Working with 4-Accounts Payable > 4-4 Vendors (Accounts Payable)

4-4 Vendors (Accounts Payable)

Vendor records provide quick access to vendor information for payable invoices, 1099 balances, ordering materials, and subcontract management. Create a vendor record for each business that sends you invoices and each business to which you owe money or make regular payments. These vendors may include subcontractors, architects, engineers, and lenders.

In the 4-4 Vendors (Accounts Payable) window, you can review vendor-related information such as subcontracts, purchase orders, and invoices. You can also record any additional certificates a vendor is required to supply.

Important! Sage 100 Contractor uses information entered in the 3-6 Receivable Clients window and 4-4 Vendors (Accounts Payable) window for other functions such as scheduling and sending faxes and email messages. If fax numbers and email addresses for vendors are not entered in these windows, then client and vendor contacts do not appear on the fax and email distribution lists.

Internal vendors

You would select the Internal Vendor check box to keep track of someone you need in the vendor database, but not someone from whom you get invoices. Flagging a vendor as “internal” causes the program to display a message if you try to enter a payable invoice for that vendor. Examples of internal vendors are architects, engineers, or other professionals who are involved with projects that you work on, but you are not the one contracting with them because you are not the general contractor or owner. You might, however, want to keep that information in the job record. Internal vendors may also be fictitious entities, such as a generic lumber supply or generic tile subcontractor. You might want to use that entity for putting a “type” of vendor on parts for estimating and bid request reasons.

Vendor financial information fields

Box

What it does

1099 Type

Indicates the type of 1099 status.

  • 0—Undetermined
  • 1—Miscellaneous
  • 2—Rent
  • 3—Sole Proprietor
  • 4—Interest
  • 5—No 1099

Beginning Balance

Displays the beginning balance of outstanding invoices for your current books. You cannot enter or edit an amount in this box.

Current Balance

Displays the beginning balance of outstanding invoices for your current books. You cannot enter or edit an amount in this box.

 

Vendor invoice defaults

The information you provide on the Invoice Defaults tab helps Sage 100 Contractor post an invoice and create the job cost records.

Default

What it does

Due Terms

Determines the date by which payment is due.

In Sage 100 Contractor, you can base the frequency of the cycle on days, months, or a specific day of the month. Billing, transaction, invoice, and other cycles are represented by these symbols: ##DY, ##MO, and ##TH.

Following are some examples that explain what the symbols represent.

  • ##DY—30DY means due 30 days from the date of the invoice.
  • ##MO—02MO means due two months from the date of the invoice.
  • ##TH—25TH means due on the 25th day of each month regardless of the date of the invoice.

Discount Terms

Determines the date by which payment is due for your business to receive a discount.

Discount Rate

Determines the discount rate for early payment.

Use Tax Rate

Determines the use tax on out-of-state purchases.

Work Comp Rate

Sets up the vendor record of a subcontractor with the employer’s compensation rate. When entering the payable invoice, you can charge the subcontractor for coverage based on the invoiced amount. The charge appears as a credit on the subcontractor’s invoice.

Ledger Account

Determines the default ledger account to which invoices are posted. For a materials supplier, for example, enter the materials expense account number. When you enter a payable invoice, the material expense account defaults to the grid.

Some vendors may not post to one account regularly. If there is not a common account used by a vendor, leave the Ledger Account box blank.

Cost Code

Determines the cost code to which you post the vendor. Because cost codes may vary each time you post a record, consider leaving the Cost Code box blank.

Alternately, you can enter the lowest numbered cost code used by the vendor. You can then use the Lookup window to display cost codes starting in the appropriate area.

Cost Type

Determines the cost type to which you post the vendor. Usually the cost type corresponds to the ledger account.

Invoice Status

If you want to review all invoices or payments for a vendor, assign the vendor record Invoice status 2-Review. Otherwise, Sage 100 Contractor assigns status 1-Open.

Purchase Order Warning

Restricts the ability to save payable invoices.

Allow Duplicate Invoice Number

Lets you enter duplicate invoice numbers for a vendor.

The Invoice Number text box in the Payable Invoices window can be set up to require a unique invoice number. The Allow Duplicate Invoice Number check box lets you supersede the requirement for a unique invoice number for specific vendors such as the phone company.
Separate check for each invoice Tells the system to print separate checks for each invoice for each vendor.
Put on the Hot List Automatically puts the vendor's invoices on the Hot List.

