Setup: Accounts Payable Setup: Accounts Payable
Accounts Payable Setup consists of setting up the accounts which the Account Payable System will need. These are Accounts Payable Invoice Checking, Accounts Payable Trade Account, Retention Account, Backcharge Income, Discounts Earned, and Subcontracts Payable. The Invoice Checking, Discounts Earned, and Payables accounts are required by the Invoice Check Writing Program. Normally for each check, the invoice checking account will be credited with a transaction, and after the session is complete, the Accounts Payable, Subcontracts Payable, and Retention Payable accounts will be debited. The Discounts Earned account will be credited for the discount taken on those checks.
This screen can be accessed by selecting Setup > Accounting Options > Accounts Payable. It can also be accessed by right-clicking the AP menu icon.
Defaults & Miscellaneous (tab)
This tab allows the user to specify the Default G/L Accounts and Miscellaneous A/P settings.
For any of the Default G/L Accounts, enter the account number or press the lookup button and the General Ledger Accounts screen will come into view. Highlight the desired record and press the Select button.
When Changes are made to Vendor record
Whenever information is changed in a vendor record, the program can automatically attach a note to the vendor file documenting the change that was made. Select one of the options regarding the creation of this note.
Federal Tax ID
Enter the company's Federal Tax Id in this field.
Print Job Cost Summary (check box)
If this box is checked, a Job Cost Summary will be printed after each Accounts Payable Posting. However, this same information is available in the Accounts Payable Posted Invoice Analysis and Job Cost Analysis reports. The most common response is to not check this box, since not producing the Job Cost Summary reduces the overall posting time.
Post Invoices as Ready to Pay (check box)
One common Accounts Payable procedure is to require a payment selection step after any invoices are entered into the system. Some companies consider this extra step superfluous and assume the system should write the check if it is entered it into the system. To skip the payment selection step, check this box. This will cause the system to automatically select all posted invoices ready for payment by check.
Important Note: By checking this option the discretionary selection of invoices for payment is circumvented. For companies that regularly print checks and hold them until payment time, then realize the need for excessive check corrections, the payment selection option may be very attractive.
Check for Duplicates During Invoice Entry (check box)
If this feature is checked, the system will always scan through the current Batch and Account Payable History File each time an invoice number is entered in the Invoice Entry programs. If an invoice is found with the identical invoice number (from the same vendor), the system will halt the program and ask for authorization to continue entering the invoice.
Post in Entry Order or in Vendor Order (radio buttons)
If Entry Order is selected, the invoices will be appended to the History File in the order entered into the Batch. To choose this option, type E. If Vendor Order is selected, the invoices will be listed by vendor. To choose this option, type V.
Check for Duplicates during Vendor Entry (check box)
If this box is checked, the system will check for existing vendors with the same name/address as the vendor currently being entered and warn the user if one already exists.
Show Vendor Address During Invoice Entry (check box)
Check this option to have the address of the Vendor displayed during invoice entry.
Warn for Missing Invoice Number (check box)
Select this option to warn when an Invoice Number is missing.
Warn for Prepaid Invoices (check box)
Select this option to warn if an Invoice is Prepaid.
Warn of Unsigned Contracts (check box)
Checking this box will cause a warning window to pop up when a Subcontract Invoice is entered for a budget line item for which the signed contract has not been received from the subcontractor. Find out more about marking the contract as Received in the Cost Code Budget help topic.
Include Doing Business As (DBA) on printed checks (check box)
Some vendors have the DBA box checked and the first and last name of the individual contractor listed in the DBA field. 1099 Forms will always print the DBA vendor name in this format: "Jim Anderson DBA Atlas Electric Service". Accounts payable checks written to the vendor can use this same format on the Pay To: line, or they can just say "Atlas Electric Service." If the box here is checked, the check printing will use the same format as the 1099 form.
New Vendor ID Highest Plus One (check box)
When a new vendor is entered, the system will supply a Vendor ID. Traditionally, this new Vendor ID is the number of the highest numbered vendor in the file plus one. Many times there will be lower vendor id numbers that are unused. If this box is checked, the system will go the traditional route, and assign the higher vendor id number. If the box is unchecked, the system will search for the first "Unused" vendor number and assign that number to the new vendor.
Default 1099 Setting for New Vendors (drop-down list box)
Use this setting to select whether new Vendors will default to being 1099 vendors, and if so, which 1099 format should be the default.
Minimum Amount for 1099 Forms
This is the minimum amount required by federal tax law for payment to vendors before they require a 1099 form at the end of the tax year.
