Accounts Payable Study Guide

Each question applies for both DOS and Windows unless noted otherwise.

1. What is an AP Code?

AP CODES DEFINE HOW TRANSACTIONS ARE POSTED TO THE GL AND HOW THEY ARE AGED.

2. Where is the AP Code?

WINDOWS: OPTIONS/AP CODES

DOS: PROFILE MAINTENANCE/AP CODE MAINTENANCE

3. What file holds the AP Code data?

WINDOWS: APCOD

DOS: APPROFD

4. AP Codes need to be attached to each vendor.

TRUE

5. Give an example of how AP Codes can be used to group vendors into different categories for reporting and posting purposes.

You might use one AP Code for regular payments, a different one for tax payments, and a third for loan payments.

6. What is an Allocation Code?

A WAY OF DISTRIBUTING ONE AP BILL TO MULTIPLE EXPENSE ACCOUNTS.

7. When setting up an allocation code, explain how each line allocates it portion of the total expense.

IF ALL LINES ARE SET TO DOLLAR, THE FIRST DETAIL LINE IS ALLOCATED FIRST, THEN THE SECOND, AND SO ON, UNTIL THE WHOLE AMOUNT IS ALLOCATED.

IF ALL LINES ARE SET TO PERCENTAGE, EACH DETAIL LINE RECEIVES ITS ALLOCATED AMOUNT BY MULTIPLYING IT’S PERCENTAGE BY THE TOTAL OF THE BILL. AGAIN THE FIRST DETAIL LINE IS ALLOCATED FIRST, AND SO ON UNTIL THE WHOLE AMOUNT IS ALLOCATED.

IF DOLLARS AND PERCENTAGES ARE BOTH INCLUDED ON THE SAME ALLOCATION CODE, AGAIN THE FIRST LINE IS ALLOCATED THEN THE SECOND AND SO ON. EACH DOLLAR AMOUNT LINE IS ALLOCATED BY ITS DOLLAR AMOUNT AND EACH PERCENTAGE LINE IS ALLOCATED BY Its PERCENTAGE MULTIPLIED BY THE TOTAL OF THE BILL. (NOT THE REMAINING AMOUNT OF THE BILL)

8. What file holds the Allocation Code data?

WINDOWS: APALC AND APALD

DOS: APSPLITD

9. What type of bill would you set up as recurring?

Bills that are the same every period, such as rent, maintenance, vehicle payments or leases.

10. What file holds the Recurring Code data?

WINDOWS: APREC AND APREL

DOS: APPROFD

11. What GL accounts would be posted to on each line type (Direct, Prepaid, Future, Inventory, Allocation, Direct w/ immediate check and Paid Out) in Enter Bills?

SEE ATTACHED FLOWCHART

12. What GL accounts would be posted to on each payment type (Payments without discount, Payments w/discount, Payment correction, Balance Adjustments)

SEE ATTACHED FLOWCHART

13. Can you perform a complete reindexing with multiple users in the system?

NO, ALL OTHER USERS MUST EXIT TO BE ABLE TO REINDEX EACH FILE.

14. What file is the Vender information located in?

WINDOWS: APMSD

DOS: APMASD

15. Explain each type of vender status and their function in Accounts Payable.

Active: Current vendor with whom you do business. They may or may not have a balance due.

Inactive: Vendor that you no longer do business with and that has a zero balance.

Temporary: Vendor that you are only doing business with for a short

period of time and do not want to keep in your permanent records.

16. A check has been posted in AP and now needs to be voided. What module should the check be voided from?

ACCOUNTS PAYABLE

17. Explain the procedure for voiding a check.

WINDOWS: GO TO PAY BILLS/ADJUST PAY BILLS. SELECT PAYMENT CORRECTION, LOOKUP THE VENDOR TO VOID THE CHECK TO, AND LOOKUP THE CHECK NUMBER TO BE VOIDED IN THE CHECK # FIELD. SAVE THE TRANSACTION AND POST.

