SYSPRO Ribbon bar > Setup > Financial > Accounts Payable Setup

Accounts Payable Setup

You use this program to define the setup options for your Accounts Payable system.

You typically keep a report of these setup options for disaster recovery purposes.

For this module to run efficiently, we recommend that you select the options you require before processing any transactions. However, most of the options can be changed later, if necessary.

General

Field Description
Supplier amendment journals required

Monitor changes made to suppliers and currencies. View these changes in the Supplier Amendment Journal and Currency Amendment Journal programs.

No

Do not monitor information that has changed for suppliers and currencies held on file.

Yes

Monitor information that has changed for suppliers and currencies held on file, excluding new suppliers and/or currencies added.

Yes, including additions

Monitor information that has changed for suppliers and currencies held on file, including details of new suppliers and currencies added.

General options  
Permanent entries required

Create and maintain a series of recurring entries that you want to post into accounts payable.

Ask notation per detail distribution entry

Enter notations against each distribution entry processed in the AP Invoice Posting program.

Consolidate invoices by month due at month end

Accumulate all invoices, debit notes and credit notes for each supplier into a single invoice in the month that they are due when you run the Month end function of the AP Period End program.

Refer to Month End for additional information on the consolidation process.

Validate supplier class on supplier master Validate the supplier class defined against a supplier.
Validate geographic area on supplier master Validate the geographic area defined against a supplier.
Contra invoices by branch

Restrict the contra of credits and invoices belonging to the same branch when using the Contra invoice option of the AP Invoice Contra program.

You typically select this option if you have defined different General Ledger control accounts for your Accounts Payable branches.

Cash projection period in days

Enter the number of days to indicate the bucket size into which supplier invoices are accumulated when running the AP Cash Requirements report or the Supplier Query program. The purpose is to indicate when funds need to be available to pay invoices while taking advantage of available discounts.

Check print requirements  
Combined check & remittance

Select this if your pre-printed stationery comprises a combined remittance advice and a check.

See AP Check Format for more information on printing checks and remittances for payments.

Separate check & remittance

Print checks and remittances on separate stationery or separate printers.

This enables you to print your checks on pre-printed stationery and to print your remittances on pre-printed stationery or using MS Word or SRS printing.

Not required

Select this if you do not want to print checks.

The system still expects that you will print a remittance and you must therefore print the remittances before you can generate Payment Registers.

This is typically required if you pay your suppliers electronically. Remittance advices can be printed using pre-printed stationery or using MS Word.

Payment release and voiding These options apply to the payment of foreign currency supplier invoices and the voiding of foreign currency supplier checks.
[Note]

The options selected here are set as defaults in the following programs:

Default to invoice exchange rate Apply the exchange rate against the invoice as the default rate when the invoice is released for payment.
  • For a void check, it is the default exchange rate at which the payment is made.

  • For a manual check it is the default rate at which the invoice is paid.

Default to currency table rate Apply the current exchange rate defined on the Currency Exchange Rate table against the invoice as the default rate when the invoice is released for payment, when a check is voided and when a manual check payment is made.
Apply to outstanding invoice balance

Revalue all invoices released for payment and generate a revaluation value for any exchange rate variance created.

This option is only enabled when you select Default to currency table rate.

The exchange variance is posted to the Currency variance account defined in the AP Currency Variance GL Interface program, or, if not defined, to the Exchange variance account defined against the bank.

Tax

Field Description
Tax distribution method  
Detail

Create tax entries for each transaction processed in the AP Invoice Posting and AP Permanent Entries Posting programs.

Generates a detailed AP Tax Distribution Report.

Summary

Create tax entries summarized for each journal processed in the AP Invoice Posting and AP Permanent Entries Posting programs.

Generates a summary AP Tax Distribution Report.

If you select this option together with the option: Global tax file required (General Ledger Setup) then detailed tax entries are created for each transaction processed using the AP Invoice Posting and AP Permanent Entries Posting programs. These can be printed on the GL Global Tax Report.

Not required

Select this if you do not want to print an AP Tax Distribution Report.

