Procurement To Disbursement Presented By Jo de Ruiter

Procurement To Disbursement Presented By Jo de. Ruiter Jde. Ruiter@Aisling. DC. com Tweet During today’s meeting: @GPUG, #GPUG Atlanta, #GPUG<Topic>

About the Presenter • 20 Years of GP Experience • • 9 as an end-user 9 with several GP Partners 2 as an independent consultant Other Details of Note…. . 2

Agenda • PROCUREMENT: • • The difference between Payables transactions and Purchasing Transactions The differences in Types of Purchase Orders The various starting points for Purchasing Transactions The Requisition to Receipt Process • DISBURSEMENT: • The Select Check and Payment Processes and options • Third Party Products that are very useful in the AP and Purchasing Functionality of GP • Q&A

PROCUREMENT

Purchasing vs Payables Purchasing Transactions • Purchasing Transactions are a method of inventory acquisition and are heavily integrated with your inventory system and other modules that work with Purchase Orders such as • Field Services • Project Accounting - Can be created from within Field Services - Adding Cost to Projects (Modified Purchase Order Forms or the Inventory Transfer window in Project) • There is a good deal of setup required within both Inventory and Purchase Orders Setup • These setup options are highly customizable to the way your organization operates • Once Purchase Orders are Received and Invoice they become available for the Payment Process • If you do not have Inventory Registered it can still be used for Non-Inventory Items for a more detailed list of purchases

Purchasing vs Payables Purchase Invoice

Purchasing vs Payables Transactions • Payables Transactions are used to enter an invoice using “Totals” • • • Total Purchases Total Trade Discount Total Freight Total Miscellaneous Total Tax (Calculated from the Tax Schedule ID and Shipping Method on the transaction) • Grand Total – the amount of the Payable to your AP Account • Once Payables are Posted they become available for the Payment Process

Purchasing vs Payables • Purchasing Transactions are at the top of the transactions window in the Purchasing Area Screen. • The Purchasing Process is all contained there from Requisitions down to Returns • Payables Transactions and the Check Payment processes are more towards the bottom • If you cannot see the Purchasing Options you may either not have permissions or Purchasing is not checked off in your Registration Screen

The Purchasing Process

Differences in Purchase Order Types • Standard PO • This type will ship the ordered inventory to YOUR business to be received into YOUR inventory • You can add as many site addresses as necessary to your company addresses to control the “Ship To” issue if you have more than one location • Drop Ship PO • This type will ship the ordered inventory directly to the Customer. The vendor will invoice YOUR company and then you will invoice the Customer. • Inventory amounts will not be hit and these items will not hit your inventory. • Blanket PO • This type will list a single inventory item and the quantities that will be delivered to YOUR business in a SERIES of shipments – usually on specific dates. • This type will update YOUR inventory as each Shipment is Received • Blanket Drop Ship PO • This type operates like the Blanket PO above except that these items are sent to your CUSTOMER and will not update YOUR Inventory Amounts.

Starting Points for Purchasing Transactions • Requisitions • User submits a requisition for an inventory item that is needed this is not an Order, but a Request from an approver to make a Purchase • Purchase Order • User enters an Order to be sent to a Vendor to purchase the items needed • Receipt • User enters the Receipt for Inventory Items and the Invoice from the Vendor at the same time • Only if this is allowed in Setup • The only step that updates Inventory to make on-hand is the Receipt

Requisitions • Work Flows can be setup for Requisitions and the necessity to have an approver approve them before processing and transferring to an Order would be required. • There a number of ways to make Requisitions available to “outside of GP” users, including Req. Net by Arriet and Re. Qlogic both include Mobile Apps • Users enter the inventory items needed and their estimation – maybe based off of catalog or website pricing – of the Unit Cost and Freight and Taxes. • Once approved these items and pricing can be transferred to an Order • If not approved these Requisitions can be deleted, voided or canceled • There is also functionality to copy the Requisition to another Requisition • Use the dropdown at “Actions” to transfer the Requisition to an Order.