Maximum Invoice Amount
This is mostly a safeguard against accidentally entering extremely large dollar amounts in AP Invoice amount fields. Enter a threshold amount here.
Default Sales Tax Percent
If desired, enter a sales tax percent that will serve as a default for entering new vendors.
This tab allows the user to customize Check Formats and Default Due Terms. When the Checks & Due Terms tab is selected, the following screen will come into view.
Order Checks & Forms Online (button)
Press the Order Checks & Forms Online button to be directed to the check and form ordering website.
Alignment Check (button)
Press the Alignment Check button to print an Alignment Check on check stock. For more information see Print Alignment Checks.
Select Check Format (button)
Click this button to select which check format will be used for printing Accounts Payable checks. The following window will appear:
Highlight any check format to see a representive sample of the printed check in the pane on the right. Once the desired check format is highlighted, click the Select button. See Setup Check Formats for more information.
Color (radio buttons)
When a laser format with shaded boxes is selected, the user will be allowed to select a color scheme for the check stub. For example, if the user selects "Blue", the check stub will print the boxes with blue outlines and pale blue shading.
Copies/Collation
To print out multiple copies, press the Copies/Collation button.
OR 
If the Collate box is left unchecked, copies of the checks will be printed, 1-1-1, 2-2-2, 3-3-3. If the Collate box is checked, copies of the checks will be printed 1-2-3, 1-2-3, 1-2-3.
FormMaker Check Filename
If FormMaker is selected as the check format, use this entry field and/or lookup button to specify the report file (*.rpt) which contains the report format created in FormMaker for printing accounts payable checks.
Modify FormMaker Checks (button)
Press the Modify FormMaker Checks button to open FormMaker and modify or create a Payroll check format. For more information, see FormMaker.
# of Line Items
Indicate how many line items of invoice detail are contained on the check stub portion of the FormMaker check format selected above. This will allow the system to correctly print a check stub continuation report if a check is printed which contains too many invoice line items to fit on the FormMaker check stub.
Specify a Printer for Checks (check box)
Normally, checks will be formatted for and printed to the Windows system default printer. If a tick is placed in this box, the operator can use the lookup button to pick from a list of system printers. The printer specified here will be used for printing Accounts Payable checks.
Print Check Number on Check Face (check box)
Check this box to include the check number on the body of the check. Most checks already have the check number pre-printed on the check body. If this box is checked, the check printing program will also print the check number on the check body. This will result in the check number being printed on the check twice. For some people this is desirable, indicating that the system printed the right check on the right pre-printed check form. For others it may be distracting.
Print Subcontract Summaries on Checks (check box)
When checks to subcontractors are printed, the check stub can optionally contain a summary of the subcontract in addition to the itemized invoices paid for by the check. Check this box to have the system print these summaries by default. The setting can be overridden for individual check runs on the Print Checks / Post Hand Payments window.
Print Trade Invoice Line Item Details on Check Stubs (check box)
When this box is checked, checks that pay for Trade Invoices will include not just one line on the stub for each invoice paid, but one line item for each detail line item on each invoice paid.
This option can be turned on or off in Vendor Entry for each Vendor. The setting chosen here will be used when adding new vendors, or when forcing system defaults onto all vendor records.
Minimum Amount for 1099 Forms
Set the Minimum Amount for the 1099 Forms here.
Use these four buttons to select the desired printing format for Conditional Progress, Conditional Final, Unconditional Progress and Unconditional Final Lien Release forms. When any of the buttons is pressed, this window will be displayed:
As a format is selected, an example of that format will be displayed in the Image section. Highlight the desired format and click the Select button.
FormMaker Filename
If FormMaker is selected as the lien waiver format, use this entry field and/or lookup button to specify the report file (*.rpt) which contains the report format created in FormMaker for printing the selected lien waivers.
Setup Account Reconciliation File Export (button)
See Account Reconciliation Setup .
This area is used to setup the default Due Terms that will be applied to New Vendors entered into the system.
Due Terms
Enter the Due Terms type in the box provided. Select whether the terms will be applied by Day of the Month or by a Number of Days from Invoice Date. Enter the number in the number field.
Discount Terms
Enter the Discount Terms type in the box provided. Select whether the terms will be applied by Day of the Month or by a Number of Days from Invoice Date. Enter the number in the number field.
Percent
Enter the Discount Percent amount in this field.
Force Defaults to Existing Vendors (button)
Click this button to update all existing Vendors' due terms and other settings to match the values indicated on this window.
Select Settings
Use these check boxes to indicate which settings are to be forced into your Vendor records.
Select Vendors
Use these controls to specify which vendors should receive the forced settings.