Account Payables FAQs:

1. Types of Payable Invoice?

2. Which tables that payable invoice information is going to get store?

AP_CHECKS_ALL

3. What are special invoices?

4. How many Key flex field available in Payables?

5. What is the prerequisite to pay the payment for given invoice?

6. How to setup and define withholding tax type of invoice?

7. How many “Account Use” that we can setup in bank window?

8. What do you mean by payment terms?

9. What do you mean by distribution sets? And how many types are there?

10.How many account methods that payable support?

11.Supplier Auto generation can be setup using PO or AP options?

12.Can we Delete Supplier?

13.Can we Merge Supplier?

14.What is use of Special Calendar?

15.Difference between debit memo and credit memo?

16.Difference between PO default and Quick Match?

17.To whom we can maintain prepayment?

18.Types of Prepayments.

19.Types of payments.

20.What do you mean by Payable Documents?

21.What do you mean by Void Check?

22.What do you mean by disbursement type and what are they?

23.How many supplier site uses we can setup and what are they?

24.Difference between invoice and invoice batch

25.Difference between payment and payment batch

 26.What is the prerequisite to maintain prepayment to employee

27.Which GL Accounts that we need to setup for Bank Account?

28.Supplier Information would be incomplete without?

29.What is the accounting entry for creation of invoice?

30.What is the accounting entry for making payment?

31.What are the prepayment status we have?

Payables Invoice Types (9 + 2)

Regular Invoice (9)

1) Standard
2) Debit Memo
3) Credit Memo
4) Pre-payment
5) Expense Report
6) PO Default
7) Quick Match
8) Mixed Invoice
9) Withholding Invoice

Special Invoices (2)

1) Interest Invoice
2) Recurring Invoice

1) Standard Invoice:
 It is a standard bill or invoice which we receive from
supplier for the goods or services that which we purchased
from him.

Note: Standard Invoice will allow the user to have invoice

with only positive balance

2) Debit Memo:

It is a Document (or) Information form customer to

supplier requesting supplier to reduce the due, reduction
could be price (or) quantity.

3) Credit Memo:

It is a Document (or) Information form supplier to

customer, reducing the due of customer, reduction could
be price (or) quantity.

Note: Debit Memo and Credit Memo type of invoices will

allow the user to have invoice with only negative balance.

4) Prepayment:

Pre payment you can maintain with following:

i. Supplier Prepayment:
It is an advance or prepayment given to the
supplier in anticipation of goods or services.

ii. Employee Prepayment:

It is an advance or prepayment given to the
employee in anticipation of his future expenditure.

Prepayment is of two types:

1. Temporary:
Adjustments are allowed (user can apply this
payment to standard invoice) Eg: Employee Advances
 2. Permanent:
No adjustments are allowed (user cannot apply this
prepayment to standard invoice) Eg: Lease properties

5) Expense Report

This type of invoice will dynamically get created by

payable system when where we maintain prepayment with
employee

6) P.O Default

In order to match automatically purchase order with

invoice we will use P.O. default.

7) Quick Match

We use Quick match whenever we have multiple

shipments.

8) Mixed Invoice

This type of invoice will allow the user to prepare invoice

with positive as well as negative balance i.e., using this type of
invoice we can be able to prepare standard invoice, debit
memo and credit memo.

9) Withholding Invoice

This type of invoice will dynamically get created by

payable system when where we hold tax percentage from the
supplier.

Special Invoice(2):

1. Interest Invoice:
This type of invoice will dynamically get created by
payable system for all overdue invoices.

2. Recurring Invoice:
 This type of invoice will dynamically get created by
payable system based on the setup we made; setup
could be selection supplier, payment terms,
distribution sets, recurring calendar, recurring
amount etc..

Some Important definitions in Accounts Payable:

1. Expense Report:
Employee reimbursement expenses will incurred in
expense report. Eg: Airfare, Food and Meals etc.

2. Recurring Invoice:
Sometimes, without invoice we will made a payment.
Eg: Rent

In this scenario, we will create one recurring invoice

template for creating the invoices.

3. Invoice Batch:
Group of invoices are called Invoice Batches.

4. Payment Batch:
We can make the payment to n number of invoices
with the help of payment batch.

5. Selection Criteria for Payment Batch:

i. Paygroup
ii. Pay through Date
iii. Low and High Payment Priority
iv. Supplier
v. Minimum Outlay and Maximum Outlay

6. Multi Invoices and Payments:

If Invoice currency differs from functional currency
(set of books currency), you have to enable “Allow
Multiple Currencies” in Payable Options. And create
 one new payment format with Single Currency and
assign this format to Payable Documents in Bank
level. And also we have to define the daily rates.

7. Return to Supplier (RTS):

If we are going to return goods to supplier, system
will automatically generate Debit Memo. This is
known as RTS.

8. Zero Payment Invoices:

If we purchase material from our supplier and then
payment is also done. Due to some reasons
immediately we prepare debit memo and send it to
the supplier. This is known as Zero Payment Invoice.

9. Void Cheque:
Void is used for payment level.

10. Cancel Cheque:

Cancel is used for Invoice level.

11. Payment Types:

Manual, Quick and Refund

12. Payment Methods:

Cheque payment method, E.F.T (Electronic Funds
Transfer), Wire Transfer and Clearing

13. Future dated payments:

Giving post-dated cheques to our supplier.

14. Difference between Manual and Quick Payment

types:
If our supplier don’t want to take any cheques, just
he want cash, in this scenario we will use manual
payments.
If we make the payment through cheques, that time
only we will use Quick payments.