Setting Up Authorized Reference GL Account IDs for Use when Posting AP Invoices

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Category: Accounts Payable
Hits: 3810

Difficulty Level: Beginner Level AccountMate User

Version(s) Affected: AccountMate 7 for SQL and Express

Module(s) Affected: AP

Posting Date: 11/29/2006

DESCRIPTION

AccountMate 7 provides tighter transaction control by providing the ability to set up for each vendor certain reference GL Account IDs that you authorize for use when posting Accounts Payable invoices. This feature minimizes data entry errors and controls the transactions that affect the GL Account ID balances.

This TechNote discusses how to set up authorized reference GL Accounts IDs for each vendor. It also discusses in detail the validation that AccountMate performs when posting AP invoices for vendors for whom you set up authorized reference GL Account IDs.



SOLUTION

A. Setting up the authorized reference GL Account IDs

To set up the authorized reference GL Account IDs for use when posting AP invoices, perform the following:

1. Access Vendor Maintenance.

2. Select the vendor for whom you want to set up authorized reference GL Account IDs.

3. In the Settings tab, mark the Use Authorized Reference Accounts Only checkbox to enable the GL Accounts (2) tab.

4. In the GL Accounts (2) tab, add the GL Account IDs that you want to use when posting AP invoices for the vendor.

Note: All reference GL Account IDs entered in the GL Accounts (1) tab are automatically added in the GL Accounts (2) tab.

5. Click Update to save your entries.

To illustrate, assume that your company purchases office supplies from a particular vendor and four departments in your company use these office supplies. For that vendor, you can associate the Office Supplies expense GL Account ID. You may equally distribute among the four departments the office supplies expense; to do this in AccountMate, you need to set up the office supplies expense distribution in the vendor record. Assuming further that your company purchases only office supplies from this vendor, you can limit the GL Account IDs to be used when posting AP invoices for this vendor by setting up authorized reference GL Account IDs in the vendor record.

The following screenshots show how to set up properly the authorized reference GL Account IDs in the vendor record:



Figure 1-1. Vendor Maintenance - Settings tab



Figure 1-2. Vendor Maintenance - GL Accounts (2) tab



B. Implementing the authorized reference GL Account IDs AccountMate validates the use of authorized reference GL Account IDs in the following functions:

1. AP Invoice Transactions/Recurring AP Invoice Setup

a. Validate GL Distribution accounts against authorized reference GL Account IDs

When you enter a reference GL Account ID either in the AP Invoice Transactions function or Recurring AP Invoice Setup function, AccountMate validates it against the authorized reference GL Account ID defined in the vendor record. If you manually entered a GL Account ID that was not an authorized reference GL Account ID and you pressed either the or key, AccountMate will display the Search window instead of the GL Account ID description in the adjacent field.

b. Search window displays the authorized reference GL Account IDs only rather than the entire chart of accounts

Right-clicking the Lookup button in the GL Distribution Accounts field displays the Account ID Full Search window. If you set up authorized reference GL Account IDs for the vendor, the Account ID Full Search window displays only the authorized reference GL Account IDs for the vendor rather than the entire chart of accounts. Using our illustration earlier, the Account ID Full Search window will display the following authorized reference GL Account IDs:



Figure 2-1. Account ID Search window



c. Displays an error message when user attempts to save an AP invoice or recurring AP invoice template with unauthorized GL Account ID

If you attempt to save an AP invoice or a recurring AP invoice template using an unauthorized reference GL Account ID, AccountMate will display a message informing you that the GL Account ID is not an authorized reference account and you cannot proceed to save the document.



Figure 2-2. Error Message



2. Import AP Invoice

When you import AP invoices, AccountMate validates the GL Account IDs in the text file for import. If the vendor was defined to use authorized reference GL Account IDs and the text file for import includes unauthorized GL Account IDs, you cannot proceed to import the AP invoices. The Invalid Invoices tab will display the reason(s) why AccountMate prevents you from importing the AP invoices.



Figure 2-3. Import AP Invoice – Invalid Invoices tab



Setting up authorized reference GL Account IDs for each vendor who provides specific services or sells specific products minimizes, if not avoid, erroneous data entry. It is important that users know how to set up and to use this feature to efficiently manage data entry.

This information is provided "AS IS" without warranty of any kind. AccountMate disclaims all warranties, either express or implied. In no event shall AccountMate be liable for any damages whatsoever including direct, indirect, incidental, consequential, loss of business profits, or special damages, even if AccountMate has been advised of the possibility of such damages.


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