This topic covers several less common (but important) types of A/P procedures.

Procedures

CREDIT MEMOS

You can also use this program to enter credit memos for returned purchases, or other adjustments to a vendor’s A/P balance. Doing so is similar to entering any other type of invoice, except that the dollar amounts you enter are negative. The key points to remember are:

1. Enter the Credit Memo number in the INVOICE field.

2. Enter the date the credit memo was issued in the DATED field.

3. Enter the total amount of the credit as a negative number in the AMOUNT field.

4. Enter each one line item for each expense credited on the memo. If this is a return, make certain that the accounts you use are exactly the same as on the original vendor invoice so that they will be properly ‘reversed’.

5. Make certain to enter a negative amount in the line amount field for each ine item.

 In the case of a return, you can save a lot of time by locating the original invoice and Cloning it by pressing [View], then the Clone Button from within the transaction. Simply type in the credit memo number in the INVOICE field and negative amounts in each dollar field on the transaction and save it. You can then take this newly created credit and press the [Apply Credit] button to match it to any other open invoice (or simply tag it on your next check run to be automatically deducted from the selected invoices to pay.

PRE-PAYING A VENDOR

If you need to pre-pay a vendor for work not yet done, you do this by making two entries into the A/P Bills Browse like so:

1. Start by entering a bill into the A/P Bills Browse. In the A/P Account, enter your asset account, Pre-Paid Expenses.

2. Enter one line item with a description of the work to be done. In the AMOUNT field, enter 0.00.

3. Save the transaction.

4. Tag the new ‘Bill’ and in the AMOUNT TO PAY enter the total amount of the check you are writing. Don’t worry about the warning regarding overpaying.

5. Print the check to the vendor. The original bill will appear as an open credit in green.

6. When the work is done and you are presented with the final invoice, enter this invoice just like any other.

7. Now locate the original open credit generated in step #5. Press the [Apply Credit] button and apply the credit to the final vendor invoice.

CREATING A RECURRING BILL

Press the [Recurring] button to create a Recurring Vendor Bills from the selected bill. This allows you to automate entering this bill if it is periodic. For example: monthly utilities, auto payments, etc. You can then go to Recurring Vendor Invoices and create a new bill with identical accounts and amounts, but using the current date, with a single keystroke. You can also set up the recurring entry to be posted automatically at regular intervals, i.e. weekly, monthly, and so forth.

CONVERTING A ONE TIME VENDOR TO AN ACCOUNT VENDOR

Press the [Convert] button to convert a One Time Vendor to a regular Vendor ID. This creates a new record in the vendor main data file and converts the selected invoice to the new ID. You are prompted for an ID to use for the new vendor. The vendor’s address and phone numbers are taken from the selected invoice.