Background: Vendor Payments
Use the Vendor Payments (NC) program to select invoices for payment, record a manual check, and print the Cash Requirements Report. See Road Map for work flow.
This topic has these subtopics:
Select Invoices for Payment
You can use the Vendor Payments program to select for payment invoices that you entered with the AP Invoice Entry (NE) program. Invoices placed on hold are not available for selection. Use the AP Invoice Maintenance (NM) program to place invoices on hold or set their status to pay.
You set the amount to be paid for a specific invoice when you select it for payment. If you apply a credit or debit memo to an invoice after you have selected it for payment, the amount of payment reflects the applied credit or debit memo.
You can select all invoices for payment or review each invoice and change the applicable discount, payment, and 1099 amounts.
When you select multiple invoices for one vendor, the system totals the amount so that the Check Print program can print one check. However, some vendors may request or require a separate check for each invoice because the issuing entity is a different department, account, or organization. To accommodate such vendors, select the Single invoice field in the vendor's record in the Vendor Maintenance (VM) program.
You can delete a payment batch if necessary. The system deletes all scheduled payments and manual checks included in the batch; the payments and checks are no longer available for processing in the Check Print (NCP) program. You need to create another batch, select invoices, fixed expenses, and other payments, and record any manual checks again.
Only payments included in a Cash Requirements Report are available for check printing and updating. You must print a new Cash Requirements Report after you make changes to the cash requirements and before you print checks.
Fixed Expenses
For fixed expenses, you must run the Fixed Expense Processing (NFP) program and print the AP Invoice Register in the AP Invoice Entry before you can select them for payment. You need to select either I (include) or O (only) for the Fixed expense field in Vendor Payments. You should not select the Show only invoices eligible for disc? Program option for fixed expenses.
Process an On-Account Payment
The Vendor Payments program allows you to process on-account payments to vendors when you do not know the invoice to which you should apply the payment. You can then issue a manual check or print that check that does not apply to any specific invoice. When this information becomes available, you can use the On-Account Payments Application (NMO) program to apply the on-account transaction to a specific invoice.
Process a Credit Card or Electronic Funds Transfer Batch
If you routinely pay some vendors by credit card or electronic funds transfer, you should select that method in the Payment method field in that vendor's record in the Vendor Maintenance (VM) program. When you enter an invoice in the AP Invoice Entry (NE) program for that vendor and print the AP Invoice Register, a credit card or electronic funds transfer batch displays in the Vendor Payments program. Check Print (NCP) will sets the payment number associated with the entry. Payment Method Batch Maintenance (TAPMB) offers an option to print a non-negotiable copy of the remittance.
If you delete the batch, the system assumes that there will not be a credit card or EFT payment. You must then select the invoice for payment by check or another method.
The AP Payment Register creates an invoice for the credit card company or electronic funds processor. The next time you run Vendor Payments, you will be able to select that invoice for payment. Be aware that each system-created invoice will be for the amount of the vendor purchase and not the total amount you owe the credit card company. If you do not want to use this feature, leave the Vendor number field in the AP Payment Method Codes Maintenance (TAPM) program blank.
Record a Manual Payment to a Vendor
You can record a check that you issued to a vendor manually. Select the invoice and click Manual. Then enter the check number, date, and amount of the check. After you display or print the Cash Requirements Report, the status of a batch that contains a manual check is B. This status means that you skip the Check Print (NCP) program and run the AP Payment Register (NCR) program.
Payments to Vendors Not on File
If you selected the Allow payments to vendors not on file? option in the System Options Maintenance (XM) (Accounts Payable Options) program, you can process payments to a vendor that does not have a record in the Vendor Maintenance (VM) program. Click Spec Pmt.
Cash Requirements Report
Use the Vendor Payments program to print the Cash Requirements Report. The program lists the invoices you selected for payment, information for manual checks, and the cash required to process the checks drawn on the bank account.
The Cash Requirements Report clears the selected payments for check printing. The report also verifies that there are no checks to be printed with a negative or zero amount, which could occur when you apply a credit memo to a check that exceeds the total of all invoices being processed for payment. Debits and credits can be combined to come to a positive payment amount as long as the payment dates are the same. ACH (Automated Clearing House) payments cannot process a negative amount for a single payment date.
The Cash Requirements Report allows you to exclude all zero or negative payments from the listing.
If you make a change to a batch of scheduled payments after you print the Cash Requirements Report, you must print it again.
The Cash Requirements Report includes this information for the batch:
Currency
Cash organization
Cash account
The report includes this information for each payment:
Vendor number
Alternate remit-to number
Invoice date
Invoice amount
Vendor name
Remit-to name and attention line
Discount date
Discount amount
Payment amount
Payment number (the check number if a check was issued or the payment type/sequence number if paid by an alternate payment method)
Invoice number
Due date
Amount due
Payment date
Subtotals amount due, payment amount and discount amount
The report includes these totals for manual checks, alternate payments, and cash required in base currency:
Amount due in base currency
Discount amount
1099 withholding tax
Payment amount
Applied amount
1099/GST reported
Summary of checks to be printed:
Cash account number
Vendor number
Vendor name
Payment amount
Total amount
Currency
When there is an issue with an invoice (e.g., debits do not equal credits), the program prints this information for the preview:
Sequence number
Organization code
Distribution account
Account description
Payment amount
File output includes a descriptive message about the issue (e.g., Out of balance, Alt remit-to is blank)
Batch Statuses
The program displays a status for the batch after you display or print the Cash Requirements Report:
Status |
Description |
B |
Message: Manual
checks processed |
C |
Message: Ready
for check printing |
F |
Message: Checks
printed; run NCR When you process a batch that has only zero balance checks, the Cash Requirements Report does not set the status to B. If you select the Print zero-balance checks? option in the Check Print program and all checks are zero, the program displays a message that No records match and sets the batch status to F so that you can run the AP Payment Register (NCR). |
R |
Message: Checks
can be reprinted |
1 |
Message: Negative
check amount |
2 |
Message: Out-of-balance
condition |
3 |
Message: Batch has no payments |
4 |
Message: Invalid
payment date |
5 |
Message: Invalid
GL account |
Note
You alter the batch status when you make changes after you have printed
the Cash Requirements Report. If you make changes, you must re-print the
Cash Requirements Report for this batch before proceeding to the Check
Print (NCP) program.