Getting Started
There are several steps which must be completed before you can begin using the Accounts Payable Manager program. NOTE: If you are not currently using an Accounts Payable system, then there is no conversion of data necessary so you only need to do Steps #1-4 below. However, if you currently have an Accounts Payable system, then you must follow all of the following steps to properly set up the Accounts Payable Manager module & to enter your current A/P information into this program.
Step 1: Set Up Passwords and Permissions Use the Passwords option on the File Pull-Down Menu of the MoverBiz Main Menu to set up passwords for each employee who will have access privileges to any of the MoverBiz modules. All employees must be assigned the appropriate password permissions before they can begin using the MoverBiz system. Each user's password controls which program features that person is authorized to use and it also places the User ID of that person in the Audit Trail for all financial transactions. For further information, please see Passwords.
Step 2: Set Up Bank Accounts in Bank Account Manager
The Bank Account Manager must be set up before you can continue with the set up of the Accounts Payable and print A/P checks. For additional information please see Bank Account Maintenance.
Step 3: Set Up A/P Accounts
You must first decide how many different Accounts Payable Subsidiary Ledgers you will need. For instance, if your company has multiple branches, then you may want to set-up separate A/P Accounts for each branch. These must be set up before you can do any work in the Accounts Payable Manager. These are set up by using the A/P Account File option on the File Pull-Down Menu. For additional information please see Edit A/P Accounts File.
Step 4: Set Up Vendors
The vendors do not have to be set up before the invoices are actually posted; however, they can be set up in advance if you so desire. The Vendor Master File contains the information necessary to print the Vendor's Name and Address on the check and on the form 1099-MISC, if required. It also contains other valuable information about the the vendor. Use the Vendor Master File option on the File Pull-Down Menu to set up your A/P vendors. For additional information please see Edit Vendor Master File.
DATA CONVERSION:
If you are not currently using an Accounts Payable, then there is no conversion of data necessary and you may begin using this program after completing Steps #1-4. However, if you currently have an Accounts Payable system, then you must now complete Steps #5-9 to enter your current Accounts Payable data into this program.
Step 5: Choose a Conversion (Cut-Off) Date
Before you begin using any accounting software, you must first decide upon a conversion date. The conversion date, sometimes called the cut-off date, is simply the date at which you plan to convert your existing data from your old accounting system (which may be automated or manual) to the new accounting system. A conversion is merely the re-expression of data from one system into another system. The actual financial amounts will not change between the systems.
If your conversion is at the beginning of a new calendar year, then the year-to-date amounts paid to each vendor do not need to be added to the Vendor Master File. However, if your conversion date is not at the beginning of a new calendar year and if you will need to generate a 1099 for any vendor, then you must add the year-to-date amounts paid to that vendor in the Vendor Master File. You only need to add these year-to-date amounts for those vendors that require a 1099 at year-end.
Step 6: Prepare Accrued Expenses Listing
Prepare a complete list of all of the accrued invoices payable to each vendor as of the Conversion (Cut-Off) Date chosen in Step #1 above. If your previous system was computerized, this list should be easy to compile. However, if your previous system was manual, this may be a bit complicated to compile.
It is preferable that you compile this list by invoice payable to each vendor. If this is not possible, then you must have at least the total due for each vendor. (Please note that if you only enter a total due for each vendor, then your A/P Aging Report will be incorrect for the invoices which comprise this total beginning balance.) In any case, the total amount of the invoices payable on this Accrued Expenses Listing must equal the amount in your current General Ledger Control Accounts for the Accounts Payable.
Step 7: Record the Accrued Expenses (Outstanding Invoices)
You must record the outstanding invoices payable which you compiled in Step #6 above. This should be done before you record any new invoices payable. Use the Initial Invoice Setup option on the File Pull-Down Menu to record these invoices payable. This program will NOT produce any general ledger financial transaction ¾ it only updates the A/P Detail File . It is to be used only to record the information that already exists in the general ledger as of the conversion (cut-off) date.
Step 8: Print Totals¾All Vendors Report
After recording all outstanding invoices through the Initial Invoice Setup option, then you must print a listing of the entries you have posted. Use the Totals--All Vendors option on the Reports Pull-Down Menu and include Unpaid Invoices Only. The totals due by vendor will be listed on the screen. If the Unpaid Balance column equals the total of the Accrued Expenses Listing prepared in Step #6 above, then the Initial Invoice Setup is complete and you are ready to press the [Detail Listing] button to print this report.
If the Unpaid Balance does not equal the total of the Accrued Expenses Listing prepared in Step #6 above, then compare this report to the Accrued Expenses Listing to locate the discrepancy. Then make the necessary adjustments through the Initial Invoice Setup. Repeat Steps #7 & #8 until the Unpaid Balances on the Totals--All Vendors report equals the total of the Accrued Expenses Listing prepared in Step #6.
Keep the Accrued Expenses Listing from Step #6 above and this Totals--All Vendors Report together as your proof of conversion documentation. This documentation should be kept with your financial records.
Step 9: Update Year-To-Date Paid Amounts
If you are currently on a system which accumulates the year-to-date paid information for each vendor and your conversion (cut-off) date is within the current calendar year, then you can enter the year-to-date amounts paid to each vendor in their vendor master file. This is only necessary for those vendors which must receive a form 1099-MISC at the end of the calendar year. If you have none, then this step can be bypassed altogether.
To perform this operation, use the Vendor Master File option on the File Pull-Down Menu. Select the proper vendor and press the YTD Amounts tab at the top of that vendor's window. Press the [Insert] button to insert a new calendar year, enter the four-digit Calendar Year and the YTD Amount Paid to this vendor. Then press the [Add] button to save this information in this vendor's master file.
For more information, see About The Accounts Payable Manager.
