SytelineMaster

In Syteline 8, there is an utility program called Void AP Posted Payments Utility, which you can use to void an AP posted payment.  But if any of the following conditions exist, you can’t use this utility. 

1) Multi-site environment

2) You compress Journal transactions

3) You are trying to void a manual type check

4) The same check number has been used in multiple bank codes

You will need to void using a manual negative check when any of these conditions exist.

The steps to enter a negative manual check in SL7 and SL8 are as follows:

1. Open Bank Reconciliations Form
Filter for Bank Code
In lower grid, filter for type Manual
Identify a manual check number that has NOT been used

Note:  If  you are trying to void a standard check, you can use the check number on the standard check

2. Open A/P Payments Form
New
Enter Vendor Number
Payment Type = Manual
Check Number = Available Manual Check Number
Bank Code = Bank Code on original check
Payment = Enter negative check amount
Save

3. Distributions
Type = Voucher
Vch/Seq = Voucher Number that was paid on original check
Accounts Tab:
Amount Paid = Enter negative payment amount
Disc Taken = Enter negative amount if discount was taken on the original check
Save

NOTE: If more than one voucher was paid on the original check, follow step 3 for each voucher paid

4. Activities – A/P Check Printing/Posting
Verify Bank Code is correct
Click Final Register And Post
Process

When doing an AR payment posting, if there are multiple payments from same customer or differ customers, the cash account entry will be consolidated into single one.  So in Bank Reconciliation, there will be single total line cash record, instead of check by check.

For example,

1. Create Payment
Customer 1 : Cheque Amount = USD 200 ; Date :1 December 2010; Bank : BK1
Customer 2: Cheque Amount = USD 300 ; Date : 2 December 2010; Bank : BK1
2. A/R Payment Posting
3. GL –> Journal Posting
4. Bank Reconciliation
Transaction appear as 1 line ; Amount USD500 ; Date : 1 Dec 2010

If you do not want an A/R payment (Adjust, Check, Wire) or a returned check (check entered as a negative amount) included in a summarized Bank Reconciliation record, you will have to do separate AR payment postings.

When you have a single check posted, the customer number, check number, and customer name will be seen in the Bank Reconciliation form.

When you have more than one check posted, for different customers, a "summary" deposit is created. Since there is more than one customer here, the customer number, customer name, and check cannot be specified in the one line bank reconciliation "Deposit".  If you want to see specifics for each check, then you have to post them separately, one at a time.

The detailed payment information which is used to calculate one of these summarized bank reconciliation records can be obtained by looking at the A/R Distribution Journal.

Parameters can be setup on the Accounts Receivable Parameters form. A Returned Check Fee amount can be entered there. They can also designate to create Debit Memo for the customer for the returned check amount, plus returned check fee amount.
In order to create a Debit Memo to send to the customer when a check is returned, follow these steps:

1) Go into Bank Reconciliations
Filter for bank code
Put cursor in bottom to add a bank rec
Add bank rec type "Deposit"
Transaction Number = this is the bank rec trans #, similar to manual check number. They can start with 100 and let system increment after that
Ref Type = A/R
Ref Num = Customer Number
Customer Check Number = check number returned
Amount = Amount of check
Bank Amount = Amount of check
Generate Returned Check Fee = Yes
Save the record

2) Open the Returned Checks form
Enter the bank code
Process Returned Checks = Yes
Preview – Process
They should see the record in the grid
Commit – Process
Debit Memo should have been created
If the check is re-deposited, the user can select the Process Returned Check Deposit option on the Returned Check form, and the system will create a credit memo to offset the debit memo.

Basically, this is handled through a 3-Step Process. Cut the check to the vendor, designating it as an Open payment. Receive and voucher the purchase order. Reapply the open payment against the voucher generated. Below are the steps for handling this process.

The process for handling Deposits or Pre-Payments to Vendors is as follows:

1. In the A/P Payment form, add a new record for the vendor
On the Payment Distribution form, select type “Open”
If Purchase Order Number is known, you can link the PO to this Open Payment. When check is printed, it will update the Prepaid Amount field on the Purchase Order Header.
Note: The account that defaults for the Open Payment comes from the default “Deposit Acct” from the Accounts Payable Parameter. This account change be overridden if needed.
Print and Post the check as normal.

2. When purchase order is received, generate voucher as normal from the Generate A/P Transactions form
Perform Voucher Posting to post the voucher to vendors A/P Posted Transaction Details

3. Reapply the Open Payment to voucher generated from Purchasing.
Determine the original check number of the deposit or pre-payment. (This can be found on the A/P Posted Transaction Detail form).
Open A/P Payment form
Enter a new record for the vendor, flag the record as “Reapplication”
Enter the original check number in the check number field
System will automatically recognize this as a “Reapplication”. The original amount should default in the payment amount. Save.
Either through Quick or Distribution, select the voucher/vouchers where the deposit or pre-payment needs applied against. Save.
Go to the A/P Check Printing/Posting form and perform Final Register and Post
Journal entries will be created reversing the amount from the “Deposit” account and applying it against “Accounts Payable” account

NOTE: Open Payments should NEVER be applied to vouchers via the A/P Posted Transaction Details form. Journal entries are not created from this form.

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.

An invoice from the vendor for $10000 is received and entered into AP.

The Open Payment is reapplied to the posted voucher.

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..