Using Accounts Payable

Transcription

1 Using Accounts Payable Reissued Manual as of June 19, 2009 Enclosed is a new edition of the manual Using Accounts Payable for Release 18. This edition replaces your existing manual. The Primary Changes Made The following forms have had the Invoice Number field expanded to 18 characters. These modifications are included on software update number SU Voucher Maintenance (VOUM) Voucher Item List (VOIL) Voucher Item Maintenance (VOUD) Customs Voucher Item Maint (CVOU) Manual Voucher Payment (VOUP) Voucher Associated Employees (VOAE) Voucher Inquiry (VOUI) Voucher Item Summary (VOIS) Voucher Item Inquiry (VIIN) Voucher Summary Report (VOUS) Voucher Register (VREG) Voucher Print (VPRT) AP Aging Report (APAR) Cash Disbursements Journal (CDJR) Check Payment Selection (CKSE) Vendor Voucher/Invoice Select (VINQ) Voucher Purge Register (VPRG) Discounts Pending Report (DISC) Unauthorized/In Prog Vouchers (UNVR) Discounts Taken/Lost Report (DISL) Vendor Voucher/Invoice Inq (VEII) Check Void Entry (CKVE) Purchase Order Pre-Pay (POPP)E-Check Production (ECHP) E-Check Advices (ECAD) Voucher Print (VPRT) Check Print (CKPR) Check Payment Selection (CKSE)

2 Updating Your Manual Replace all copies of your existing manual with this new edition as it will be the basis for all future updates.

3 Datatel Colleague Finance Using Accounts Payable Release 18 June 19, 2009 For last-minute updates and additional information about this manual, see AnswerNet page

4 Using Accounts Payable All Rights Reserved The information in this document is confidential and proprietary to and considered a trade secret of Datatel, Inc., and shall not be reproduced in whole or in part without the written authorization of Datatel, Inc. The information in this document is subject to change without notice. Colleague and ActiveCampus are registered trademarks of Datatel, Inc. ActiveAlumni and ActiveAdmissions are trademarks of Datatel, Inc. Other brand and product names are trademarks or registered trademarks of their respective holders. Datatel, Inc Fair Lakes Court Fairfax, VA (703) (800) DATATEL

5 Table of Contents 19 Introduction 21 About This Manual 21 Who Should Read This Manual 21 What This Manual Covers 22 How This Manual Is Organized 23 Typographical Conventions 23 Conventions Used in Procedures 25 Important Notices 25 Alerts 25 Notes 26 Technical Tips 27 Where to Find More Information 29 Overview of Purchasing/Payables Processing 29 In This Chapter 30 Purchasing/Payables Setup and Daily Processing 32 The Purchasing and AP Process: Role of the Transaction Codes 37 Statuses Using Accounts Payable, June 19,

6 Table of Contents 39 Vendors 41 Adding a Vendor 41 In This Chapter 42 Forms Used 43 Before You Begin 45 Understanding Vendors 46 Speeding Processing and Reporting Through Vendor-Related Information 47 Vendor Terms 48 Vendor Types 48 Currency 49 Tax Form 49 Vendor Properties That Do Not Default onto Procurement Documents 51 Reporting on Vendors Through the Vendor-Related Codes 51 Streamlining Your 1099 and T4A Tax Form Information 52 Understanding Vendor Demographics 52 Demographic Information: Different Roles, Same Person Record 53 A Vendor: A Corporation or a Person? 54 Person or Corporation: Differences at a Glance 54 Formatted Names 55 Vendor Addresses 56 Vendors With One Address 56 Vendors with More Than One Address 58 Setting Up Multiple Addresses for a Vendor 59 Using the Core Code Tables to Customize Your Demographics Options 60 Vendor Demographics Forms and File Relationships 60 Forms Used to Add a Vendor as a Corporation 61 Forms Used to Add a Vendor as a Person 62 Vendor Demographics File Relationships 65 Finding Vendor Demographic Information 69 Setting Up Your Vendors Prior to Going Live 69 Two Methods of Setting Up Your Vendors 69 Adding Demographics Information Prior to Adding Vendor Information 70 Adding Demographics Information at the Same Time as Vendor Information 70 After Converting Your Vendors 71 About Miscellaneous Vendors 6 Using Accounts Payable, June 19, 2009

7 Table of Contents 71 Entering Employees Who Receive Benefit Distributions as Vendors 72 Components of Vendor Definition 73 Fields on the VEND Form 78 Procedure for Adding a Person as a Vendor 80 Additional Procedures 82 Components of Vendor Tax Information 83 Fields on the VNTX Form 85 Procedure for Defining Vendor Tax Information 87 Tracking Vendor Activity 87 In This Chapter 87 Forms Used 88 Inquiring About Vendor Activity 88 Finding Vendor Activity Information 89 Tracking Historical Information Through Vendor Activity Inquiry 90 Components of Vendor Activity Information 92 Additional Notes on Vendor Activity Information 93 Tracking Voucher and Invoice Information by Vendor 94 Finding Vendor Voucher/Invoice Information 94 Procedure for Finding Vendor Voucher Information 96 Components of Summary Vendor Voucher/Invoice Information 97 Procedure for Viewing Summary Vendor Voucher/Invoice Information 98 Tracking Historical Information Through Vendor Activity Inquiry 100 Components of Individual Voucher Information 101 Additional Note on Vendor Voucher and Invoice Information Using Accounts Payable, June 19,

