Directly underneath the header section of the AP Entry program is the distribution section. This is the part of the screen in which you create distribution lines to distribute the amount of the accounts payable invoice to the appropriate general ledger accounts. Distribution lines can be created automatically, manually or a mixture of the two.
Invoices for Inventory Purchases
The normal procedure for entering inventory related accounts payable invoices is to use the Three Way Matching method to “tag” or identify the receipts related to the invoice being processed. This method will automatically create a distribution line to the Inventory Liability or Unvouchered Inventory account for the value of the receipts.
If freight charges or other items are included on the invoice, or if there is a price or quantity variance between the vendor invoice and the related purchase order or receipt lines, additional distribution lines can be manually created to fully allocate the invoice amount.
Non-inventory related invoices
The department, account number, sub account number, description and amount of each distribution line you create are displayed in this section of the screen. Distribution lines with positive amounts will create a debit to the displayed account, and distribution lines with negative amounts will create a credit to the displayed account when the transaction is saved. The Balance field in the Header section of the AP Invoice Entry screen displays the difference between the invoice amount entered in the header section of the program and the total of the distribution lines for the invoice displayed in the distribution section of the program.