TK-Payables Manual

Getting Started

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Once you have reached the MASTER MENU, select the TK-Accounting option from which will be displayed the TK-ACCOUNTING menu as shown below.

If you have created more than one organization in TK-LEDGER, it may be desirable to select the organization for which you would like to begin implementing Accounts Payable at this time using the Select Organization option.

Now select Accounts Payable. The ACCOUNTS PAYABLE menu will be displayed as illustrated in the following example.

Each of the setup activities discussed in the following pages is presented in the sequence in which it should be performed when implementing Accounts Payable for an organization. After the initial implementation is finished, the same screens can be used to maintain the system.

If you are not able to finish all of the initial data entry in one sitting, the information you entered will be retained so you can easily continue at a later time.

A/P Parameter
Maintenance

In order for TK-PAYABLES to operate properly, there are two sets of parameters which must be entered and maintained.

To identify a default printer for Accounts Payable reports, it must first have been defined as a system printer using the Printer Maintenance screen in the SYSTEM MAINTENANCE menu. Then enter the device number of the desired printer in this field.

To accommodate this trend, TK-PAYABLES allows a second printer to be selected as the default for printing checks. Defining a default printer for printing checks is only a convenience and not absolutely necessary. It can be changed at any time.

To identify a default printer for printing checks, it must first have been defined as a system printer using the Printer Maintenance screen in the SYSTEM MAINTENANCE menu. Then enter the device number in this field.

Each time a new fiscal year is created in TK-LEDGER, these parameters will be copied for the new fiscal year automatically. However, changes in the chart of accounts for the new fiscal year may necessitate corresponding changes to Accounts Payable P arameters as well. Such changes must be made prior to making any accounts payable transactions for the new fiscal year.

Organizations operating on a Cash basis do not have an account showing how much money they owe their creditors. As a result, when an invoice is entered in TK-PAYABLES, no expenses or liabilities are acknowledged in the general ledger because no general ledger transaction is generated. However, when that invoice is paid, the general ledger must know which account the cash is coming from and which account(s) the expenses should are going to, and a general transaction is generated. In fact, only those accounts payable transactions which affect how much cash the organization has generate generate transactions, hence the term "Cash Basis".

On the other hand, organizations operating on an Accrual basis have an account which indicates how much is owed creditors. As a result, when an invoice is entered, TK-PAYABLES must know which account it is, and must also know which expense accounts the expense should be put in, and a general ledger transaction is generated. In fact, for such an organization, all accounts payable transactions generate a general ledger transaction.

To select the appropriate basis in this field, press a [C] for cash basis or a [A] for accrual, and press [RETURN]. If there is any uncertainty about what basis your organization is operating on, ask your accountants. They will be able to provide this information.

If you have chosen Accrual and would like to define a default payables account to speed up entry of invoices, enter that account number here and press [RETURN]. The account must be a liability account and therefore begin with a 2.

Checkbook
Maintenance

TK-PAYABLES provides several important functions for maintaining accurate payment records. Among them are the Payment (or Check) Register Report and Checkbook Reconciliation. It is therefore necessary to provide TK-PAYABLES some important information about your checkbook (or checkbooks) before you can begin making and recording payments.

Any of the checkbooks shown on the screen can be selected by moving the pointer to the desired name and pressing [RETURN]. As in the menu system, the pointer can be moved by pressing either the [SPACE] key or the cursor [UP] and cursor [DOWN] keys.

If the checkbook does not appear on the list, it may be that the list is too long to display in one screen. You can tell if there are more checkbooks to be seen by looking at the Function Keys displayed at the bottom of the screen; if NEXT PAGE or PREV PAGE is shown, the subsequent or previous pages of the list can be displayed by pressing the NEXT SCREEN or PREV SCREEN function keys.

If you are still unable to find the desired checkbook, press EXIT to search again.

After pressing [RETURN], the software will quickly check to be sure the name has not already been used. If it has, the information belonging to the checkbook with the name will be displayed.

If the name has not been assigned to a checkbook before, you will be asked to confirm the addition of this new checkbook. Press [Y] and [RETURN] to confirm the addition as shown in the example below.

Note, however, that once a payment has been made from a checkbook only the checkbook availability (active or not) and description can be changed. The G/L account number to which the checkbook is assigned may also be changed at the beginning of the fiscal year to reflect changes in the chart of accounts.

To make a checkbook active, press [Y] and [RETURN].

To make a checkbook inactive, press [N] and [RETURN].

In either case, be sure to save your change as described in the next few pages.

Enter the fiscal year for which you would like to select a G/L account number. If you are just installing TK-PAYABLES, you will want to use the default fiscal year which appears when the screen is first displayed.

If payments have been made from the checkbook during the year entered here, the G/L account number may not be changed. As a result, you will not be able to access the 'G/L Account' field described below.

Printing A/P
Parameters

The Accounts Payable Parameters listing is provided for you to produce a paper listing of the parameters entered for each fiscal year. The report is short, yet important, because it documents the decisions made when implementing the system as well as those made from fiscal year to fiscal year. A copy of it should be saved along with all of your other Accounts Payable reports.

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Vendor
Maintenance

In order for TK-PAYABLES to accept invoices, pay bills, and keep necessary records, it must know who an organization's vendors are. This screen provides the ability to add new vendors as well as to maintain vendor information as time passes.

Select the desired vendor moving the pointer to the desired name and pressing [RETURN]. As in the menu system, the pointer can be moved by pressing either the [SPACE] key or the cursor [UP] and cursor [DOWN] keys.

