Payables Payables ManagementManagementUsing Great PlainsUsing Great Plains

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What is Payables Management?What is Payables Management?

The paying of goods, supplies, or servicesThe paying of goods, supplies, or services Approving vendor invoices for paymentApproving vendor invoices for payment Monitoring and evaluating efficiency and Monitoring and evaluating efficiency and

effectiveness through access to detailed effectiveness through access to detailed information in inquires and reportsinformation in inquires and reports

The Big Picture!The Big Picture!

What Payables Management What Payables Management CoversCovers

Setup and Cards for VendorsSetup and Cards for Vendors TransactionsTransactions Inquiries and ReportsInquiries and Reports Utilities and RoutinesUtilities and Routines

Using the Setup RoutineUsing the Setup Routine

We begin by setting up defaults for We begin by setting up defaults for Payables Management. Payables Management. (Tools>Routines>Purchasing>(Tools>Routines>Purchasing>

Checklist)Checklist)

Proceed to the Setup option under Proceed to the Setup option under Frequency:Frequency:

In the scroll down box by frequency select setup

Payables Management Setup Payables Management Setup ScreenScreen

Aging PeriodsAging Periods

Aging is the process of determining how Aging is the process of determining how long you’ve owed money to specific long you’ve owed money to specific vendorsvendors Due DateDue Date

The date that the vendor has set for payment The date that the vendor has set for payment

Document DateDocument Date The date the invoice was writtenThe date the invoice was written

Choose an Aging Period

Apply OptionsApply Options

You can apply credit by one of two waysYou can apply credit by one of two ways Document Date Document Date

Due DateDue Date

Choose your applying process

Enter in Default Information

Enter passwords for security purposes

DefaultsDefaults

Summary ReviewSummary Review Select a summary view to be the default view Select a summary view to be the default view

in the Yearly Vendor Summary (amounts in the Yearly Vendor Summary (amounts since last close, fiscal year, calendar year)since last close, fiscal year, calendar year)

Checkbook IDCheckbook ID Specify the checkbook that you use most Specify the checkbook that you use most

often to pay vendors. If you haven’t opened a often to pay vendors. If you haven’t opened a banking account now would be a good time.banking account now would be a good time.

Defaults Cont.Defaults Cont.

Check FormatCheck Format Select a default check stub, decide what Select a default check stub, decide what

information you want on your check stubsinformation you want on your check stubs

List Documents on RemittanceList Documents on Remittance Choose what information you want as default Choose what information you want as default

for the Remittance. A remittance contains the for the Remittance. A remittance contains the same information as a check stub, only it is same information as a check stub, only it is written on blank paper. (invoices only, all written on blank paper. (invoices only, all documents, applied orders, totals only)documents, applied orders, totals only)

OptionsOptions Override Voucher Number at Transaction EntryOverride Voucher Number at Transaction Entry

Gives you the option of changing default voucher number when entering Gives you the option of changing default voucher number when entering a transaction.a transaction.

Track Discounts Available in GLTrack Discounts Available in GL Gives you the option of setting up a separate General Ledger account Gives you the option of setting up a separate General Ledger account

for discounts given by vendors.for discounts given by vendors. Print Historical Aged Trial BalancePrint Historical Aged Trial Balance

If you mark this option, Great Plains keeps the transaction history If you mark this option, Great Plains keeps the transaction history necessary to print the Historical Aged Trial Balance.necessary to print the Historical Aged Trial Balance.

Delete Unposted Printed DocumentsDelete Unposted Printed Documents Lets you delete an unposted printed document from the payables Lets you delete an unposted printed document from the payables

transaction window.transaction window. Age Unapplied Credit AmountsAge Unapplied Credit Amounts

If you age documents by due date and you mark this option, the due 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.date for credit documents will be the same as the document date.

Vendor ClassesVendor ClassesSetting up Vendor Classes is a Setting up Vendor Classes is a

way to group vendors according to way to group vendors according to common entries.common entries.

Why use a Vendor Class?Why use a Vendor Class?

Creating a class will make it easier to Creating a class will make it easier to setup individual vendors by designating setup individual vendors by designating defaults for that specified class.defaults for that specified class.

You can also make changes to groups of You can also make changes to groups of vendors quickly by changing the class vendors quickly by changing the class record and rolling down the change to all record and rolling down the change to all vendors in that class.vendors in that class.

We will use our company Superior We will use our company Superior Painting as an examplePainting as an example

Lets assume we have multiple Paint Lets assume we have multiple Paint suppliers and we want to group them suppliers and we want to group them under a certain class, “PAINT.”under a certain class, “PAINT.”

