Set Up Accounts Payable for a New Company

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Expand/Collapse item  Overview

The Accounts Payable Setup Wizard provides several pages of questions and options that help you set up the Accounts Payable module for a new company. You must complete this wizard and additional procedures before using the Accounts Payable module.

Expand/Collapse item  Before You Begin

Before beginning the Accounts Payable Setup Wizard, assemble the following information:

  • Your general ledger chart of accounts

  • A list of your vendors, including addresses and phone numbers

  • A list of all invoices to process

You must set up the General Ledger module for this company before you can set up Accounts Payable.

 

To set up the Accounts Payable module for a new company

  1. When you access the Accounts Payable module for a new company for the first time, the Accounts Payable Setup Wizard appears. Complete the Accounts Payable Setup Wizard.

  2. To print a listing of your wizard selections and other module default settings, on the Completing the Accounts Payable Setup Wizard page, click Wizard Listing.

  3. To review or change any default options not included in the Setup Wizard, select the Access Accounts Payable Options... check box.

  1. Review the settings in the Accounts Payable Options window and make any needed adjustments.

  2. Complete these additional setup tasks:

  3. To set up your vendor and invoice information by divisions, use A/P Division Maintenance. For your system to function correctly, you must select the associated general ledger account numbers for Accounts Payable and Discounts Earned for each division number. If you are accounting for discounts lost, you must assign the Discounts Taken and Discounts Lost accounts.

Note Even if the Accounts Payable Divisions check box is cleared in the Accounts Payable Options window, you must still enter information for division 00.

  1. To establish bank accounts, use Bank Code Maintenance.

Note If a cash account is defined in A/P Division Maintenance, the cash account defined for the bank code in Bank Code Maintenance is ignored during the Check Register and Manual Check and Payment Register update processes.

  1. To set up terms codes, use A/P Terms Code Maintenance.

  2. To set up sales tax accounts, use Sales Tax Account Maintenance.

  3. To link Accounts Payable vendors to Accounts Receivable customers, use Vendor and Customer Link Maintenance.

Note Bank code Z is used during the Accounts Payable from Accounts Receivable clearing process. Do not use bank code Z for entries if you plan to perform clearing. For more information, see Perform Accounts Payable from Accounts Receivable Clearing.

  1. To create vendor memos, use Memo Manager Maintenance.

  2. To define settings for each of your banks that will be used to make ACH electronic payments to vendors, use ACH Maintenance.

  3. To set up tables with general ledger accounts and distribution percentages, use Expense Distribution Table Maintenance.

The Accounts Payable module is set up for the new company, and you are ready to process accounts payable transactions.