Other vendor defaults

The information you provide on the Other Defaults tab helps Sage 100 Contractor create or export records.

Default

What it does

Purchase Order Type

Determines the type of purchase order you normally create for the vendor.

Subcontract Type

Determines the type of subcontract you normally create for the vendor.

Vendor ACH Payment Setup fields

Field Description
ACH Account Status
  • 0—None
  • 1—Prenote
  • 2—10 day wait
  • 3—Active
  • 4—Inactive
Account Type
  • 1—Checking
  • 2—Savings
Routing# Vendor's bank routing number, a nine digit code.
Bank Account Number Vendor's bank account number.
Email Receipt to The email address to receive the vendor ACH payment receipt.

Vendor purchase order warnings

When saving a payable invoice for a vendor, Sage 100 Contractor refers to the selection made in the Purchase Order Warning list in the vendor’s record. If the payable invoice does not meet the criteria, Sage 100 Contractor provides you with a warning. These warnings are set on the Invoice Defaults tab of 4-4 Vendors and warn if there is no PO available for the invoice or you can require a PO for the invoice.

Status

Description

0-None

Provides no warning.

1-Warn if no PO

Provides a warning if the invoice does not contain a purchase order number, but allows you to save the invoice.

2-Require PO

Requires a purchase order number to save the invoice.

Vendor Invoice Over Purchase Order settings

The Set Over PO Warning option in 4-4 Vendors notifies you if the invoice quantity amount exceeds the purchase order. When you select the Set Over PO Warning option in the Options menu, Sage 100 Contractor compares the invoice total amount (not including sales tax) against the total PO balance. The Vendor Invoice Over Purchase Order warning settings supersedes the settings for Invoice Over Purchase Order warning settings in 4-2. How?

Setting up vendor types

You can use vendor types to group or categorize vendors. Types give you the ability to select specific vendors when printing bid requests, vendor lists, or other vendor related documents.

If you create a long list of vendor types, you can simplify it by abbreviating vendor categories. For example, use M for material suppliers and S for subcontractors in the Type Name. For example, the description for a lumber supplier is M-Lumber, and an electrical supplier is S-Electrical.

To set up vendor types
  1. Open 4-4 Vendors (Accounts Payable).
  2. Next to the Vendor Type list, click the detail button.
  3. The Vendor Type window opens.
  4. In the Vendor Type# text box, enter the type number.
  5. In the Type Name text box, enter a description of the vendor type.
  6. Repeat steps 3–5 for each type.
  7. On the File menu, click Save.

Entering vendor records

Consider these points before entering vendor records:

To enter a vendor
1 Open 4-4 Vendors (Accounts Payable).
2 In the data control text box, enter the vendor number.
3 In the Vendor Name text box, enter the full vendor name.
4 In the Short Name text box, enter a brief name for the vendor.
5 In the Vendor Type list, click the vendor type.
6 In the General Information tab, do the following:
a In the Owner text box, enter the name of the person to contact at the vendor’s office.
b In the Address 1, Address 2, City, State, and Zip text boxes, enter the address.
c In the User Def1 and User Def2 text boxes, enter the user-defined information as necessary.
d In the Minority Type list, click the type of minority if applicable.
e In the Tax District text box, enter the sales tax district number.
7 In the Financial Information tab, do the following:
f In the Federal Id# text box, enter the vendor’s Federal Identification Number.
g In the State Id# text box, enter the vendor’s State Identification number.
h In the Account# text box, enter your account number the vendor uses to identify your company.
i In the License# text box, enter the contractor’s license number.
j In the Resale# text box, enter the vendor’s resale number.
k In the 1099 Type list, click the 1099 status.
8 As necessary, select the Internal Vendor check box.
9 Click the Invoice Defaults tab, then do the following:
a In the Due Terms text box, enter the cycle for the date when the invoice is due.
b In the Discount Terms text box, enter the cycle for the date by which the vendor must receive payment for the discount to apply.
c In the Discount Rate text box, enter the discount rate.
d In the 'Use Tax' Rate text box, enter the use tax rate.
e In the Work Comp Rate text box, enter the workers' compensation rate.
f In the Ledger Account text box, enter the ledger account to which you want to post.
g In the Cost Code text box, enter the default cost code.
h In the Cost Type list, click the default cost type to assign.
i In the Invoice Status list, click the status to assign an invoice or credit.
j In the PO Warning list, click the warning status you want to assign to the vendor.
k If you need to send a separate check for each invoice, select the Separate check for each invoice check box.
l If you want to automatically put the vendor's invoices on the Hot List, select the Put on the Hot List check box.
m If you want to allow duplicate invoice numbers, select the Allow duplicate invoice numbers check box.
10 Click the Other Defaults tab, then do the following:
a In the RFP Type list, click the type of RFP you often create for the vendor.
b In the Description text box, enter the default description for RFPs.
c In the Purchase Order Type list, click the type of order you often create for the vendor.
d In the Description text box, enter a brief statement about the purchase order.
e In the Subcontract Type list, click the type of subcontract you often create for the vendor.
f In the Description text box, enter a brief statement about the subcontract.
11 Click the ACH Payment Setup tab, then do the following:
a Select the Enable ACH payment box.
b In the ACH Account Status, select one of the following statuses:
i 0—None
ii 1—Prenote
iii 2—10 day wait
iv 3—Active
v 4—Inactive
c In the Account Type, select one of the following account types:
i 1—Checking
ii 2—Savings
d In the Routing# text box, enter your vendor’s bank routing number.
e In the Bank Account# text box, enter the vendor's bank account number.
f In the Email Receipt to text box, enter the email address to receive the ACHpayment receipt.
12 Click the Contact grid, do the following:
a In the Contact Name text box, enter the contact's name.

