|
|
After setting Accounts Payable starting balances, the second task in setting up the Accounts Payable module is to optionally, setup the option for advances. Some consignment type businesses advance money to their suppliers based on the inventory they have received. System Five has an automated method to create and deduct advances.
The steps are as follows:
To create a ledger account for all advances in the Chart of Accounts, choose the following Navigator menu: Setup Tools | Setup Wizard | Suppliers and Payables | A/P Advances. The Accounts Payable Advances window appears. You may need to select the Advanced Mode.
Click the A/P Ledger Number down-arrow and select the ledger number you wish to use for advances from the drop-down list.
To create an advance for a supplier, find the supplier that you wish to create the advance for and select the Advances tab. (This tab only shows if you have setup the ledger.)
This tab list all the previous advances and deductions showing an outstanding balance for the advances.
To create a new advance, enter the amount and description and click [Create Advance]. If this button is unavailable you do not have the required security. This create a bill for the amount and then creates a check paying off that bill. The check is then brought up and you can either batch or post and pay the check.
There is a security flag under Setup Tools | Setup Wizard | Users and Security> Accounts Payable Bills, Create Advances (15,4) that can be enabled or disabled for each user.
When you create a new bill, you are prompted to apply any outstanding advances if any exist for this supplier.
If you answer Yes, a line is added on the bill for the advance. If the bill does not add up to the advance, you can adjust the advanced amount. If you leave the full advance, the new bill is a credit bill.
Now you can set up early payment discounts for suppliers
< Return to: Topic Overview
< Return to: Accounts Payable menu overview