SunSystems 5 Accounts Payable December 2001
Contents Page Objectives... 2 Session 1 Creating Supplier Account Codes... 3 Session Objectives... 3 Creating a Supplier Account... 4 Supplier Address Code... 4 Bank Details... 7 Payment Terms Setup... 9 Suppliers Setup... 11 Exercise 1... 16 Session 2 Payment Run... 17 Session Objectives... 17 Introduction... 18 What Does the Payment Run Do?... 18 Initiating a Payment Run... 19 Trouble Shooting Payment Run... 27 Exercise 2... 29 Session 3 Account Allocation... 30 Session Objectives... 30 Introduction... 31 Processing Supplier Corrections... 32 Force and Withhold Markers...35 Changing the Due Date of an Invoice... 37 Exercise 3... 38 Session 4 Payment Listing... 39 Payment Listing... 40 1
Objectives By the end of the course delegates will be able to Create Supplier codes, Bank Details and Payment Run Terms Generate a Payment Run and run payment documentation Use Account Allocation Run Payment Listing Recommended for This course is recommended for staff who will be required to run the Account Payables function. It does not cover the setup of the system, and is based on the PKP demonstration database. This course assumes previous attendance of the SunSystems 5 End User Basics course. 2
Session 1 Creating Supplier Account Codes Session Objectives By the end of this session, you will be able to Create a supplier account code Create bank details for a supplier Create Payment Terms for a supplier 3
Creating a Supplier Account The forms we will be looking at in this section relate to the PKP database. The forms used by an individual organisation may be less complex than the ones shown here these forms show all the available options. Walkthrough In order to create a supplier account, some or all of the following details may need to have been created; supplier address details supplier bank details (if paid electronically) supplier payment terms We are going to set up supplier 81051 for Palmer Enterprises, an engineering company. Supplier Address Code Go to Static Data Maintenance/Common/Addresses Setup 4
On the details tab, we will enter the address details for the supplier. Only Address Line 1 is mandatory, so as much or as little detail as is required can be added. The address lines are printed in the order that they are shown on the form, and blank lines are not posted. The telephone number,web page address and telex/fax number can be added to reports and documents as required. There is also space for any data interchange protocols required for the supplier. 5
Any tax id s related to the supplier, and the end date related to them, can be entered on the Tax ID details tab. If any Analysis Dimensions relating to addresses have been set up, these will be available on the Analysis Code tab. 6
Bank Details Palmer Enterprises wish to be paid by BACS, so bank details for them will need to be setup. Go to Static Data Maintenance/Common/Bank Details Setup Enter the supplier code code (81051) and a subcode (1) the subcode enables a supplier to have more than one bank details form where this is required. Enter the bank details as shown below. The Bank Address Code can be used where the full address of the bank is required clicking on the Addresses Setup button will take the user to the Addresses Setup screen. 7
A transaction limit can be applied, which will prevent a payment being made which is over this limit. A transaction reference can be entered which will be transmitted to the supplier when payment is made. 8
Payment Terms Setup Normally, the types of payment terms used with suppliers will already have been created, and the correct option will be chosen when the Supplier Setup screen is created. Palmer Enterprises, however, requires payment terms of 30 days from the end of the month in which the invoice was issued. Go to Static Data Maintenance/Common/Payment Terms Setup Enter the code for the new payment terms (30M), and the other headings as shown. The Description for documents relates to Customer chasing letters which may be produced, and are not relevant here. 9
When you click on OK, you will be taken directly to the terms details screen. Complete the screen as shown and click on OK. A number of different payment term lines can be created for a given Payment terms header. The one that we will set up here is very simple. Key fields are: Base Date type Ledger Transaction Date here, invoice date Term Number 30 Term Unit Days Month End Ticked This means that the system will calculate 30 days from the end of the month in which the Ledger Transaction Date occurs. Note that the date that is being calculated is the Due Date. Payment Terms can also allow up to 4 rounding dates, so, for example, invoices dated the 15 th could be rounded to the 20 th, invoices dated the 21 st rounded to the 25 th etc. You can also specify which days of the week are eligible to be included in the rounding calculation, and what needs to happen if a calculated date falls at the weekend or on some other inapplicable day. 10
Suppliers Setup This is the final stage in the set up of the supplier. This screen forms the link between all the other screens that we have created. Notice that the entries required for the Chart of Accounts screen are also included here, so creating a Chart of Accounts screen separately is not required. Go to Static Data Maintenance/Common/Suppliers Setup. Enter the suppliers code, lookup and name, and fill in the address code, e-mail address and web page. 11
