Exercise 10: Set Up Accounts Payable

Task 1: Configure the Purchases & Payables Setup

Scenario

Concerning the processing of purchase invoices and credit memos, Contoso’s accounting manager has expressed the following requirements:

  • Posted purchase invoices and credit memos are not numbered separately, but they follow the same numbering. This number will include the year and will start from 1 each year as follows:

    The first purchase document, as of January 1st, 2022, will be posted with the number P22/0001. The next year will be P23/0001 and so on.

    These numbering should be respected in a chronological order and cannot be entered manually.

  • A separate g/l account 20200 is setup to record any discounts that were given by the vendors.

You will perform

  1. Set up and assign number series.

  2. Complete discount posting setup.

Steps

  1. Set up and assign number series.

    1. Select the Search icon in the top-right corner of the page, enter Purchases & Payables Setup and then choose the related link.

    2. In the Purchases & Payables Setup page, go to the Number Series FastTab.

    3. In the Posted Invoice Nos. field, click on the Look Up Value button and click + New.

    4. In the opened No. Series List page, fill in the following fields:

      1. In the Code field, enter PINCN+

      2. In the Description field, enter Posted Purchase Invoices and Credit memos.

      3. Select the Default Nos. check box.

      4. Select the Date Order check box.

    5. Click the ellipses (…), select Navigate and then select Lines.

    6. In the opened No. Series Lines page, select + New.

      1. In the Starting Date field, enter 1/1/2022.

      2. In the Starting No. field, enter P22/0001.

      3. In the Increment-by No. field, leave the value 1.

    7. Close the No. Series Lines page.

    8. Close the No. Series List page, by clicking OK.

    9. The new number series PINCN+ is now automatically filled in in the Posted Invoice Nos. field, in the Purchases & Payables Setup page.

    10. In the Posted Credit Memo Nos. field, enter PINCN+.

  2. Complete discount posting setup.

    1. In the Purchases & Payables Setup page, go to the General FastTab.

    2. In the Discount Posting field, select the All Discounts option.

    3. Select the Search icon in the top-right corner of the page, enter General Posting Setup, and then choose the related link.

    4. In the General Posting Setup page, for each possible combination of Gen. Bus. Posting Group and Gen. Prod. Posting Group, make sure the following fields are filled in:

      1. In the Purch. Line Disc. Account field, the value 20200 must be filled in.

      2. In the Purch. Inv. Disc. Account field, the value 20200 must be filled in.

Note – If you do not find the value – Please proceed with creating a new.

Task 2: Create a payment journal template and batch

Scenario

The accounting manager at Contoso would now like to use the European bank account to make payment files.

You must set up a separate payment journal for this purpose.

You will perform

  1. Create a general journal template.

  2. Create a general journal template batch.

Steps

  1. Create a general journal template.

    1. Select the Search icon in the top-right corner of the page, enter General Journal Templates, and then choose the related link.

    2. In the General Journal Templates page, select + New.

    3. Fill in the following fields:

      1. In the Name field, enter EUROP.

      2. In the Description field, enter Payments EUROP.

      3. In the Type field, select the Payments option.

      4. In the Bal. Account Type field, select the Bank Account option.

      5. In the No. Series field, enter GJNL-PMT.

  2. Create a general journal template batch.

    1. In the General Journal Templates page, make sure the EUROP journal is selected.

    2. Select Batches.

    3. In the opened General Journal Batches page, select + New.

    4. Fill in the following fields:

      1. In the Name field, enter EUROP.

      2. In the Description field, enter Payments EUROP

      3. Select the Allow Payment Export check box.

Task 3: Create and configure vendors

Scenario

Based on the chart of accounts, you will set up the different vendor posting groups. With their fast-growing business abroad, they want to keep track of their accounts payables in the US (domestic) and in other EU countries (foreign) separately. A third group will be set up to register transactions with EU third-party alliances (intercompany) they have set up to expand their business even further.

The DOMESTIC vendor posting group is already set up. The other vendor posting groups will be based on this group, but with different balance accounts (20150 for foreign vendors and 20175 for intercompany vendors).

During the implementation process most of the master data for vendors was already imported. These vendors will now have to be configured correctly by adding the correct posting groups. First create templates based on the different posting groups. Then apply these templates to the existing vendors.

