory.

Non-inventory line You can add or delete non-inventory line items and you can modify
items quantities and costs.

Viewing Credit Information

Where to find Information about the vendor’s credit is displayed on the Credit tab.
The information comes from the Vendor Activity file and is not
available for modification.

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Entering Line Items

Overview Once you have entered all appropriate vendor and voucher header
information, you are now ready to enter what was purchased and what
Introduction is owed.

In this section This section contains the following topics:

Topic Page

Line Items Tab 132
Line Item Types 136
How to Enter Inventory Line Items 137
How to Enter Non-Inventory Line Items 138
How to Enter Line Item Comments 139
How to Manually Enter Tax Line Items 140
How to Automatically Calculate Taxes 142
How to Enter Project Costs 143
How to Insert a Line Item 146
How to Delete a Line Item 146
How to Enter the Extended Amount 147

Line Items Tab An unlimited number of line items may be entered for each voucher
and the line item details are printed on the voucher.
Introduction

Description When you select the Line Items tab on the Voucher Entry window,
the following window appears:

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Note: If you are using Multi-Currency Manager, the vendor’s natural
currency type (for example, U.S. dollars) is displayed near the bottom
of the window. All amounts entered on the voucher reflect that
currency.

Sheets The Line Items tab contains the following sheets:

Sheet Used to...
Line Items
Enter the line items for the voucher including
Defaults the item key, description, quantity, amount,
Project and account number.
Tax
Enter additional line item information, such as
1099 box numbers and inter-company IDs.

Enter project costing information, if Accounts
Payable is interfaced to Project Costing.

If you are using the automatic tax calculation
feature, this tab allows you to enter tax infor-
mation.

The tab is only available for entry if you are
using automatic tax calculation.

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CHAPTER 5 Processing Vouchers

Special toolbar There are several toolbar buttons that provide special functionality in
buttons Voucher Entry. These functions can be accessed from the menu or
toolbar.

Refer to the System Basics User’s Guide for information on the
remaining toolbar buttons

The toolbar buttons are described below:

To: Choose Edit Or click
then select: this
button:

Enter an extended amount for a line Override
item and have the system calculate the Extension
unit cost.

By entering a quantity and an override
extension amount, the unit cost is auto-
matically calculated by dividing the
extended cost by the quantity. This is
helpful if your vendor’s invoice only
displays the extended amount.

Recalculate amounts to reflect changes Recalculate
made to the vendor key, vendor class, Amounts
invoice date, location key, conversion
factor, or item key. When these Choose Seg-
changes are made, the cost does not ments
automatically reflect the changes and
therefore the amounts may need to be
recalculated.

Select the segments defined in Project
Costing that will combine to make up
the project reference to be associated
with a line item.

This special toolbar button is only Default Tax
available if you are interfaced to Key from
Project Costing. Vendor

Enter or change the default tax rate key
and recalculate the taxes based on the
new tax rate key.

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To: Choose Edit Or click
then select: this
button:

Enter or change the default tax rate key Default Tax
and recalculate the taxes based on the Key from
new tax rate key. Item Loca-
tion
Only available if Accounts Payable is
interfaced to Inventory.

Recalculate the tax amount for all line Recalculate
items based on the tax rate key. Tax Totals
for Line
Only available if you are using auto- Items
matic tax calculation.

Recalculate the tax amount for the cur- Recalculate
rent line item based on the tax rate key. Tax Totals
for Current
Only available if you are using auto- Line Item
matic tax calculation.

Override the actual tax amount with a Override

user-entered total. Actual Tax

Only available if you are using auto- Tax on Total
matic tax calculation.

Calculate the tax based on the docu-
ment total.

Only available if you are not using
automatic tax calculation.

Activates the Universal Notes feature. Detail Notes/
Attachments

Line Item Types

Introduction For each line item, you enter a line type that determines which fields
you need to complete on the Line Items tab.

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CHAPTER 5 Processing Vouchers

Types of line items The following table shows the line types and the fields available for
entry by line type:

Line Type Fields Available for Entry

Inventory Item Key, Description, Location, Conversion
(optional), Quantity, Amount, Tax (optional),
Account Number

Non-inventory Description, Quantity, Amount, Tax (optional),
Comment Account Number

Description

Tax Description, Amount, Tax, Account Number

Available only if you are not using automatic tax
calculation.

Default line item You can set a default line item type. Refer to the System Management
types User’s Guide for procedural information.

Quantity field The Quantity field is disabled when:
disabled • the voucher is an accrued receipt voucher and the line item is an

inventory line type
• the line item is a comment line type
• the line item is a tax line type

How to Enter Inventory Line Items

Introduction If you are interfaced to Inventory, line items are entered using
information previously set up in Item Master and Location files.
Otherwise, information comes from the Item Master in System
Manager or must be entered manually.

When you select an item key for an inventory line item, other
information is filled in for you based on the defaults associated with
that item key.

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