If you select this option together with the option: Global tax file required (General Ledger Setup) you can enter a tax code or tax amount when processing transactions using the AP Invoice Posting, AP Permanent Entries Posting and AP Initial Invoice Capture programs. Tax entries will be created for each transaction processed using the AP Invoice Posting program.

Second tier tax

Required

Indicate that you want to use a two-tier tax system in conjunction with other tax systems available.

It is applicable only to transactions posted within Accounts Payable against local suppliers and is calculated on the compounded amount (i.e. on the total amount after the initial tax, discounts, surcharges etc., have been calculated).

This option is not available if you indicated that the Tax distribution method is Not required.

Description

Indicate the description that must be used as the default for all fields relating to second tier tax.

Second tier tax calculated on tax Calculate QST on the selling price inclusive of tax (i.e. selling price + tax).

If this option is deselected, then the QST is calculated on the selling price only (i.e. selling price exclusive of tax).

[Note]

This option has no effect on the calculation of tax on settlement discount.

QST on settlement discount is always calculated on tax, irrespective of your selection at this option.

Invoice posting

Disburse tax amount over multiple G/L tax accounts

Distribute the total tax amount entered during AP Invoice Posting and AP Permanent Entries Posting to the AP tax ledger code defined against each of the tax codes that you intend using (Tax Options).

You should not select this option if you selected to use the Withholding Tax system (Tax Options).

Disburse tax amount over single G/L tax account

Distribute the total tax amount entered during AP Invoice Posting and AP Permanent Entries Posting to the Accounts Payable Input tax account (General Ledger Integration).

Field Description
Default code  
Tax

Indicate the default tax code that must be used for tax distribution in the AP Invoice Posting and AP Permanent Entries Posting programs.

The Descriptive tax code must be used if defined (Descriptive Tax Codes).

If you enabled the option: EC VAT system required (Tax Options) and you select the option: Supplier default tax code required below, then the tax code defined against the supplier (Supplier Maintenance) is used instead of this default code.

QST Indicate the default tax code that must be used for second tier tax distribution in the AP Invoice Posting and AP Permanent Entries Posting programs.
Allow tax entry for foreign currency suppliers

Enable the Tax code and Tax amount fields when processing transactions for foreign currency suppliers in the AP Invoice Posting and AP Initial Invoice Capture programs.

Supplier default tax code required

Use the tax code defined against the supplier when processing Accounts Payable invoices using the AP Invoice Posting and Browse on AP Permanent Entries programs.

This option is only displayed if you enabled the option: EC VAT system required (Tax Options).

If you do not select this option, then the Default code defined for Invoice posting is used.

Settlement discount
[Note]

The tax and QST portions on settlement discount do not appear on the AP Tax Distribution Report report as the standard tax files (APSTDD, APSTDS, APSTDT and APSTTS) are not updated.

The Tax portion on settlement discount is, however, included in the Tax Return report (from the ADMTXR file).

The QST portion on settlement discount is currently not included in the Tax Return report.

Request tax amount

Select this to request the taxable portion of a non-zero discount amount when processing a payment using the AP Release Invoices to Pay by Review, AP Manual Check Payment, AP Void Check Entry or Payment Cycle Maintenance program.

The default value displayed in these programs is determined by the rate assigned to the entry made at the Default tax code field. In addition, you need to define the Settlement discount (tax) ledger code (General Ledger Integration).

[Note]

You cannot select this option if the Withholding tax system is in use (Tax Options).

Calculate tax using historical tax rate

Enable this to use the invoice date of the transaction being paid to determine the tax rate to use for settlement discount.

When this option is disabled, the current tax rate against the Default tax code or Default QST code is used to calculate the tax/QST on settlement discount.

This option only applies when the Request tax amount option is enabled.
Default tax code

This tax code is used to calculate the tax on settlement discount when processing a payment using the AP Release Invoices to Pay by Review, AP Automatic Release of Invoices to Pay, AP Manual Check Payment, AP Void Check Entry and Payment Cycle Maintenance programs.

The Descriptive tax code must be used if defined (Descriptive Tax Codes).

The rate to use is determined by the Calculate tax using historical rates option. When this option is enabled, the invoice date is used to ascertain the tax rate at that date. When this option is disabled, the current tax rate against the tax code is used (Tax Codes Setup).

