Processing Accounts Payable
Processing Accounts Payable in Deacomincludes the ability to create:
- Manual checks or for payment of open invoices, payments on account when a supplier requires payment before PO’s have been issued, and pre- payments of PO’s prior to receipt of an invoice from the supplier.
- Check runs for periodic payments of all open invoices due on or before a specified date.
Accounts Payable processing includes payments via check, ACH, bank wire etc. using various user- defined payment types.
Payments can be controlled via security over the ability to approve invoices via check run and security over access to the Manual Check process.
Configuration
The following items must be configured prior to processing any payments:
- Payment Types - managed via Accounting > Maintenance > Payment Types, can be capped at a certain amount via the "Maximum" field.
- Vendors - managed via Purchasing > Vendors. For more information, refer to the Managing Vendors Best Practice page.
- Check Layout - required if using a Checks function. Managed via Print Outs > Maintenance > Report Layouts. For more information on customizing the Check Layout, refer to the Modifying Check Layout Best Practice page.
- Purchase Orders - for more information, refer to the Entering Purchase Orders Best Practice page.
If entering payments using credit cards, the configuration required depends on which of the four options, listed in the Process section of Processing Purchasing Orders with Credit Cards, will be used.
- If using Vendor Groups, a credit card-specific Vendor Group will need to be setup, which allows users to identify vendors normally paid via credit card, and then checks or other payment method (ACH for example) will be made to the credit card company(s) for the goods and services purchased from these Vendors.
- Navigate to Purchasing > Maintenance > Vendor Groups and click "New". In the "Name" field, enter the type of credit card to use, for identification purposes. Then, in Purchasing > Vendors, select the Vendors the company will pay via credit card and enter the newly created credit card Vendor Group on the Order Defaults tab.
- Note:
- If using a Cash account, a cash account for the credit card liability will need to be setup in Accounting > Maintenance > Chart of Accounts. This is generally done during the initial data import when setting up the Deacomapplication.
Process
Using advance payment methods
What options are available to pay in advance of receiving goods/services?
Entering a Payment on Account - Occasionally, it may be necessary or desirable to provide a known and reputable Vendor with an advance payment for goods and/or services before delivery. If so, a payment on account, which is an entry of a manual check to the Vendor, can be used. In this case, the amount on the check is credited to the Vendor selected during the check process. This process does not make use of the Vendor invoicing process in Deacomand does not support the tracking of pre-payments to a Vendor against specific Purchase Orders, since no Purchase Orders are referenced in the process. However, users can mark a posted pre-payment for settlement, at a later time, against Purchase Orders for this Vendor.
Entering a Retainer check - A retainer can be a single advance payment or a recurring (e.g. monthly) payment. Its distinguishing feature is that the employer pays in advance for work to be specified later.
Using new Purchase Orders - New Purchase Orders may be entered with the "Invoice/Pre-pay" flag checked on the order header to indicate that the order will be invoiced and pre-paid once saved.
Using Manual Checks - Pre-payments may be entered via the Accounting > Manual Checks transaction by selecting the "Pre-payments" Report type on the pre-filter, allowing the user to create a Purchase Order with a "Payment on Account" type, and printing a check for that Vendor.
Posting payment after receipt
What payment methods can be used?
Manual Checks and the Check Run function - The Checks functions, both available via the Accounting menu, are used to record payment and print checks for Purchase Orders that have already been invoiced. Manual Checks is mostly used when the check is needed right away, whereas Check Run enables the user to print several checks at once.
Processing Purchasing Orders with Credit Cards - Deacomallows companies to pay Purchase Orders with credit cards using four different methods as outlined in the link provided in this section. This process deals with paying the credit card bill(s) after cards have been charged to pay for the goods and services on Purchase Orders. In all cases, payments are applied after the Purchase Orders have been invoiced.
Processing payments using ACH - ACH, or wire transfer, must first be added as a Payment Type, then they can be used when performing a Check Run. ACH payments must be remitted to the bank via formatted Excel sheet or other method approved by the bank. The data required by the bank receiving the transfer typically includes the ACH Type, Account Number, and Routing Number. To capture this data in Deacom, you may configure User Fields on the Vendor level, the access and modification of which can be restricted using security.