You will perform

  1. Set up a Vendor Posting Group.

  2. Create Vendor Templates.

  3. Configure vendors.

Steps

  1. Set up a Vendor Posting Group.

    1. Select the Search icon in the top-right corner of the page, enter Vendor Posting Groups, and then choose the related link.

    2. In the Vendor Posting Groups page, select + New.

    3. In the Vendor Posting Group Card page, fill in the following fields:

      1. In the Code field, fill in FOREIGN.

      2. In the Description field, fill in Foreign vendors.

      3. In the Payables Account field, fill in 20150.

      4. Close the page.

    4. In the Vendor Posting Groups page, select + New.

    5. In the Vendor Posting Group Card page, fill in the following fields:

      1. In the Code field, fill in INTERCOMPANY.

      2. In the Description field, fill in Intercompany vendors.

      3. In the Payables Account field, fill in 20175.

      4. Close the page.

    6. From the Vendor Posting Groups page, copy the other g/l accounts from the DOMESTIC vendor posting group to the FOREIGN and INTERCOMPANY vendor posting groups. Copy the following fields:

      1. Payment Disc. Debit Acc.

      2. Payment Disc. Credit Acc.

      3. Invoice Rouding Account

      4. Debit Curr. Appln. Rndg. Acc.

      5. Credit Curr. Appln. Rndg. Acc.

      6. Debit Rounding Account

      7. Credit Rounding Account

      8. Payment Tolerance Debit Acc.

      9. Payment Tolerance Credit Acc.

  2. Create Vendor Templates.

    1. Select the Search icon in the top-right corner of the page, enter Vendor Templates and then choose the related link.

    2. In the Vendor Templates page, select + New.

    3. In the opened Vendor Template page, fill in the following fields:

      1. In the Code field, enter DOMESTIC

      2. In the Description field, enter Domestic vendors

      3. Then go to the Invoicing FastTab and fill in the following fields:

  3. In the Gen. Bus. Posting Group field, enter DOMESTIC.

  4. In the Vendor Posting Group field, enter DOMESTIC.

    1. Close the vendor template.

    2. In the Vendor Templates page, select + New.

    3. In the opened vendor template:

  5. Go to the General FastTab and fill in the following fields:

    1. In the Code field, enter EU

    2. In the Description field, enter EU vendors

  6. Then go to the Invoicing FastTab and fill in the following fields:

    1. In the Gen. Bus. Posting Group field, enter EU.

    2. In the Vendor Posting Group field, enter FOREIGN.

  7. Close the vendor template.

    1. In the Vendor Templates page, select + New.

    2. In the opened vendor template:

    3. Go to the General FastTab and fill in the following fields:

      1. In the Code field, enter INTERCOMP

      2. In the Description field, enter Intercompany vendors

    4. Then go to the Invoicing FastTab and fill in the following fields:

      1. In the Gen. Bus. Posting Group field, enter EU.

      2. In the Vendor Posting Group field, enter INTERCOMP.

    5. Close the vendor template.

    6. In the Vendor Templates page, select + New.

    7. In the opened vendor template:

  8. Go to the General FastTab and fill in the following fields:

    1. In the Code field, enter EXPORT

    2. In the Description field, enter Export vendors

  9. Then go to the Invoicing FastTab and fill in the following fields:

    1. In the Gen. Bus. Posting Group field, enter EXPORT.

    2. In the Vendor Posting Group field, enter FOREIGN.

  10. Close the Vendor Template.

  11. Configure vendors.

  12. Select the Search icon in the top-right corner of the page, enter Vendors, and then choose the related link.

  13. In the Vendors page, multi-select imported vendors V9001, V9003 and V9007.

  14. Select Apply Template.

  15. In the Vendor Templates list, select Domestic vendors, and click OK.

  16. Click Yes.

  17. In the Vendors list page, multi-select imported vendors V9002, V9005 and V9006.

  18. Select Apply Template.

  19. In the Vendor Templates list, select EU vendors, and click OK.

  20. Click Yes.

  21. In the Vendors list page, multi-select imported vendors V9004 and V9008.

  22. Select Apply Template.

  23. In the Vendor Templates list, select Export vendors, and click OK.

  24. Click Yes.