On the Account tab, the Account Type and Balance Type are specified, along with any description for the supplier. In a multi-site setup, where many separate supplier accounts relate to one payment account, a Remittance Supplier code may be used instead of an Account Code. An account may not have a Remittance Supplier Code and an Account Code. Note also that there is an Allocation in Progress field to indicate whether allocation is taking place on this account. In the Payment tab, we select the Address Code, the Payment Terms code and the payment method. 12
In the Currency tab, you can: Specify under Conversion Code Control whether there should always be a currency code for this supplier, never be a currency code or accept the ledger default. Under Account Currency, you can set up a default currency where applicable, for both the postings to the ledger (Account Currency) and for any other processes, such as the printing of documentation (Supplier Currency) The Order Entry tab relates to the Order Fulfillment module. 13
Tax Details can be entered on the Tax Id Details tab. Enter the Supplier Analysis shown below on the Supplier Analysis tab. Supplier Analysis dimensions are specified by each organization according to its business requirements. 14
Any required Account Analysis is set up on the Account Analysis tab. Again, these will vary according to organizational requirements. For our supplier, we will only require the Group Reporting Code and the Business Type. The final tab specifies whether or not Transaction Analysis applies to this account code. For our supplier, set all Transaction Analysis types to Optional. 15
Exercise 1 Create the following supplier, using the Address, Bank Detail, Payment Terms and Supplier Setup screens. Where no option is given, use the system default. Address Code 81053 Name and Address JAB Associates 24 Rathbone Place London W1 1YP Telephone Number 0207 734 7659 Web Page Address www.jabassoc.com Bank Details Code 81053 Bank Subcode 1 Bank Name Barclays Bank Bank Branch Mayfair Branch Bank Sort Code 23-67-00 Bank Account Name JAB Associates Bank Account Number 023457654 Lookup Code JAB Payment Terms 10 days after the end of the month in which the invoice was issued (you will need to create this) Supplier Code 81053 Company Address Code 81053 E-Mail Address jabolitho@jabassoc.com Account Code 81053 Account Type Creditor Lookup Code JAB Assoc Balance Type Open Item Pay to Address Code 81053 Payment Terms Group Code The one you set up earlier Payment Method Bank BankSubcode 1 Business Type (Standard) 001 Location EUK Tax P Group Reporting Code 84000 Business Type (Standard) 001 Transaction Analysis Optional for all Transaction Codes 16
Session 2 Payment Run Session Objectives By the end of this session, you will be able to Generate the Payment Run files and reports Run Payment documentation Troubleshoot problems with Payment Run. 17
Introduction Payment Run is used to settle selected outstanding transactions on creditor/payables accounts. It can also settle transactions on client accounts with a credit balance. Payment Run can trigger the creation of the necessary payment documentation, for example, remittances and cheques. It can also produce a bank transfer file for electronic transmission. The type of output produced by Payment Run and the transactions it selects for payment, are determined by the Payment Profiles you select at run time, and the run time selection criteria you enter. These Payment Profiles will be set up to match the requirements of your organization, but may involve separate runs for suppliers who wish to be paid by cheque or electronically, and may also involve grouping payments by currency. What Does the Payment Run Do? Payment Run performs the following tasks: it uses the selection criteria to locate the transactions eligible for payment. it produces a payment run details report that lists or summarizes the account transactions selected for payment and shows the total number and amount of the payments being generated. it creates a payment file that contains all of the payment details. This file is used to produce the payment documents, for example cheques and remittances. it generates and posts the ledger transactions required to record the payments, any settlement discounts taken, and tax adjustments on the discount, and any exchange gains or losses on currency payments. it updates the allocation marker on the selected transactions to Paid to prevent them being reselected for payment. It also allows them to be archived. it optionally produces a bank transfer file, if the payment method is Bank. 18
Initiating a Payment Run Walkthrough Go to the Payment Run option in the Payables folder Select PAY from the Payment Profile box and click on OK. 19
To run a report of the transactions selected without posting them, select NO in the Post Transactions box. Dates Base Date for Payment Payment Date Base Date for Discount Next Payment Date Payment/Discount Account Date which is used to compare to due dates of invoices to determine if they are due The date which will appear in the system for these transactions Transactions will be selected for payment if they are eligible for discount on or before this date If transactions would still be eligible for discount on this date, they will not be selected this time. These are the accounts that any postings will be made to once the journal for the run is generated. 20
