Transcript Payables Management Using Great Plains

Payables
Management
Using Great Plains
Brought to you by…
Team #1
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
The Big Picture!
What Payables Management
Covers
 Setup and Cards for Vendors
 Transactions
 Inquiries and Reports
 Utilities and Routines
Using the Setup Routine
 We begin by setting up defaults for
Payables Management.
(Tools>Routines>Purchasing>
Checklist)
Proceed to the Setup option under
Frequency:
In the scroll down box by frequency select setup
Payables Management Setup
Screen
Aging Periods
 Aging is the process of determining how
long you’ve owed money to specific
vendors
 Due Date
 The date that the vendor has set for payment
 Document Date
 The date the invoice was written
Choose an Aging Period
Apply Options
 You can apply credit by one of two ways
 Document Date
 Due Date
Choose your applying process
Enter in Default Information
Enter passwords
for security purposes
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 haven’t opened a
banking account now would be a good time.
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)
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.
Vendor Classes
Setting up Vendor Classes is a
way to group vendors according to
common entries.
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.
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.”
Vendor Class Setup
Tools>Setup>Purchasing>Vendor Class
Vendor Class Setup Screen
 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.
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.
Enter Account Setup Here
Setting up vendor class default
posting accounts
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.
Setting up vendor class default
posting accounts
Click here to setup
Multiple departments
For purchases
Posting accounts
** Keep in mind that you will need
to setup the accounts before you
can enter them in as defaults
Vendor Cards
 Now that we have setup our Vendor Class
we can begin entering in individual
vendors to that class.
Vendor Cards
Cards>Purchasing>Vendor
Entering Vendor Information
Select the Class ID that you would
like this vendor to be under
Click here!
Transactions
Invoices, credit memos, returns
Finance charges, miscellaneous
charges
Batches
 A group of transactions that you use just
one time, or recurring batches for
transactions you enter on a regular basis.
Creating A Batch
1. Transactions>>
Purchasing>>
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
Entering An Invoice
Transactions>>
Purchasing>>
Transaction Entry
Entering an Invoice
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.
To enter a credit memo or return
1. Transactions>>
Purchasing>>
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
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 SUV’s they used and were
late with a monthly payment, you would track the extra
expense as a finance charge.
Paying An Invoice
BY CHECK:
1. Enter
amount
you’re
paying
2. Choose
checkbook
3. Enter date
and
payment
number
4. Enter check
number and
mark print to
print a
check.
 A manual payment is when you haven’t
received the merchandise and an invoice
has not been recorded.
A manual payment can be paid by cash, check or charge.
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 Kabobby’s 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.
Creating A Payment Schedule
1.Transaction>>
Purchasing>>
Scheduled
Payments
2. Enter schedule
number, description,
vendor ID.
3. Choose either
compound or simple
interest type
4. Enter scheduled
interest rate and
number of payments
and frequency.
5. Calculate