Vendor Class SetupVendor Class Setup

Tools>Setup>Purchasing>Vendor Class

Vendor Class Setup ScreenVendor Class Setup Screen

Currency ID – choose a currency that you Currency ID – choose a currency that you will be using in transaction with those will be using in transaction with those vendors. (You must set up your currency vendors. (You must set up your currency first to enter in a default)first to enter in a default)

Rate Type ID - choose whether the Rate Type ID - choose whether the majority of your transactions will be buying majority of your transactions will be buying selling, or both.selling, or both.

Payment Terms – select the terms in Payment Terms – select the terms in which you will be paying this vendor.which you will be paying this vendor.

Setting up Default Account for Setting up Default Account for Vendor ClassesVendor Classes

After entering in the options it is time to After entering in the options it is time to determine how you will be recording determine how you will be recording different transaction with these vendors.different transaction with these vendors.

On the bottom right of the setup screen On the bottom right of the setup screen click on the Accounts button.click on the Accounts button.

Enter Account Setup Here

Setting up vendor class default Setting up vendor class default posting accountsposting accounts

What if we want to track two What if we want to track two departments who order from the departments who order from the

same vendor?same vendor?

Lets assume Superior Painting had two Lets assume Superior Painting had two department, North County Superior department, North County Superior Painting and South County Superior Painting and South County Superior Painting, and they purchase paint from the Painting, and they purchase paint from the same vendor.same vendor.

We can enter multiple purchase accounts We can enter multiple purchase accounts to use during transaction entry when we to use during transaction entry when we distribute amounts to posting accounts.distribute amounts to posting accounts.

Setting up vendor class default Setting up vendor class default posting accountsposting 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 CardsVendor Cards

Now that we have setup our Vendor Class Now that we have setup our Vendor Class we can begin entering in individual we can begin entering in individual vendors to that class.vendors to that class.

Vendor CardsVendor Cards

Cards>Purchasing>Vendor

Entering Vendor InformationEntering Vendor Information

Select the Class ID that you would Select the Class ID that you would like this vendor to be underlike this vendor to be under

Click here!

TransactionsTransactionsInvoices, credit memos, returnsInvoices, credit memos, returns

Finance charges, miscellaneous Finance charges, miscellaneous

chargescharges

BatchesBatches

A group of transactions that you use just A group of transactions that you use just one time, or recurring batches for one time, or recurring batches for transactions you enter on a regular basis.transactions you enter on a regular basis.

Creating A BatchCreating A Batch1. 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 InvoiceEntering An InvoiceTransactions>> Purchasing>> Transaction Entry

Entering an InvoiceEntering an Invoice

Entering Credit Memos & ReturnsEntering Credit Memos & Returns

During the course of doing business, you might During the course of doing business, you might return merchandise or receive credit.return merchandise or receive credit.

For example, assume that the fabric for the new For example, assume that the fabric for the new line of cozy doggy sweaters was defective and line of cozy doggy sweaters was defective and needs to be returned.needs to be returned.

You must record the return as credit memo or as You must record the return as credit memo or as a return. a return.

A credit memo reduces the amount you owe a A credit memo reduces the amount you owe a vendor.vendor.

To enter a credit memo or returnTo 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 ChargesFinance or Miscellaneous Charges

To enter a finance or miscellaneous charge, you follow To enter a finance or miscellaneous charge, you follow the same steps as entering an invoice or return but the same steps as entering an invoice or return but select select Finance Charge or Miscellaneous ChargeFinance Charge or Miscellaneous Charge as the as the documentary type.documentary type.

A finance charge is the cost of borrowing money or a fee A finance charge is the cost of borrowing money or a fee for not making payments on time.for not making payments on time.

Examples of miscellaneous charges are service charges Examples of miscellaneous charges are service charges such as installation or repairs of merchandise.such as installation or repairs of merchandise.

For example, if Extreme Mountain Vehicle was on a For example, if Extreme Mountain Vehicle was on a leasing agreement with the SUV’s they used and were leasing agreement with the SUV’s they used and were late with a monthly payment, you would track the extra late with a monthly payment, you would track the extra expense as a finance charge.expense as a finance charge.

Paying An InvoicePaying An InvoiceBY 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 A manual payment is when you haven’t received the merchandise and an invoice received the merchandise and an invoice has not been recorded.has not been recorded.

A manual payment can be paid by cash, check or charge.

Scheduled PaymentsScheduled Payments

When you make large purchases from When you make large purchases from vendors or make purchases that are vendors or make purchases that are delivered over time, you might want to delivered over time, you might want to spread payments out. spread payments out.

For example, if Kabobby’s purchased the For example, if Kabobby’s purchased the newest, state-of-the-art grill for their newest, state-of-the-art grill for their restaurant they would have a large restaurant they would have a large payment and would use a scheduled payment and would use a scheduled payment to pay off the equipment.payment to pay off the equipment.

Creating A Payment ScheduleCreating 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