Automatic Vendor Payments

Automatic payments to vendors for payroll deductions can be generated during payroll processing. These payments are stored in a batch accounts payable file in the Fund Accounting System. For example, during a pay run you can generate a payment to an insurance company for employee health care benefits or a payment to the state for a pay period's tax liabilities.

Prerequisites

Following are the basic requirements for setting up vendor payments:

• The Create Vendor Payments checkbox in the Human Resources Profile must be selected.
• Vendor records must be established in Fund Accounting for each vendor that has a payment due, including private companies and public agencies.
• Deduction records must be set up in the Deduction table for each tax and deduction/benefit being paid. These records reference Fund Accounting's Vendor records.
• Deduction records must be assigned to employees, except those for taxes.

Batch vendor payments are created when you run the Fund Accounting Interface. This option can be accessed from the Pay Run Processing page, as well as in Fund Accounting. Batch payments also are created when you post manual and adjustment checks or cancel payroll checks.

In addition, when taxes are calculated during payroll, the system automatically generates payments to the appropriate agencies. For example, when you process a pay run, batch payment records are created for all local, state, and federal taxes withheld.

Setting Up Automated Vendor Payments

Human Resources Profile

1. Select System Administration > Administration > Profiles > Human Resources Profile.
2. In the page's Local System Options tab, select the Create Vendor Payments checkbox.
3. Click OK to save the change.

Vendor List

1. Select Fund Accounting > Reference Tables > Reference Tables > Vendor List.
2. In the Vendor List page, use the search or print procedure to review your vendor records.
3. Set up a record for each vendor that receives payroll deductions or liability payments.
   You must also enter Vendor records for deductions related to federal, state, and local taxes, EIC, FICA, Medicare, and Workers' Comp. For example, if you pay your 941 tax at a bank, enter the name of the bank in the Vendor Name field and complete the other data accordingly.
   The remaining tabs - 1099 Information, Discount Information, Miscellaneous Information, and EFT/ACH - can be left blank for automatic vendor payments. However, you may need to complete one or more of these tabs if the bank's vendor record is used for other purposes.
4. Click OK to save each new or updated Vendor record.

Deduction Table

1. Select Human Resources > Reference Tables > Payroll > Deductions.
2. In the Deduction Table page, set up a record for each deduction and each tax. Refer to Step 3 of the next procedure for information on setting up Deduction records for taxes.
   Also verify that any Deduction records previously entered are correct in terms of vendor data, payment frequency, and other information.
3. Click OK to save each new or updated Deduction record.

Employee Information Page

Add non-tax Deduction records to employee. Following is the procedure for adding deductions for existing employees.

1. Select Human Resources > Entry & Processing > Employee > Employee Information > search for and select an employee > click OK to display the Employee Information detail page.
2. Click Payroll Information on the Action Bar, and then select Deductions.

3. In the Employee Deductions page's list section, make sure you have a Deduction table record for each tax-related record. These records include an asterisk before the code in the Code field. The system-defined codes that are required include:

   *FT	Federal Taxes
   *SXX	State Taxes (XX = State Abbreviation)
   *TXX	Local Taxes (XX = Locality Code)
   *XE	EIC
   *FI	FICA
   *FM	Medicare
   *WC	Workers' Compensation

   You do not have to assign tax Deduction records to employees. The system needs these records for referencing vendor and payment frequency information when generating the batch Vendor Payment file.

Pay Run Processing

1. Select Human Resources > Entry & Processing > Payroll > Pay Run Processing.
2. In the Pay Run Processing page, click the Add New.
3. Use the Pay Run Processing wizard to set up the pay run. When you reach the Pay Run Setup - Step 4 page, complete the Vendor Payment section.
   Enter the due date, period, and year for each vendor payment frequency taken from Deduction Table records. These codes are referenced when you run the Fund Accounting Interface option.
4. Calculate the pay run using the Pay Run Processing page's Pay Calculation option.
   Though similar, these numbers are not the same as the batch Automated Payroll Interface control numbers for payroll, manual, and voided checks, which use the date, preceded by P, and followed by P, M, or V.
5. Generate the batch Vendor Payments file, using the Pay Run Processing page's Fund Accounting Interface option.
   You also create an Automated Vendor Payment batch when you run the Manual Checks, Adjustment Checks, and Void Checks options.
   The generated batch files are assigned control numbers that depend on:

• • The pay run option used to generate the file.

  • The pay run code used. For example, for pay run 123, control numbers would be generated as follows:

    Format	Option	Control Numbers
    PAY(pay run code)P	Fund Accounting Interface	PAY123P
    PAY(pay run code)M	Manual or Adjustment Checks	PAY123M
    PAY(pay run code)V	Void Checks	PAY123V

    Though similar, these numbers are not the same as the batch Automated Payroll Interface control numbers for payroll, manual, and voided checks, which use the date, preceded by P, and followed by P, M, or V.

Fund Accounting System

1. In Fund Accounting, review, release, and then post the batch using the Fund Accounting > Entry & Processing > Payable Entry > Batch Accounts Payable option.
2. Before generating vendor checks, review the Fund Accounting > Reports > Accounts Payable Reports > Cash Requirements report for selected checks.
3. To generate the checks, use Fund Accounting > Entry & Processing > Vendor Checks > Vendor Checks option.
   To limit checks to payroll liabilities, use the batch control number described in the last step of the Pay Run Processing procedure.