The Company Information page allows you to establish your interface with General Ledger, decide to use cash or accrual basis, and set up the check stub for your Accounts Payable checks.
This Section Includes:
On the Company Information tab enter your Federal Tax ID Number and State Number. These fields are required in order to print 1099s.
Select the Record Tax, Freight, and Other Charges check box to activate these fields on the various transaction pages throughout Accounts Payable (e.g., Enter Transaction). The Interface with General Ledger check box turns the interface with General Ledger on and off.
There are two ways that transactions can be processed in Accounts Payable: Cash or Accrual basis.
The Cash basis creates one journal entry when you Process Payments. The Bank Account is credited and the Expense accounts (or other accounts being charged) are debited.
The Accrual basis creates two journal entries. The first journal entry is created when you Post Transactions. The Expense accounts (or other accounts being charged) are debited and the Payables account is credited.
The second journal entry is created when you Process Payments. The Bank Account is credited and the Payables account is debited. The Payables account acts as a "wash" account, meaning that credits that are made when the transactions are posted are then "washed" out by the debits when the payments are processed.
.png)
Notice that when the Accrual Basis radio button is selected, the Payables Account # field becomes available. This is where you enter the "wash" account we referred to above.
.png)
NOTE: Many non-profit/church organizations run on a Cash basis and immediately process the payments after entering and posting the invoices. Other organizations expense the invoice when it is posted but "hold" on to the money in the bank account until payment is required. This allows the organization to group the payments together in one payables run on a weekly, bi-weekly, or monthly basis. Either way, the Accounts Payable program can accommodate your organization.
You can optionally select a Department and Discount Account # if you want vendor discounts to be charged to an income account rather than a reduction to the expense account being charged. Keep in mind that budgeted expense accounts are not reduced by the discount amount if you charge discounts to an income account.
Enter your company Phone number which is required to print on 1099s. You can then select from among the following options:
•Warn if Mixing Fund #s in Invoice Processing: This option prompts if an invoice is being distributed to more than one fund. This does not prevent posting to multiple funds if using the same bank account.
•Duplicate Name on Entry: This option causes the vendor name to stay on the invoice entry page. Use this feature when you need to enter a large number of invoices for the same vendor.
•Display Remaining Budget Amounts on Entry: This option causes the remaining budget amount for the period and all the annual budget amount to display on the invoice entry page.
•Journalize to GL Using Invoice Dates: This option causes the entries sent to General Ledger to use the invoice date.
•Mask ACH Number on Verification Report: This option masks all but the last four digits of the bank routing number and account number on the verification report.
•Allow Duplicate Invoices: The default setting allows duplicate invoice numbers. Un-selecting this new option completely restricts using a previous entry for a selected Vendor and Invoice number combination. However, a duplicate is accepted if selecting Adjustment for the transaction. Also, existing Recurring Invoices that are using the same invoice number are allowed to post.
In the Print Options section you can select from the following options:
•Print Summarized Invoice on Check Stubs: This option causes a summarized invoice to print on the check stub. When selected Amount, Discount & Net and Show Net Only are the only available options in the Information to Print on Check Stub section.
•Print Invoice Memos on Check Stubs: This option causes the memos entered on invoices to print on the check stub.
•Print Fund Name on Check Stubs: This option causes the bank account fund to print on the check stub.
•Print Salutations for Organization: This option allows you to substitute the salutation for the name of an organization on the check.
•Print Checks in Order Entered: This option prints checks in order entered. When this option is selected and invoices are entered in order (not separated by another vendor's invoices), Accounts Payable combines invoices for a vendor on one check. The default is vendor name order.
•Print Expense Account Description Instead of Line Item Description: This option is not available when Print Summarized Invoice on Check Stubs is selected.
•Print One Line Address for Vendor: This option causes the check stub to display Address Line 1, City, State, and Zip on a single line.
The Payment Methods section allows you to either Print Checks or process checks using MICR Plus.
For Information to Print on Check Stub select one of the following:
•Amount, Discount & Net
•Show Net Only
•Show Net Only with Expense Account: This option is not available when Print Summarized Invoice on Check Stubs is selected.
•Show Invoice Total, Expense Account & Line Amount: This option is not available when Print Summarized Invoice on Check Stubs is selected.
The Note tab allows you to enter a note if desired.
When finished click the Update button to save all changes, the Reset link to undo all changes since the last time Company Information was updated, or the Cancel link to return to the main Accounts Payable page without saving.