Set Accounts Payable Options
Select Accounts Payable Options in System Options Maintenance (XM) to set accounts payable options for your enterprise.
Set these options for your enterprise:
Field Name |
Type / Max Length |
Action / Description |
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Landed cost type 1-4 |
Optional |
Enter labels for landed cost categories if you track landed costs for purchased items. Examples include freight, duty, insurance, and brokerage fees. These field labels display in the Landed Cost Item History Inquiry (NLHI), Landed Cost History Report (NLHR), Vendor Price Maintenance (VMM), and Vendor Price Inquiry (VMQ) programs. |
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Accrue landed costs? |
Optional |
Select to if you want accrue landed costs when the receipts are updated. If you select this option, you will need to set up Landed Cost Accrual (LCST ACCR) and Landed Cost Variance (LCST VAR) accounts in Posting Criteria Maintenance. See Overview: Landed Costs for more information. |
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1099 field description |
Optional |
Enter a label for the 1099 tax reporting field that displays in the AP Invoice Entry (NE) and Vendor Invoice Payments (NC) programs for a vendor for whom you have entered a T (1099) in the Tax type field in the Vendor Maintenance (VM) program. You use the field to enter the amount of the invoice that should be reported as 1099 income. The label also applies when you pay the invoice; you use the field to enter the portion of the payment that applies. |
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1099 reporting ID description |
Optional |
Enter a label for 1099 reporting ID field. If you select T (1099) for the Tax type field in the Vendor Maintenance (VM) program, you can enter the vendor's social security number or federal ID number in the Tax ID number field. After you complete the record, the field label changes to the label you enter for this option. The Vendor Inquiry (VQ) program also displays this field label. |
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1099 minimum reporting amount |
Optional |
Enter the lowest amount eligible for 1099 reporting. If a vendor's total 1099 payments for the year are less than this amount, the 1099 Print (N99P) program will not print a 1099 tax form. However, the 1099 Inquiry (N99Q) and 1099 Detail Report (N99R) programs display and print amounts that are less than the minimum. |
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1099 withholding percentage |
Optional |
Enter the percent of the 1099 reporting amount to be withheld for pre-payment of taxes to the federal government. If you select Withhold tax? in the Vendor Maintenance (VM) program, the Vendor Invoice Payments (NC) program calculates the amount to be withheld. You must set up a default account or posting criteria in the Posting Criteria Maintenance (XPC) program to track withholding. The 1099 Inquiry (N99Q) and 1099 Detail Report (N99R) programs display and print the amount withheld. |
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GST reporting flag description |
Optional |
Enter a label for the Goods and Services Tax reporting field that displays in the AP Invoice Entry (NE) and Vendor Invoice Payment (NC) programs for a vendor for whom you have entered a G (GST) in the Tax type field in the Vendor Maintenance (VM) program. You use the field to enter the portion of the invoice that should be reported for GST purposes. |
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GST reporting ID description |
Optional |
Enter a label for Goods and Services Tax reporting ID field. If you select G (GST) for the Tax type field in the Vendor Maintenance (VM) program, you can enter the vendor's Goods and Services Tax number in the Tax ID number field. After you complete the record, the field label changes to the label you enter for this option. The Vendor Inquiry (VQ) program also displays this field label. |
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AP/Purchasing variance % |
Required |
Enter the maximum acceptable invoice-PO cost variance percent. If an invoice cost differs from the PO cost (plus or minus) by more than this amount, the AP Invoice Entry (NE) program will not allow the clerk to proceed. In this case, purchasing needs to update the PO cost before AP can enter the invoice. Alternatively, the system administrator could increase this variance percent so that AP can enter the invoice. If this is an unusual exception, the administrator should change the variance back to the original percent. The system calculates the variance: ((Quantity paid x Standard unit cost) + Surcharges) - Invoice cost. If you enter a variance percent of 0 (zero), the clerk cannot enter an invoice that differs from the PO cost. If you enter a variance percent of 999.99, the AP Invoice Entry program does not check for a variance. The clerk can enter an invoice for any amount. If the PO references a manufacturing order, you can still a track variance because variance is posted as an adjustment to manufacturing order costs. If you have many surcharges, you need to set a variance that covers them. Note |
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AP min tolerance amount |
Optional |
Enter the dollar amount that must be exceeded to trigger a variance exception. If the variance on a PO line being invoiced is not greater than this minimum, the invoice is processed without exception. The variance amount is calculated as the difference between the PO cost and the invoice cost multiplied by the quantity being invoiced (i.e., it is an extended amount not a per unit amount). |
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AP interfaced to purchasing? |
Optional |
