Pay Invoices Overview

You pay vendor invoices regularly - for example, once each week. The Pay Invoices menu includes all the functions you need to pay due invoices.

Before you use the Pay Invoices function, complete these tasks:

• Set up your vendors and codes using the Setup and Maintenance functions.
• If you pay your vendors using a credit card account, review the Credit Card Payment Process.
• Verify your vendors and codes using the Master Lists and Interactive View functions.
• Enter all applications transactions.
• Verify and post your transactions.

Use the Pay Invoices function for the following tasks:

• Print the Cash Flow Report and the Open Invoice Report for all invoices to verify the invoices to pay.
• Use the Hold/Release Invoices function to change the status of an invoice or debit memo. Use the Change Invoice Status function to change the status of a group of invoices or a group of debit memos.
• Use the Prepare Payments function to create a record of released invoices that need to be paid. Invoices that are on hold are not included. To exclude an invoice that you do not want to pay from payment, put that invoice on hold and prepare checks again.
• Use the Select Payables function to see the net prepared amount, to see the checks that have been prepared for a vendor, and to specify which checks you do not want to print.
• Use the Edit Register function to produce a list of checks you prepared for invoices. If you find errors, use the Hold/Release Invoices function to correct them.
• When the checks are correctly prepared, use the Print Checks function to print them.
• Use the Payment Register as an audit trail of the checks you issue to vendors. If you must void checks, the Payment Register shows check detail.
• Post Payments to remove paid invoices and to update vendor totals and history information.
• Use the Void Payments function to cancel checks, if necessary.

Note: Invoice activity is shown in the Payment Register. Use this register to verify that your invoices are paid appropriately.

Pay Invoices Checklist

Vendor invoices are usually paid regularly, for example, once every week. The Pay Invoices menu includes all the functions that are used to pay due invoices.

Follow this checklist to pay invoices.

1. Enter and post all the accounts payable and purchase order transactions.
2. Print the Cash Flow Report and the Open Invoice Report for all invoices to verify the invoices to pay.
3. If you find mistakes in the reports, use the Transactions and Transaction Journal functions to enter, edit, and post correcting entries.
4. Repeat steps 1–3 until all the entries are correct.
5. Use the Hold/Release Invoices function or the Change Invoice Status function to hold or release invoices for payment.

NOTE: You can put a vendor on hold by selecting the Vendors function from the Setup and Maintenance menu and checking the Vendor Hold box.

6. Print the Open Invoice Report for released invoices, using the selection criteria you enter when you prepare payments.
7. If there are invoices in the report that you do not want to pay, use the Hold/Release Invoices function or the Change Invoice Status function to change their status from Release to Hold so that they are not selected for payment. (See NOTE above.)
8. Prepare Payments for invoices that are due.
9. Print the Edit Register to verify the calculated payments. If invoices that you want to pay are missing, use the Hold/Release Invoices function to release the invoices, and use the Prepare Payments function to prepare the payments again. If invoices that you do not want to pay have been included, use the Select Payables function to drop the invoices from the batch of payments.
10. If you have added or taken away invoices from your prepare payment run, print the Edit Register again to verify you have the correct invoices.
11. Print the prepared checks.
12. Print vouchers for those vendors paid using the EFT or credit card payment types.
13. Prepare the ACH file if you have vendors you are paying using the EFT payment type.
14. Output the positive pay file if you have one set up and defaulted into your payment bank.
15. Print the Payment Register as a summary of the checks and vouchers that were printed.
16. Use the Post Payments function to update the vendor, open invoice, and history information. If Accounts Payable is interfaced with General Ledger, entries are posted to the GL Journal for the payments you made. This function also clears the accounts payable payments information for the next time payments are prepared. The status of the open invoices that were paid in this payment run are flagged as paid, so they no longer show up on the open invoices report and the hold release screen.