[Note]

A valid default tax code must be entered if you want the value of tax on settlement discount to be printed on the Tax Return report.

Request QST amount

Select this to request the second tier tax portion of a non-zero discount amount when processing a payment using the AP Release Invoices to Pay by Review, AP Manual Check Payment, AP Void Check Entry or Payment Cycle Maintenance program.

The default tax value displayed in these programs is determined by the rate assigned to the entry made at the Default QST code field. In addition, you need to define the Settlement discount (QST) ledger code (General Ledger Integration).

[Note]

You cannot select this option when the Withholding tax system is being used (Tax Options) or if Second tier tax is not required.

Default QST code

This QST code is used to calculate the QST on settlement discount when processing a payment using the AP Release Invoices to Pay by Review, AP Automatic Release of Invoices to Pay, AP Manual Check Payment, AP Void Check Entry and Payment Cycle Maintenance programs.

The rate to use is determined by the Calculate tax using historical rates option. When this option is enabled, the invoice date is used to ascertain the QST rate at that date. When this option is disabled, the current tax rate against the QST code is used (Tax Codes Setup).

History

Field Description
Number of months to retain  
Zero balance invoices

Indicate the number of months that you want to retain invoices with a zero balance.

Enter 99 to retain this information indefinitely. Enter at least 3 if you are using multi-period accounting.

Expense journals

Indicate the number of months that you want to retain your expense journals.

Enter 99 to retain this information indefinitely.

Payment cycle details

Indicate the number of months that you want to retain details for payment cycles created using the Payment Cycle Maintenance program.

The minimum retention period is six months.

Enter 99 to retain this information indefinitely.

Tax distribution details

This field is only displayed if you enabled the option: EC VAT system required (Tax Options).

Indicate the number of months you want to retain tax distribution details for Accounts Payable transactions.

Enter 99 to retain this information indefinitely.

Number of G/L periods to retain

Expense distribution entries

Select the number of months to retain expense distribution entries.

Disbursement distribution entries

Indicate the number of General Ledger periods for which you want to keep your disbursement distribution entries that are created when you process payments for your suppliers (Payment Cycle Maintenance).

Enter 99 to retain this information indefinitely.

This option is only available if you selected to integrate the Accounts Payable module to the General Ledger either in summary or in detail (General Ledger Integration).

If 0 is entered here, or Accounts Payable is not integrated to General Ledger, all disbursement distribution entries (that have been printed) are deleted immediately when you next select to purge records.

Numbering

Field Description
Supplier numbering method Indicate how the supplier code must be allocated to new suppliers added using the Supplier Maintenance program.
Manual Manually allocate a unique supplier code to identify a new supplier added.
Automatic Assign the next supplier code automatically when you add a new supplier, based on the entry made at the Next supplier number field below.
[Note]

You can only assign supplier codes automatically if the Supplier Key type is set to Numeric (Set Key Information).

Scripted Assign the next supplier code automatically when you add a new supplier, based on a user defined script.

You can use the VBScript Editor, accessed from the Supplier Maintenance program, to build a unique supplier code for each new supplier added.

Next supplier number Indicate the next supplier number that must be allocated to the supplier code field when next you add a supplier using the Supplier Maintenance program.

This number is incremented automatically by the system as you add new suppliers.

You can only access this field if you set the Supplier numbering method to Automatic.

Payment run numbering method

Define the numbering method for Accounts Payable payment runs created using the Payment Cycle Maintenance program.

Manual

Manually assign a unique payment run code to each payment run created.

Automatic

Assign a payment run number automatically to each new payment run created.

Payment run numbers are allocated according to the number defined in the Next payment run field.

You can only select this option if the Key type for Payment run is defined as Numeric (Set Key Information).

Numbering

Next payment run

Enter the number you want to allocate to the next payment run created.

This number is automatically incremented by one for each payment run created.

This field is only enabled if you selected Automatic at the Payment run numbering method field.

Integration

Field Description
Integration

Accounts Payable linked to Cash Book

Post checks to the Cash Book module as withdrawal entries at the time of printing the Payment Cycle Maintenance.

User Defined

Field Description
Descriptions for user defined fields

Assign wording to these fields that are displayed in entry/display forms in the Supplier Maintenance program.