Requisitions Screen Shots

Purchase Orders • The Purchasing Process can start at Purchase Orders and, if needed Purchase Orders can be set up for Work Flow to obtain approval before being transferred to a Receipt • You may change any and all information on a Requisition once it is transferred to a Purchase Order • Ship To and Bill To Addresses are Controlled both at the Header Level and the Line Level • What prints on the PO Form is usually originating at the Line Level and not the Header Level. • It will default upon entry, but once you enter lines, if you update the Header it will not update the lines automatically and will give you a warning to this effect • The Inventory Account to be coded at the Line Level will default based on the Accounts setup for the Item • This account will later be used for the default coding at the Invoicing level • If using Project Accounting with a Modified Form (as in my Screenshots) you may enter the Project Number and Cost Code for the Inventory Costs. These fields are not required if the transactions should not hit Project. • Double Check the Type of PO, The Addresses and the line level information • Once you print the Purchase Order the Status changes to “Released” • If you make a change to it, once printed the status will read as “Change Order” • There is no-where for “Distributions” or GL Accounts except at the line level • The “Inventory Account” at the line level will change to “Drop Ship Account” if the PO is a Drop-Ship type

Purchase Order Screenshots

Purchase Orders Lines Screenshot

Editing Purchase Orders • If a purchase order is in a “Released” Status it loses the ability to be deleted. • This is where you would use the “Edit Purchase Orders” options. • You may get to that screen from within the PO by using the “Actions” button or you may open it external to the Purchase Order by selecting the “Edit Purchase Order” window from the Purchasing Transactions Screen • In the screen you have the option of changing the status of an Unreceived Line item or change the status of the entire PO • To Note – you may not change the status of a received Line Item or Purchase Order

Purchase Order Generator • The PO Generator is used to Suggest needed Purchase orders based on inventory quantities and thresholds and other settings. • When the transaction is run it will suggest PO’s that would be needed to bring an Inventory Items quantities up to the level necessary for normal business functioning (based on setups)

Purchase Order to Receipt • Once the Inventory has been delivered and/or Invoiced there a number of options 1) Receive the Inventory a) Used if the Invoice has not been obtained yet or if Receiving and Invoicing are kept separate in your organization 2) Receive and Invoice the PO Items a) b) c) Used if the items are known to be Received and the Invoice is also in hand. This is a short cut which receives the items into inventory and creates the invoice all in one step You may also use this step to begin the Purchasing Process by entering the inventory on the Invoice without the issuance of a PO 3) Invoice the PO Items a) b) This selection will allow you to invoice the Purchase Order but the inventory will not be updated in this step. This is typically used to short-cut entries of Drop-Ship Purchase Orders

Selecting to Receive and Invoice or Enter/Match • If needed due to Security or other issues you may be outside of the Purchase Order to Receive and/or Invoice. • Receivings Transaction Entry: • Used by the Warehouse and/or AP to record the Receipt of Inventory • Shipment or Shipment/Invoice • Shipment is to be used by the Warehouse or other personnel to record the receipt of the items only – no Payable will occur during a Receipt only. • The GL Distributions created will Increase Inventory and set an accrued liability that will be used to offset the AP account during the Invoicing Process • Shipment/Invoice is to be used when recording both the Receipt and the Invoice at the same time. • The GL Distributions created will increase inventory and record the Account Payable in GL and the Vendor Record • Enter/Match Invoicing: • Is used to enter an invoice for already-received shipments • Shortcut to add multiple shipments on one invoice with “Auto Invoice” • This method will set the Accounts Payable for the GL and Vendor and then debit the “Accured” account that was hit during the “Receipt” of the inventory

Receivings Transactions Screenshots Shipment/Invoice

Receivings Transactions Screenshots Shipment

Enter/Match Screenshots

Enter/Match Screenshots

Enter/Match Screenshots

Returns on Receipts • Once a Purchase Order is Received and or Received/Invoiced you may need to void that invoice and or Return the Merchandise. • To do that you would enter a “Return” which can create a Credit for the Invoice and Return the Items or you can just return the items if no invoice has been entered. • Be careful of Distributions

Purchase Order Processing Enhancements • Functionality includes “Commitments” and “Purchase Order Approvals” • Commitments are the Unreceived Amounts of Approved Purchase Orders. • These are used to compare to budgets within GP to determine if any given Purchase Order will cause an issue with the budget. • They can be set up for variances allowed • There a number of reports and set up available for Commitments. • Purchase Order Approvals • You can use purchase order approvals to assign approval capabilities to each of your users. Before you use purchase order approvals, you must set up users, approval types, security types, and specify a report to use. • When a user attempts to approve a purchase order, validation will be performed to ensure that the user is authorized to approve the purchase order. Unapproved purchase orders can’t be received against, invoiced against, or printed. You can place or remove holds for approved and unapproved purchase orders. • There are quite a number of setup options for this.

