Accounts Payable System (APS)
The Accounts Payable System (APS) provides comprehensive control of vendors, purchase orders, payables and checks, and introduces a new level of automation for the effective management and payment of payables.
APS centralizes accounts payable operations on the enterprise server to give management complete control over the payable payment approval and check production process. Individuals, with proper clearance through the security system, have complete access to audit every payable and check from any terminal attached to the enterprise server. Managers find it easy to get information directly, putting them in control of the funds disbursed from their organization.
APS simplifies the payment process, from payable entry, to payment approval, to check production, and finally to check reconciliation, and includes the following features:
- Discounts are calculated automatically.
- General ledger integration transactions (cash or accrual) are automatic.
- Payables are paid from either DDA or general ledger checking accounts.
- Payables can be categorized and paid via a single check.
- Paid payables are retained for as long as necessary.
- Vendors are paid by check, magnetic tape (electronic ACH), or credited to DDA or Savings as an on-us item.
- Year-end tax information is reported to vendors and federal government.
- Payables with prepaid expenses may be split based upon expense frequency.
- The option of adding usage tax without affecting the net amount of the transaction is provided.
- Transaction history is maintained for expense category and vendor reporting.
- Multi-institution, branch and cost center capabilities are optional.
- Credit amounts can be entered on payable accounts.
To control payments, maintain activity history and simplify check production, vendor records are maintained for each person or business receiving disbursements. Vendor Type Default Specifications can be used when establishing new vendor accounts. These specifications control such information as the General Ledger Account numbers, Payment information and 1099 Reporting Codes. Vendor control parameters and account information include:
- Name, address, contact, and telephone numbers
- Discount terms
- Checking and general ledger expense accounts for payable payments
- Branch and cost center assignments
- Two years of purchase and payment history, and tax reporting totals
- Consolidated payments (generates one check to pay several payables)
- Recurring payables
- Credit limit
- Maximum and minimum payable amounts
- Totals of available and lost discounts
- Default values to simplify new payable maintenance
Vendor records are a convenience and are not required for vendors billing payables on a one-time or an infrequent basis.
Purchase orders are used to confirm that a service or product has been ordered. Anticipated delivery dates can be entered on purchase orders for easy follow-up when deliveries are late. Each purchase order includes:
- Number
- Order Date
- Branch
- Amount
- Delivery Date
- Description
Payable entry is simplified by automatic insertion of a vendor's name and address, expense allocations, year-end tax reporting information, terms and discounts, all based upon vendor specifications. Vendor payables that do not "fit the mold" can be overridden during on-line entry.
Prepaid expense information is available on the new payable entry. These fields define the number of occurrences, frequency and start date of thc prepaid expenses.
Usage tax is also available on the New Payable screen for those items purchased out of state which require in-state sales tax to be applied.
Variances between a payable amount and the amount of its originating purchase order by more than a specified tolerance are reported as exceptions.
Recurring expenses, such as rent, can be set up to eliminate repetitive payable maintenance. The frequency of recurring entries can be daily, weekly, every two weeks, monthly, quarterly, semiannually or annually.
Vendor Credit Accounts Established
Vendor credit accounts, using multiple expense accounts, can be set up for any credit received from a vendor. When new credit accounts are entered, the amount of the credit will be debited to the General Ledger credit suspense account, and a credit will be applied to each of thc credit expense accounts. As the credit amount is used in payments, a credit will be applied to the General Ledger credit suspense account for the amount of the credit, which was used. An addenda record, which includes the payable account number, the amount of credit applied for payment and the payment date will be attached to the credit account.
Payables are expenses on either a cash or accrual basis. An unlimited number of categories (accounts) are expensed on a single payable, and entries are generated automatically. Expenses that have been allocated incorrectly on unpaid payables are adjusted through on-time payable maintenance, and APS generates adjusting transactions.
Prepaid expenses will automatically produce general ledger entries once the new payable is set up, eliminating manual entries.
Checking accounts are established in APS as the source of funds for payable payments. Checking accounts are processed as either DDA or general ledger accounts. Parameters defined on checking accounts include:
- Beginning check numbers
- Check form type -- personal or universal 8 1/2" x 11", side-by-side, or enunciated checks in both 8 1/2" x 11" and side-by-side format
- The number of months check history is retained
- On-line Check Print function
- The signature title printed on checks
- Whether checks are reconciled in APS or the ITI Check Reconciliation System (CRS)
Checking account inquiries and transcript statements are displayed on-line for reviewing balances, recent activity and account coding.
Payables are approved for payment using a display terminal and can be approved one at a time or in groups. Individual payables may be reviewed and optionally approved for payment using the group selection criteria. Individual due dates and dates to be paid may also be changed using the individual group selection. All payables of a particular branch, cost center, vendor, or checking account can be approved at once. In addition, payables due before, on, or after a particular due date can be approved at once.
Payables can also be approved according to their assigned priority. When each payable is originally set up, a relative payment priority (1-9) is assigned. All payables with identical priority codes can be selected for group approval. Payables that have been approved for payment can be reviewed through on-line inquiry.
Payment options to vendors are by check, ACH credit to DDA or Savings, or on-us credit to DDA or Savings. Payments to vendors by ACH or check may be produced in advance of payment due date, with associated general ledger entries delayed until due date.
APS generates reports for reviewing new payables, new credit accounts, approved payments, past due payables, checks and vendor outstanding credit amounts.
- Approved to Pay Report
- Cash Requirements Report
- Check Register
- General Ledger Distribution Report
- General Ledger Exception Report
- Payable Exception Report
- Lost Discount Report
- Paid Payable Report
- Past Due Aging Report
- Pending Discount Report
- Purchase Order Exception Report
- Vendor Exception Report
- Vendor History Report
- Prepaid Expense Journal
- Vendor Credit Notices
- New Credit Accounts Report
- Vendor Outstanding Credit Report
- Transaction Report by General Ledger Account
- General Ledger Transaction Report by Checking Account
- General Ledger Transaction Report by Vendor
- Credit Advice
- Account Credit Advice
- Credit Applied Notices
- Incomplete Payables Distribution Report
- Incomplete Vendor Credit Distribution Report
- Incomplete Recurring Distribution Report
Year-End Tax Reporting
Tax reporting totals are automatically extracted from the APS files for 1099 reporting via the EOY/5000 series of programs. Tax reports may be obtained at any time. Tax information is available on each payable entry.
Additional Software/Hardware Not Required
The Accounts Payable System can be processed as a stand-alone product or integrated with the Premier II System and the Financial Management System (FMS). However, APS requires no additional software or hardware.