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v.5 Accounts Payable Foundations

(Course #V111)

Presented by: Erin Ogletree Shelby Contract Trainer

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Objective

This class covers the basics of Accounts Payable including how to enter vendors, enter invoices, write checks, and run the Invoice Listing Report.

The following topics are presented in this session:

How Accounts Payable Relates to Other Modules

Utility Menu

• Company Information

o Company Info—tab 1

o Check Stub Info—tab 2

• Void Checks

o Keep As Unpaid or Not?

How to Process Invoices

• Invoice Entry

• Add/Change a Vendor

o Vendor Information

How to Process Checks

• Select Items to Pay

o Partial Payment

o Change Due Date

• Cash Requirements Report

• Print Checks

How to Run Inquiries

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How Accounts Payable Relates to Other Modules

Before you discuss the setup and operation of the Accounts Payable module, it is important to understand that there are many facets of information that Shelby collects. The information displayed is based on two foundations: GlobaFILE and General Ledger.

GlobaFILE contains the core information for every person and organization that is stored in Shelby v.5.

General Ledger is the foundation for all financial information in Shelby v.5.

You see the connection that Accounts Payable has with both of these pivotal modules as we learn more. Another connection that Accounts Payable (AP) has within Shelby v.5 is to the Bank Reconciliation module. All checks written or voided through AP are recorded in both the General Ledger as totals and the Bank Reconciliation module as checks at the time of the final update.

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Home Base > Utility

Two main areas need to be set up prior to using the AP module. The first is the Bank Account(s) and the second is the Company Information. The bank account has to be set up in General Ledger. It also needs to be set up in Bank Reconciliation, if it is a reconcilable account.

Once you have the bank account set up in General Ledger and Bank Reconciliation, you are ready to start working in Accounts Payable. From your Shelby dashboard select the Financials tab and then click the Accounts Payable option.

The two main tasks here are to establish your interface with the General Ledger and decide whether to operate on a cash or accrual basis. Specify information for each company in which the bank accounts were defined. The information entered here is unique to each company, not the individual bank account defined. The other information to set up is check stub information and ACH bank information for the company.

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Company Information

• From the Accounts Payable Home Base top menu select Utility -> Company Information. We are discussing tabs 1 & 2.

o Company Info – Set up Cash or Accrual basis, Interface with GL, Tax ID, and other items. o Check Stub Info – Make selections that are reflected on the check stubs.

Company Info – Tab 1

• Entering the payables number found in the liabilities section of your chart of accounts in the Payables Account # field allows the system to recognize that you are operating on an accrual basis. o Accrual Basis – This method sends entries to the General Ledger when invoices are

entered and saved. The Accounts Payable account is credited, and the expense or other accounts being charged are debited. Once the checks are written and updated, the Accounts Payable account is then debited, and the bank account is credited. This allows the expense to post in the period it is generated but not reduce the cash account until the check is written.

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• Leave the Payables Account # field blank to operate on a cash basis.

o Cash Basis – Using this method, no entries are sent to the General Ledger when invoices are entered and saved. The bank account is credited, and the expense or other accounts being charged are debited when the checks are written and General Ledger is updated. This posts the charge to the expense and reduces the cash account at the time the check is written. This is the most common setup.

Check Stub Info – Tab 2

This tab contains a list of data to use in updating the information printed on the check stub. This enables you to include account numbers on the stub or print only the total amount paid.

Select the Print Salutations for Organizations check box to print the Salutation listed on the vendor record as an ATTN: line in the address of the check.

EX: Hammermill Publishing ATTN: John Smith 2323 Volte Dr Sausalito, CA 98998

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Void Checks You can void any checks that have been entered and finalized within the Accounts Payable module. This makes the necessary adjustments in the General Ledger journal entry area, in Accounts Payable, and in Bank Reconciliation. If you have several checks to void, the program creates a journal entry for each one individually. If the check you are voiding has multiple lines of distribution, the void reverses each line. You cannot void a check that has been cleared on a statement in Bank Reconciliation.

To Void a Check:

1. From the AP Home Base top menu select Utility -> Void Check.

2. Fill in all information about the check. **Click the Search icon for a list of available checks by Vendor.

**’Keep Detail Lines as Unpaid’ –If this check box is selected, this keeps the invoice to be re-issued and only Voids the check. If left unselected, the system voids the invoice and the check.

3. Click the Add to Grid button. 4. Verify information – Click the

Yes button. 5. Repeat or click the OK button

to finalize void.

NOTE: If you void a check and select the Keep the Detail Lines as Unpaid check box, make changes to the invoice using ‘Undo’ the invoice, correct it, and then update it to reprocess the check (see Undo Invoices).

