ACCOUNTS PAYABLE Vouchering and Payments

1. ACCOUNTS PAYABLEVouchering and Payments MIDWEST USER GROUP

2. Agenda • Data Set Up • Vouchering • Three Way Matching • AP Variances • Evaluated Receipt Settlement • Check Forms • Check Selection • Payment • Reconciliation

3. Accounts Payable Process Purchase Order Receipt Purchase Order Entry Voucher Maintenance Check Payment Voucher Payment Selection Check Cancellation Check Void * Check Void will re-open the voucher

4. Voucher Processing Flow • Maintain Vouchers for: • Supplier invoices • Credit returns • Rebates & discounts • Loading supplier balances • Prepayments • Miscellaneous expenses • Recurring vouchers Confirm Voucher Run AP Reports (menu 28)

5. Voucher Maintenance

6. Three Way Match Purchase Order What was Ordered? Purchase Order Receipt What was received? Accounts Payable Voucher What are we paying for?

7. Receiver Data Automatic Receiver Matching

8. Receiver Maintenance

9. Receiver Matching Maintenance

10. Three Way Matching

11. AP Rate Variance 200.00 1000 1 1008 12-4020 100.0 • Voucher Maintenance • DR PO Receipts 100 • DR AP Rate Var. 100 • ($1 x 100) • CR AP 200 1.00 1.00 100.00 100.00 100.00 2.00 200.00 0.00 0.0 100.00 100.00 100.00 0.00 WARNING: EXTENDED INVOICE COST IS GREATER THAN EXTENDED PO COST AP Rate Variance = (invoice unit cost - PO unit cost) * invoice quantity AP Rate Variance = (2.00 - 1.00) * 100 = +100.00

12. AP Usage Variance 110.00 1520 1001 1 1009 12-4020 110.0 • Voucher Maintenance • DR PO Receipts 100 • DR AP Usage Var. 10 • ($1 x 10) • CR AP 110 1001 yes 1.00 1.00 100.00 100.00 110.00 1.00 110.00 0.00 0.0 0.00 100.00 100.00 10.00 WARNING: EXTENDED INVOICE COST IS GREATER THAN EXTENDED PO COST AP Usage Variance = (invoice quantity - received quantity) * PO unit cost AP Usage Variance = (110 - 100) * 1.00 = +10.00

13. Voucher Distribution

14. Voucher Maintenance

15. ERS Processing ERS processing lets you: • Record a pending payment to a supplier without a supplier invoice • Record liabilities to the supplier automatically, based on quantities received at the price established in purchase order agreements

16. Enter Purchase Order Receive Order Receive Supplier Invoice Create Voucher Enter Voucher Process Accts Payable ERS Business Workflow with ERS without ERS

17. Considerations • Timely agreement of price by you and the supplier • Your timely issuance of purchase authorization documents • The supplier’s timely issuance of accurate shipping information • Your timely entry of accurate receipt information

18. Accounts Payable Control File 28.24 ERS Maintenance 28.10.1 Purchase Order Control File 5.24 Run ERS Conversion Scheduled Order Maintenance 5.5.1.13 Purchase Order Maintenance 5.7 Blanket Order Maintenance 5.3.1 ERS Processing Workflow Confirm Shipper 5.13.17 Purchase Order Receipts 5.13.1 Accounts Payable Payment 28.9 ERS Processor 28.10.13

19. OverviewERS Option Indicates type of ERS processing to allow for an ERS master record • 1 disallows ERS processing • 2 allows an unconfirmed voucher to be created (confirm voucher in separate process) • 3 allows creation of a confirmed voucher

20. OverviewERS Price List Option Indicates the effective date to use when accessing a price list • 1 specifies the receipt date • 2 specified the ship date • 3 specifies the order date • Normal order date for discrete purchase orders • Release date for blanket orders • Main order date for scheduled orders

21. Comparison of ERS Option Settings Purchasing Control File (5.24) Indicates when MFG/PRO takes the ERS Option setting ERS Maintenance (28.10.1)Indicates what type of ERS processing occurs • 1 disallows ERS processing. • 2 unconfirmed voucher • 3 confirmed voucher • Blank uses default from ERS Maint. (28.10.1). • 0 use ERS option from ERS Maint. at ERS processing. • 1 disallows ERS processing.

22. ERS Maintenance (28.10.1) ERS Option = 1 2 3 ERS Option Field Defaults - PO Purchasing Control File (5.24) ERS Option = blank 0 1 Purchase Order (5.7)* Header Default for PO ERS Option = blank 0 1 Line ERS Option = 1 2 3 0 1 *or Blanket Order or Scheduled Order

23. ERS Price List Option Field Defaults ERS Maintenance (28.10.1) ERS Price List Option = 1 2 3 Purchase Order (5.7)* Header Header ERS Price List Option = 0 1 2 3 ERS Option = blank 0 1 Line ERS Price List Option = 1 2 3 0 1 2 3 *or Blanket Order or Scheduled Order

24. Payment Selection Automatic Select Vouchers to be Paid

25. Payment Selection - Automatic Override or Limit Vouchers Selected

26. Payment Selection- Manual Can be used to de-select vouchers selected for Payment

27. Check Forms Available

28. Check Forms • Check Form 1: Standard Printed Check • Check Form 2: Alternative Printed Check • Check Form 3: EFT Requests on Printed Form • Check Form 4: Similar to Form 3 - Creates ASCII File • Check Form 5: Negotiable (secured) Draft Payments and French Drafts • Check Form 6: Non-Negotiable (demand) Draft Payments supports formats in Italy and Brazil • Check Form 7: Used for Custodial Drafts - Group Bill-To and Purchase Orders paid to a single bank (used In Italy and Brazil)

29. Account Type Distinguishes Multiple Bank Accounts for Same Bank Match on Supplier Bank Prt EDI All

30. Payment - Automatic Checks

31. Payment - Manual Checks

32. Payment Register

33. Check Void Maintenance

34. Check Cancellation Maintenance

35. Accounts PayableVouchering and Payments Questions…?