8 Table of Contents 103 Vouchers 105 Understanding Vouchers 105 In This Chapter 105 Before You Begin 106 Understanding Voucher Parameters 107 Voucher Approval Needed Parameter 107 Vou Accepted Items Only Parameter 108 Vouchering Only Accepted PO Line Items 108 Vouchering Both Accepted and Unaccepted PO Line Items 109 Default Voucher Done Parameter 109 Understanding Voucher Status Codes 109 Default Voucher Done Set to Yes 110 Default Voucher Done Set to No 112 Understanding Voucher Approvals 112 Adding Additional Approval IDs 112 Approvals Processing 114 Understanding Voucher Processing 114 The Voucher Maintenance (VOUM) Form 115 Fields on the VOUM Form 116 Required Fields on the VOUM Form 117 The Voucher Item List (VOIL) Form 118 Fields on the VOIL Form 119 The Voucher Item Maintenance (VOUD) Form 120 Fields on the VOUD Form 121 Deleting Voucher Line Items 122 Voucher Field Relationships (Ramification of Changing Data on VOUM) 122 Default Discount Method 123 Customs Vouchers 123 Tax Information 123 Tax Codes 124 Tax Amounts 124 Credit Vouchers 124 Purchase Orders 125 Blanket Purchase Orders 125 Open Vouchering 125 Limited Vouchering 126 Checking the Status of BPO Line Items 126 Entering GL Account Information for Blanket Purchase Orders 126 Associating Voucher Transactions with Projects 8 Using Accounts Payable, June 19, 2009

9 Table of Contents 127 Using LookUp Shortcuts to Retrieve Vouchers 131 Creating Vouchers 131 In This Chapter 131 Forms Used 132 Entering General Voucher Information 132 Before You Begin 133 Procedure for Completing the VOUM Form 134 Creating the Voucher from a Purchase Order 134 Entering Invoice Information 135 Entering/Overwriting Default Vendor Information 136 Voucher Approvals 137 Comments 138 AP Types 138 Line Items 139 Voucher Done 139 Reference Number 140 Pay Voucher 140 Associated Employees 141 Entering Tax Information on the VOIL Form 141 Before You Begin 141 Procedure for Completing the VOIL Form 145 Entering Line Item Detail on the VOUD Form 145 Before You Begin 145 Procedure for Completing the VOUD Form 147 Trade Discounts 148 Cash Discounts 148 Line Item Tax Information 149 GL Account Information 153 Creating Vouchers for Specific Circumstances 153 In This Chapter 153 Forms Used 154 Creating a Voucher Without a Purchase Order 155 Procedure for Creating a Voucher Without a Purchase Order 156 Creating Vouchers for Customs Brokerage Invoices 156 What is a Customs Brokerage Invoice? 157 The Customs Voucher Item Maint (CVOU) Form 159 The Customs Voucher GL Detail (VGLD) Form 160 Procedure for Creating a Voucher for a Customs Brokerage Invoice Using Accounts Payable, June 19,

10 Table of Contents 164 Creating Vouchers in Foreign Currencies 164 Currency Conversions 165 Viewing Details About the Foreign Currency Transaction 165 Procedure for Creating Vouchers in Foreign Currencies 167 Creating Vouchers From Recurring Vouchers 168 Before You Begin 169 Procedure for Creating Vouchers From Recurring Vouchers 170 GL Transactions for Recurring Voucher Scheduled Payments 172 Creating Vouchers from a Prepaid Purchase Order 177 GL Transactions for Vouchering Pre-Paid Purchase Orders 179 Outstanding Prepaids Report (POPR) 180 Procedure for Creating Vouchers from a Prepaid Purchase Order 182 Creating Vouchers to Pay Third-Party Providers of Employee Benefits 183 Procedure for Creating Vouchers to Pay Third Parties for Employee Benefits 185 Inquiring About Vouchers 185 In This Chapter 185 Forms Used 186 Viewing a Specific Voucher 186 Understanding Voucher Inquiries 187 The Voucher Inquiry (VOUI) Form 188 The Voucher Item Summary (VOIS) Form 189 The Voucher Item Inquiry (VIIN) Form 190 Procedure for Viewing a Specific Voucher 191 Viewing the Vouchers for a Specific Vendor 191 Understanding the VINQ and VEEI Forms 192 Understanding the VINQ Form 193 Understanding the VEII Form 193 Procedure for Viewing Vouchers for a Specific Vendor 194 Procedure for Selecting Vouchers for Viewing 196 Procedure for Viewing Selected Vouchers 197 Viewing the Vouchers Paid by a Specific Check 197 Before You Begin 197 Procedure for Viewing the Vouchers Paid by a Specific Check 10 Using Accounts Payable, June 19, 2009

11 Table of Contents 199 Printing Vouchers 199 In This Chapter 199 Forms Used 200 Understanding Voucher Printing 201 Using Range Selection Criteria 201 Using Non-Range Selection Criteria 202 Additional Selection Criteria 203 Information Printed for Each Voucher 205 Procedure for Printing Vouchers 207 Sample Voucher Print 209 Reporting on Vouchers 209 In This Chapter 210 Forms Used 211 Understanding Voucher Reporting 211 Using Range Selection Criteria in Voucher Reports 222 Using Non-Range Selection Criteria in Voucher Reports 225 Cash Disbursements Journal (CDJR) 225 Understanding the Cash Disbursements Journal 226 Procedure for Generating the CDJR Report 228 Sample Cash Disbursement Journal Report: Check Disbursements 229 Sample Cash Disbursement Journal Report: Summary Report 231 Cash Requirements Analysis (CRAR) Report 231 Understanding the Cash Requirements Analysis Report 232 Procedure for Generating the CRAR Report 234 Sample Cash Requirements Analysis (CRAR) Report 235 Voucher Register (VREG) Report 235 Understanding the Voucher Register 236 Report Dates Fields 236 Select Status Within Date Range 238 Procedure for Generating the VREG Report 241 Sample Voucher Register (VREG) 242 Voucher Summary (VOUS) Report 242 Understanding the Voucher Summary Report 243 Procedure for Generating the VOUS Report 245 Sample Voucher Summary (VOUS) Report 246 AP Aging (APAR) Report 246 Understanding the AP Aging Report 247 Procedure for Generating the APAR Report 249 Sample AP Aging (APAR) Report 250 Unauthorized/ In Progress Vouchers (UNVR) Report Using Accounts Payable, June 19,