- If desired, users may also configure a Trigger to fire every time the ACH Payment Type is used. For more information, refer to the Configuring Triggers Best Practice page.
Configuring secure processes
How are checks reviewed before they are finalized?
Using a check approval process - Companies may utilize Work Flows and enforce different levels of User Security in order to allow one group of users to begin a check run, another group to review the information contained in the checks for accuracy, and a third group to finalize and print the checks. For more information, refer to the Configuring Work Flows and Managing Users and User Security Best Practice pages.
How can check fraud be prevented?
Using Positive Pay - A fraud detection tool, Positive Pay is used by banks to match the checks a company has issued with the checks that are presented for payment by the recipients. The basic process begins with the issuing company periodically sending a file to the bank. This file contains information such as the check numbers, dates, and amounts for which all checks (including Manual Checks) issued in the most recent Check Run and is generated using the Accounting Reporting "Cash Disbursement by Payment" report. Once a check is presented to the bank for cashing, the bank compares the key information on the check to the information provided by the issuing company. If there is any discrepancy noted, the bank prevents payment, holds the check, and alerts the issuing company. Providing this file to the bank should be completed promptly following the issuing of one or more checks.
- Each bank requires different file formats and information. For assistance formatting the excel file and obtaining available macros, contact Technical Support.
- Ensure the grid layout for the "Cash Disbursement by Payment" report contains Remit To information, if necessary.
Using additional information during the checks functions
What additional options are available for use?
Payment deductions:
- Following the Manual Checks process, once a user clicks the "Modify Amount" button on the Invoices to Pay form, the Payment Deductions form is displayed. This form can be used to set the total order amount or to add lines, containing credits, to the final payment. If setting the total order amount users must specify the amount in the "Set Total Amount" field, then click the "Save" button. If adding lines, users must first specify an account and appropriate credit amount before clicking the "Save" button. Once all necessary changes are saved, click the "Exit" button to return to the Invoices to Pay list.
- Following the Check Run process, once a user clicks the "Deductions" button on the Checks to Print form, the Payment Deductions form is displayed, which can also be used to add lines, containing credits, to the final payment. The same as above: if adding lines, users must first specify an account and appropriate credit amount before clicking the "Save" button.
Reprint checks option - The Reprint Check option can be used whenever printing errors, such as paper jams or the loading of incorrect check numbers in the printer tray, occur. When Deacomhas finished sending the approved invoices to the printer, the system will display the following prompt: "Did all checks print correctly?" even if only one check is printed. If the "Paper Output" flag is checked, a check will print. Once the user has verified the check has printed correctly, click "Yes" to close the prompt and complete the process. When processing manual checks for multiple orders, a separate check will be created for each order. Also, only the Process Checks form for one order will be displayed. If the "No" button is clicked, the system presents the Reprint Checks form, which contains two fields: "Reprint from check number" and "Starting number". The following describes a typical scenario: Deacomcheck numbers 8 and 9 are approved and sent to the printer. A printer jam occurs and the company's stock check numbers 8 and 9 are no longer usable. The user would click "No" to the message asking if all checks printed correctly. Next, the user would fill in the reprint checks form as follows: Reprint from check number = 8 and the Starting number = 10. Finally, the user will click the "Continue" button to complete the check run.
Check Detail report - If multiple invoices for the same Vendor are to be paid with a single check, the system may offer users the option to print a Check Detail report if the number of invoices exceeds a certain number.
What other fields and variables are available for printing on checks?
Deacomuses a dedicated report for printing checks. Generally, the list of available fields that may be printed on a report, such as the Check report, can be accomplished by choosing the "Variable Display" option in the "Print To" field prior to performing the actual printing. The exception to this option in Deacomis the Check report. The printing of checks results not only in the production of a check, but also a direct GL posting. For this reason, there is no "Variable Display", "Screen", "Email", "PDF", or "Fax" option available in the "Print To" field when printing Manual Checks or performing a Check Run. A complete list of the fields and variables available to the Check report can be found in the Using the available Check Layout fields section of the Modifying Check Layout Best Practice page.
