Intacct Accounts Payable Procedures

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Intacct AP Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved

ACCOUNTS PAYABLE

Policies & Procedures

FOR

Version Edited By Edited Dates Comments

1.0 Irene Bushnell November 2015 Baseline

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Last Revision: October 2015

The forms and policies presented in this manual may not be the most current available. Please consult

Synergy Business Solutions at [email protected] for the most up-to-date information.

This publication is designed to provide accurate and authoritative information in regard to the subject

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not intended to be a substitute for the legal research or other work product a professional would

normally perform for a client.

While all materials are carefully researched, no warranty, express or implied, is offered as to accuracy.

Questions regarding the acceptability or likely effects of implementation of certain procedures in

particular practice contexts should be reviewed on a case-by-case basis. Technical guidance provided

herein should be read in addition to the related technical literature cited, not instead of it.

This document may contain technical inaccuracies or typographical errors. Any documentation with

respect to Intacct Software products is provided for informational purposes only and does not extend or

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Copyright © Synergy Business Solutions 2015. All rights reserved.

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BIG SKY COLLABORATION


TABLE OF CONTENTS

HOW TO USE THIS MANUAL ................................................................................................ 1

First Time Customizations ........................................................................................................... 1

Modifying Manual Content ......................................................................................................... 2

ACCOUNTS PAYABLE CONFIGURATION POLICIES ................................................................. 3

Accounting settings ..................................................................................................................... 3

Dimension setup .......................................................................................................................... 4

Document sequencing ................................................................................................................. 4

Defaults ....................................................................................................................................... 4

Payment approval settings .......................................................................................................... 4

Aging ............................................................................................................................................ 4

POLICIES FOR MANAGING ACCOUNTS PAYABLE .................................................................. 5

Vendor Types ............................................................................................................................... 5

Vendor Groups ............................................................................................................................ 5

AP Terms...................................................................................................................................... 5

Vendor Management Policies ..................................................................................................... 6

Bill and Adjustment Entry Policies .............................................................................................. 7

Bill Payment Policies .................................................................................................................... 7

Manual Check Policies ................................................................................................................. 7

Voiding Check Policies ................................................................................................................. 8

CLOSING AP SUBLEDGER POLICIES ................................................................................... 9

Open and Closed Subledger Policies ........................................................................................... 9

Procedures for Closing the AP Subledger.................................................................................... 9

Procedures for Reopening the AP Subledger ............................................................................ 10

ACCOUNTS PAYABLE AUDIT TRAIL ................................................................................... 11

AP Binder Reports ..................................................................................................................... 11

Distributed Reports ................................................................................................................... 11 AP Documents Naming Convention .................................................................................................................... 11

MANAGING VENDORS ...................................................................................................... 12

Procedures for Adding New Vendors ........................................................................................ 12

Vendor Information Screen ....................................................................................................... 13 Vendor Tab .......................................................................................................................................................... 13 Additional Information Tab ................................................................................................................................. 14 Contact List Tab .................................................................................................................................................. 15 Payment Information Tab ................................................................................................................................... 16 Restrictions Tab ................................................................................................................................................... 17 Form 1099 Information With Default Box Tab .................................................................................................... 18

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Intacct AP Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved.

Procedures for Editing Vendors ................................................................................................ 19

Procedures for Making Vendors Inactive .................................................................................. 20

ENTERING BILLS AND AP ADJUSTMENTS .......................................................................... 21

Procedures for Adding Bills and AP Adjustments ..................................................................... 21

Bill Screen .................................................................................................................................. 22 Header Information ............................................................................................................................................ 22 Entries ................................................................................................................................................................. 24 Customize Allocation ........................................................................................................................................... 25

Procedures for Reversing Bills ................................................................................................... 26

AP Adjustment Screen ............................................................................................................... 27

Quick Bill Entry .......................................................................................................................... 28

Procedures for Quick Bill Entry ................................................................................................. 28 Quick Bill Entry Preferences Screen ..................................................................................................................... 29 Quick Bill Entry Screen......................................................................................................................................... 29

ENTERING AND MANAGING RECURRING BILLS ................................................................... 30

Procedures for Entering Recurring Bills .................................................................................... 30