Important! The first contact in the list is considered to be the primary contact in reports.

b In the Job Title text box, enter the contact's job title.
c In the Phone# text box, enter the contact’s telephone number.
d In the Extension text box, enter the contact's telephone extension, as necessary.
e In the Email text box, enter the contact's email address.
f In the Cell# text box, enter the contact’s cellular number.
g In the Fax# text box, enter the contact’s fax number.
h In the Other# text box, enter the contact’s other telephone number.
i In the Other Description text box, enter the contact’s other telephone number description.
j In the Notes text box, enter any applicable notes about the contact.
13 Enter the vendor licenses and certificates.
14 On the File menu, click Save.
15 If you want to set the vendor's 1099 balance for the calendar year:
a Refresh the vendor record by clicking the back arrow button (next to the record number in the upper left-hand corner), and then clicking the forward arrow button to advance to the new record again.
b Select Options > 1099 Balance Startup/Adjustment to open the 1099 Balance Startup/Adjustment window.
c Select the current date in the Adjustment Date box; then type the vendor's starting 1099 balance in the 1099 Balance Startup/Adjustment box.
d Click [Save].

Vendor certificates and expiration dates

You can track the expiration dates for Workers’ Compensation, liability insurance, contractor’s licenses, and other required certificates and licenses. When you enter a certificate or license, always enter an expiration date. If you do not have a date, enter one that is obviously expired such as 01/01/1980. Later, you can determine which vendors have insurance or licenses that have expired.

Important! The 4-1-5-31 Vendor Worker's Comp Report requires that the Workers’ Compensation insurance certificate information be in Row 1 of the Certificates window grid.

You can control whether you receive a warning that a certificate has expired when creating a subcontract. You can also stop payment to a vendor if a certificate has expired.

When selecting vendor invoices for payment, you can exclude vendors with expired licenses. You can also print documents that you can send to vendors with expired licenses, requesting the new expiration dates to update your records. When you do not need dates for vendors such as lending institutions, leave the text boxes blank.

Reports on vendor certificates and expiration dates

You can run insurance reports to view which vendors have current and/or expired certificates. How?

In the Certificates window, you can create a list of the certificates a vendor must supply. For example, you might list the Workers’ Compensation insurance certificate, liability insurance certificate, contractor’s license, and hazardous materials certificate.

Because you can generate expired certificate reports based on a specific line number, consider entering the certificates in a specific order for each vendor. For example, Row 1 is the Workers’ Compensation insurance certificate, Row 2 is the liability insurance certificate, and Row 3 is the contractor’s license.

