Accounts Payable Tab

The Accounts Payable tab contains settings for entry of accounts payable and manual check records and for formatting and printing your AP checks. You will set up the following aspects of payable entry and vendor check processing:

Default payment type for payable and manual checks.
Purchase order overpayment controls.
Duplicate invoice checking.
Default information for non-purchase order payments.
Approvals for accounts payables, including default approval groups for payables generated from pay runs and CommunityPLUS refunds.
Formatting for vendor check amounts and additional information that prints on check stubs.
Sort order for printing vendor checks.
Charging payables against the payroll cash account or standard cash account.

Control Overpayments

If you have the Fund Accounting Profile's Overpayment Control Level set to either F - Fatal or W - Warning, the system checks the payment amount entered for each purchase order line item to ensure the overpayment limit is not exceeded.

The overpayment limit is determined by the purchase order line item's remaining balance and the profile's Overpayment Control Type. Following are three examples showing how the Overpayment Control Type's three field settings would affect the same hypothetical purchase order payment.

For the examples, we will use these circumstances:

You are making payment for a purchase order line item originally encumbered for $200.
A change order for another $100 was added to the original encumbrance amount for the line item.
A payment of $50 has already been made against the line item.

Amount Overpayment Limit

Suppose the following settings are made in the Fund Accounting Profile:

Overpayment Control Level	F - Fatal
Overpayment Control Type	A - Amount
Overpayment Amount Limit	$10.00

A user attempts to make a $265 payment against our purchase order line item. This amount is compared to the overpayment limit for the item, which is calculated as follows:

(Original Encumbrance Amount + Change Order Amount + Overpayment Amount Limit) - Payments to Date = Overpayment Limit

(200 + 100 + 10) - 50 = 260

The $265 payment exceeds the overpayment amount. The system places a payment hold on the line item, unless the user has the security resource allowing overpayment of purchase order items. If the item is placed on hold, it can be accessed through Fund Accounting's Change Accounts Payables option.

Percentage Overpayment Limit

Suppose the following settings are made in the Fund Accounting Profile:

Overpayment Control Level	F - Fatal
Overpayment Control Type	P - Percentage
Overpayment Percentage Limit	0.05

Again, the user attempts to enter a $265 payment for the purchase order line item. This amount is compared to the overpayment limit for the item, which is calculated as follows:

[(Original Encumbrance Amount + Change Order Amount) x (1.00 + Overpayment Percentage Limit)] - Payments to Date = Overpayment Limit

[(200 + 100) x (1.00 + 0.05)] - 50 = 265

The $265 payment does not exceed the overpayment limit in this case. The record is allowed to post as long as AP approval is not otherwise required.

Amount and Percentage Overpayment Limit

Suppose the following settings are made in the Fund Accounting Profile:

Overpayment Control Level	F - Fatal
Overpayment Control Type	B - Both
Overpayment Amount Limit	10.00
Overpayment Percentage Limit	0.05

The user enters the $265 payment for our sample purchase order line item. To determine overpayment, the system applies the profile's amount limit to the remaining encumbrance balance, then compares the result to the amount calculated when the profile's percentage limit is applied. The higher of the two amounts is the overpayment limit.

From our earlier examples, you will remember that the profile's amount limit yields a result of $260 when applied to the PO line item. The percentage limit yields a result of $265. The system uses $265 as the overpayment limit.

The $265 payment does not exceed the overpayment limit, so the record is allowed to post as long as AP approval is not otherwise required.

Fields

The Accounts Payable tab's fields are divided into two sections: Accounts Payable and Vendor Checks. Following are descriptions for each section's fields.

Accounts Payable Section

The following fields pertain to entry of accounts payable and manual check records:

Field	Description
Default Partial OR Final Flag	Default value for the Partial/Final field when purchase order payments are entered using the following options: Post Accounts Payable, Batch Accounts Payable, Standard Payables, Manual Checks, and Batch Manual Checks. Select: P - Partial - Payment Type field defaults the Partial Payment setting for purchase order payments. F - Final - Payment Type field defaults the Final Payment setting for purchase order payments. N - Null - No selection defaults in the Payment Type field. The user needs to choose the appropriate setting when entering the payable.
Overpayment Control Level	Setting determining whether you allow overpayment of purchase order line items. Overpayment is determined based on the Overpayment Control Type and the amount or percentage limits that are set. Select: F - Fatal - System does not allow overpayment of a line item. It issues a warning and places the item on hold, unless the user has the security resource allowing an override of the overpayment control. W - Warning - System issues a warning in the case of line item overpayment, but it allows posting of the item. N - None - System does not check for line item overpayment.
Overpayment Control Type	Setting determining the method the system will use to calculate a purchase order line item’s payment limit. The calculated limit is compared to the payment amount entered for any given purchase order line item. Select: A - Amount - System determines overpayment based on profile’s Overpayment Amount Limit. P - Percentage - System determines overpayment based on profile’s Overpayment Percentage Limit. B - Both - System calculates overpayment based on comparing the amount-based overpayment limit to the percentage-based overpayment limit. The higher of the two amounts is used as the overpayment limit for a given line item. N - None - Overpayment limit is not calculated. For examples of how each control type is applied, refer to the Overpayment Calculation section following the field descriptions.
Overpayment Amount Limit	Maximum overpayment allowed for a purchase order line item, based on a dollar amount if you are using an Overpayment Control Type of A - Amount or B - Both.
Overpayment Percentage Limit	Maximum percentage overpayment allowed for a purchase order line item, based on Overpayment Control Type of P - Percentage or B - Both. Enter the percentage in decimal format. For instance, to apply a five percent overpayment maximum, enter 0.05. Example: If the maximum overpayment percentage is five percent and payment is made for a purchase order line item of $100.00, the system calculates the overpayment limit as follows: 100 x (1.00 + 0.05) = 105 A payment amount over $105.00 would be considered an overpayment, based on the profile’s Overpayment Control Level.
Pay Prior to Receive	Setting determining whether you can make final payment for purchase order items that have not been fully received. Select: F - Fatal - Prevents final payment if the PO item is not fully received. This setting can only be overridden if the user has the appropriate security resource. W - Warning - Warns the user if the PO item is not fully received, but allows entry of final payment. N - No Checking - Does not check if the item is fully received.
Duplicate Invoice Checking	Setting determining whether the system allows entry of duplicate payable records referencing the same vendor and invoice number. Select: F - Fatal - Prevents entry of a payable if the vendor and invoice number are already assigned to another payable. W - Warning - Warns the user if a duplicate invoice exists for the vendor, but allows entry of the payable. N - No Checking - Does not check if duplicate exists invoice for the vendor.
Use Payroll Cash Account	Checkbox determining whether to use the Payroll Cash Account or standard Cash Account for vendor payments created during pay run processing. Select the box to specify the Payroll Cash Account. Otherwise, the Cash Account is used. These accounts are defined in the profile’s Funds/Accounts tab.
Default No PO Payment Info	Checkbox determining whether field information should default when you enter consecutive non-purchase order payments. The following fields default information based on the values from the previous entry: Vendor, Invoice, Invoice Date, and Due Date. Select the box if you want information to default for non-purchase order payments. Otherwise, leave the box blank. This setting applies to the Post Accounts Payable and Batch Accounts Payable options.
Approval for PO Payments	Checkbox determining whether you use an approval process for accounts payable records that reference purchase orders. Select the box if you use approval for purchase order payments. Otherwise, leave it blank.
Approval for PO Payments Overpayment Only	Checkbox determining whether you use approval processing for purchase order payments only for line items meeting overpayment criteria defined in the profile. Select the box if you use approval for overpayment of purchase order items. Otherwise, leave it blank. This box is not available if the Approval for PO Payments box is selected. For examples of how the system determines purchase order overpayment, refer to the Overpayment Calculation section following the field descriptions.
Approval for Non-PO Payments	Checkbox determining whether you use approval processing for non-purchase order payments. Select the box if approval applies to non-PO payments. Otherwise, leave it blank.
Important	If you enter information in the following fields, be sure to add the corresponding records in Fund Accounting’s Approval table. These fields are only used if the Approval for Non-PO Payments checkbox is selected.
Default Approval Group for Payroll	Code for the approval group to use as the default for automatic vendor payments generated through payroll processing in Human Resources.
Default Approval Group for Community	Code for the approval group to use as the default for payables interfaced from the CommunityPLUS Utility Billing System when refunds are issued. This only applies if you use CommunityPLUS applications.
Display Cash Account Numbers for Payables	Determines whether the Cash Account Number(s) section must be displayed in the payables screens when Print Checks by Bank Account is enabled for a district.

Vendor Checks Section

Use the following fields to determine the format of your vendor checks:

Field	Description
Check Amount Format	Setting determining whether monetary amounts on your vendor checks print as words or numbers. Select: D - Dollar -Monetary amounts print in numeric format. V - Verbose - Monetary amounts print as words.
Format of Detail Line	Setting determining the default format for the detail information that prints on vendor checks and vouchers and the Cash Requirements in Check Format report. Select: D - Detail - Check stubs, vouchers, and the Cash Requirements in Check Format report include the payment's vendor, budget unit, expenditure account, invoice, description, and if applicable, purchase order. S - Summary - Check stubs, vouchers, and the Cash Requirements in Check Format report include only the vendor and invoice number. You can change the default setting when printing vendor checks or the Cash Requirements in Check Format report.
Print Checks by Bank Account	Checkbox to print checks by bank account instead of disbursement fund. This option is applicable for both payroll and payable checks.
Check Sort	Setting determining how checks are sorted during a vendor check run. Select: A - Vendor Name - Sorts checks by the Search Name from the Vendor List. U - Vendor Number - Sorts checks by the vendor's code.
Create Attachments?	Checkbox determining the default for the Create Attachments? checkbox in the Vendor Checks page. The box indicates whether you want the system to create PDF attachments of the information on the vendor checks issued during the printing process. This field is only available if you have the appropriate Optio software installed on your server. Select the box if the Create Attachments? field should be selected by default when the user prints vendor checks. If you leave the profile's checkbox blank, the field in the Print Checks page will be blank by default. Users can change the default setting when printing checks.
Use Forms Manager for AP Checks	Checkbox to use the Forms Manager feature to print vendor checks.
Check Form Type	Determines the type of form for printing checks. Select: R - Regular E - Extended Mailer