Select if you want the system to link purchase orders and receivers to invoices and checks or leave blank if you do not. If you select this option, you can select receivers and purchase order lines to invoice in the AP Invoice Entry (NE) program. The system provides inquiries and drills so that you can track whether or not you have paid a purchase order. The system also tracks PO and invoice costs, reports variances, and can prevent invoicing if the variance exceeds the percent you set for the AP/Purchasing variance % option. The system reports receipts not yet invoiced and displays the total accrued payables. If you leave blank, there is no link between the invoices you enter and received POs. You must enter the asset or expense account to use for GL posting as well as the amount. When you first select this option, you should run the AP Paid Status Update (NPX) program to set the status of already paid PO lines to "paid." |
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Bank reconciliation system active? |
Optional |
Select if you want to activate the bank reconciliation system or leave blank if you do not. If you select this option, the system writes checks processed by the AP Payment Register (NCR) program to the Bank Reconciliation file. If you use the AP Check Void and Reversal (NVC) program to reverse a check and then print the AP Check Reversal Register, the system removes the reversed check from the file. You can use the Bank Reconciliation (NBC) program to enter bank charges, interest, and miscellaneous charges or revenue while reconciling your bank statement. If you select the Update cash receipts to bank recon? (Accounts Receivable Options), the system adds payments you process with the Cash Receipts Entry (RCE) program to the balance as deposits. If you do not select this option, you will not have access to the AP Installation Check Entry (NBN), Bank Reconciliation (NBC), Outstanding Transaction Listing (NBO), and Bank Transaction Audit Listing (NBCL) programs. |
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Allow payments to vendors not on file? |
Optional |
Select if you want to make payments to vendors not on file or leave blank if you do not. If you select this option, you can enter payments in the Vendor Invoice Payments (NC) program for a vendor that does not have a record in the Vendor Maintenance (VM) program. Click Spec pmt, accept [***] 1 in the Vendor number field, enter the vendor's name and address, and enter the payment amount. If you leave this option blank, the Spec pmt button does not display. |
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Grace period for terms discounts |
Optional |
Enter a number of days to extend the eligibility to receive a discount for prompt payment based on the terms code. The Vendor Invoice Payments (NC) program includes this grace period when it applies the terms discount selected in the vendor's record in the Vendor Maintenance (VM) program. |
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AP check program name |
Optional |
Enter NCPV to print checks on your laser printer or leave blank to use the standard Check Print (NCP) program. If you enter NCPV, the Check Print (NCP) program launches the Laser Check Print program. You need to run the Payment Method Batch Maintenance (TAPMB) program to set up what prints on your checks. See Overview: Print Checks on your Laser Printer. |
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Post ck register cash by payment no? |
Optional |
Select if you want to post to the general ledger cash account by check/payment number or leave blank if you do not. |
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Bank recon interfaced to GL? |
Optional |
Select if you want bank reconciliation entries to be automatically posted to the general ledger. |
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Payment notification device |
Conditional |
Select the device for sending notifications to vendors when ACH payments are processed through Check Print/Payment Processing (NCP). If you make ACH payments, it is strongly recommended that you enter a device so that vendors are notified of invoices paid. The device must be email (device type L Email) with 6 HTML in body of the email selected as the Email attachment format in Output Device Maintenance. Notifications are automatically sent for ACH payments if the Pmt notification? field in Vendor Maintenance (VM) is selected. Notifications can resent from Payment Inquiry/Reprint. |
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Sender's email for vouchers |
Optional |
Enter the email address you want used as the "from" address when payment notifications are sent. |
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Default alt pmt date to discount/due |
Optional |
When making an alternate (i.e., non-check) payment, select to default the payment date as follows:
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Offset ACH payment date if today? |
Optional |
When making an Automated Clearing House (ACH) payment, select to add a one-day offset to the payment date if it is today. |
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AP invoice approvals active? |
Optional |
Select if you want to set up an approval process that requires one or more people to sign off on selected accounts payable invoices before they are paid. If you select, you must set up a hierarchy and approval cycle with the Approval Hierarchy Maintenance (APPHM) and Approvals Maintenance (APPM) programs. See Overview: Approval Processing. |
Choose the appropriate options:
To |
Do This |
Change an option |
Click the desired field and make the change |
Exit without changing these options |
Click Cancel. |
Save changed options and leave the screen displayed |
Click Apply. |
Display additional options |
Click Other info. |
Print these options |
Click Print. See Print an Inquiry. |
Accept these options and exit |
Click OK. |
Choose the appropriate options when you click OK or Cancel:
To |
Do This |
Display a category of options |
Highlight the line and click Select or double-click the line. |
Exit the program |
Click Cancel or Exit. |