DOS: GO TO PAYMENT AND ADJUSTMENT PROCESSING, TRANSACTION MAINTENANCE. LOOKUP THE VENDOR TO VOID THE CHECK TO, ENTER A 3 FOR PAYMENT CORRECTION AND LOOKUP THE CHECK NUMBER TO BE VOIDED IN THE REFERENCE NUMBER FIELD. SAVE THE TRANSACTION AND POST.

18. What is the purpose of the GL expense account field on the vendor master screen?

SETS THE DEFAULT EXPENSE ACCOUNT FOR THIS VENDOR WHEN ENTERING A BILL TO THEM.

19. What is Enter Bills (Invoice Processing) for if I have a Pay Bills (Payment and Adjustment Processing) option?

To enter the bill and set up the liability to pay them later. It can also be used to immediately pay the vendor, bypassing the accounts payable GL account all together.

20. I have set up bills to be paid immediately. However, when I go to print the checks, I get a message that there are no checks to print. Why could this be happening?

1. Suppress AP Checks on the bank account being used is active.

2. Print Check on the transaction screen is not active.

3. ADMINISTRATIVE SHARE IS SET UP ON THE ROOT DRIVE OF THE SERVER.

21. This function will automatically generate transactions that you have set up as a recurring.

WINDOWS: Generate Recurring Bills under the Enter Bills menu.

DOS: Generate Invoices from a Recurring Batch in Invoice Maintenance.

22. Explain how to set up a bill as recurring?

WINDOWS: EITHER check THE recurring CHECKBOX as you are entering the bill IN ENTER BILLS OR SETUP THE RECURRING TEMPLATE UNDER OPTIONS.

DOS: FIRST SETUP A BATCH AS RECURRING. SETUP THE BILL IN THE RECURRING BATCH.

23. What does the AP Aging Report (DOS: Status Report) age by?

Due date and Transaction date

24. (Windows Only) Name all of the .rp5 files that Accounts Payable uses.

APCUSTOM, APFEDDOT, APFEDORT, APREPDOT, APREPORT

25. What does the Cash Requirements Report show?

SHOWS TOTAL CASH NEEDED TO PAY ALL BILLS OWED WITHIN THE DUE OR DISCOUNT DATES SELECTED.

26. Where is the Cash Requirement report located in Windows and DOS?

WINDOWS: REPORTS/CASH REQUIREMENTS REPORT

DOS: PAYMENT & ADJUSTMENT PROCESSING/CASH REQUIREMENTS REPORT

27. What is the procedure to automatically generate payments for bill due within a predefined date range?

WINDOWS: GO TO PAY BILLS/PREPARE PAYMENTS AUTOMATICALLY.

DOS: GO TO PAYMENT & ADJUSTMENT PROCESSING/CASH REQUIREMENTS REPORT. ENTER Y IN LINE 9.

28. The AP Control Report is used to:

insure that your data files are in balance.

29. (Windows Only) Why can’t you save the regular pay bills check format over the top of the immediate check format?

THE IMMEDIATE CHECK FORMAT USES THE AI___ TEMPORARY FILE WHERE THE REGULAR PAY BILLS FORMAT USES THE AM___ TEMPORARY FILE.

30. How would you print out 1099 forms for only those vendors you have paid more than $600 to?

Enter $600 in the Print Amounts field (Windows) or the Break Amount field (DOS) when printing out 1099’s.

31. What steps must you take to prepare the 1099’s for printing and to reset the vendor totals for the next year?

1. a. Period End/Reset YTD Vendor totals (Windows)

b. End of Period Processing/Process Vendor Accounts (DOS)

2. a. Reports/1099-MISC/Print using last year amount (Windows and DOS)

32. Explain the GL Expense Distribution Report. Where does this information come from?

SHOWS TO WHICH EXPENSE ACCOUNT EACH TRANSACTION POSTED.

INVOICES ENTERED THROUGH INVOICE PROCESSING.

