Methods for entering historical accounts payable records

You can choose from three methods of entry when entering the open invoices and credits for Accounts Payable. Each successive method provides more detail for reports than the previous method, and requires more time to enter data.

No matter which method you select, post the transaction to the period before the current posting period. For example, if you are setting up during period 7, post the records to period 6.

Method 1

For each vendor, enter a single and separate record for the total outstanding balance. While this method is the quickest, it has numerous limitations:

• You cannot print a Set to Pay report, which details the invoices that are being paid when printing A/P checks.
• The list of invoices paid by a check is not included on the check stub.
• The agings do not reflect the invoices entered during startup because the balance is entered as a single amount.
• The detail for subcontract audits is inaccurate.

Method 2

For each vendor, enter a record for the outstanding balance of each unpaid or partially paid item. When entering a partially paid invoice, make two separate entries.

Using Method 2, you enter a significant amount of information with each item. There is one limitation—the detail for subcontract audits is inaccurate.

Method 3

For each vendor, enter a record for each payable invoice or credit for current projects. Not only are you entering the outstanding balances for unpaid and partially paid items, but also fully paid invoices and credits. When entering a partially paid invoice, make two separate entries.

• Assign paid records status 4-Paid.
• Assign open records status 1-Open.

Enter all items in chronological order so that Statements and Contract Audits display the invoices in sequence.

It is not necessary to enter the individual parts as line items in the grid. A single line containing a quantity, price, and ledger account number is all that is necessary.

Note: A paid invoice will not be included in the 6-1-12 Committed Cost Report.