FAQ & Diagnostic Tips
How can I report on the checks that have been processed?
Navigate to Accounting > Accounting Reporting and run a Cash Disbursement by Payment report, which will display all checks processed. Additionally Purchasing reports can be run to show all Purchase Orders that have been paid. If you wish to find details on a specific check, filter by the "Reference Number", which indicates the Check number used when the payment was processed.
Additionally, generating a "Cash Disbursement by Order" report filtered by Reference Number will allow you to view all invoices paid by the selected check.
I just processed my checks and there is an invoice discount still showing from a credit Purchase Order in the Check Run form. What is the problem?
When the vendor invoice was entered, a cash discount was likely entered incorrectly. To fix the problem, follow the steps below:
- Void the check for this Vendor.
- Un-invoice the problem Purchase Order.
- Re-invoice the Vendor invoice entering the proper amount to fix the order.
- Process the check using same check number as before.
What type of checks should I order for Deacom?
Any plain laser single check stock will work with Deacom. The default report is based on one check per page with check positioned in the middle with voucher areas not pre-printed. Deacomcan also print on blank check stock. This requires special MICR fonts and toner and customized Check Layout.
Checks are being printed out of numerical order. What is the problem?
Change the advanced printer settings for the check printer to "Print directly to the printer" instead of spooling. If the problem continues, investigate whether there are network connectivity issues with the connection between the workstation and the check printer. If possible, connect the check printer directly to the workstation.
Can I run a report that will give me a 7 day lead time for paying checks?
A user-defined column in the grid can be added to the Check Run form. The expression would be "tp_topay-7" which would display the date seven days before the pay on date.
I am getting the message "You cannot add the AP or cash account." during a Manual Check Run when trying to modify Purchase Order to apply credit amount. What is the problem?
You cannot use the same account for the credit account that already exists on the transaction. You just need to select another account.
Why am I able to enter the same check number, on the same account number, twice?
If you turn the "Accounting -- change check number" security off, then the Check Number is grayed out and cannot be changed to a voided Check Number. It is Deacom's design to allow a voided check number. If a whole batch of checks is sent out, and one gets lost in the mail, you can void that check and resend it with the same check number.
What do I do if I have sent out two checks to two different Vendors but that have the same check number?
You should void the transaction that has the incorrect check number. That will not affect the "correct check". You can then go back into Manual Checks and repay the invoice with the correct check number and print it to plain paper.
I am getting a message that says "Please Note - You cannot manually pay both positive and negative invoices for different vendors at the same time." What does that mean?
How can I make a partial payment against a Vendor invoice?
Use the "Modify Amount" button to get to the Payment Deductions form. Enter the amount you want to pay in the "Set total amount" box. Save and exit the Payment Deductions form. Complete the check process as normal.
How do I process a check from a Vendor that is for a negative Purchase Order?
Process a Manual Check, select Credit Purchase Order, and process as usual. The system knows to deposit the amount in the account. Enter Check Reference number when prompted.
Can I undo a check void? I voided the check on its original date and not in the current period.
You cannot undo a check void. You can re-run the original check to plain paper, with the same check number, on the original date, and then void that second check with today’s date. Ability to perform these steps will depend on your security settings and company policy.
I am getting an application error when trying to do a manual check. Why is this happening?
This is caused by an invalid character in one of the Purchase Order fields. Review the "Invoice Number" and "Note" fields to find the invalid character. Once found, un-invoice the Purchase Order and remove the invalid character.
We use Positive Pay. What if we forget to send the details of the most recent Check Run to our bank in time?
A primary necessity of using Positive Pay lies in the timeliness of the issuing company providing the check details to the bank. If for any reason the company forgets to send the file to the bank, there is a risk that all checks that would have been included in the file may be rejected by the bank.