33. What must be done to delete active or inactive vendors?

VENDOR MUST HAVE A ZERO BALANCE, AND SECURE VENDOR MUST BE INACTIVE IN MODULE PREFERENCES (DOS: CONSTANTS MAINTENANCE)

34. How can you automatically eliminate the clutter of vendors that won’t be used more than once?

SET THESE VENDORS UP AS TEMPORARY AND WHEN THEY HAVE A ZERO BALANCE, THEY CAN BE REMOVED ALL AT ONCE UNDER PERIOD END (WINDOWS) OR END OF PERIOD PROCESSING (DOS).

35. If I set a vender to inactive but they still have a balance, will the software delete this vender using the remove temporary venders option.

NO.

36. The AP Master Vendor Report prints information stored in each vendor’s master record. Name

6 things that are included in the Venders Master Record:

Vendor ID Number

Vendor Name

Address

Remit to Information

Contact Name and Information (Telephone number, Alternate Telephone number, FAX number, Internet Address, E-Mail Address and BBS number).

General Information (Discount%, Product Type, GL Expense code, Associated Vendor, Customer Number, Level Pay Amount, Return Dollar Amounts, Last Check).

Due Date Calculation Methods (Days [allowed and taken] from the Transaction Date, DISCOUNTS, Last Dollar Amounts, YTD Dollar Amounts).

1099-MISC Information (Federal ID, 1099 Type, Pay Type, Last Year $).

Notes (special notes made pertaining to this vendor).

37. Explain the Paid Out check box in Enter Bills.

THIS IS USED TO IMMEDIATELY PAY A NON-ESTABLISED VENDOR.

38. If you needed to assign one rent bill to four different expense accounts, what would you set up?

ALLOCATION CODE

39. At the time of entering a payment transaction, if you are integrated to Bank Reconciliation, can you select the bank account you want to pay the bill out of?

YES.

40. What would you enter on a payment transaction if not integrated to Bank Reconciliation?

THE GL CASH ACCOUNT

41. After a bill has been entered, you need to go back and make modifications to the bill before posting. How do I do this?

Go to the enter bills transaction screen, hit find and select the transaction you need to change or delete.

42. What are the 4 different date fields on the Enter Bills transaction screen? Which of these dates are set up on the Vendor?

invoice date, general ledger date, due date, and discount date.

due date and discount date.

43. What file holds the data in Module Preferences (DOS: Constants Maintenance)?

WINDOWS: APSYS

DOS: APSYSTEM

44. Where would you set up multi-batch processing?

WINDOWS: OPTIONS/MODULE PREFERENCES

DOS: PROFILE MAINTENANCE/CONSTANTS MAINTENANCE

45. Which applications can AP integrate to?

GL, BR (CR), IN, JC (DOS ONLY)

46. Explain in detail the Different GL Posting types.

Integrated-Detail: Transactions post individually to General Ledger. In General Ledger all elements post separately.

Integrated-Condensed: Income Statement accounts receive detailed posting. Balance Sheet accounts receive summary posting.

Integrated-Summary: All transactions associated with the General Ledger post as one General Ledger transaction.

Report Only: Accounts Payable and General Ledger ARE NOT INTEGRATED. Upon posting, a report is generated that includes information as it would have posted to THE General Ledger.

47. How do you pay an invoice when it is a duplicate invoice number?

You have to purge the open item file or change the invoice number in the open item file using the data utility.

48. What is the name of the header transaction file in invoice processing?

WINDOWS: IF YOU ARE IN SINGLE BATCH MODE, IT IS XXXAO___. DBF. IF YOU ARE IN MULTI BATCH MODE, IT IS XXXAOAAA.DBF WHERE AAA=BATCH NUMBER.

DOS: If you are in single batch mode, it is api00000.xxx. If you are in multi batch mode, it is apiyyyyy.xxx WHERE yyyyy= batch number.

49. What is a debit memo?

A CREDIT FROM A VENDOR THAT WILL REDUCE THE VENDOR’S BALANCE.

50. How do you put in a debit memo you wish to apply now?

WINDOWS: GO TO ENTER BILLS AND ENTER THE AMOUNT OF THE DEBIT MEMO, USING A –1 IN THE QUANTITY COLUMN. POST. THEN IN PAY BILLS, ADJUST PAY BILLS, SELECT THE DEBIT MEMO TO APPLY FROM THE ADJUSTMENTS TO APPLY COLUMN.

