Accounts Payable Tab

Use the Defaults section to define general Accounts Payable information.

1. Select the default Unit of Measure that should display for items. This value is required. This default is used on the Quick Invoice, Temporary Vendor Invoice, Invoice, Invoice Template pages in Invoice Processing; and on the Purchase Order and Purchase Order Template pages in Purchasing.
2. Type an amount in Maximum Payment Amount, which is required. This value is the maximum amount for which a check may be written. The acceptable range is $0.01 through $999,999,99.99.
3. Select the Apply Discount check box if your organization wants to apply discounts to an invoice item. It is cleared by default. If it is selected, it enables the Discount Amount box on the Vendor Invoice Entry page.
4. In Process Discounts During, select the time at which discounts are processed (e.g., invoice processing or payment processing). Payment Processing cannot be selected if any invoices in the system have either an “Edit” or “Open” status.
5. In Invoice Due Date Based on, select one of the following options to determine how the default due date appears on the Invoice Batch Entry Page.
   • Blank—No default due date will appear on the Invoice Batch Entry page.
   • Balance Period—The default due date will be based on the balance period on the Invoice Entry page. Defines a specific number of days in which the balance must be paid before becoming past due.
   • Discount Period—The default due date will be based on the discount period on the Invoice Entry page. A discount is applied if the full balance is paid within the specified time period.
6. With the Use P.O. Address as Remittance Address check box selected, when an invoice is created, the address entered on the purchase order overrides the primary remittance address defined in the vendor record.

   The system defaults in the vendor's purchasing address specified on the purchase order as the accounts payable invoice remittance address if the purchasing address is also coded as a remittance address. The vendor contact chosen on the selected purchase order and/or shipper will be retained when entered on the following invoice types: Invoice Entry and Quick Invoice Entry. In all other cases, the vendor's primary address will continue to default in as the remittance address when invoices for the vendor are added.

7. If the Setting for Complete P.O. Item check box is selected, the Completes P.O. Item check box is selected by default on the following pages: Invoice Entry, Quick Invoice Entry, Select Purchase Order, and Select Shipper. Only items selected as completing the purchase order item will update the status of the item to Completed. This check box is cleared by default.
8. Select the Taxable Item check box to indicate that invoice items should be flagged as taxable. It is cleared by default.
9. The Payroll Disbursement Item box provides the default item type associated to the invoice items when Payroll Disbursement is selected on the Accounts Payable HR Disbursements page.
10. The Pension Loan Item box provides the default item type associated to the invoice items when Pension Loans are selected on the Accounts Payable HR Disbursements page.
11. The Workers' Compensation Claim Item box provides the default item type associated to the invoice items when Workers' Compensation Claims are selected on the Accounts Payable HR Disbursements page.
12. The Group Workers' Comp Invoices box defines whether this subset of invoices is grouped by Vendor and Employee or by Vendor. Vendor and Employee is the default value.
13. In Purchase Order Balances, specify if the Remaining Amount or Original Amount of the PO request should be displayed when a PO is selected for payment in Accounts Payable (Select Purchase Order for Payment).
    

The Freight Distribution section contains the default values for freight.

1. Select the Apply Freight check box if freight charges are added to an invoice item. This check box is cleared by default. If it is selected, it enables the Freight Amount box on the Vendor Invoice Entry page.
2. Select a Distribution Method value to determine how freight charges should be applied. The default value is Line Item; other options are Organization and G/L Account.
   • The Distribution Account box is displayed and required if the Distribution Method is Organization. Select the combined base and detail account number to which to apply the freight.
   • The Distribution G/L Account box is displayed and required if the Distribution Method is G/L Account. Select the full general ledger account number to which to charge the freight.

The Contract Accounting section contains the default text that appears for retainages.

The Retainage Release Invoice Description field in the Contract Accounting section determines the text that is automatically assigned to Accounts Payable invoices created from the Release Contract Retainage page.

The Receipt of Goods section contains the defaults for Receipt of Goods processing.

1. Select the Use Blind Receipt Entry check box if blind receipt entry is allowed during Receipt of Goods processing. This check box is cleared by default.
2. Select the Auto-Print "Request for Payment" Form check box if your organization wants to automatically print the Request for Payment form. This check box is cleared by default.
3. The "Request for Payment" Form Type box is required if the Auto-Print "Request for Payment" Form check box is selected. Select the type of Request for Payment form that should be printed. The options are defined in Validation Set 239, "Request for Payment" Form Type.

The Invoice Processing Options section provides the defaults for Invoice Processing.