Recurring Bill Screen.................................................................................................................. 31 Bill Tab ................................................................................................................................................................ 31 Additional Info Tab .............................................................................................................................................. 32 Schedule Tab ....................................................................................................................................................... 33

PROCESSING VENDOR PAYMENTS .................................................................................... 34

Procedures for Processing Vendor Payments ........................................................................... 34 1. Determine Cash Requirements ................................................................................................................... 34 2. Process EFT Payments ................................................................................................................................ 35 3. Process ACH Payments ............................................................................................................................... 36 4. Process Printed Checks ............................................................................................................................... 37 5. Verify Cash Requirements and File Reports ................................................................................................ 38

Select Bills to Pay Screen ........................................................................................................... 39

Pay Bills Screen .......................................................................................................................... 40

Viewing Payment Requests ....................................................................................................... 41

Procedures for Approving Payments ........................................................................................ 42

RECORDING MANUAL CHECKS ......................................................................................... 43

Procedures for Recording Manual Checks ................................................................................ 43

VOIDING ACCOUNTS PAYABLE PAYMENTS......................................................................... 44

Procedures for Voiding Checks ................................................................................................. 44

Procedures for Voiding ACH and EFT Payments ....................................................................... 46

Procedures for Voiding Manual Checks .................................................................................... 47

MONTH END PROCESSING ................................................................................................ 48

AP Month End Procedures ........................................................................................................ 48

MONTHLY AP PROCEDURES CHECKLIST ........................................................................... 51

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PROCESSING ANNUAL 1099S ........................................................................................... 53

Procedures for Processing 1099s .............................................................................................. 53

Adjusting 1099 Amounts ........................................................................................................... 55

APPENDIX ....................................................................................................................... 57

Vendor ACH Payment Enrollment Form ................................................................................... 57

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Intacct AP Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved. Page 6

Vendor Management Policies

BSC has put in place processes and policies to help ensure that all vendors in Intacct are valid company

vendors. Specific process are outlined in this manual for adding, editing and making vendors inactive.

New Vendors New vendors are approved by department managers as part of the purchase order process. Following

are BSC policies for setting up new Vendors in Intacct.

• All new Vendors will have an attachment in their Vendor Information screen verifying they

are a legitimate vendor. Valid attachments include the PO Setup document used by

purchasing, a printout of the vendor’s website home page, or a printout from the vendor’s

home State government business entity search showing the business is registered in that

State.

• Prior to setting up a new contractor vendor, all contractor relevant paperwork must be

received including a W-9, proof of liability insurance, and proof of a state license. All three of

these documents will be attached in Intacct in the Vendor Information screen. Contractor

vendors will have the 1099 eligible box checked and 1099 information completed in the

Vendor Information screen.

• BSC uses ACH for paying most vendors. All vendors receiving ACH payments must complete

the ACH Authorization Form (included in the Appendix of the Cash Management Policies and

Procedures manual). When the vendor is entered in Intacct, the authorized form will be

attached to their vendor record and the option ACH will be selected as the preferred payment

method in the Payment Information tab of the Vendor Information screen.

Vendor ACH Enrollment BSC allows vendors to enroll in ACH. Our form used for enrolling a vendor in ACH can be found in the

Appendix of this manual.

• All vendors receiving ACH payments must complete the Vendor ACH Authorization Form.

• The Accounts Payable Manager will be responsible for keeping the form current and will modify

it as needed within this manual.

• The signed ACH enrollment form will be an attachment in the applicable Vendor record in

Intacct.

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ACCOUNTS PAYABLE AUDIT TRAIL


Accounts Payable Audit Trail

BSC has taken several steps to ensure procedures and process are in place for maintaining a proper

audit trail. One of the processes that is critical to the completeness of an audit trail is maintaining an

Accounts Payable binder, whether it is printed or paperless. BSC uses a paperless workflow therefore a

folder has been created called AP Binder in the attachment folders of the Company module. Outlined

below is BSC’s internal process as to the proper filing of accounts payable reports to help ensure a

successful audit trail in the AP process.

AP Binder Reports

At a minimum, the following reports will be printed and included in the AP Binder as part of BSC’s

internal controls and month end closing checklist for AP. These reports are identified throughout this

manual as to when they are filed in the binder.

