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Acumatica Finance: Accounts Payable Module or Workspace

When to use this module/workspace

  • Using the Acumatica Distribution Suite, Purchase Order module/workspace

    • You have to use the Acumatica Distribution Suite, Purchase Order module/workspace when you want to book purchases of stock items since inventory management module is required, which is only available in the the Acumatica Distribution Suite, Purchase Order module/workspace. Non-stock items can also be handled by this PO module/workspace

    • Normally when you plan to purchase a serious amount eg. a new machine, you will create first a Purchase Requisition, and if approved,  a Purchase Order (PO) in the Acumatica Distribution Suite, Purchase Order module/workspace. That PO will be sent to the vendor. Or you will purchase eg. the machine online at the vendor's B2B E-Commerce store. 

  • Using the Acumatica Finance Suite: Accounts Payable module/workspace

    • When the purchase includes only non-stock items, you don't have to use the Acumatica Distribution Suite, Purchase Order module/workspace. You can just use the Acumatica Finance Suite: Accounts Payable module/workspace.

    • When your company doesn't require a Purchase Requisition and/or a Purchase Order for a purchase since for instance the purchase amount for non-stock items is under a certain limit , then your accounting department may just create a bill. The creation of a bill may still be subject to an approval process.​

      • Remember that you will have to create a new vendor record first if not already created, and if you purchase an non-stock item, you have to create a new non-stock item if not already created.​

Important features of Accounts Payable

  • The Accounts Payable module enables you to do the following steps:

  • Create vendor classes​​

    • A vendor class is  a characteristic that ​groups vendors into a group that have the same attributes such as:

      • The same default Cash account and sub account in the GL

      • The same default AP account and sub account  in the GL

      • The same default Expense account and sub account in the GL

      • The same payment method

      • The same credit terms, eg. 30 days 

    • If a new vendor is created, you choose a vendor class for that vendor, and all attributes of that vendor class are automatically given to that vendor.  This saves a lot of data entry time. However the Acumatica ERP user can overwrite manually those attributes in the vendor document/screen, and make them vendor specific.

    • When a bill or payment is created, those attributes coming from the vendor record, are automatically filled in in the bill or payment document/screen. This saves a lot of data entry time. However the Acumatica ERP user can overwrite manually those attributes in the bill or payment document. 

    • Video (8 mins. Expand the video to full screen size. The AP training material can be found here : http://www.acumaticaopenuniversity.com  , more specifically here for AP at: https://openuni.acumatica.com/courses/fin/f100-financials-basic/#  ( You will need to sign in with a social media account). If a problem, call us at 973 727 9665. )

  1. Create a vendor

    1. Creating a vendor is very important. You will have to select a vendor class, and all attributes of that vendor class are automatically given to that vendor.  This saves a lot of data entry time. However the Acumatica ERP user can overwrite manually those attributes in the vendor document/screen, and make them vendor specific

    2. Video (8 mins. Expand the video to full screen size. The AP training material can be found at: http://www.acumaticaopenuniversity.com  , more specfically for AP at: https://openuni.acumatica.com/courses/fin/f100-financials-basic/#  . You can even download a demo version of the Acumatica ERP software to your PC running WIndows 10  and MS SQL Express.  ( You will need to sign in with a social media account) )

  1. Create a bill and release the created bill

    1. Creating a vendor is very important. You will have to select a vendor class, and all attributes of that vendor class are automatically given to that vendor.  This saves a lot of data entry time. However the Acumatica ERP user can overwrite manually those attributes in the vendor document/screen, and make them vendor specific

    2. Any document eg a bill, a payment, goes through the following two basic steps:

      1. Creation, which contains the following substeps:​

        1. Enter header information eg vendor for a bill, payment due date, payment method​

        2. Enter document details such as line items (stock and/or non stock items)

        3. Balancing total amount of line items with total bill amount

        4. If balanced, bill can be put on hold status for purposes of:

          1. Further editing: any field can be edited. This would be the case if for instance the vendor invoice amount is higher than agreed on in the Purchase Order (PO), or if the line items are different.