12 Table of Contents 250 Understanding the Unauthorized/In Progress Vouchers Report 251 Procedure for Generating the UNVR Report 253 Sample Unauthorized/In Progress Vouchers (UNVR) Report 254 Outstanding Prepaids (POPR) Report 254 Understanding the Outstanding Prepaids Report 255 Procedure for Generating the POPR Report 257 Sample Outstanding Prepaids (POPR) Report 258 Discounts Pending (DISC) Report 258 Understanding the Discounts Pending Report 259 Procedure for Generating the DISC Report 261 Sample Discounts Pending (DISC) Report 262 Discounts Taken/Lost (DISL) Report 262 Understanding the Discounts Taken/Lost Report 263 Procedure for Generating the DISL Report 265 Sample Discounts Taken/Lost (DISL) Report 267 Paying Vouchers Manually 267 In This Chapter 267 Forms Used 268 Understanding Voucher Payment 268 Understanding Manual Voucher Payment 270 Paying Vouchers With Negative Amounts 271 Paying Multiple Vouchers with One Check 271 Preventing Voucher Payment 272 Paying a Voucher Manually 272 Before You Begin 272 Procedure for Manual Voucher Payment 277 Voiding and Purging Vouchers 277 In This Chapter 277 Forms Used 278 Voiding Vouchers 278 Understanding Voucher Void 278 Before You Begin 279 Procedure for Voiding a Voucher 12 Using Accounts Payable, June 19, 2009

13 Table of Contents 281 Purging Vouchers 281 Understanding Voucher Purge 281 Using the VPRG Form to Select Vouchers for Purging 285 Using the VOPG Form to Purge Vouchers 286 Before You Begin 286 Purging Vouchers 287 Procedure for Completing the Voucher Purge Register 288 Procedure for Completing the Voucher Purge 291 Transferring Voucher Items to Fixed Assets 291 In This Chapter 291 Forms Used 292 Before You Begin 293 Understanding the FX - AP Transfer Process 293 General Ledger Considerations 293 Process Overview 293 Step 1: Flag a Line Item for Transfer to Fixed Assets 294 Step 2: Run the Fixed Assets Transfer Report (FXTR) 294 Step 3: Run the Fixed Assets - AP Interface (FXAP) Process 294 Step 4: Run the FX - AP Interface List (FAIL) Process 295 Example of Transferring an Item into Fixed Assets 295 The Purchase Order Stage 296 The Proj ID Field 296 The Fixed Asset Field 297 The Voucher Stage 298 The Transfer Process 300 Illustration of the FX - AP Transfer Process 301 Components of Fixed Asset Transfer from AP 301 The Fixed Asset (ITM.FIXED.ASSETS.FLAG) Field 301 The FXA.TRANSFER.FLAGS Validation Code Table 302 The ITM.FXA.TRANSFER.STATUS Field 302 The FXA.TRANSFER.STATUSES Validation Code Table 302 The FXA.ITEMS File 303 The FXA.BATCH File 304 Selecting Fixed Assets for Transfer 305 Procedure for Generating a Fixed Assets Transfer Report 307 Sample Fixed Assets Transfer Report 308 Grouping Items for Transfer 309 Procedure for Creating Batches with the FX - AP Interface Using Accounts Payable, June 19,

14 Table of Contents 311 Transfer Line Items to Fixed Assets 313 Procedure for Creating an Asset Record for a Line Item 317 Accounts Receivable Vouchers 319 Understanding Accounts Receivable Vouchers 319 In This Section 320 In This Chapter 321 Differences Between AR and AP Vouchers 324 Understanding AR Vouchers 324 Understanding AR Refund Vouchers 324 The Voucher Credit Card Refund Flag Field 325 Related Refund Vouchers 327 Understanding AR Cash Advance Vouchers 329 Overview of Processing AR Vouchers 331 Processing AR Vouchers 331 In This Chapter 331 Forms Used 333 Paying AR Vouchers 333 Paying Credit Card Refund Vouchers 333 Paying Non-Credit Card Refund Vouchers 334 Paying Cash Advance Vouchers 334 General Ledger Considerations 334 AR Voucher Codes 334 AP Type Code 334 AR Type Code 335 Deposit Type Code 335 Cash GL Account for the Pay Method 337 Posting AR Payments and Vouchers 341 Paying AR Vouchers Manually 342 Important Fields on the VRAP Form 344 Paying Multiple AR Vouchers with One Check 344 Procedure for Paying AR Vouchers Manually 346 Reconciling AR Vouchers 14 Using Accounts Payable, June 19, 2009

15 Table of Contents 347 Voiding and Purging AR Vouchers 347 In This Chapter 347 Forms Used 348 Understanding AR Voucher Voiding 349 Voiding a Single AR Voucher 349 Voiding AR Refund Vouchers in a Related Group 350 Procedure for Voiding AR Vouchers 351 Understanding AR Voucher Purging 353 Viewing and Reporting on AR Vouchers 353 In This Chapter 353 Forms Used 354 Viewing AR Vouchers in Accounts Payable 355 Viewing a Single AR Voucher 355 Viewing Refund Vouchers in a Related Group 357 Reporting on AR Vouchers 358 AR Credit Card Refund Voucher Reports 359 Checks 361 Maintaining Bank Account Info for e-check Processing 361 In This Chapter 362 Understanding Bank Account Information and e-checks 362 Storing Bank Account Information 363 Capturing Address IDs on Vouchers 364 Miscellaneous Addresses and Vendors 364 How Colleague Determines How a Voucher Is Paid 365 Address Changes After a Voucher Has Been Created 365 Validating Bank Account Information for Payment by e-check 366 Components of Bank Account Information 367 Prenoting Bank Account Information 368 Forms Used 368 Entering Bank Account Information 368 The Bank Account Info Entry (BAIE) Form 370 Fields on the BAIE form 373 The Bank Account Info Hist (BAIH) Form 373 Procedure for Entering Bank Account Information Using Accounts Payable, June 19,