Description for field 1

Specify your own wording for this supplier field.

You can use this field to store any extra information you require for the supplier. For example: This field could hold the full description of the Supplier Class code.

Description for field 2

Specify your own wording for this supplier field. For example, you could use this field to store a value to use in calculations performed in the Report Writer module.

Periods

Field Description
Current year

Change Current

Maintain the period end dates and access status (open or closed) for the selected period for the current year.

[Note]

Postings cannot be made to a future period, regardless of whether the period is open or closed.

Period This column displays the period to which the end date and status relate for the current year.
End date

This column displays the period end dates defined for each period in the current year.

Status

This column indicates whether or not posting can currently be made to the period.

A status of open allows postings to be made to the period, while a status of closed prevents further postings from being made to the period.

Within a sub-ledger only the current and previous two periods can be defined as open.

Previous year

Change Previous

Maintain the period end date and access status for the selected period for the previous year.

Period

This column displays the periods for the previous year.

End date

This column displays the period end dates defined for each period for the previous year.

Status

This column indicates whether or not posting can currently be made to the period.

Current month

This indicates the period your Accounts Payable module is currently in.

Current Month

Field Description
Year selection

Indicates the calendar year in which your current financial year ends.

You can change this only if no active data is held within either the invoice file or the invoice payments file.

Month selection

Indicates the month in which your company is running, in relation to the start of your financial year.

You can change this only if no active data is held within either the invoice file or the invoice payments file.

Number of months per year

Indicates the number of accounting periods per year as defined at company level (Company Maintenance).

Information

The fields on this tab page are displayed for information purposes only. The same information can be viewed by selecting the Posting Information function from the At a Glance - Accounts Payable program.

Field Description
Current ledger

Current financial year

Indicates the financial year that your Accounts Payable module is currently in.

Current financial month

Indicates the period of the financial year that your Accounts Payable module is currently in.

Next expense journal numbers

Previous year

Indicates the next journal number that will be allocated to expense transactions if you process them into the previous year.

Current year

Indicates the next journal number to be allocated to expense transactions processed for the current year.

Next payment registers

Previous year

Indicates the next payment register number that will be allocated to payment transactions if you process them into the previous year.

Current year

Indicates the next payment register number to be allocated to payment transactions processed for the current year.

GRN

Field Description
GRN variance

A GRN variance arises during processing in the AP Invoice Posting program when there is a difference between the supplier's invoice value (net of tax, freight and miscellaneous charges) and the total merchandise value of the GRN line(s) you select to match.

Percentage

Indicate that the entry in the Maximum permitted variance field is a percentage.

Value

Indicate that the entry in the Maximum permitted variance field is a value.

Maximum permitted variance

Indicate the maximum allowable GRN variance value (or percentage).

Purchase price variance

A purchase price variance occurs during processing in the AP Invoice Posting program when there is a difference between the supplier's invoice value to match (net of tax, freight and miscellaneous charges) and the total matched value against the selected GRN line(s).

Ignore rounding variance less than (%)

If Inventory is integrated to the General Ledger (General Ledger Integration) and the difference between the value to match and the total matched value is less than the percentage defined here, then the variance is posted to the GRN suspense account. If the variance is more than the percentage entered here, then the variance is posted to the Purchase Price Variance account (General Ledger Integration).

If Inventory is not integrated to the General Ledger and the difference between the value to match and the total matched value is less than the percentage defined here, then the variance is posted to the merchandise account. If the variance is not less than the percentage entered here, then it must be manually allocated to a ledger code.

Auto Vouchering

Field Description
Auto voucher invoice numbering method
Option Description
Auto numbering Uses the next auto voucher number specified at the Next auto voucher number field.
Delivery note number Uses the delivery note number as the invoice number.
Goods received note Uses the GRN number as the invoice number.
Purchase order Uses the purchase order number as the invoice number.

If the delivery note, goods received note or purchase order is defined with a presentation length longer than 15 characters, that numbering method will be disabled. This is to make provision for duplicate invoice numbers.

Next auto voucher number

For auto voucher numbering, enter the next number to be used. If left blank, the next auto voucher number is set to 1.