OR, GO TO PAY BILLS/ADJUST PAY BILLS AND SELECT BALANCE ADJUSTMENT. CHOOSE DECREASE BALANCE AND ENTER THE VENDOR. ENTER THE AMOUNT IN THE GRID BELOW AND CHECK THE BOX IN THE APPLY COLUMN.

DOS: In Payments and Adjustments, go into transaction maintenance and enter a type 5 and then select an invoice to apply this to.

51. List the 3 places the Bank Code is entered.

WINDOWS: OPTIONS/MODULE PREFERENCES; OPTIONS/AP CODE; PAY BILLS/ADJUST PAY BILLS

DOS: Profile Maintenace/Constants Maintenace; Profile Maintenace, Ap code maintenance; payment and adjustment processing/transaction maintenance.

52. Where do you put the vendor’s federal ID number to print on 1099’s?

WINDOWS: VENDOR/1099 TAB

DOS: Vendor maintenace, Line 17 Ein/SSN for 1099’s (TYPE MUST BE ENTERED IN LINE 19)

53. If you have secure vendor active, what does this do?

This will prohibit deletion of a Vendor Master Record even if the Vendor has a zero balance.

54. Where do you change the due date of an invoice after it has been posted?

WINDOWS: OPTIONS/FILE MAINTENANCE/ADJUST POSTED ITEM DUE DATE

DOS: PROFILE MAINTENANCE/POSTED DETAIL MAINTENANCE

55. How do you fix control report errors if the detail file is correct?

WINDOWS: OPTIONS/FILE MAINTENANCE/RECALCULATE VENDOR BALANCES

DOS: Profile Maintenace, Data Index File Maintenace, Correct Total Due Balances.

56. Explain what is happening in the system when you Recalculate Vendor Balances (DOS: Correct Total Due Balances)?

WINDOWS: THE APMSD FILE IS REBUILT USING THE TOTAL OF THE APITM FILE.

DOS: THE APMASD FILE IS REBUILT USING THE TOTAL OF THE APOPEND FILE.

57. What files are being compared when running the control report?

WINDOWS: APMSD AND APITM

DOS: APMASD and APOPEND

58. How do you apply an unapplied debit while still needing to cut the vendor a check?

WINDOWS: PAY BILLS/ADJUST PAY BILLS. IN THE GRID BELOW ENTER THE REFERENCE TO PAY AND THEN IN THE NEXT COLUMN, ADJUSTMENTS TO APPLY, SELECT THE UNAPPLIED DEBIT. THIS WILL REDUCE THE AMOUNT OF THE INVOICE BEING PAID AND WILL SHOW ON THE STUB OF THE CHECK.

DOS: In Payments and Adjustments, ENTER a transaction type of 4. In the detail section, select the inovice to be paid IN the reference to pay and then select the UNAPPLIED Debit IN THE DR MEMO to apply.

59. When would you use a Payment Correction?

TO VOID A PAYMENT WHICH HAS BEEN POSTED.

60. What account does the AP code control?

The ap liability account in the gl.

61. What does the due date days mean if you have the due date control set at End of Month?

The entry for Due date Days is the number of days from the end of the month that the invoice is due.

62. What are the first 3 characters for on the 1099 type field?

The first character is where you enter the payment type (1-8), Normally the box on the 1099 you wish to print in.

The second character is either B or I. B = Business I = Individual

The Third Character is either C or N. C = Crop Insurance Proceeds N = Non-Employee Compensation.

63. What file is the total due stored in?

WINDOWS: APMSD

DOS: APMASD

64. When renumbering a vendor, what must first be done?

ALL AP TRANSACTION BATCHES MUST BE POSTED OR CLEARED AND ALL USERS MUST BE OUT OF COUGAR MOUNTIAIN.

65. Can you merge two vendors together when renumbering?

YES.