16 Table of Contents 375 Prenoting U.S. Bank Account Information 375 The E-Check Prenote (ECPP) Form 376 Fields on the ECPP Form 377 Procedures for Prenoting U.S. Bank Account Information 379 Batch Check Processing 379 In This Chapter 380 Forms Used 381 Batch Check Processing Overview 381 E-Check/Paper Check Workflow 382 Steps at a Glance 383 Understanding Voucher Selection for Payment 384 Checks Form Progression 384 The Check Payment Selection (CKSE) Form 386 The Voucher Pay Flag Selection (VPFS) Form 388 The E-Check Production (ECHP) Form 390 The Check Print (CKPR) Form 393 The Accept/Reprint/Restart Checks (CKRS) Form 395 The Check Overflow Advices Print (CKOA) Form 396 The Check Post (CKPO) Form 397 Procedure for Processing Checks in Batch 400 Reproducing e-check Advices 400 The E-Check Advices (ECAD) Form 402 Fields on the ECAD Form 403 Procedure for Reproducing e-check Advices 404 Voiding Checks 405 Procedure for Voiding a Check 406 Procedure for Voiding All Checks in the Current Check Run 407 Reprinting Checks in the Current Check Run 407 Procedure for Reprinting Without Voiding Checks 408 Procedure for Reprinting and Voiding Checks 409 Reconciling Checks 409 In This Chapter 409 Forms Used 410 Understanding Check Reconciliation 412 Manual Check Reconciliation 412 The Manual Check Reconciliation (RECM) Form 413 Important Fields on the RECM Form 415 Procedure for Manual Check Reconciliation 16 Using Accounts Payable, June 19, 2009

17 Table of Contents 417 Batch Check Reconciliation 417 The Batch Check Reconciliation (RECB) Form 418 Fields on the RECB Form 421 Procedure for Batch Check Reconciliation 423 Electronically Reconciling Checks 423 In This Chapter 423 Setting Up Electronic Check Reconciliation 425 Performing Electronic Check Reconciliation 427 Reporting on Checks 427 In This Chapter 427 Forms Used 428 Understanding Check Reporting 428 Using Range Selection Criteria in Check Reports 432 Using Non-Range Selection Criteria in Check Reports 434 Generating Check Reports 434 Check Register Report (CKRG) 436 Sample Check Register Report 439 Summary Check Register (SCKR) 440 Sample Summary Check Register (SCKR) 441 Reconciled Check Register (RECR) 442 Sample Reconciled Check Register (RECR) 443 Voided Check Register (VCRG) 444 Sample Voided Check Register (VCRG) 445 Purging Checks 445 In This Chapter 445 Forms Used 446 Understanding Check Purge 448 Understanding the Reconciled Check Purge Register 449 Fields on the CPRG Form 452 Procedure for Generating the Reconciled Check Purge Register 455 Sample Reconciled Check Purge Register (CPRG) 456 Understanding the Reconciled Check Purge Process 457 Procedure for Purging Reconciled Checks Using Accounts Payable, June 19,

18 Table of Contents 459 Maintaining the Financial Exports File 459 In This Chapter 460 Understanding the FINANCIAL.EXPORTS File 460 Forms Used 461 The Financial Exports Record Deletion (FERD) form 461 Fields on the FERD Form 462 Procedure for Maintaining the FINANCIAL.EXPORTS File 463 Index 18 Using Accounts Payable, June 19, 2009

19 Using Accounts Payable Introduction

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21 Introduction 0 About This Manual Who Should Read This Manual Anyone at your institution who is responsible for the following should become familiar with the procedures and concepts presented here. This group may include personnel from your Accounts Payable, receiving, and procurement departments, as well as controllers. Setting up vendor information. Setting up and using accounts payable approvals. Preparing and paying vouchers for vendor invoices. Producing accounts payable checks. What This Manual Covers This manual provides step-by-step instructions for performing accounts payable tasks, such as check processing, using the Accounts Payable module. These instructions do not take into consideration your institution s policies and processes; therefore, you may need to modify the procedures provided in this manual to incorporate the way your office performs these tasks. Wherever possible, we indicate how your policies may have a specific impact on a particular task and remind you to consider those policies before proceeding. Using Accounts Payable, June 19,

22 Introduction: About This Manual How This Manual Is Organized Table 1: How This Manual is Organized Part Topic Summary 1 Introduction Provides information about the organization of this manual and how to use it to help you perform accounts payable tasks. 2 Vendors Provides information and procedures for adding vendors and tracking vendor activity. 3 Vouchers Provides information and procedures for creating vouchers to pay vendor invoices. This part also includes information for generating voucher reports, viewing voucher information, printing, paying, and purging vouchers. This part also provides information and procedures for transferring items from a voucher to the Fixed Assets module, and automatically creating asset records for those items. 4 Accounts Receivable Vouchers Provides information and procedures for viewing AR voucher information, printing, paying, and purging AR vouchers. For information about AR credit card refund vouchers, see the Using E-Commerce manual. 5 Checks Provides information and procedures for producing accounts payable checks, and reconciling checks. This part also includes information for generating check reports, viewing check information, and purging checks. 22 Using Accounts Payable, June 19, 2009

