Payables

transactions

Presented by: Mekhael Medhat

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Introduction
In this document we will be talking about some payables
transactions also some configurations that might be
required for some scenarios in your business with some
simple examples for a better understanding

Content
1/ creating invoices
2/distributions & reverses
3/ managing offset accounts option
4/ merging suppliers
5/ some payment transactions & terms creation

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 Creating an invoice

To create an invoice after finishing payables configs

1- you must have a role of accounts payable specialist
2- Assigned to your business unit
3- You must have a supplier in your setup
And by then u should be able to create an invoice normally ..
Just head to the navigator and select payables

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Then from the task menu select create invoice

Then start filling the required info make sure that the total amount in
the line fields are equal to the amount in the header

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Hit save then from the invoice action menu choose validate

After it gets validated

Select post to ledger
option

Then u can view the

accounting happened
should look like this with
different combination
ofc

Now as u can see the combination we entered at the invoice line

became as item expense entry .. but what about the liability entry
where did it come from ?

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The liability account can be assigned from 2 different places
The first one is from the payables config ( manage common options for
payables and procurement )
And also from the supplier site options
Keep in mind if u did assign different accounts for payables one in
payables config and the other in supplier site the priority will go for the
supplier site

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U can also double check your source before validating and posting and
change the liability account distribution specifically for the current
invoice that you are creating by clicking on show more from the header

And by going to the Accounting section u can find the liability

distribution address editable

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Assigning distributions & reversing

Speaking of distributions

Assuming that we have such invoice and we want to distribute the

charges for the selected line .. now the total invoice should be equal to
the header which is 13,200 but when I have many lines and I click on
distributions I can only distribute the amount in that line alone which
will be only the 10,000 ..

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Here I can do many things I can reverse the line and make a distribution
for the line to whatever combination I need, down at right bottom u
will find the reaming amount so u can always be sure if calculations are
right or not
and u can do all of the even after posting to your general ledger but
make sure to post again to revoke your entries
next to distribution u can see an option for canceling the whole line
with its distributions ofc then u can hit the + sign to add a line once
again make sure that you re post to your general ledger

u can assign a distribution set so that u don’t have to do it every time

from payables configs and pick manage distribution sets hit the ( + )
start creating one to your business unit

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to make it appear when ever u enter to create an invoice for your
supplier just head to supplier site and pick it from there

Also if we want to assign freight expenses to two lines

Suppose that we did purchase a heavy item for 35k and another light
weight item for 17.5k now we will allocate the freight expenses in a
prorate method..
just click on the check mark for the freight and hit allocate across all
lines and now it will remove the combination for the freight and re
assign to the purchased items account

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 now what if u wanted to return purchases?

We will create a new invoice but this time with the same amount of
money but with a minus sign ( - ) here is how it will look like ..

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notice the entered amount also this time the line will be automatically
created for us all we have to do is to select the invoice .. from the lines
selecting box go for correct unmatched invoice ( unmatched means
unmatched with your PO just like the one we created )
then hit the go mark ( → ) go for the invoice you wanted to correct and
hit apply u will always have to type the amount one more time with the
minus just like creating a new line ..

and it will generate the line with the correct distribution for u just like
this

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hit validate and post to ledger

as u can see its just like a typical reverse ..

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 moving to automatic offset accounts

from mange common option for payable u can see the following

if u choose from the offset segments option none and u enter a

company that is different from the entered one for liability account it
will create off sets accounts just like this

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and If u select the primary balancing segment instead…
as u can see it will change the (primary balancing segment) for the
liability combination so that they can be in the same company without
intercompany entries like first time

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and if you are going for the third option all segments except natural
account it should look like this changing all values but not the account

moving to merge suppliers

suppose that a supplier purchased the other and they have to be under
one name or that we wanted to move all invoices on supplier x to
supplier y

from the procurement app > tasks > merge suppliers

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now we are moving invoices from supplier 3 to one
! please note ! that this process is irreversible

after the process is complete :

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U can also create an invoice in a spread sheet

From the invoices task menu

Select create invoice from
Spreadsheet

U will notice that the excel sheet

Is divided into two sections
Header and the line

NOTE : If u want to create an invoice with two lines just apply the same
number (1) in the 2nd line for the header line instead of 2

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Hit save and submit after making sure that status are correct

U will end up with the request id

After that u can find your invoice and u can validate it and post it

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Heading to some payments transactions

After finishing your banks setup and assigning the needed roles for your
user (cashier / cash manager)
Supposing that you are dealing with an immediate payment term

From invoice options pick pay in full

And then start filling the payment info
Entering the created bank account info
And the payment document if u created
one it will start counting for u… and click
submit.

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Now head to payments from payables options then manage payments
from the tasks menu since u already created one here we can see the
payment we want to confirm

Click on the payment number and then from actions hit post to ledger

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Supposing that u would like to cancel the payment

From actions menu this time click on void

Here it will give u many option u can void

the payment and cancel the invoice or
just voiding the payment and pay later
Or to also put the invoice on hold for
approval ..
Lets go for canceling the invoice too

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Now u will have to click post to ledger again from payments and one
other time from the invoice screen .. here

And that’s why u will need to post from the invoices too

Here u can notice

some intercompany
options as I did run
few options for this
specific invoice

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What if we wanted to create a specific a payment term
and assign to it discount terms too !

From setup and maintenance head for payables from the offerings then
manage payment terms

So for this payment term lets explain the first line .. we will have to
make the payment (due date ) in 10 days for 30% of the amount
And if we manage to make the payment within the first 9 days we will
get 1% discount on the first installment so,
Total amount x first payment = total amount before discount
100 x 30% = 30
Discount = 30 x 1 % = 0.30 , so total amount = 30 – 0.30 = 29.70

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Here is an invoice created with that payment term at the first of Jan
2024

U can also double check for payments from invoice actions manage
installments ..
Moving to creating a new payment from payments

The most important thing in creating your payment is to set the right
payment date in order to meet due dates and discounts ..
Assuming that we made all payments before due dates to get the
discounts ..
Hit the add payment
button

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Here I will select all the payments supposing that we made all of them
at once

As u can see we are eligible to get every single discount since the
payment date is at 3rd of march
Now for managing payments to confirm the transactions and post it to
ledger
Shall end looking like this …

With that, we should have covered some of the most basic transactions
that could be required in any business.

Thanks for your time...

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