AP Binder Check Register

AP Aging Report

AP Ledger

General Ledger – AP account

Reclassification Report

Distributed Reports

The following outlines the title and distribution frequency of reports that will be generated and

distributed from Intacct as part of our internal control and audit trail process. A printed copy of each

report will be filed in the AP Binder.

Note: These reports are memorized and scheduled to email automatically.

Report Name Frequency Recipients

Monthly Check Register Monthly CFO

AP Ledger Monthly Owners

CFO

Controller

Vendor Aging Report Monthly Controller

AP Manager

Vendors Created-Modified (Custom Report) Quarterly Controller

AP Manager

AP Documents Naming Convention

BSC has created a folder in the Attachments Folders screen called AP Binder. All reports noted above

will be saved electronically in this folder. Documents will use the following naming convention:

YYYYMMDDReportName (e.g. 20151231CheckRegister)

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Entries

The Entries section is used to code the bill to the appropriate general ledger account and dimensions in

Intacct. As individual lines are entered, the Total field is updated and should equal the total bill from the

vendor before the transaction is completed.

Account

Select an Account from the drop down or it can be entered manually. If a default Account is entered for

the vendor in the Vendor Information screen, Intacct will prepopulate the account information in this

field. The default entry can be overridden if needed.

Department

Enter the Department for each transaction line.

Location

Enter the Location for each transaction line.

Project

If the vendor bill is related to a Project you can include the information in this field.

Billable

If the amount should be billed to the project, check the Billable checkbox.

Show Details Open the details for each transaction line to add any additional dimension or allocation information for

that particular line.

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Procedures for Reversing Bills

Per BSC policies, once an entry has been saved it cannot be deleted. If for some reason a bill was

inadvertently entered in Intacct, the bill will need to be reversed. Reversing a bill will have an impact on

financial information and the date of the reversal will drive what month the transaction will occur.

Note: Only the Controller and the AP Manager will have access rights to reverse an AP bill.

� Gather the documentation that justifies reversing a bill in Intacct. This may be a copy of a duplicate

bill, a copy of email correspondence with a vendor regarding a duplicate bill, etc.

� Send an email to the AP Manager or Controller with the explanation for needing the bill to be

reversed.

� The AP Manager or Controller will access the bill from the Bills list view and click the Reverse link on

the right side of the bill.

� In the Transaction Reversal Date screen, enter the date of the reversal. If the date is in a closed

period, determine whether or not the period should be reopened based on BSC policies.

• If it is determined that a closed period needs reopened, follow Procedures for Reopening the

AP Subledger outlined in this manual.

� Enter a description that explains the purpose for reversing the bill.

� Click the Submit button.

� Access the reversal transaction created from the Bills list view. Click on Edit and attach the

documentation used to authorize the reversal to the transaction.

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Processing Vendor Payments

Bills are paid every Friday, and include all invoices that are due within 10 days after

the current pay date. For example, if the pay date is 08/21/15, all bills due on or

before 08/31/15 will be paid in the current check run.

Procedures for Processing Vendor Payments

BSC follows a five step process for generating vendor payments. A summary of those steps is listed

below with details for each step following.

1. Determine cash requirements to ensure sufficient cash is available for the check run.

2. Process EFT payments. These are vendor payments where

we process a check via online bill pay and need to record the

payment in Intacct.

3. Process ACH payments. These are vendor payments

processed via an ACH file created by Intacct and uploaded to

our financial institution for processing.

4. Process Printed Checks. BSC has a few vendors that still

receive printed checks.

5. After processing, cash requirements are verified and all reports are filed in the AP Binder

attachment folder.

1. Determine Cash Requirements

� Ensure all bills have been entered in Intacct.

� Generate the AP Aging report to determine the total cash requirement for the current check run.

• Use the due date filter to get the correct listing of bills to be paid in this check run.

• Verify the report is accurate. If any changes need made, correct the documents and reprint

the AP Aging report until it is accurate.

� Save the report in the AP Binder attachment folder following the naming convention

YYYYMMDDAPAging.

� Email the Controller with the total cash requirement needed and attach the AP Aging report (or a

link to the report in the attachment in Intacct).