23 Typographical Conventions Typographical Conventions The following presentation conventions are used in this manual to help you identify important information quickly and easily. Conventions Used in Procedures Some special typefaces are used in this manual to clarify and standardize information. Table 2 illustrates these conventions and explains their significance. Table 2: Typographical Conventions Used in This Manual This style Indicates For example bold Courier Text that you must type exactly as shown Type the following at the operating system prompt: cd /deptdir/mydir bold only BOLD UPPERCASE COURIER UPPERCASE bold, italics, Courier Values that you must select from a set of possible values Buttons that you must click. Menu items that you must choose. Note: Separate menu items (within the path) by a bar ( ). Computer keyboard keys that you must press. Computer keyboard keys, when included in descriptions, rather than in steps to perform Text that you must type, substituting your own value for the italicized word or words. Select 100% from the drop-down list box for the Zoom field. Click OK to save the data. Select Reset value from the popup menu for the Calculated Due Date field. Select Start Settings Control Panel. Type the following at the operating system prompt and press ENTER: The ESC key can perform different functions, depending on the software that you are using. Type dictname_sql, where dictname is the name of the dictionary. Using Accounts Payable, June 19,

24 Introduction: About This Manual Table 2: Typographical Conventions Used in This Manual (cont d) This style Indicates For example regular Courier Specific commands, operands, and required punctuation characters, in formats that show language syntax (Envision and other languages) that are descriptive and not typed. The following is the format of an inner join clause: SELECT field1, fieldn FROM table1 JOIN table2 ON table1.key = table2.key ellipsis ( ) Italics, Courier Items (in syntaxes) of which you can provide one or more. Text that displays on the form. SELECT field1, fieldn The format of an attribute declaration is as follows: type attribute_name {attachment_name:}... {attachment_name:} Re-enter the filename if File Not Found displays. 24 Using Accounts Payable, June 19, 2009

25 Typographical Conventions Important Notices Particularly important information is emphasized in the following types of notices. Alerts Alerts call attention to the following: Critical information needed to preserve the integrity of files, data, or the system. Warning of imminent or potential data loss, or physical harm to users or the hardware if you fail to take or avoid a specific action. Warning of unexpected or unpredictable results if you fail to take or avoid a specific action. Warning of unsupported workflows or functionality. An example is shown below. ALERT! Be extremely cautious not to delete the VOC; this will cause serious damage to your data. Notes Notes provide special additional information that you might want to know, or that might help you perform a task. An example is shown below. Note: Colleague uses the Account Type information to determine the default path prompts. Using Accounts Payable, June 19,

26 Introduction: About This Manual Technical Tips Technical tips provide details that might help power users or system administrators. Examples include explanations of behind-the-scenes processing, lists of file names, and names of validation code tables. An example is shown below. Technical Tip: The installation will default to the appropriate application environment. 26 Using Accounts Payable, June 19, 2009

27 Where to Find More Information Where to Find More Information Table 3: Sources of Information for the Accounts Payable Module Purpose Detailed information about the forms and fields in the Accounts Payable module Online help Reference Technical information about the Accounts Payable module and how it interacts with other modules in Colleague Finance Detailed information about setting up the Purchasing and Accounts Payable modules. Instructions for performing basic functions (such as accessing forms, entering data, and accessing online help) using each of the available Colleague interfaces Procedures for using Colleague Finance modules that interface with the Accounts Payable module Procedures for processing 1099-MISC and T4A year-end tax information In-person instruction in using the Accounts Payable module Information about your terminal, your other computer equipment, and standard procedures affecting how the Colleague is used at your institution Planning your implementation of the Accounts Payable module Installing the Colleague software Detailed information on each Colleague subroutine, file, field, form, procedure, validation code, list specification, and batch process Changes and enhancements to the system since the previous release Known problems and bugs Your system administrator Getting Started with Purchasing and Accounts Payable Guide to User Interfaces General Ledger Reference Using Accounts Receivable & Cash Receipts Using E-Commerce Using Fixed Assets Using Inventory Using Online Approvals in Colleague Finance Using Physical Plant Using Projects Accounting Using Purchasing U.S. Regulatory Reporting Canadian Regulatory Reporting Training classes offered by Datatel Your system administrator Datatel s Services Consultants Installation Procedures for your Colleague release level Tech Doc Online available on Datatel s Web site Release Highlights for your Colleague release level AnswerNet Using Accounts Payable, June 19,

28 Introduction: About This Manual 28 Using Accounts Payable, June 19, 2009

29 Introduction 0 Overview of Purchasing/Payables Processing In This Chapter This chapter discusses the procurement process as it is implemented in the Purchasing and Accounts Payable modules. The chapter is divided into the following sections: Table 4: Topics in This Chapter Topic Begins on page... Purchasing/Payables Setup and Daily Processing 30 The Purchasing and AP Process: Role of the Transaction Codes 32 Statuses 37 Using Accounts Payable, June 19,

30 Introduction: Overview of Purchasing/Payables Processing Purchasing/Payables Setup and Daily Processing Figure 1 illustrates the major tasks involved in setting up the Purchasing and Accounts Payable modules, followed by the major steps in purchasing and payables processing. 30 Using Accounts Payable, June 19, 2009

31 Purchasing/Payables Setup and Daily Processing Figure 1: Purchasing and Accounts Payable Setup and Daily Processing Setup: Code tables Module parameters & defaults Code files* Vendors Approvals (approval classes) Daily Processing: Purchasing Accounts Payable Requisitions Purchase orders Receiving Vouchers Checks Blanket POs * Exception: In the Accounts Payable module, the bank code file must be defined before setting parameters and defaults, to make it possible to set up your default check print subroutines for each bank code. Using Accounts Payable, June 19,

32 Introduction: Overview of Purchasing/Payables Processing The Purchasing and AP Process: Role of the Transaction Codes Bank codes and AP types, called transaction codes, are central to the operations of the Purchasing and Accounts Payable modules. You define at least one bank code and one AP type before you can go live on either module. Transaction codes (AP types and bank codes) contain the information necessary to create and post the appropriate general ledger and encumbrance transactions for processing purchase transactions. The relationship between the transaction codes and the GL posting transactions of the purchasing and AP process is illustrated in figures 2 through 5. This example makes the following assumptions about the institution and transaction illustrated: There is one central AP control account The institution is not using online requisitions; procurement begins with the purchase order This purchase is subject to a 4.50 percent sales tax This purchase does not involve a foreign currency The Discount Method parameter is set to Discounts Taken The Distribute Tax Expense parameter is set to No 32 Using Accounts Payable, June 19, 2009