If the payment run that you have chosen is for suppliers who wish to be paid electronically, the Bank Transfer screen appears. Select the date for processing the payment (the default is today), and any reference which you wish to appear on the file (this will only appear if you have not chosen a reference for the supplier on their Bank Details form). Press Enter, and then click on Print. From this form, the report can be printed, stored on disk or viewed. We will view the report. Click on OK. 21
The report is automatically loaded into the Report Manager screen. Use the Next Page button to look at the report. Once satisfied with the report, return to Payment Run in order to post the transactions. 22
Change the Post Transactions box to Yes. The rest of the boxes should default to the dates and codes entered originally. Click on OK Once the run is going to be posted, you will be given access to the rest of the fields on the Payment Run Bank Transfer screen. Note that selecting the Single Transaction to Payment Account will give one credit entry to the bank account rather than one for each supplier. The Print Payment Documents Next box will take the user automatically to the screen for printing remittance advices or cheques if appropriate. The Bank Payments File Code identifies this unique file. 23
You will be taken automatically to the report screen, and the journal and allocation related to the payment run will be posted. Because we chose to go to Payment Documents directly, we are taken to the Payment Documents screen. The Payment Run Rules Code will give a selection of possible documents that can be run. We can run all of these at once, or select to run them for particular account codes or currency codes. Click on Print, chose View and then click on OK. 24
The Remittance Advices are produced for each supplier. Notice that these are draft remittances. To finalise the documents, return to the Payment Documents option (PYD) and select Print. Select the Store option on the first tab. 25
On the second tab, check the Final Print box. This means that any references selected for cheques or remittance advices are finally posted to the ledger. 26
Trouble Shooting Payment Run Occasionally, an invoice which should be included on a Payment Run does not appear. There can be a variety of reasons for this, detailed in the table below. TROUBLESHOOTING CHECKLIST WHERE TO LOOK WHAT TO LOOK FOR HOW TO CORRECT AQ - ACCOUNT INQUIRY - DUE DATE In Account Inquiry, call up the supplier and examine the Due Date of the invoice that you are interested in. The date shown is the date that the system has calculated using the payment terms from the Supplier Setup screen and the invoice date entered. It will then compare this with the base date for payment used in the Payment Run. There are two main methods of correction - check with your manager to see which is OK to use. The payment can be Forced selecting the Forced option in Account Allocation - it will then automatically come into the next payment run The Due Date can also be changed in Account Allocation by using the Payment option and amending the due date in the screen. AQ - ACCOUNT INQUIRY - ALLOCATION MARKER If the invoice does not appear when you first run Account Inquiry, run it again including Allocated items. If the invoice has any of the following markers it will not be presented for payment; Withheld) Paid ( in a previous Payment Run) Allocated (allocated manually) Correction If the invoice has a W allocation marker, this implies that there is a problem with the invoice (possibly it is disputed with the supplier) and you should check this out before removing the marker by deleting it in Account Allocation. P and A markers both indicate that the invoice has already been posted and paid. A C marker should also be investigated before removal, as it indicates that there has been a problem with the invoice which has already been resolved. 27
WHERE TO LOOK WHAT TO LOOK FOR HOW TO CORRECT AQ - ACCOUNT INQUIRY - ACCOUNTING PERIOD Identify the accounting period into which the invoice was posted. If the accounting period is after the period in which the Payment Run routine occurs, the invoice will not be presented for payment even if the due date means it is due for payment The invoice can be reversed by journal and posted into the correct period. Alternately, it can wait until the first Payment Run of the relevant accounting period when it will automatically be picked up. PAYMENT RUN - PAYMENT PROFILE Each Payment Profile searches the invoices due for payment by particular criteria. In particular, check that the invoice that you want to pay meets the criteria of the type of Payment Run routine with regard to: Range of Supplier Codes Type of Payment (i.e. BACS, cheque, single payment) - this is found on the Supplier Setup screen) Account Priority Amount Threshold Currency If the invoice you are looking for doesn t meet the criteria of the Payment Run, this can either be corrected on the Supplier Setup or by running the correct Payment Run. In the case of the invoice being set up under the wrong supplier, a manual adjustment will be required. PAYMENT RUN - BASE DATE FOR PAYMENT Check that the base date for payment has been entered correctly. A base date too far in the future will result in too many invoices being presented, whilst a date too far in the past may not retrieve anything because all relevant invoices have already been paid. Re-run the Payment Run at the correct date. Note that it is strongly recommended that the Payment Run takes place without posting first, so that any possible duplicate payments or erroneous items can be picked up before the routine itself is run. 28
