- Business Process:
- Creation of Voucher
- Voucher Approval
- Voucher Posting
- Payment Posting
- Basic Setups in AP:
- Vendor SetUp
- Bank SetUp
- Branch SetUp
- Account SetUp
- Withholding setup/1099 Rule
- Vendor SetUP:
Navigation: Vendors→Vendor Information→Add/Update →Vendors.
- Type of Business:
- Supplier Vendor- To provide or to supply goods.
- Employee Vendor- Employee payments like travel, relocation, etc.
- Withholding Vendor- Vendors to which tax is paid.(Income tax authority or HDFC bank, UTI bank)
- Classification Based on Persistence:
- Regular Vendor- Vendor from whom we regularly buy goods. (Coffee powder, papers, systems, etc.)
- One Time Vendor/Single Payment Vendor- Vendor for whom we pay them only once. (Land payments)
- Recurring Vendor- Vendors come on a regular basis, at a particular time. ( Rent, current bills)
- Classification Based on withholding/1099 Rule/Income Tax:
- Withholding Vendor- Customer or company is responsible to pay the tax. (Contract employee)
- Non- withholding Vendor- the Vendor is responsible to pay the tax. (Permanent Employee)
- Bank SetUP:
Navigation: Banking→Bank & Branches→Bank Information.
- Branch SetUP:
Navigation: Banking→Bank & Branches→Bank Information.
- Account SetUP:
- Internal Account: Conceptual things used to reconcile or budget your expenses. (Food acc, petrol acc, etc. which gets deducted from our account)
Navigation: Banking→Bank Accounts→Internal Account.
- External Account: Physical existence of the account. (HDFC acc, ICICI acc)
Navigation: Banking→Bank Accounts→External Accounts.
- Withholding SetUP:
Elements of withholding:
- Withholding Rule
- Withholding Class
- Withholding Entity
- Withholding authority
- Withholding Rule- Thresholds and the percentage that need to be deducted as a tax. (Eg: 194c3- 0-20k no tax, 20k-999999 10%)
Navigation: SetUp Financials/Supply Chain→Product Related→Procurement options→Withholding Rule.
- Withholding Class- Collection of rules.
Navigation: SetUp Financials/Supply Chain→Product Related→ Procurement options→Withholding→ Types/Classes.
- Withholding Entity- Used to combine withholding rule, withholding class, withholding authority & jurisdiction.
Navigation: SetUp Financials/Supply Chain→Product Related→Procurement options→Withholding →Withholding Entity.
- Withholding Authority- Person to which the company pays the deducted tax amount from vendors.
Navigation: Vendor→Vendor Information→Add/Update→Vendor
- Jurisdiction- Responsible court to take legal actions against withholdings.
Navigation: SetUp Financials/Supply Chain→Product Related→Procurement options→Withholding→ Jurisdiction.
- When to pay tax?
We pay tax for a financial year. As system doesn’t know this we have calendars.
- In INDIA the financial year is from-(April 1 to March 31), in US it is from-(Jan 1 to Dec 31).
- 999 and 998 are Adjustment periods- These are used to make some adjustments to the transactions or accounts in which the bank statements are equalized with our peoplesoft system statements.
- Creation of Voucher:
Navigation: Account Payables→Vouchers→Add/Update →Regular Entry.
- Voucher Types:
- Regular Voucher- Normal Voucher.
- Prepaid Voucher- Used for advanced payments, this automatically reduces the advance amount paid and only pays the balance amount to the vendor.
- Journal Voucher- For adjustments between GL and AP.
- Single Payment Voucher- These are for single payments.
- Reversal Voucher- It will be of –ve amounts, where the orders are canceled.
- Adjustment Voucher- These are to do the adjustments for regular vouchers, where it hits the GL.(When vendor asks for transport charges, etc.)
- Depending on withholding:
- Withholding- Voucher for withholding vendors.
- Non-withholding voucher- Voucher for non-withholding vendor where he pays the tax.
- Depending on Sub-Systems:
- PO based vouchers.
- Non-PO based vouchers.
- Depending on Items:
- Asset Voucher- Buildings, systems, chairs, cars, etc.
- Non-Asset Voucher- Coffee powder, paper, etc.
- Voucher Approval:
Navigation: Account Payables→Vouchers→Approve→Approve Voucher
- Voucher Posting:
Navigation: Account Payables→Batch Processes→Vouchers→Voucher Posting
- Create Accounting Lines- These details directly go to GL.
- Create Payment Lines- These details go to vendor for payment and then to GL.
- Express Payments/ Inhouse cheque Printing- These are single voucher payments.
Here go to payment page click on express payment hyperlink and
set the server name as PSNT.
Navigation: Account Payables→Vouchers→Add/Update →Regular Entry
- PayCycle-Bulk or multiple voucher payments at a time.
Navigation: Account Payables→Payments →PayCycle Processing→PayCycle Manager
- PayCycle Elements:
- Step- A single Process.
Navigation: Account Payables→Payments→PayCycle Definition→Step
- Step group/ Step table- Collection of steps.
Navigation: Account Payables→Payments →PayCycle DefinitionàStep Table
- PayCycle Definitions- Consists of selection criteria in the step group.
Navigation: Account Payables→Payments →PayCycle Processing→PayCycle Selection Criteria.
Execution sequence for PayCycle:
- PayCycle Selection- Select the list of vouchers to be paid.
- Deselect Payments/Hold Payments- If we want to pay only for 10 out of 15 vouchers or if there is any dispute between the vendor and company then the payment vouchers are kept on hold.
- Payment Creation- Payment ID Reference (Cheque Number).
- Reset PayCycle- To reprint cheques, if there was any problem in printing cheques.
- Print Cheques- Here we print the cheques.
- Cancel PayCycle- If we came to know that the payments that we have done are wrong then we cancel the payment, also called payment cancellation.
- Payments Posting:
Navigation: Account Payables→Batch Processes→Payment →Payment Posting.
- Posting Voucher Process- AP_APY2015(Application Engine Process)
- Create Payments Process- AP_APY2015(Application Engine Process)
- Print Cheques Process- APY2021(Crystal Report Process, Crystal Cheque)
- Payment Posting Process- AP_PSTPYMNT(Application Engine Process)
- Different Dates to be specified:
- Invoice Date- The date on which the bill is generated by vendor.
- Transaction Date- The actual date of transaction with vendor to pay him the amount.
- Accounting Date- The actual date on which the transaction should the account.
- Payment Date- The date that will be printed on the cheque.
- Important Tables for Account Payables:
VOUCHER, VOUCHER_LN, PAYMENT_TBL – Create a Voucher,Voucher payment
PAYMNT_VCHR_XREF – Payment Creation and Voucher posting
VCHR_LN_ACCTG – Voucher posting and payment posting process