33 The Purchasing and AP Process: Role of the Transaction Codes Figure 2: Role of Bank Code in AP Type Definition 1 Bank code includes: bank information GL cash account 2 AP type code: bank code links GL cash account to AP type AP type code also includes: AP control GL account discount GL account tax expense GL account Using Accounts Payable, June 19,

34 Introduction: Overview of Purchasing/Payables Processing Figure 3: Role of AP Type in Purchase Order Creation and Posting 1 AP type code associates GL accounts with purchase order Detail to POIL and POIM 2 Encumbrance is posted to the GL expense account entered on the POIM form Transactions Purchase Order Stage: Purchases Expense Acct encumbrance Using Accounts Payable, June 19, 2009

35 The Purchasing and AP Process: Role of the Transaction Codes Figure 4: Role of AP Type/Bank Code in Voucher Creation 1 AP type code (with bank code) carries forward from purchase order to voucher 2 Voucher postings: encumbrance in purchase GL expense account relieved expense posted to same account Transactions Voucher Stage: Purchases Expense Acct encumbrance (relieved) Purchases Expense Acct Detail to VOIL and VOUD Expense posted to AP control GL account (from AP type code) AP Control Acct Using Accounts Payable, June 19,

36 Introduction: Overview of Purchasing/Payables Processing Figure 5: Role of AP Type/Bank Code Through Voucher in Check Creation 1 AP type code associates GL accounts and bank code with voucher Transactions 2 Voucher pay postings: AP type code posts debit to AP control GL account tax expense posted to tax expense GL account discount revenue posted to discount GL account Check Stage: 3 Check amount posted to GL cash account (from bank code) AP Control Acct Cash Acct Tax Expense Acct Discount Acct Using Accounts Payable, June 19, 2009

37 Statuses Statuses During purchasing and payables processing, each type of procurement document goes through a number of statuses. Table 5 illustrates the typical progression of statuses as a typical procurement transaction goes through the steps in processing, from a requisition to a check. Note: Table 5 assumes a simple transaction, where no approval requirements exist, goods are ordered and received without delays, and all items are accepted as received. Thus, this example does not include the statuses of Not Approved, Backordered, Voided, Closed, or Cancelled. Processing Step Create new requisition (unfinished) Mark requisition Done Requisition Status U (Unfinished/In Progress) O (Outstanding) Purchase Order Status Voucher Status Check Status Create purchase order (unfinished) P (PO Created) U (Unfinished/In Progress).. Mark purchase order Done. O (Outstanding) Receive and accept goods. A (Accepted).... Create voucher. I (Invoiced) U (Unfinished/In Progress). Mark voucher Done I (Invoiced) O (Outstanding) Print and post check. P (Paid) Reconcile check to bank statement. R (Reconciled) Table 5: Progression of Document Statuses in Typical Transaction P (Paid) R (Reconciled) O (Outstanding) R (Reconciled) Using Accounts Payable, June 19,

38 Introduction: Overview of Purchasing/Payables Processing 38 Using Accounts Payable, June 19, 2009

39 Using Accounts Payable Vendors

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41 Vendors 5 Adding a Vendor In This Chapter This chapter explains how to define vendor information in the Purchasing and Accounts Payable modules, including demographics (address, name) and tax information associated with a vendor. The chapter is divided into the following sections: Table 6: Topics in This Chapter Topic Begins on page... Understanding Vendors 45 Understanding Vendor Demographics 52 Setting Up Your Vendors Prior to Going Live 69 Components of Vendor Definition 72 Procedure for Adding a Person as a Vendor 78 Components of Vendor Tax Information 82 Procedure for Defining Vendor Tax Information 85 Using Accounts Payable, June 19,

42 Vendors: Adding a Vendor Forms Used The procedures discussed in this chapter require access to the following forms: Table 7: Forms Used to Define Vendors Procedure Form Mnemonic Add a Vendor Vendor Maintenance VEND Define Vendor Tax Information Vendor Tax Information VNTX Maintain Demographics Information: If a Corporation: Organization Profiles ORGP Additional Organization Info Formatted Names Person Addresses AORG FNM ADR If a Person: Biographic Information BIO Name and Address Entry Formatted Names Person Addresses NAE FNM ADR Note: Two detail forms accessible from the Vendor Maintenance (VEND) form are not covered in this chapter: The Vendor History Maintenance (VENH) form displays vendor activity, and is not used in vendor setup. The Vendor Commodities Maintenance (VNCL) form relates to vendor commodities. Because commodity codes are considered an optional advanced feature of the Purchasing and Accounts Payable modules, they are not covered in this setup chapter. For general information on commodity codes, see the Getting Started with Purchasing and Accounts Payable manual. 42 Using Accounts Payable, June 19, 2009

43 Before You Begin Before You Begin Before adding your vendors, you should: Step 1. Review concepts related to vendors and vendor demographics. See Understanding Vendors on page 45 and Understanding Vendor Demographics on page 52. Step 2. Ensure that all concerned parties have had a chance to give input into the process of defining vendors. Coordinate with the purchasing, payables, and accounting offices to set up vendors. Step 3. If you plan to use corporation types, ensure that the CORP.TYPES code file is defined in Colleague Core. To define corporation types, see the Getting Started with Colleague Core manual. Step 4. Ensure that you have made any additions or modifications to all vendorrelated code tables in Colleague Core. For a discussion of the Core code tables affecting vendor definition, see the Getting Started with Purchasing and Accounts Payable manual. To define the Core code tables, see the Getting Started with Colleague Core manual. Step 5. Ensure that all code tables have been defined in Colleague Finance. For a discussion of Colleague Finance code table used in vendor definition and to define the code table, see the Getting Started with Purchasing and Accounts Payable manual. Step 6. If your institution does business in any foreign currencies, ensure that currency codes have been defined in the CURRENCY.CONV file. See the Getting Started with Purchasing and Accounts Payable manual. Using Accounts Payable, June 19,