Paying The Vendors

Options for Payment of Vendors • GP Functionality includes the ability to pay vendors in a variety of ways including: • EFT: Using the Vendor Address’s EFT Setup • You will need your banks formatting and other setup to use this method • Used with the Select Check Method and Controlled at the Batch Level • CHECK: This will print a check to be mailed to your Vendor. • Used with the Select Check Method and Controlled at the Batch Level • CREDIT CARD: The out-of-the-box functionality is now available in GP 2016 as a Batch Type. • Uses a combination of the Credit Card Setup for the Company and Vendor ID’s • When the payment via credit card is made it simultaneously creates an invoice for the Credit Card Vendor making reconciliations quite a bit easier. • Prior to GP 2016 it was just a bit more complicated • You would enter the card at the Payables Entry Level • You could create a manual check batch to pay with a Credit Card • In GP 2016 you may select it as a Payment Method at the Batch Level and can use the Select Checks Process

Manual Payments • Manual Payments: • Are used when a check does not need to be printed • Recording a handwritten check • Recording a “Cash” transaction • Paying by “Credit Card” • Paying by “EFT” • Applied to existing Invoices manually or with Auto-Apply • Can control the Apply Amount and Write Off differences

Select Check Process • Depending on need, this process can be started at • Select Checks • Edit Check Batch • Edit Check • After creation of a Check Batch through Select Checks the batch can be edited in • Edit Check Batch • Edit Check • This is often necessary to get to the amounts needed to pay each vendor

Options on Check Batch Entry 1. Payment Method: a) Check: This method assumes a check will be printed b) EFT: This method triggers the EFT process that will end with generating an EFT file to send to your bank for processing 2. Posting and Check Dates: a) Always be careful they are the intended dates. 3. Checkbook ID: Select the Checkbook from which the checks will be cut or EFT sent 4. Currency ID: For those using multicurrency this is where you select which currency to pay the invoices at.

• Most Companies start the process at Select Checks • Here you may use a number of Filters (Restrictions) to bring in only the vendors you need to pay. You may restrict by: • • • A Range of Vendor ID’s A Range of Vendor Names A Range of Class ID Payment Priorities Voucher Numbers Document Numbers Payment Numbers Due Dates and Discount Date Cutoffs The Document Currency • You may use no filter or a combination of any of the above to more automate the process of selecting the checks to pay

• The bottom part of the “Select Payables Checks” screen enables more ways to automatically control what prints and what is applied. • One Check Per: • • • Automatically Apply Existing • • Payments: This will apply any manual checks that are entered for the Vendor to outstanding documents before the calculations for this Select Checks check is run • Un-tick if you do not want this to happen Credit Memos: This will apply any credit memos that are entered for the Vendor to outstanding documents before the calculations for this Select Checks check is run • Un-tick if you do not want this to happen Returns: This will apply any Purchase Order Returns that are entered for the Vendor to outstanding documents before the calculations for this Select Checks check is run • Un-tick if you do not want this to happen You may choose to work only with documents in the Functional Currency or all currencies used by your company Take Non-Qualifying Discounts: This will take any discount offered by the vendor regardless of whether you are paying by the due date or not. Pay only Minimum will look at the Vendor Card to see what you have coded in as the Minimum payment for that Vendor in the Options tab and pay only that Remittance: • • • Vendor: will list and pay all documents you filter to on one check Invoice: will create one check for every invoice creating multiple checks for one vendor List Documents: • Invoices – will only print the Invoices for the batch and no applied prior payments nor credit memos • All Documents – the default – will print all of the documents related to this check batch • If “Print Previously Applied Documents” is ticked then all of the Payments and Credit Memos that had previously been applied outside of this check run will also print on the document • Applied Order – Will print as in the “All Documents” above, but will list the invoices and Credit memos in order of application making the Vendors reconciliation of the payment easier • Use Due Date Cutoff will list by the Due Date • Totals Only – will print only the totals of the invoices and nothing else Apply Date: Controls the Subledger Date you wish for these payments to be recorded on Print Checks: • Takes you directly to the printing of the checks screen without verifying the individual checks • Edit Check Batch: • Edit Check: • • Takes you to a screen where you can manually select the invoices for payment by unchecking vendor invoices or checking ones that were not automatically selected Allows you to edit the individual check amounts for a vendor allowing for short-pay and over-pays for vendors on the check run