� Continue to process payments once an authorization email has been received by the Controller.

TIP! Intacct uses

Record Transfer for EFT

payments. Payments

made via the Record

Transfer process will

have EFT listed as the

check type.

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Month End Processing

The following procedures outline the steps for closing the Accounts Payable module for the period. The

month end procedures are generally done by the 10th of the month.

Note: These steps are also outlined in summary in the Monthly AP Procedures Checklist on the following

page. The checklist is printed each year and kept in the AP Binder attachment folder so that each month

it can be signed and dated as each of the steps are completed.

AP Month End Procedures

Completed by the Accounts Payable Assistant

� Verify all accounts payable transactions for the month have been completed and posted.

• Run the custom view Bills on Draft Status to see if any bills are in a draft state that should be

posted prior to closing.

� Complete and post any transactions that arise from the above review.

� Verify all Recurring Bills have been generated and posted for the month.

� Print the AP Aging and AP Ledger reports using the GL Posting

Date option.

• Confirm the two reports are in balance. If not, identify and

correct any discrepancies.

� Print the General Ledger report, detail format for the month for

the AP ledger account.

• Compare the aging and ledger report balances to the general ledger report to ensure the

balances are the same. If not, identify and correct any discrepancies. The Aging report is your

support for the AP balance in the general ledger.

– Use the general ledger report to see if any transactions were made to the accounts payable

account from the general ledger rather than through the accounts payable module.

– Compare beginning balances for the period to last period’s ending balances to ensure no

entries were made to prior periods.

� Enter and post any transactions that arise from the above review.

� Reprint the reports once they are accurate and in balance.

� File the final AP Ledger, AP Aging and General Ledger reports in the AP Binder attachment folder.

Follow BSC’s naming convention YYYYMMDDReportName (e.g. 20150831APLedger).

TIP! You may want to

use the summaries found

under Accounts Payable >

Manage Subledger to

help locate discrepancies.

SAMPLEACCOUNTS PAYABLE MONTHLY AP PROCEDURES CHECKLIST

PREPARED BY: _______________________________ PAGE 51

Monthly AP Procedures Checklist

Period

1 2 3 4 5 6 7 8 9 10 11 12

Completed by Accounts Payable Assistant

Verify all transactions in AP have been

completed and posted. Review the

following custom Bill list view:

• Bills on Draft Status

Complete and post any transactions that

arise from the above review.

Verify all Recurring Bills have been

generated and posted for the month.

Print the AP Aging and AP Ledger reports

using the GL Posting Date option. Confirm

the two reports are in balance.

• If balances do not match, identify and

resolve any discrepancies.

Print the General Ledger report, detail

format for the month for the AP ledger

account.

• Compare AP Aging and GL report to

ensure they balance.

Enter and post any transactions that arise

from the above review.

Print and review the AP Aging, AR Ledger,

and GL reports until they are accurate.

File the reports in the AP Binder

attachment folder.

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VENDOR ACH PAYMENT ENROLLMENT FORM This form is used for Automated Clearing House (ACH) payments to provide payment related

information to your financial institution. You must check with your financial institution to confirm that

funds have been deposited.

Please check one of the following: ______ New ______ Change

PAYEE / COMPANY INFORMATION Name:

Current Mailing Address:

Social Security or Taxpayer ID (required): Contact Person Name:

Work Telephone: Mobile Telephone:

Email Address: Fax Number:

Email Address for notification of payments (if different than above):

FINANCIAL INSTITUTION INFORMATION Name:

Address:

Nine-digit Routing Transit Number (usually first set of nine-digit numbers at bottom of check):

Account Number:

Type of Account: _______ Checking _______ Savings

A voided check must accompany this form in order to receive payments electronically. A Social Security

Number or Taxpayer ID is required for vendor verification. An email address is recommended to

participate in this program.

Mail this form and voided check to:

Big Sky Collaboration

1620 Last Chance Gulch, Ste. 100

Helena, MT 59601

OR

Form and voided check image may be

emailed to:

accounting@@bigskycollaborate.com

If you have any questions about Vendor ACH payments, please feel free to contact our Accounts Payable

team at 406.111.1111.