44 Vendors: Adding a Vendor Step 7. If you are using vendor terms codes, ensure that vendor terms have been defined in the VENDOR.TERMS file. See the Getting Started with Purchasing and Accounts Payable manual. Step 8. If you are using vendor types, ensure that vendor types have been defined in the VENDOR.TYPES file. See the Getting Started with Purchasing and Accounts Payable manual. Step 9. If you plan to do automated 1099-MISC processing, ensure that tax form box codes (BOX.CODES) have been defined in the Accounts Payable module. See the U.S. Regulatory Reporting manual, available on Datatel s Web site. Step 10. Use the worksheets provided in the Getting Started with Purchasing and Accounts Payable manual to plan your vendor information on paper, before entering any information into Colleague Finance. 44 Using Accounts Payable, June 19, 2009

45 Understanding Vendors Understanding Vendors Vendors are all persons, organizations, and companies to whom you make payments from the Accounts Payable module for purchases of goods and services, and for certain types of refunds and advances. These may include the following: Suppliers of goods and equipment. Laborers and adjunct faculty who work as independent contractors. In some cases, employees who receive advances or benefit distributions. You add your vendors to the Colleague database in much the same way as you add demographic information for prospects, students, employees, and donors. The vendor setup function automatically accesses a number of Core Demographics forms to allow entry of detailed name, address, and other identification information for each vendor you add. The interface with the Core Demographics forms is designed to let you keep extensive historical records on your vendors without the need to duplicate information. The features include the following: Unlimited different addresses for your vendors separate branch locations, including address types specifically for purchase orders and checks. Specially formatted names for different types of communications. Identification and coding information needed for automatic 1099-MISC processing. Additional name information: for individuals (persons), former name; for corporations, other names. The vendor definition function itself also provides several options to help streamline your data entry and record keeping on vendors, including entering codes on a vendor record that will default into all line items you create on purchasing documents you send to that vendor. The next section describes these options in greater detail. Using Accounts Payable, June 19,

46 Vendors: Adding a Vendor Speeding Processing and Reporting Through Vendor-Related Information You can set up your vendor records to provide many time-saving features for the data entry tasks involved in using the Purchasing and Accounts Payable modules. Strictly speaking, none of the fields on the Vendor Maintenance (VEND) form are required except a vendor name. This gives you flexibility in setting up your vendors. Keep in mind, however, that the more information you add that is specific to each vendor, the less information will need to be added manually to a purchasing document each time you order goods from that vendor. The Vendor Maintenance (VEND) form contains a number of fields that, when entered on that form, will default information into the corresponding fields of a purchasing document (requisition, purchase order, or voucher) when you enter a given vendor ID on the document. 1 As a result, if you set up a given vendor s record to include properties that are specific to that vendor (such as terms or currency), these properties will be automatically linked to all purchasing documents on which you enter that vendor s ID. This ensures greater accuracy in your daily entry of purchasing documents, and saves time by letting you set up standard vendor information only once. Figure 6 illustrates the vendor properties on the VEND form that you can set up to default onto purchasing documents throughout your system. Each of these is a code file or code table that can be defined by your institution The Address, CSZ (City, State, and Zip), and Country fields also default from a vendor s record into purchasing documents when you enter the vendor s ID. However, this information is entered on the demographics forms, not the VEND form. For more on vendor demographics, see Understanding Vendor Demographics on page All the vendor properties indicated in figure 6, when linked to a vendor ID, will default onto requisitions, purchase orders, and vouchers. All the properties except Terms default onto recurring vouchers. All the properties except Tax Form default onto blanket purchase orders. 46 Using Accounts Payable, June 19, 2009

47 Understanding Vendors Figure 6: Fields on the VEND Form That Default onto Procurement Docs Fields that default onto Purchasing/AP document front sheets Fields that default onto Purchasing/AP line items The following subsections describe each of the fields you can set up to default into your purchasing documents, with a brief discussion of the considerations to keep in mind when deciding how to complete these fields on the Vendor Maintenance (VEND) form. Vendor Terms When you enter discount terms on a purchasing document, the terms carry forward to all other purchasing documents involved in that purchase and allow Colleague to calculate your term discount for that purchase. If you have linked discount terms to a vendor s record, the terms appear automatically on each requisition, purchase order, and voucher you create for that vendor. When the vendor s invoice is received in your office, and you create the voucher, Colleague looks at the Invoice Date you enter on the voucher and calculates the date by which you must pay the voucher to receive the discount. You can enter as many vendor terms codes in a vendor s record as you want; the first one you enter will default onto purchase documents for that vendor. Vendor terms are defined on the Vendor Terms (VTMF) form. For more information see the Getting Started with Purchasing and Accounts Payable manual. Using Accounts Payable, June 19,