          2. Approval in case the amount is very high and for instance there is a spending freeze. 

          3. Printing or emailing to for instance the buying department.

        5. If balanced, bill can be taken out of hold, and be ready for release​

      2. Release of bill which puts the bill in open status

        1. Editing is limited to payment due date and payment method​

        2. Batch of GL transactions has been created but not posted to the GL

        3. You can post the batch of GL transations to the GL manually, or

        4. You can have it done automatically if the setting "Post to GL upon release" was checked off in the AP general preferences

      3. The bill stays in Open status till it has been fully paid. Once fully paid, it changes to the Closed status​

    3. Video (30 mins. Expand the video to full screen size. The AP training material can be found at: http://www.acumaticaopenuniversity.com  , more specfically for AP at: https://openuni.acumatica.com/courses/fin/f100-financials-basic/#  . You can even download a demo version of the Acumatica ERP software to your PC running WIndows 10  and MS SQL Express.  ( You will need to sign in with a social media account) )

  1. Check vendor balance

    1. Check the vendor balance to see the outstanding bills that are due this week or overdue

    2. Video (1 min. Expand the video to full screen size. )

  1. Prepare and release payments

    1. Acumatica enables you to see for a vendor all due bills, and to pay them all at once, or to select the bills you want to pay

    2. You can also pay bills of several vendors at once in this process

    3. Again you will go through the creation/preparation and release steps of this document as discussed above for bills.

      1. This can be subject to an approval process​ or printing a check.

      2. Once the payment for the full amount is released, the payment is closed, and the bill is closed. 

    4. You can schedule to have recurring bills be paid automatically according to a set schedule. This will be discussed later.​

    5. Videos (6 mins. and 7 minsExpand the video to full screen size. 

Other important features of Accounts Payable

  • Multiple AP Accounts in GL

    Link groups of vendors to specific AP accounts in the GL. Default account can be overridden during bill or payment processing. Acumatica automatically offsets the correct account when the payment is applied.

  • Multiple Currencies Support

    Issue or accept invoices in a foreign currency. Use accounts payable automation to apply the effective currency rate and make the translation without any work for your staff. Currency triangulation and realized gain/loss calculations are automatic. Unrealized gains and losses can be calculated through a balance revaluation process.

  • Recurrent AP Documents

    Create recurring bills by setting the frequency and time frame for payment. Recurring bills will appear in the recurrent transaction processing screen for review, modification, and release. Click here to see a video.

  • Vendor Refunds

    Vendor refund documents debit a cash account and debit an AP account. Apply a refund toward a debit adjustment or prepayment. Click here to see a video.

  • AP Aging Reports

    Customize your AP aging categories and create a full set of aging reports including total outstanding, past due, cash requirements, and vendor performance. Check here for a video.

  • 1099 Reporting

    Accumulate 1099 information for any designated vendor. Track 1099 payments and produce the appropriate 1099 reports. Multiple branches can close books (tax periods) independently of one another.

  • Vendor Account Security

    Control access within your accounts payable software by specifying which individuals and roles can view and modify vendor account information and balances. Restrict sensitive vendor information.

  • Audit Trail

    Maintain a complete audit trail of all transactions. Documents cannot be deleted or cancelled. Correct mistakes using correcting or reversing entries. Acumatica accounts payable solutions capture the ID of the user who entered the transaction and the user who modified the record. Notes and supporting electronic documents can be attached directly to the transactions.

  • Prepayment of vendor bills

    • In the Acumatica 2019R2 release, a feature has been added that enables you to make a prepayment on a vendor bill. Click here to see a video.

Benefits of Acumatica Accounts Payable Module/Workspace

  • Attach Source Documents to Invoices

    • Streamline invoice approval and make it easier to resolve issues in the future. When you receive source documents via email or scanning, they’re attached to the invoice for easy drill-down access.

  • Accept Vendor Prepayments

    • Enter prepayment requests, issue prepayments, and apply prepayments to invoices as they are received. Prepayment balance is kept separate from the regular AP account.

  • Recognize Prepaid Expenses

    • Assign a deferred expense schedule by AP line item. Automatically split payments between the prepaid account and expense accounts.

  • Calculate Taxes Automatically

    • Automatically calculate use and VAT taxes and prepare tax filing reports. Assign a default tax zone to each vendor. This default can be overridden during invoice entry. Tax calculation can include multiple tax items per document line, deduction of tax amount from the price, and tax on tax calculation. Acumatica accounts payable software also supports withholding tax calculations.

  • Streamline Invoice Approval and Payment

    • Save time with accounts payable solutions. Set up the process to automatically approve for payment or follow an approval process to prioritize or delay payment, before these documents are processed in the accounting systems and paid. Designate an account to pay from, or select a payment method.

    • Watch the video!

  • Optimize Payments

    • Avoid late charges and take advantage of vendor discounts by aligning payments with cash flows

  • Faster Delivery, Fewer Errors

    • Enter data more efficiently with predictive entry and flexible screen layouts. Reduce errors by setting default accounts, subaccounts, payment terms, and discounts by vendor.

Acumatica Finance Accounts Payable datasheet