Accounts Payable Features:

The primary objective of the Accounts Payable (AP) System from Legler Systems is to process accounts payable information in an online environment, so specific online procedures are performed in seconds rather than the hours required by traditional batch methods of computer processing. This AP System performs the basic accounts payable objectives by providing a complete and accurate record of all accounting transactions affecting each vendor or supplier.

Specific Accounts Payable features and objectives of this software are highlighted below:

1. Maintain the Vendor Invoice Record on the dollar amounts owed to and paid to various vendors, as well as the associated general ledger expense account codes.

2. Automatic voucher number assignment to each new vendor invoice transaction for control and audit trail purposes. This accounts payable feature can be overridden by the setting of System-Option-16 (DB03).

3. Automatically assign GL expense account code to a vendor invoice based upon standard GL expense accounts stored in the Vendor Master Record to reduce clerical coding errors and aid data entry.

4. Print accounting reports, such as Vendor Invoice Report, Cash Requirements Report and Accounts Payable Register, to provide an audit trail of accounting data entered into the system and maintain adequate control over company liabilities and expense distributions.

5. Print vendor checks with stubs for those invoices due for payment. These same multi-purpose check forms can be used by the Payroll System. For selected vendors, the invoice description can be printed on the check under the signature line. Miscellaneous vendor checks are also printed by procedure AP06.

6. Automatically update the Vendor Invoice Record with payment information as checks are printed by procedure AP06, so they will not be paid again.

7. Automatic calculation of payment due date and discount amounts based upon invoice date and gross dollar amount and other information stored in the Vendor Master Record.

8. Maintain Vendor Master Records for each vendor or supplier receiving computer-printed checks from the company. Information in the Vendor Master Record includes name, address, vendor discount terms and expense distribution account codes.

9. Handle one-time or a miscellaneous vendor who do business with the company on an occasional basis, where mailing name and address is entered with the invoice in procedure AP02.

10. Automatically test for duplicate invoices at the time of entry of new vendor invoices to avoid duplicate payment of the same invoice. This option is set by System-Option-25.

11. Automatically create invoice vouchers for recurring (periodic) payments, such as rent and lease payments, to minimize data entry operations.

12. Handle multiple locations through the use of a separate Location Code defined by Code Definition Records.

13. Automatically update the Vendor Master Record with invoices paid for the latest two years with automatic rollover from one year to the next, so special year-end clerical procedures are avoided.

14. Handle any fiscal year for accounting purposes, even one different from the calendar year, through the use of a separate accounting period number (YRMO) field.

15. Print annual IRS-1099 forms and totals for IRS-1096 transmittal form for selected independent contract vendors.

16. Provide auxiliary input capability for initial file creation and processing input transactions created by other computerized systems, including separate data entry operations.

17. Provide source document control over input invoice transactions to the computer by establishing batch numbers.

18. Provide online inquiry capability to identify all invoices associated with a specific vendor and to summarize payments by month for the last five years.

19. Provide online query capability of a specific vendor by number or initials and of a specific invoice by invoice or voucher number.

20. Define an Active-Flag for each vendor to prohibit the online entry of invoice data for an inactive vendor, yet reference that old vendor number for historical reporting purposes.

21. Provide the capability to create custom AP reports where the user defines the data fields to be selected, sorted and printed (DB12). This procedure is a general purpose custom report writer.

22. Provide automatic update of the Check Reconciliation System for the entry of manual check information in procedure AP02 and check payments made by procedure AP06.

23. Allow the user to specify the sequence of records in a report by entering a primary (vendor) and secondary (invoice) sort option.

24. Automatically display a detail record (Vendor Master Record or Vendor Invoice Record) when function key F7 is pressed from data entry procedure AP02 and from inquiry procedure AP10 and procedure AP15. This accounts payable objective enables the operator to quickly drill down to more information.

25. Print separate vendor checks for each invoice from a vendor when the Check-Flag in the Vendor Master Record is set to "S".

26. Handle multiple bank accounts, however the check numbers must be unique within each Bank-ID.

27. Verify the state code and ZIP code (first 3 digits) associated with a vendor address. The Canadian province code is validated when the ZIP code is not numeric.

28. Automatic vendor number lookup occurs whenever the vendor name initials are entered as the vendor number for fast lookup of a vendor number. Vendor name initials are manually or automatically set in the Vendor Master Record.

29. Automatically post expense information to specific ledger accounts in the General Ledger System (AP09) by accounting period (YRMO) to eliminate clerical posting errors. Either the cash accounting method or accrual accounting method is supported. This accounts payable objective minimizes the clerical data entry workload.

30. In addition to online processing, batch job processing is supported where AP report requests are entered online for later batch processing.

31. Provide system options in the Company Control Record to handle 6-digit or 8-digit dates for user preference.

32. Provide the capability to search the invoice description field or the miscellaneous vendor field for any text entered by the user and display the matching invoices on the screen.

The Accounts Payable System keeps track of unpaid vendor invoices and when they are due to be paid. The Cash Requirements Report (AP05) can be printed at any time to identify all unpaid vendor invoices for a particular vendor or for all vendors within a specific payment date range. If management decides not to pay an invoice that is due, then procedure AP19 is used to modify the multiple Vendor Invoice Records with a new payment date.

Four dates are associated with each vendor invoice:

1. Invoice date refers to the date of the vendor invoice.

2. Due date refers to the last date on which an invoice can be paid and still be eligible for any available vendor discount.

3. Payment date refers to the date when the invoice is scheduled to be paid by procedure AP06. Normally, this date is automatically set to the due date. When a payment is to be delayed beyond its due date, then only the payment date is changed. The due date remains unchanged. When the invoice is actually paid, the system will not take a vendor discount when the payment date is beyond the due date.

4. Check date refers to the date the vendor check is printed by AP06.

The AP System procedures that can be run by the user are identified in the Accounts Payable Menu document.

Vendor Master Record:

Vendor name and address information is stored in the Vendor Master Record. Online procedure AP01 is used to add, change (modify), query and delete Vendor Master Records. For new vendors, automatic vendor number assignment is done by the AP System when the vendor number field is blank. The vendor name and vendor address printed on the vendor checks is from these master records.

The primary key of the Vendor Master Record is the Record-Type code and vendor number.

Vendor Invoice Record:

Each vendor invoice to be paid by the company is stored in a separate Vendor Invoice Record. Online procedure AP02 is used to add, change (modify), query and delete Vendor Invoice Records. For all new vendor invoice entries, the voucher number is automatically assigned using a sequence number counter in the Company Control Record (DB03). These transaction records identify the invoices to be paid by the vendor checks.

The primary key of the Vendor Invoice Record is the Record-Type code, vendor number and voucher number.

More Information on Accounts Payable Objectives:

For additional information on this online Accounts Payable software, please e-mail Bill Legler in SF Bay Area, California or go to the main Accounts Payable System page.

Version 7.11 - Copyright 2010 by Legler Systems Company. All rights reserved.