Select Checks Screenshot When done with your settings, simply click on “Build Batch” to calculate the check run

Edit Check Batch • Lists all vendors and the total paid on this check run for each. • Click a column heading to sort by that column • Add Columns by clicking “Columns” and selecting the additional column you’d like to see • Vendor ID and Total Amount Paid are defaults • You may add: • Vendor Name • Class ID • Payment Priority • At any point after Select Checks you can get back to your batch external to Select Batch by selecting “Edit Check Batch” from the Purchasing Transactions List

Edit Check Batch • You can update the batch to add a vendor by ticking the checkmark next to the vendor ID. • GP will bring up their outstanding invoices to add to the batch • You can update an individual vendor by clicking on the vendor and selecting or de-selecting the invoice to pay • You can further edit that vendors check by clicking on “Edit Check” • Once Complete you can select to Print Checks from this window.

Edit Check • You can get to this window external to the Select Checks or Edit Check Batch Window by clicking on Edit Check in the Purchasing Transactions List • From here you may control the individual check’s • • Comment What prints on the check stub The Application of the Invoice The Distribution for this one invoice • Print the checks

Edit Check • Unapply and Short-Pay Invoices. • Select the Apply Button • Uncheck an invoice to remove it altogether • Type into the “Apply Amount” field to change the payment on the invoice • This moves the unapplied amount to “Amount Remaining” and it will remain in the GL AP account and as a payable for the Vendor

Edit Check • Back on the Edit Check Header Window you may also enter an amount in “Unapplied” that will increase the check amount but not affect the invoices creating a “prepayment” and a credit to the vendor for that amount. • From here you may go on to Print Checks if the batch is ready or click the scroll buttons to move to the next Payment.

Printing Payables Checks • If you had exited the Select Checks Process you may open the Select Checks Window by opening from the Purchasing Transactions List • GP has some pre-configured checks in Report Writer that can be modified or printed on pre-printed check stock • There are other 3 rd Party Options for printing checks available • Mine is using Mekorma • Pay close attention to the Check Date and Check Number before printing the checks to ensure they are correct

Post Payables Checks • The Post Payables Checks Window allows: • Changing the Posting date of the batch • Posting the Checks when they are final • Reprinting the checks if there was an error in printing • You can choose to reprint all of them or just a range of them • Voiding the checks if necessary • You can choose to reprint all of them or just a range of them • Once you make your selection choose “Process” to complete any of the above • If needed you can come back to this window as long as you did not choose to Post Checks • Once that is done then voiding them one by one is the only method of reprinting

Other Accounts Payable Features To Know • Apply Payables Documents: • This feature allows for the manual application of Credit Memos or Prepayments to certain invoices. • Allows for more control over which documents apply to which invoices as opposed to allowing Select Checks to make the application • Void Historical Transactions: • This is used for voiding checks and other payments. • Remember to be careful of dates • Void Open Transactions: • To void transactions that are in an Open Status – unpaid documents including ones recently set as unpaid by the voiding of the Historical Transaction • Edit Transaction Information: • Changing very basic information on a transaction. • You may change only this information: • • Discount Date Due Date P. O. Number (from the Payables transactions only) The Transaction’s Header description • Numerous Workflow capabilities for security around your transactions and payment processes • Document capture for viewing invoices from within GP with a link on transactions

Third Party Products • Mekorma MICR • • • Highly customizable and easy to use templates for checks and remittances Electronic Signatures with great security and various thresholds for need Print 2 lines on checks based on thresholds User by User or Basic Checkbook Security Workflow • National Accounts • Creates a Parent and Child Vendor relationship to consolidate payment processing • Cut one check to a Parent Vendor for many child vendors • Apply Credit memos to either Parent or Child • Modified Reports and Inquiry screens for accuracy • Many other 3 rd party products to enhance AP capabilities and document capture/workflow

Questions and Answers

Thank You For Attending! Presented By Jo de. Ruiter Jde. Ruiter@Aisling. DC. com