If you choose NOT to select the Keep Detail Lines as Unpaid check box, the Invoice Number column for the voided entry displays the original invoice number with ‘VOIDED’ in the Type column. For Regular Invoices no additional invoice is displayed on the Inquiry screen. For Manual Checks an unsaved invoice is created and available on the Invoice Processing screen.

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Invoice Processing

Information for each vendor must be established prior to processing your invoices. This is all done at one time under Vendor Information or individually at the time of invoice entry. The detail of each invoice processed is maintained for inquiring and reporting.

Processing payables (AP) involves entering the invoice information, printing an edit list to verify your entries are correct, and finalizing (saving) the invoices. The process is the same for entering invoices, adjustments, and/or manual checks. Any of the information is easily changed or deleted prior to finalizing the invoices. Once the invoices are finalized, they move into the Process Checks section as unpaid invoices pending payment.

1. On the Accounts Payable Home Base screen, click the Bank Account drop-down icon to select the bank account to be used.

2. Select the Invoice Processing option.

3. On the Invoice Processing screen, right-click in the center of the screen and select New, or press Ctrl+N to start a new invoice.

**The white boxes are search fields only for the listed invoices.

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Create a New Invoice Follow the steps above, and the invoice entry screen displays.

Select a Vendor

Once you are on the invoice entry screen, the cursor is at the Vendor Name field. Begin typing the vendor name or press the F4 key for a list of vendors.

Begin the search with the first few characters of the Vendor name and then press the Enter key to start the search. A list of possible matches appears; if the correct name is listed, double-click on the name to select and return to the invoice entry screen.

Adding a New Vendor during invoice entry

Before adding a new record, make sure to select the Show names for all modules radio button found under the Name Filter at the top of the screen. This is important if the name is not found in the list on your first search.

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If the name is not listed, click the button at the bottom of the screen. Use the Navigator that appears to the left when the new record is opened to select the fields to be entered (address, account number, etc.).

• General Information – consists of names, addresses, phone numbers, and demographic information. This allows you to enter basic information in one common area, which is then used throughout the various application programs. For example, a name entered through Accounts Payable is also used in Payroll, Accounts Receivable, and so forth.

• Accounts Information – fields in this area relate to the vendor specifically. Information such as default accounts, product line, 1099 status, and other items are located under Vendor Information in the AP section of the Navigator.

Once the Vendor is selected, you are ready to enter the invoice information.

Enter Invoice detail

Press the TAB key (or + key on the number pad) to move through the fields to enter invoice information. The system adds an invoice number if you do not fill in the blank field. It requires an invoice date and due date. These dates can be the same.

Invoice Account Distribution Options

Manual Distribution – Enter data into the invoice, amount, date, and distribution fields as they appear on the invoice.

PO # & Distribution – Enter a number or, if you use the PO module, click the Search icon to select a PO from a list for this vendor. On the distribution line click the PO drop-down icon to select the detail for the PO referenced.

Vendor Distribution – On a vendor record you can set default account information. This is found under ‘Vendor Information.’ This information is used automatically when the vendor is selected. The information is changed as needed.

Depending on your GL Account structure, you need a Fund, Dept, and Account number for each line of detail on the invoice.

NOTE: To research a Vendor’s prior history for charges or to verify whether a bill has been paid, click the Inquiries icon at the top right of the Invoice entry screen. This displays the current vendor and an option to select a date range to search. When the search is completed, click the Close icon or FILE -> Close and not the Red X. The Invoice Entry screen displays.

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Scenario: You have a bill from Office Max for $100.00, and the break down is $50.00 for paper and $50.00 for a calculator.

These two items are not charged to the same line item in your accounts. The paper could be charged to ‘Printer/Copier’, and the calculator could be charged to ‘Office Equipment.’ Your screen view might look similar to the one below:

When all the invoice detail is entered, you are ready to proceed to the next invoice.

Click the Apply button if you have more invoices to enter, or click the OK button to complete the task.

After the final invoice is entered, return to the Invoice Processing screen. From the top menu, select Reports -> Print Edit. This runs the report to verify your invoice entry information. Click the button to run the report and filter a selection of invoices to process. Leaving the Criteria set to the default allows you to update all pending invoices. Once they have been updated, they are ready for the next step of Payment Processing.

Note: There is a calculator available for use when you are in a currency field. It displays when you press the F4 key when the cursor is in the Amount field.

You can add multiple amounts. When you have a total, click the OK button to place the total into the selected field.

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Vendor Information From the AP Home Base screen select Vendor Information.

