Accounts Payable Indianapolis, Indiana April 2008.
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Accounts Payable Indianapolis, Indiana April 2008 Slide 2 Introductions Slide 3 Ground Rules: PLEASE ask questions I dont mind being interrupted. NO question is stupid. Please keep questions relevant to the group as a whole. Can it be done versus Should it be done? MY way isnt the ONLY way. Slide 4 Quick Tips & Tricks Slide 5 Reopening Receivers If you do it have to reopen the first & only receiver on the PO OR It throws out your AP/GL Reconciliation Reopening Purchase Orders Slide 6 Menu 12.1.7 or 14.5 Slide 7 Multiple Ports Slide 8 Turn on Scroll Bar Slide 9 Vouchering Slide 10 AP Flowchart Slide 11 Menu 35.7 Slide 12 Menu 35.8 Slide 13 Paying Expenses Slide 14 Menu 13.20.1/2 Slide 15 Menu 13.20.1 Slide 16 Demonstration 13.20.1 PAID Slide 17 Paying Merchandise Slide 18 Menu 13.20.1/2 Slide 19 13.20.2 Benefits Accurate reflection of Gross Profit by month Accurate reflection of Gross Profit by part Accurate reflection of Net Income No large inventory adjustments at year end Better handle on inventory value and turns Average Cost reflects true cost Slide 20 13.20.2 Benefits Lessen likelihood of double paying bills Easy reconciliation of PO to vendor bill PAPERLESS AP!!! Slide 21 Menu 13.20.2 Slide 22 Slide 23 Menu 13.20.1 Slide 24 Demonstration 13.20.2 Slide 25 Paying Corp Slide 26 13.20.14 / 13.20.15 Slide 27 Menu 13.20.3 Slide 28 Slide 29 Demonstration 13.20.3 Slide 30 Enter vouchers in 13.20.1/2/3 Update 13.20.5 Handcheck register if applicable 13.20.6 Voucher Update Slide 31 Recurring Vouchers Slide 32 Enter vouchers in 13.20.8 Listing 13.20.9 (Monthly) Update 13.20.10 (Monthly) Recurring Vouchers Slide 33 Cash Disbursements Slide 34 220.127.116.11 or 13.2.4 2.Review printout, approve items for printing 18.104.22.168 or 13.2.6a 22.214.171.124 (Rolls from 13.2.6/6a) Check Run Process Slide 35 Check Reversal Slide 36 126.96.36.199 188.8.131.52 184.108.40.206 (if applicable) 4.Must also delete voucher if you dont want it paid on future check runs (13.20.18) unless it is a hand check Check Reversal Slide 37 Slide 38 Slide 39 Demonstration Check Reversal Slide 40 Menu 13.5 WE LOVE THIS MENU! Slide 41 Menu 13.5 Slide 42 Bank Reconciliation Slide 43 Reports Activity Report Summary of Deposits, Disbursements, Adjustments and Journal Entries Reconciliation Entry Input of Checks cleared on last bank statement. Enter as a range or individually. Reconciliation Listing Itemization of checks entered in 13.20.9 as well as outstanding checks and outstanding checks greater than 90 days. Slide 44 Prompt for bank first and not limit input by company. Starting balance for the report will be based on the cash account balance from the last general ledger close. Stores that do not use the general ledger component of the system will need to have DST hardcode their January 1 balance each year and the report will populate from there. Bank Reconciliation Slide 45 Slide 46 Slide 47 Bank Reconciliation - Excel OPERATING ACCOUNT BANK RECONCILIATION BANK BALANCE less O/S Checks plus American Express in Transit plus Mastercard/Visa in Transit plus Daily Deposit in Transit ADJUSTED BANK BALANCE $ - BOOK BALANCE - BEGINNING OF THE MONTH Cash Sales Cash Disbursements 401K Cash Over/Short American Express Fees Bank Analysis Charge LOC Activity UNADJUSTED G/L BALANCE $ - RECONCILING ENTRIES Pending Credit Card Fees Pending Bank Analysis $ - Difference $ - Slide 48 Warranty Slide 49 Warranty Claims Part Rtnd Review Warranty items Create Claims Customer brings Part back to the store. Credit Memo is issued in m1.2 Use Warranty reason code to issue credit Assign a Sequence # Warranty Items need to be consolidated and turned into a claim. Run m15.1 to review items by vendor Review vendors warranty policies Determine viable warranty claims Issue Claim/Paperwork to Vendor. Use m15.3 to create the claims by vendor &/or by company Send paperwork and parts (if applicable) to vendor Process to Create a Warranty Claim is simple Monitor Aging Monitor the pending warranty credits. Use the Warranty Aging Report in m15.8 to make calls to vendors to get credit issued Slide 50 Warranty Accounts 12.1.7 Slide 51 15.9 Should mostly be used as a research tool Warranty Slide 52 Slide 53 Slide 54 Receive Part close claim with 15.10 Receive Credit close claim with 15.11 Warranty Credits/Replacements Slide 55 Demonstration 15.10 Slide 56 Demonstration 15.11 Slide 57 What to do with warranty claims you never collect on? Slide 58 Sales Tax Slide 59 EOM Sales Tax Report Will reflect AR adjustments (m4.1.2) or AR write-offs (m4.1.1) Will report under the applicable Tax Jurisdiction. An additional report will also follow your EOM AR adjustment report which will list adjustments and write-offs that were made that impact Sales Tax. This report will tie out to the line item on the Composite Sales Tax Report. Slide 60 EOM Sales Tax Report Slide 61 Inventory *See handouts Slide 62 NO easy solution, but you can balance with: Time Effort Attention to detail Slide 63 Potential Problems: 1) Product has been received but not yet vouchered into the Accounts Payable system - Inventory value is updated at receiving time (i.e. as soon as the on-hand increases due to a PO receipt). However, the G/L Inventory is not updated until the vendor invoice has been vouchered and the Inventory G/L account debited for the amount of the merchandise received. 2) Inventory adjustments have not been properly entered into the General Ledger via a Journal Entry - The Daily Inventory Transaction Audit Report that runs with each Day End lists all inventory adjustments that have been made for the day. These adjustments directly affect the product on-hand quantity and consequently the inventory value. A journal entry must be made to the Inventory G/L account for all inventory adjustments made throughout the month to properly reflect these changes in the General Ledger inventory value. Slide 64 Potential Problems (contd): 3) The difference between the PO receipt cost and the vendor-invoiced cost does not agree - It is necessary to properly record any differences between the product cost at PO receiving time and the actual cost invoiced from the vendor. 4) Incorrect use of the Warranty Systemvendor credits do not match credits issued through the warranty claim - When closing warranty claims, vouchers should be expensed only to the Warranty A/R account. Also, when issuing vendor credits, the actual credit amount from the vendor should be used. 5) Incorrect or non-posting of the Inventory Buyback. The Buybacks (rotational or annual) reduces on-hand (and subsequently inventory value). It is therefore necessary to make a journal entry to reflect this change in the G/L inventory value. Slide 65 Potential Problems (contd): 6) Incorrect or non-posting of the Physical Inventory variance - The Physical Inventory process updates on-hand (and subsequently inventory value) at the time the inventory is updated. It is therefore necessary to make a journal entry to reflect this change in the G/L inventory value. 7) PO Receipts posting of items not carried as inventory - Products such as C99 and Z95 items should have then Inventory Bypass flag set to Yes to avoid updating their on-hand (and subsequently inventory) values. Also, these items should not be received, as their on-hand value should always remain at zero. Slide 66 Potential Problems (contd): 8) Failure to utilize 13.20.2 Purchase Order Receipts Update to A/P to record vendor invoices and cost changes - 13.20.2 is the only supported process by which stores, whose desire is to balance Inventory Value to General Inventory, can ensure that what is being entered into the inventory system via PO receipts posting matches that which is entered into the A/P system and subsequently the General Ledger. Care must be taken to match all PO receipts to vendor invoices, with reconciliation and cost discrepancies entered through the Purchase Order Receipts Update to A/P process (13.20.2). Slide 67 Potential Problems (contd): 9) Reopening POs this has negative repercussions on average cost especially when there are multiplier receivers for a purchase order. 10) Manually updating inventory average cost incorrectly this is a privilege that only a select few should have access to. And only if they are well versed on the math calculation that determines average cost. 11) Omitting or incorrectly preparing journal entry for store transfers if this is a manual entry than extra care should be taken to make sure that the debits/credit are handled correctly and from/to the right stores. 12) Making journal entries or AP postings to inventory that you shouldnt rebates, freight, etc. 13) Not accounting for Drop ships correctly both sides of the transaction have to be dropships (DIN and DPO) Slide 68 End of Year Procedures *See handouts Slide 69 End of Year Procedures 1.AR Month-end close rolls into Year End *Confirm with DST 2.Close 12 th month AP 3.Close year AP *MUST happen before entries for new year 4.Close 12 th month GL *Manually Rollover NI (if Separate from Retained Earnings) 5.Close year GL *NO 13 th month Slide 70 Back-up Tapes! Slide 71 Questions Slide 72 Class Evaluations Slide 73 Thank YOU!