To enter vendor certificates
1 Open 4-4 Vendors, and display the vendor.
2 On the Options menu, click Certificates.
3 In the Description text box, enter a brief statement about the certificate.
a For example, type Workers’ Compensation.
4 In the Received text box, enter the date you received the certificate.
5 In the Expires text box, enter the date when the certificate has expired.
6 In the Warning text box, type Y if you want to receive a warning. Type N if you do not want to receive a warning even though the certificate has expired.
7 The Warning column lets you control whether you receive a warning when creating a subcontract for a vendor with an expired certificate. You must select Exclude Vendors with Overdue Certificates or Warn on Vendors with Overdue Certificates in the 4-3 Vendor Payments window. To activate these options, click the Selection button in 4-3 Vendor Payments.
8 In the Stop Pay text box, type Y to stop payments to the vendor when the certificate expires. Type N if you want to pay the vendor even though the certificate has expired.
9 The Stop Pay column lets you control payments to the vendor by accessing the Invoice Selection window from the 4-3 Vendor Payments window. In the Invoice Selection window, you must also select Exclude Vendors with Overdue Certificates in order to exclude those vendors who meet the expiration criteria from receiving payment. It does not affect payments through the 1-1 Checks/Bank Charges window.
10 Repeat steps 3–7 for each certificate.
11 On the File menu, click Save.

Setting up vendor remittance

On occasion, it is necessary to substitute a different name on a vendor check. In the Vendor Remit window, you can add more lines to the grid by clicking in the last cell in the last row and pressing the ENTER key.

When you print the vendor checks, Sage 100 Contractor looks to the vendor remit table. If the vendor appears in the table, Sage 100 Contractor uses the payee information from the table in place of the information from the vendor record.

To set up vendor remittance:

1 Open 4-4 Vendors (Accounts Payable).
2 On the Options menu, click Vendor Remit.
3 The Vendor Remit Information window opens.
4 In the Vendor cell, enter the vendor number.
5 In the Payee Remit cell, enter the payee’s name.
6 In the Address 1 cell, enter the payee’s address.
7 In the Address 2 cell, enter any remainder of the payee’s address, if necessary.
8 In the City/State cell, enter the payee’s city and state.
9 In the Zip cell, enter the payee’s ZIP Code.
10 Repeat steps 3–9 for each vendor you want to include.
11 On the File menu, click Save.

Deleting vendors

If a vendor has current year ledger activity or open invoices from a prior year, you cannot delete that vendor.

Caution! When you delete a vendor, all prior year, paid, or void invoices related to that vendor are also deleted. This can affect invoices associated with current jobs. In addition, because the vendor has been deleted, only the vendor number will appear in job cost records.

To delete a vendor
1 Open 4-4 Vendors (Accounts Payable).
2 Using the data control, select the record.
3 On the Edit menu, click Delete Vendor.

Setting up Workers Compensation rates for payable invoices

Some states do not require subcontractors to carry Workers’ Compensation insurance. In these states, the subcontractors use the general contractor’s insurance policy for the duration of the job, and the general contractor deducts the cost of coverage from payments to the subcontractor. Check with your state for compliance requirements as the laws vary in each state.

Sage 100 Contractor uses the Workers’ Compensation account indicated on the Payables tab in the General Ledger Setup window to post payable invoice transactions.

To set up a Workers’ Compensation rate for payable invoices:

1 Open 4-4 Vendors (Accounts Payable).
2 Using the data control, select the vendor.
3 Click the Invoice Defaults tab.
4 In the Work Comp Rate box, enter the rate at which you are charging the subcontractor.
5 On the File menu, click Save.
6 Open 1-8 General Ledger Setup.
7 On the Payables tab, enter the ledger account to which you are posting the charge to subcontractors in the Workers’ Compensation box.
8 On the File menu, click Save.

Tip: The credit does not appear on the Workers’ Compensation report, which only uses data from payroll records. To track and report the costs, create a separate Workers’ Compensation ledger account.

Setting up use taxes for payable invoices

Some states levy a use tax on out-of-state purchases.

To set up use tax for a payable invoice:

1 Open 4-4 Vendors (Accounts Payable).
2 Using the data control, select the vendor.
3 Click the Invoice Defaults tab.
4 In the Use Tax Rate text box, enter the use tax rate.
5 On the File menu, click Save.
6 Open 1-8 General Ledger Setup.
7 On the Receivables tab, enter the ledger account to which you are posting sales tax.
8 On the File menu, click Save.