AP Open Payment Process
Open Payments in SyteLine AP are designed to record a payment as an asset and to later allow reapplication of the payment to an invoice at a later date. The flow in a typical scenario is illustrated below:
A check is written to a vendor for a $5000 deposit (50%) on a capitol asset purchase.
|
Prepaid Deposits |
Cash |
||
| 5000 | 5000 | ||
An invoice from the vendor for $10000 is received and entered into AP.
|
Capitol Assets |
Accounts Payable |
||
| 10000 | 10000 | ||
The Open Payment is reapplied to the posted voucher.
|
Accounts Payable |
Prepaid Deposits |
||
| 5000 | 5000 | ||
Set Ups
To get the correct flow of data the following tables need to be set up as follows:
Accounts Payable Parameters, Misc Tab – Deposit Account needs to be an Asset , typically Prepaid Deposits.
Bank Reconciliations – Cash Account needs to be a cash account.
Processing
Creating the Payment
In the A/P Payments form enter a payment for the desired Vendor. Type can be any valid Payment Type. Save. Go to Distributions. Enter a distribution with a Type of Open, accept the default value for Vch/Seq, select the appropriate Site, enter a PO number if you wish this to be reflected on a PO, on the Accounts Tab enter the amount of the payment. Save. The distribution will be to the Prepaid Deposit Account. Print and Post the check using A/P Check Printing/Posting.
Purchase Order
If a PO is entered in the Payment Distribution a cross reference is created. The PO will now reference the payment and payment information will print on the PO.
AP Posted Transactions
The Open Payment will be visible in AP Posted Transactions and will have a Type of Open.
AP Aging Report
The Open Payment can be included or excluded from the AP Aging report by using the Print Open Payment check box on the selection criteria. If the aging is being printed for use in reconciling the Ledger to the AP Aging exclude Open Payments. Otherwise the balance will be off the amount of all Open Payments.
Voucher
When the invoice for the item(s) arrive voucher and post as usual following standard procedures for voucher entry. Enter the voucher for the entire purchase amount, ignoring the deposit amounts, i.e. you are purchasing $10000 worth of product, made a $5000 deposit – enter the voucher for $10000.
Reapplication of the Open Payment
To reapply the open payment you need 3 pieces of information; Vendor number, Check number, and Voucher number. Go to AP Payments, enter the Vendor, check the Reapplication checkbox, enter the Check number of the Open Payment to be reapplied. Save. Go to either Quick or Distribution and select the Voucher the payment will be applied to. Save or Apply. Post the check using AP Check Printing and Posting. Do not print a check, only the Preliminary Check Register and Final Register and Post are required.
AP Posted Transactions
After reapplication the Open Payment now is reapplied to the Voucher and the posted balance of the Voucher and AP have been reduced by the amount of the Open Payment..
hello.
thank you for the article on open payment process in syteline.
do you happen to know how to cancel an open payment?
i have a problem with my open payment and need to cancel it but dont know how to do it.
thanking you in anticipation.
I was wondering if there was a way to apply an open payment by line on a PO?
For Example:
There is a down payment of 30%
then there is a milestone payment of 30%
then the balance is due when received.
Each PO line will have a different milestone and not all will be received at one time.
You probably be better to use the Project module, so you can utilize the milestone billing.
I am familiar with the millstone billing when billing to our customers. But, How would that work with an AP vendor and touching the AP ledger/Sub Ledger?