Exercise 2 1. What is a Payment Profile?.. 2. How does the system determine which invoices are due for payment?.. 3. What does the Next Payment Date field control?.. 4. How could you ensure that only one transaction is posted to your bank account for the Payment Run, rather than one transaction for each supplier?.. 5. How do you chose the kind of payment documentation to be produced?.. 29
Session 3 Account Allocation Session Objectives By the end of this session, you will be able to Use Account Allocation to make a correction to a Supplier account. Understand the use of the Forced and Withheld allocation markers Understand how to amend the Due Date of an invoice 30
Introduction When a Payment Run is posted, the journal entries are automatically made to the bank and the supplier account, and the payment is allocated against the relevant invoices on the supplier account. However, there may be occasions when a correction is required, and in this session we will see how the correction can be allocated so that it is excluded from reports and documents if necessary. We will also look at the use of the Force and Withhold allocation marker to control the invoices which are presented in the Payment Run. Finally, we will look at using Account Allocation to change the due date of an invoice. As you will remember from the End User Basics course, account allocation can take place either as part of journal entry or through the Account Allocation function. In this session, we will use online allocation to process a correction, and the Account Allocation form to process the other changes to the data. 31
Processing Supplier Corrections In this example, we discover that invoice PIE 1648, posted to account 81034, has been misposted, and should actually be posted to 81043. Go to Financials/Ledger Entry/Basic Form. Select the GJ journal type, and enter the invoice details as shown below. 32
Click on the On-Line Allocation button. The screen below appears. Change the allocation marker for invoice PIE 1648 to To Be Allocated. Click on Save. 33
Complete the second line of the journal as shown below and post the journal Use Account Inquiry to look at account 81034 and check that the allocation type for invoice PIE 1648 is correction, and that there is a debit and credit entry. These items can then be excluded when documentation or reports are run. 34
Force and Withhold Markers When the Payment Run report is generated, the user may find that; 1. Invoices appear which are in dispute, and so should not currently be paid 2. Invoices which are need to be paid do not appear. The Force and Withhold markers can be used to control whether or not invoices appear in a Payment Run. These markers override all other criteria, including the due date of the invoice, the priority and any other criteria used for selection. The only exception is that an invoice cannot be forced into a payment run in a period before the one in which the invoice was entered. Go to Financial/Procedures/Account Allocations 35
Enter account code 81034, and extract the transactions, accepting the defaults in the extraction screen. Choose the ALLOCS form option. All the transactions shown will have an Allocation Type of Withhold. This means that these items will not be presented for payment during Payment Run unless this marker is changed. Change the Allocation Type of the first entry to Force and Post the transaction. The invoice will be presented for payment in the next Payment Run. 36
Changing the Due Date of an Invoice Return to the main Account Allocation screen, and Extract the transactions for 81035. This time, select the PAYMENT form. Go to the Due Date column for the first item, and click on the assist button. Select a due date of 31 st December 2001. The due date entered here will override any calculated due date. 37
Exercise 3 1. Using On Line Allocation, post a correction journal which transfers invoice number PIE 1929 from account 81037 to 81038. The invoice is for 598.31. Allocate the correction using the Correction marker. 2. Using Account Allocation, go to account code 81038, and change the allocation marker for invoice PIE 2003 from Withhold to Forced. 3. Using Account Allocation go to account code 81039 and change the Due Date of PIPP 003 to 15 th January 2002. 38
Session 4 Payment Listing By the end of this session, you will be able to Use Payment Listing to report on a Payment Run. 39
Payment Listing Go to Financials/Financial Reports/Transaction Listings/Payment Listing Enter the selections shown below. 40
The report produced shows the payments made in this period by currency. As with other report types, the Payment Listing can be formatted to match organisational needs. 41
If you have difficulty in understanding this document or need it in another format, including Braille, large print, audiotape, interpretation, signed interpretation or translation into another language, please telephone 01795 434343 or e-mail post@amicus-group.co.uk. 42