1. If accounts payable processing is done from a central location, select a Centralized Accounts Payable Department value. This box contains all departments to which the user is authorized.

   If entered, all journals from the sub ledger will be assigned to this central department. If not defined, the post may make multiple journals, one for each department specified on a receipt batch.

2. The Increment Counter Number Based on Fiscal Year check box determines which Counter Year sequence to use. If the check box is selected, the contract number uses the fiscal year value as the prefix (i.e., Counter Year). If this check box is not selected, the calendar year is used as the prefix.
3. Select the Allow Changes to Approved Invoices check box if your organization allows approved invoices to be edited.
4. Select a Validation and Approval Sequence value to determine the use and order of these two steps of the workflow process. If a dependency is required, the workflow buttons display in the order of the dependency. The options are:
   • Require Approvals for Validation–If selected, the invoice must be fully approved before it can be validated.
   • Require Validation for Approvals–If selected, the invoice must be validated before it can be approved.
   • Require No Dependencies–If selected, added invoices can be validated and approved in any sequence.
5. In Verify Date is Prior to PO GL Date, select from the following options to control how users enter and process invoices related to purchase orders:
   • Do Not Check – Allows users to enter an invoice with a G/L date that precedes the G/L date of the purchase order.
   • Give a Warning – Allows users to enter an invoice with a G/L date that precedes the G/L date of the purchase order, but displays a warning message alerting users that the action will take place if they choose to proceed.
   • Do Not Allow – Prevents users from entering an invoice with a G/L date that precedes the G/L date of the purchase order.
6. In Use Invoice Date or Invoice GL Date, select either the Invoice G/L Date, Invoice Date, or Both date values on which to prevent users from entering an invoice that precedes the G/L date of the purchase order.
7. Select the Require Invoice Received Date check box to require that an invoice received date be specified on the Accounts Payable Invoice Entry pages. This is the date that the invoice was physically received; it allows users to compare the date with other significant AP invoice dates (e.g., entry date, posted date, paid date). If this check box is left blank, entering the Invoice Received Date is optional.
8. The Manual Invoice Number Entry field value determines whether entering an AP invoice number is required (cannot be left blank), optional (the system will assign the number if the field is blank), or whether a warning should be issued if the field is left blank.
9. Select the Alert User if Purchase Orders Exist for Vendor check box if you would like an alert to display during invoice entry (via the Invoice Entry and Quick Invoice Entry pages) when a user entering an invoice selects a Vendor for which at least one open purchase order currently exists. If this check box is selected, a message will appear below the Vendor field in invoice entry to inform the user that purchase orders exist for the selected vendor. The alert includes a link that, when clicked, opens the Select Purchase Order page, allowing the user to view the existing purchase orders and select one if appropriate.
10. Select the Alert User if Contracts Exist for Vendor check box to have an alert display on the Full and Quick Invoice Entry pages when a user selects a vendor assigned as the primary vendor on an open contract. The check box defaults as unchecked.

The Invoice Payment Options section defines the defaults for invoice payment processing.

1. Select the Allow Cash Basis Processing check box to enable cash processing in the Accounts Payable. If the check box is selected and later cleared, the system will issue a warning that all funds set up to use the cash method will be reset to use the accrual method.Once selected, the check box may be cleared only if there are no Accounts Payable invoices with an edit status.
2. The Payment Form Order value determines the way checks are sorted, either by Vendor Number or Vendor Name. Vendor Number is the default value.
3. Select the Include Item Descriptions on Payment Stubs check box if the information that appears on a check stub is detailed. If this check box is cleared, a summary invoice description prints. This check box is cleared by default.
4. The Validation and Approval Sequence box displays the method to be used when validating and approving invoice payments. The default is Require Approvals for Validation. The available options are:
   • Require Approvals for Validation–If selected, the invoice payment must be fully approved before it can be validated.
   • Require Validation for Approvals–If selected, the invoice payment must be validated before it can be approved.
   • Require No Dependencies–If selected, added invoice payments can be validated and approved in any sequence.
5. In Payment Creates Negative Cash Balance, select from the following options to control how invoice payments are handled if cash entries cause a negative balance. The system setting can be used to prevent payments (checks/EFTs) from being generated if cash entries cause a negative balance in the selected fund.
   • Do Not Check – Allows users to process an invoice payment even when payments cause a negative balance.
   • Give a Warning – Allows users to process an invoice payment when payments cause a negative balance, but displays a warning message alerting users that the action will take place if they choose to proceed.
   • Do Not Allow – Prevents users from processing an invoice payment when payments cause a negative balance.