66. What files are changed during renumbering?

WINDOWS: APHID, APHIS, APITD, APITM, APMSD, APREC

DOS: APHISTL, APHISTD, APLINED, APOPEND, APMASD

67. Explain Landing.

Landing costs are costs, aside from the purchase cost, that you incur when you acquire inventory, such as freight and taxes. These costs will be added to the purchase cost of the inventory.

68. Explain how you would go about setting up the software to pay a vendor with a credit card and then pay the credit card bill separately.

1. Set up a Bank Account in BR (cr). Set the account type as Credit Card. In the Bank Checking Account field, enter the credit card liability account. Save.

2. When paying the vendor in AP, select the Credit Card bank account set up in #1 and continue as if the vendor was being paid with a check. (just don’t print a check out of the system)

3. When you pay the credit card bill, pay out of the regular checking account in BR (cr) and enter the cash on hand account instead of the expense account. This will debit the cash on hand account and credit the cash in bank account.

4. Then, also in BR (cr), do a deposit type in the credit card bank account for the same amount as the check issued in #3 above. Enter cash on hand in the GL Account column. This will debit the credit card liability account and credit cash on hand.

69. what is an RMA?

RETURNED MERCHANDISE

70. How would RMA’s be entered in?

AS A DEBIT INVOICE.

71. (Windows Only) Where would you set up the vendor’s bank account information if you were paying the vendor electronically?

VENDOR/REMIT TO TAB.

72. (Windows Only) What can be used in place of the Monthly Balance History?

DATED INVOICE\PAYMENT REPORT

73. (Windows Only) To use Bartender from print inventory labels in Enter Bills, what first step must be taken?

I must record the path just like report writer

74. (Windows Only) Name 5 types of transactions shown in the AP Aging Report (DOS: Status Report).

All Transactions

Invoice

Credit Adjustment

Payment Correction

Payment

Debit Adjustment

Unapplied Debit

Debit Invoice

75. (Windows Only) What is the difference between the Total Debt Report and the Aging Report?

THE AGING REPORT SHOWS THE AGING PERIODS FOR THE AMOUNT DUE, WHERE THE TOTAL DEBT REPORT DOES NOT.

76. (Windows Only) What is Change Local Transaction Date used for?

To set the date in Accounts Payable to be different than the system date. All the default dates in Enter Bills will reflect this alternate date.

77. (DOS Only) How do you fix the error: AP Files need to be Converted using APCONV

This error only happens if the API00000.xxx is missing. Copy in a new one from another company.

78. (DOS Only) What is APX00000.xxx and what do you do if you get a missing error on it?

This is a temporary posting file. You will have to delete the file and give a new API00000.xxx then clearr invoice processing.

79. (DOS Only) Where is the check format kept?

In the AP code.

80. (DOS Only) How do you delete an AP batch out of the utility?

WINDOWS: GO TO UTICMS. LOOK IN THE COMPANY CODE DIRECTORY. LOOK UP THE APBAT FILE. DELETE THE RECORD THAT CONTAINS THE BATCH YOU WANT TO DELETE. GO TO RECORD, DELETE/UNDELETE, AND THEN FILE/PACK.

DOS: Type 98 at the system menu. Select change current file, set the file to APBATCHX.xxx. Select Patch File, Enter batch number and hit f4 twice. The batch number should be on the right hand side, and then hit f5, then delete key. Yes for Are you sure. The batch is now gone.

81. What are the temporary files for Enter Bills?

WINDOWS: AI___, AE___

DOS: API00000, APK00000, APL00000

82. What are the temporary files for Pay Bills (DOS: Payment and Adjustment Processing)

WINDOWS: AO___, AD___

DOS: APA00000, APJ00000, APT00000

83. (DOS Only) What do you look for when you get a file missing error?

Check the applications file drive locations; check config.sys for enough file handles; go to the system menu, type 98, type sysprofd.xxx, select patch file and record 2. Check to make sure the right side is completely blank.

Accounts Payable

Enter Bills

I. Direct

Posting: GL: Debit: Expense Account (a)

Credit: Accounts Payable (b)