48 Vendors: Adding a Vendor Vendor Types Vendor type codes are defined by your institution. You can use them to indicate unique characteristics of a vendor that could affect the vendor s purchasing status. Vendor types do not play a role in transaction processing, but can be extremely helpful for sorting and reporting on specific types of vendors such as in-state, in-county, or minority business vendors. The vendor types code is a standard selection field on vendor reporting forms. On all other Purchasing and Accounts Payable module reporting forms, you can use the Additional Selection Criteria option or a query language. When you assign a vendor type code to a vendor, that vendor type always defaults onto requisitions, purchase orders, blanket purchase orders, vouchers, or recurring vouchers created for that vendor. Vendor types are defined on the Vendor Types (VTYF) form. For more information see the Getting Started with Purchasing and Accounts Payable manual. Currency If a certain vendor does business with you only in a foreign currency, you can associate that currency with the vendor to have Colleague automatically calculate the correct amounts to pay the vendor (in the foreign currency) and to post your financial transaction (in your home currency). If you do deal with vendors in foreign currencies, remember that you must define a special bank code and a special AP type for each foreign currency. Assigning the foreign currency code as well as the foreign currency AP type (which includes the bank code) to the vendor s record will automate the calculation of your financial transactions with the foreign vendor. If you assign a foreign currency code to a vendor, it is automatically linked with every purchasing document you create with that vendor s ID. The currency code itself appears with its description on the front form. 48 Using Accounts Payable, June 19, 2009

49 Understanding Vendors Line item foreign currency calculation If you have assigned a foreign currency code to a vendor, and enter the vendor ID on a purchasing document, Colleague uses that currency code to automatically calculate the line item amounts in both the home currency and the foreign currency, and displays both amounts, with the currency code next to the foreign currency amount. Foreign currencies are defined on the Currency Exchange (CEXM) form. For more information see the Getting Started with Purchasing and Accounts Payable manual. Tax Form For vendors on which you do annual income tax reporting (to the Internal Revenue Service [IRS] or Canada Customs and Revenue Agency [CCRA]), you can enter the applicable tax form on the vendor record of each of the vendors. The entry of the tax form code on their vendor records will allow you to track their income line item by line item, so that you can report on it at the end of the year. For example, you can enter 1099-MISC on the records of all vendors on whom you report 1099-MISC income. This code in a vendor s record will cause Colleague to select that vendor for automatic 1099-MISC processing when you run that process annually. Tax forms are maintained in a code table called TAX.FORMS that is defined in Core and comes pre-defined by Datatel. You can add tax form codes to this code table if you need to. Another defaulting mechanism for tax forms is to set up your system so that all the information needed for 1099 processing defaults into line items in one step. For more information, see Streamlining Your 1099 and T4A Tax Form Information on page 51. Vendor Properties That Do Not Default onto Procurement Documents Neither the AP Types nor the Commodities field on the Vendor Maintenance (VEND) form defaults directly onto procurement documents. But both can be used, when associated with a vendor record, to provide important assistance in selecting and segmenting purchases from different vendors. 3 Using Accounts Payable, June 19,

50 Vendors: Adding a Vendor Since commodity codes are covered in another part of this book, this section discusses how linking AP types to your vendors can help you organize your purchasing operations and increase their efficiency. AP Types If you are using AP types to segment your procurement operations, either by type of goods purchased or by branch procurement offices, assigning different AP types to your vendor records can streamline your payables processing and help you segment procurement functions that need to be kept separate. For example, you may have a number of vendors that do business with several of your branch or shadow procurement offices. By entering AP types in a vendor s record, you provide a means whereby each of your different procurement offices can segment their own activities with that vendor from the procurement activities of other offices. So that each independent branch procurement office will be able to access their transaction information on a given vendor individually, you can first define a separate AP type for each of your branch procurement offices. Second, for any vendor that is used by more than one branch office, you would enter each branch office s AP type on that vendor s record. And third, each branch office can then select the AP type (one of Colleague s standard selection criteria) on batch processing and reporting forms, to access only purchasing activities with that vendor that were initiated by that branch office. For more information on how AP types help segment your branch and shadow procurement functions, see the Getting Started with Purchasing and Accounts Payable manual. In addition, if any of your vendors does business with your institution in a foreign currency, you must define a special AP type, and bank code, for that currency. Then, if you enter that foreign currency AP type on the foreign vendor s record, all requisitions, purchase orders, and vouchers created for that vendor will be automatically associated with the proper foreign currency and all foreign currency amounts will be calculated and posted correctly. Note: Because of the Accounts Payable module s comprehensive tax form processing features, you do not need to designate a special AP type for your 1099 or T4A vendors. For more information, see the Getting Started with Purchasing and Accounts Payable manual. 3. Linking a vendor to one or more commodity codes helps you track vendors who are approved for certain commodities. For more detailed information on linking vendors to commodity codes, see the Getting Started with Purchasing and Accounts Payable manual. 50 Using Accounts Payable, June 19, 2009

51 Understanding Vendors You can enter as many AP types on a vendor record as you want. AP types are defined on the AP Types (APTF) form. For more information see the Getting Started with Purchasing and Accounts Payable manual. Reporting on Vendors Through the Vendor-Related Codes Five of the codes representing vendor properties are provided as standard selection criteria on vendor reporting forms. All of these codes provide ways you can select out certain vendors and separate them for batch processing and reporting. AP Types, Terms, Vendor Types, Misc Codes, and Tax Forms are all standard selection fields on the following vendor reporting forms, all of which appear on the Vendor Maintenance (VEN) menu: Vendor Register (VENR) Vendor Purge Register (VNPR) Vendor Year To Date Report (VENY) Vendor Address List (VENA) In addition, AP Types is also a standard selection field on most batch processing and reporting forms in both the Purchasing and the Accounts Payable modules. Streamlining Your 1099 and T4A Tax Form Information For vendors (or employees) on whom you must report income to your federal government, you can enter the tax form name directly on the vendor record, in the Tax Form field. This links a vendor s record with the tax form on which that vendor s income will be reported and speeds your processing of the tax forms for these vendors (or employees) at the end of the year. The tax form you enter in the vendor record will default into all line items of each purchasing document you create for that vendor (you can delete them if you need to). For more information about setting up and reporting 1099-MISC and T4A transaction information for your vendors, see the U.S. Regulatory Reporting and Canadian Regulatory Reporting manuals available on Datatel s web site. Using Accounts Payable, June 19,