Add a Vendor

Type the Vendor name into the Name Filter and press enter to show selections. A list of possible matches appears. If the name is not found in the list, before adding a new record, make sure to select the Show names for all modules radio button found under the Name Filter at the top of the screen. Once you have verified the name is not listed, click the Add Record button at the bottom of the screen. Use the Navigator to select the fields to be entered (address, account number, etc.).

Change/Update a Vendor

To update or change information, first locate the vendor in the vendor listing. Once you find the vendor, double-click on the name, right-click and select Modify/View Record, or use the Modify/View button at the bottom of the screen.

The record displays the Vendor Information screen, or you can use the Navigator to move through other topics that need to be updated.

Under Vendor Information you set a default account number, the vendor 1099 status, and other items related to paying this vendor.

Click the Save and Close icon to update the new information.

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Process Checks

Processing checks includes selecting the invoices to pay and then printing the checks. A register prints prior to printing the checks for you to verify and keep for your records, either in hard copy or PDF format.

Select items to pay The method by which you select invoices varies based on the situation. You can use the Criteria filter to select the items by due date, invoice date, or other options.

NOTE: If the Display at Start Up check box is selected for Invoice Criteria, the invoice criteria window displays instead of the Invoice Processing screen after you close an Inquiry.

You can leave this filter blank and manually select the invoices to pay. Click the Select All button to select all pending invoices first and then deselect the few invoices not to pay at this time. On the other hand, if you are only going to pay a few invoices, it may be easier to click the DeSelect All button and then use your mouse to select only those invoices to pay.

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Auto-Select Options

None: This makes no automatic choices. If you manually select an invoice to pay, but it has more than one line item, the system only pays the selected line items.

Complete Invoice: If you select an invoice line and there are other lines for the same invoice on the screen, you are prompted to indicate whether to pay all lines at the same time.

Complete Vendor: This option selects all invoices for each Vendor to be paid.

Other Options:

Right-click on any invoice to change the due date, make a split payment, hold an invoice, or add a memo to a detail line.

When the Split Payment option is selected, the system automatically sets up another line for the same invoice with the remaining amount. This is helpful when you have a partial shipment or disputed items.

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Cash Requirements Report Once the invoices have been selected (Red mark) to pay, run a Cash Requirements report. From the top menu select Reports -> Invoice Reports -> Cash Requirements Report. Use the filters for your desired results.

After verifying the checks, total, and vendors to be paid, you are ready to run checks.

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Print Checks • The Print Checks button is located at the bottom right of the check processing screen.

• The process displays a box for additional information about the check run such as date,

starting check number, and the number of checks that complete the check run. • The General Ledger Interface displays. Verify that the posting period and date match before

clicking the OK button. • Do not put the checks in the printer until you are prompted. • The Check Register automatically displays on the screen; print this report and review the

information. This is the Only check register you can print. Once you close the register, you are prompted to put the checks in the printer.

• Checks display on the screen for your review. Once you view the checks, select the print

icon, and this starts printing the actual checks. **Caution: Be sure to print hard copies of your checks because once the process is

completed, the system considers them printed. • The Finalization process verifies whether or not any checks need to be reprinted. If yes, a

new check register is also available to print after any reprinting of checks. If no, the system is ready to update to the General Ledger (GL). **Caution: If the GL update is cancelled prior to completion, the checks are printed but not

posted to General Ledger.

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Inquiries

You can view or print Accounts Payable information at any time using the Inquiries feature.

Note: This option is available to access Inquiry for a Vendor from the Invoice Entry screen. Click the Inquiries button to view information about the Vendor.

Inquiries Use the Invoice Inquiry Criteria screen to filter and sort invoices, checks, and credit card information to meet your requirements. A list of invoices or checks based on your criteria displays. Individual invoice, check, or credit card detail are then viewed.

The Invoice Inquiry Criteria screen allows you to choose the information selected and sort the Accounts Payable information to be viewed. The information displays on the invoice inquiry screen.

To print the list shown on the screen, from the top menu select Reports -> Invoice Inquiry Report.

To open an item, double-click on the detail line.

If it is unpaid, it opens to the invoice information.

If it is paid, you have the option to open the invoice or check information.

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Q&A

Class Discussion

Erin Ogletree Shelby Trainer/Consultant erin.ogletree@Shelbyinc.com

Erin has 13 years of experience serving churches as a Shelby trainer and currently is a Shelby Master Trainer. Over the years she has learned the benefits that Shelby Systems has to offer the various ministries and programs of the church through maintaining up-to-date information on members, visitors, and finances. Having also been on staff as a user of Shelby v.5 in her church for 16 years, Erin brings a wealth of knowledge to her training. Erin is excited about sharing that knowledge and experience with customers as she leads them through the most current best practices of Shelby v.5 and ShelbyNext.