Cash Disbursements - Computer Generated

This section defines the procedures to be followed when producing computer generated AP checks.  The operator determines the invoices and amounts to be paid, selects or de-selects the appropriate invoices by modifying their pay dates, and prints the checks.  The system posts each check to the appropriate cash and AP general ledger accounts as soon as it has been printed.

1.  Print an Open Accounts Payable report and determine which invoices checks will be printed for.  If partial payments will be made against any invoices, note the specific invoices and payment amounts on the report.

2.  Select the invoices for payment. Print an Open Accounts Payable Report selecting by the invoice pay date that will be used for the check run (this cutoff date is usually today’s date but other pay dates may be used).  The items listed on the report are the items for which checks would be printed if the checks were run.  Use the AP Paydate Review screen or the Change AP Invoice Paydate program to defer payment of the invoices on the report that you do not wish to pay.  Change the Pay dates of the invoices that are to be paid that do not show on the report so that the pay date falls on or before the date that the checks will be printed.

3.  If a partial payment is to be made against any of the invoices for which checks are being printed, set the next payment amount for the invoice (s).

4.  Select the AP Vendor Lookup program from the menu, FIND the appropriate vendor and display the open invoices for the vendor.

5.  Highlight (select) the invoice(s) to be partially paid and press the USER 2 key to bring up the "Set Paydate/Amount window". 

6.  Once the window is displayed, change the invoice pay date and amount to the desired values.

7.  Run the proposed Disbursements Report or the Open Accounts Payable report (selecting by the invoice pay date that will be used).  The report will list all of the invoices that are scheduled for payment.  If the report is correct (shows all and only the invoices you wish to pay) proceed to the next step.  If the report is incorrect, repeat the above steps until the report is correct and save the correct report for future use.

8.  Set the printer on which the checks are to be printed to local mode.  It is strongly recommended that AP checks be printed on a local printer.

9.  Load the AP checks into the local printer and set the printer on line.  DO NOT print any reports to the printer while the checks are loaded. 

10. Select the AP Check Printing Program from the Menu.  Check that the proper year and period are displayed.  Accept or change the default cash account (this is the cash account from which the check amounts will be deducted.)  Enter the appropriate pay date and the beginning check number to be used.  If a "Y" is entered in the "pause after printing each check selection, the system will pause after printing each check and the operator must press a key to have the system print the following check.  DO NOT interrupt an AP Check Run.  If it must be stopped, use the escape key to stop the report, or use the select button on the local printer that the checks are being printed on to temporarily delay printing until the checks can be realigned.

11. Once all of the checks have been printed, print an AP Check Register.  The total amount shown on the check register should match the amount of invoices on the final corrected report printed above.  Attach the check register to the report and file them both.

12. Attach the check copies to the invoices that they are paying for.  If the check completely pays the invoice, remove the check copy and invoice from the open AP file and put them in the closed AP files.  If the invoice cannot be located in the open AP file, then the invoice may have already been paid and the operator should make sure the check should be issued before mailing it.  This final matching step helps to prevent invoices from being paid twice.

More:

Manual Cash Disbursements