If the vendor does not appear on the list, it may be that the list is too long to display in one screen. You can tell if there are more vendors in the list by looking at the Function Keys shown at the bottom of the screen; if NEXT PAGE or PREV PAGE is shown, the subsequent or previous pages of the list can be displayed by pressing the NEXT SCREEN or PREV SCREEN function keys.

If the vendor is not in the list, press EXIT to search again.

After pressing [RETURN] you will be asked to confirm the addition of this new vendor. Press [Y] and [RETURN] to confirm the addition as shown in the example below. Even though you have confirmed the addition of a new vendor, the addition will not take place until you SAVE it as described later on in this section.

Furthermore, any field can be changed including the vendor's name. However, the screen will not allow a vendor's name to be blank.

A field for the vendor's phone number is provided for your convenience should you ever need to call, but is not printed on checks.

If the Vendor/Payee is an employee or an independent contractor, this field can be used to hold the social security number. This information will be helpful in the printing of IRS 1099 forms.

From this menu several actions can be taken.

Printing A
Vendor List

The Vendor List is provided for you to produce a paper listing of the vendors in your system and the information associated with them. It is important to reprint this report each time a vendor is added, or changes are made to vendor information. A copy should be maintained along with your other Accounts Payable reports.

"INCLUDE DA,54

Automatic Invoice
Maintenance

Most of the vendors with whom you do business provide an invoice which initiates the normal bill-paying sequence. However, occasionally, a vendor such as your landlord does not provide this service, yet expects to be paid on a prompt and regular basis.

In this screen TK-PAYABLES provides a mechanism for you to enter these invoices and have TK-PAYABLES remember to post them for you.

To select a vendor, enter the first two or three characters of the vendor's name and press [RETURN]. A list of vendors whose names begin with the letters you entered will be displayed. As illustrated in the following example, you can also press an asterisk [*] to view the list of all vendors.

Any of the vendors shown on this screen can be selected by moving the pointer to its name and pressing [RETURN]. Like the menu system, the pointer can be moved by pressing either the [SPACE] key or the cursor [UP] and [DOWN] keys.

If the vendor does not appear on the list, it may be that there are too many vendors to be displayed on one screen. You can tell if there are more vendors by the list of Function Keys displayed at the bottom of the screen. If NEXT SCREEN or PREV SCREEN is shown, the next or previous pages of the list can be displayed by pressing the appropriate function key.

If you are still unable to find the desired vendor, press EXIT to search again.

If you are making changes an existing automatic invoice, move the pointer to the desired invoice and press [RETURN].

If, on the other hand, you are adding a new automatic invoice, move the pointer to the item labeled 'New Automatic Invoice' and press [RETURN].

Having selected the invoice to be worked on, the Automatic Invoice screen will be displayed as shown below. If you are changing an existing automatic invoice, a one line menu will also appear at the bottom of the screen. Select EDIT using the [SPACE] or cursor [RIGHT] keys and press [RETURN]. This will put the cursor in the 'Descript'ion field shown below.

For example, assume that we are entering an automatic invoice for paying the rent, which is normally due on the first of the month. The landlord doesn't care how long this obligation is shown as a payable in our books as long as he is paid by the first of the month. It might be a good idea to consult your accountant to determine when the rent technically becomes an obligation.

For our purposes, we will assume that the rent becomes an obligation thirty days before it is due for payment. To accomplish this, we could enter an Invoice Day of 1 for the first day of the month and a 30 in the Due Days field.

However, in the example the computed payment date would vary because the number of days in a month varies. In January, for example, the payment date would be computed as January 31 (January 1 plus 30 days). In February, the payment date would be computed as March 2 (February 1 plus 30 days).

In order for the payment date to always be on the first of the month, then, we need to be able to compute the Invoice Day based on the last day of the month. This is done by entering an L followed by a minus sign and the number of days before the end of the month that the invoice should be dated, such as L-29. As you surmised by now, the L is shorthand for last day of the month, and in this case the invoice date would always be 29 days prior to the last day of the month. As a result, the Payment Due Date will be computed as the first of the month, as the landlord wishes.

If you are using Accrual, this field must contain a valid G/L liability account number. Remember, liability accounts always begin with a 2.

If a default value is displayed, this is the general Accounts Payable account number selected when entering Accounts Payable Parameters. It can be changed if necessary, or accepted as is by pressing [RETURN].

If you are using multi-currency options, the liability account you select must have the same currency as you selected earlier on the screen.

If no early payment discount is available, leave this field blank.

To enable automatic withdrawal for the sum of an invoice, type [Y] and press [RETURN].

The fields provided on each row are fairly self-explanitory. In addition, there is no limit to the number of items entered as long as the amounts sum to the total amount of the invoice.

In the first field, enter the number of the general ledger account to which the expense should be posted. If a valid expense account number has been entered, TK-PAYABLES will display part of the account's description in the next field. This feed back will help avoid typographical errors in account numbers.

The comment field will automatically contain the description entered for the invoice. If desired, this can be changed.

Last, enter the amount to be debited to the expense account. Remember, the sum of these amounts shown in the lower right corner of the screen must equal the total amount of the invoice.

If there are more distribution transactions than will fit on the screen at one time, the screen will automatically advance you to the next page when the last transaction on the current page has been completed. In addition, you can use the NEXT SCREEN and PREV SCREEN keys to move back and forth from page to page.

When finished entering the expense distribution, press either the TAB or EXIT key. A one line menu will appear at the bottom of the screen as shown in the example below.

Printing An
Automatic
Invoice List

The Automatic Invoice List is provided for you to produce a paper copy of the automatic invoices you have defined, their parameters and expense allocations. Because the status may change from month to month, it is important to reprint this report each time automatic invoices are posted, or additions/changes are made to automatic invoice information. A copy should be maintained along with your other Accounts Payable reports.

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