Payables Management Using Great Plains

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Payables ManagementUsing Great Plains

• Brought to you by
• Team 1

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What is Payables Management?

• The paying of goods, supplies, or services
• Approving vendor invoices for payment
• Monitoring and evaluating efficiency and
  effectiveness through access to detailed
  information in inquires and reports

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The Big Picture!
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What Payables Management Covers

• Setup and Cards for Vendors
• Transactions
• Inquiries and Reports
• Utilities and Routines

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Using the Setup Routine

• We begin by setting up defaults for Payables
  Management. (ToolsgtRoutinesgtPurchasinggt
• Checklist)

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Proceed to the Setup option under Frequency
In the scroll down box by frequency select setup
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Payables Management Setup Screen
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Aging Periods

• Aging is the process of determining how long
  youve owed money to specific vendors
• Due Date
• The date that the vendor has set for payment
• Document Date
• The date the invoice was written

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Choose an Aging Period
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Apply Options

• You can apply credit by one of two ways
• Document Date

• Due Date

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Choose your applying process
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Enter in Default Information
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Enter passwords for security purposes
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Defaults

• Summary Review
• Select a summary view to be the default view in
  the Yearly Vendor Summary (amounts since last
  close, fiscal year, calendar year)
• Checkbook ID
• Specify the checkbook that you use most often to
  pay vendors. If you havent opened a banking
  account now would be a good time.

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Defaults Cont.

• Check Format
• Select a default check stub, decide what
  information you want on your check stubs
• List Documents on Remittance
• Choose what information you want as default for
  the Remittance. A remittance contains the same
  information as a check stub, only it is written
  on blank paper. (invoices only, all documents,
  applied orders, totals only)

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Options

• Override Voucher Number at Transaction Entry
• Gives you the option of changing default voucher
  number when entering a transaction.
• Track Discounts Available in GL
• Gives you the option of setting up a separate
  General Ledger account for discounts given by
  vendors.
• Print Historical Aged Trial Balance
• If you mark this option, Great Plains keeps the
  transaction history necessary to print the
  Historical Aged Trial Balance.
• Delete Unposted Printed Documents
• Lets you delete an unposted printed document from
  the payables transaction window.
• Age Unapplied Credit Amounts
• If you age documents by due date and you mark
  this option, the due date for credit documents
  will be the same as the document date.

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Vendor Classes

• Setting up Vendor Classes is a way to group
  vendors according to common entries.

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Why use a Vendor Class?

• Creating a class will make it easier to setup
  individual vendors by designating defaults for
  that specified class.
• You can also make changes to groups of vendors
  quickly by changing the class record and rolling
  down the change to all vendors in that class.

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We will use our company Superior Painting as an
example

• Lets assume we have multiple Paint suppliers and
  we want to group them under a certain class,
  PAINT.

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Vendor Class Setup
ToolsgtSetupgtPurchasinggtVendor Class
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Vendor Class Setup Screen
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• Currency ID choose a currency that you will be
  using in transaction with those vendors. (You
  must set up your currency first to enter in a
  default)
• Rate Type ID - choose whether the majority of
  your transactions will be buying selling, or
  both.
• Payment Terms select the terms in which you
  will be paying this vendor.

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Setting up Default Account for Vendor Classes

• After entering in the options it is time to
  determine how you will be recording different
  transaction with these vendors.
• On the bottom right of the setup screen click on
  the Accounts button.

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Enter Account Setup Here
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Setting up vendor class default posting accounts
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What if we want to track two departments who
order from the same vendor?

• Lets assume Superior Painting had two department,
  North County Superior Painting and South County
  Superior Painting, and they purchase paint from
  the same vendor.
• We can enter multiple purchase accounts to use
  during transaction entry when we distribute
  amounts to posting accounts.

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Setting up vendor class default posting accounts
Click here to setup Multiple departments For
purchases Posting accounts
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Keep in mind that you will need to setup the
accounts before you can enter them in as defaults
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Vendor Cards

• Now that we have setup our Vendor Class we can
  begin entering in individual vendors to that
  class.

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Vendor Cards
CardsgtPurchasinggtVendor
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Entering Vendor Information
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Select the Class ID that you would like this
vendor to be under
Click here!
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Transactions

• Invoices, credit memos, returns
• Finance charges, miscellaneous
• charges

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Batches

• A group of transactions that you use just one
  time, or recurring batches for transactions you
  enter on a regular basis.

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Creating A Batch

1. Transactionsgtgt Purchasinggtgt Batches
2. Enter a batch ID
3. Select batch origin
4. Enter comment
5. Select frequency
6. Enter number of times to repeat posting in the
   recurring posting field
7. Enter posting date
8. Enter checkbook ID
9. Enter batch total

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Entering An Invoice
Transactionsgtgt Purchasinggtgt Transaction Entry
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Entering an Invoice
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Entering Credit Memos Returns

• During the course of doing business, you might
  return merchandise or receive credit.
• For example, assume that the fabric for the new
  line of cozy doggy sweaters was defective and
  needs to be returned.
• You must record the return as credit memo or as a
  return.
• A credit memo reduces the amount you owe a vendor.

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To enter a credit memo or return

1. Transactionsgtgt Purchasinggtgt Transaction Entry
2. Select Credit or Return as document type and
   enter a description
3. Enter voucher , Vendor ID, Date, Document Number
4. Enter credit memo or return amount
5. Apply

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Finance or Miscellaneous Charges

• To enter a finance or miscellaneous charge, you
  follow the same steps as entering an invoice or
  return but select Finance Charge or Miscellaneous
  Charge as the documentary type.
• A finance charge is the cost of borrowing money
  or a fee for not making payments on time.
• Examples of miscellaneous charges are service
  charges such as installation or repairs of
  merchandise.
• For example, if Extreme Mountain Vehicle was on a
  leasing agreement with the SUVs they used and
  were late with a monthly payment, you would track
  the extra expense as a finance charge.

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Paying An Invoice

• BY CHECK
• Enter amount youre paying
• Choose checkbook
• Enter date and payment number
• Enter check number and mark print to print a
  check.

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• A manual payment is when you havent received the
  merchandise and an invoice has not been recorded.

A manual payment can be paid by cash, check or
charge.
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Scheduled Payments

• When you make large purchases from vendors or
  make purchases that are delivered over time, you
  might want to spread payments out.
• For example, if Kabobbys purchased the newest,
  state-of-the-art grill for their restaurant they
  would have a large payment and would use a
  scheduled payment to pay off the equipment.

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Creating A Payment Schedule

• 1.Transactiongtgt Purchasinggtgt Scheduled Payments
• 2. Enter schedule number, description, vendor ID.
• 3. Choose either compound or simple interest type
• Enter scheduled interest rate and number of
  payments and frequency.
• Calculate