Chapter 27: Creating a Manual A/P Check (CMCK)

Purpose: Use Create Manual A/P Check to create a check for an existing A/P invoice or for a direct disbursement for a vendor invoice that has not been posted to the Accounts Payable system.

You may also create an A/P Check by pressing F6 on the Work with A/P Checks Screen.

In this chapter:

• Create A/P Check Screen

• Creating a Check for an Existing Invoice

• Entering a Direct Disbursement

• Creating the Check Record

Create A/P Check Screen

How to display this screen: Enter CMCK in the Fast path field at the top of a menu or select Create Manual A/P Check from a menu.

ACR0137 ENTER Create A/P Check 6/17/97 10:58:54 CommercialWare Direct Disbursement . . . . . . (Y/N) Vendor # . . . . . . . . . . . Invoice # . . . . . . . . . . . Override Vendor Hold Status . : N ------------------------------------------------------------------------------ Merch amount Other amount Invoice date Terms . . . . . . Discount % . . Gross due days . Net due days G/L Expense # Cost . . . Units . . Apply discount . . Y (Y/N) F9=Accept F11=Reject

Field	Description
Direct disbursement	This value indicates whether the A/P Check you are adding to the A/P Checks file is a direct disbursement not yet posted to the Accounts Payable system. Valid values are: Y = The A/P check is a direct disbursement; the system will not attempt to match the A/P check against a vendor/invoice posted to the system N = The A/P check is not a direct disbursement. If you enter N in this field, you must enter a valid vendor number and invoice number in the Vendor # and Invoice # fields. This enables you to add a vendor invoice to the A/P Checks file without first selecting the Generate A/P Checks Screen. The system fills in the bottom half of the screen with the appropriate information from this invoice because the invoice was already posted to the system. Alphanumeric, 1 position; required.
Vendor #	A code that identifies the person or business from whom you made a purchase. Vendor numbers are defined in and validated against the Vendor file. Numeric, 7 positions; required.
Invoice #	The number of the vendor's invoice for the merchandise or service purchased. If you are adding a check to the A/P Checks file, simply enter the vendor number and invoice number. The system will display the appropriate information in the remaining fields on this screen from the existing A/P Invoice record. Alphanumeric, 11 positions; required if you are not performing a direct disbursement.
Merch amount	The dollar total for merchandise on this A/P invoice. This value represents the purchase price of the items and does not include any other additional charges, such as sales tax or freight charges. Numeric, 9 positions with a 2-place decimal; required if entering a direct disbursement or defaults if adding a posted invoice to the A/P Checks file.
Other amount	The total dollar amount for additional charges on the invoice, such as a charge for sales tax or freight. Numeric, 9 positions with a 2-place decimal; required if entering a direct disbursement or defaults if adding a posted invoice to the A/P Checks file.
Invoice date	The date of the vendor's invoice. Numeric, 6 positions (MMDDYY format); required if entering a direct disbursement or defaults if adding a posted invoice to the A/P Checks file.
Terms	A code that represents the vendor's terms for payment of this invoice. Terms codes are defined in and validated against the Terms file. Numeric, 2 positions; required if entering a direct disbursement or defaults if adding a posted invoice to the A/P Checks file.
Discount %	The discount percentage you are applying to the vendor's invoice. If you enter a discount amount in this field, the system will apply the discount to each detail line on the invoice. When you generate the checks, you have the option to apply the discount if you pay the invoice within the vendor's payment terms (for example, if you pay the invoice within 30 days of receipt) or to apply the discount regardless of when the invoice is paid. If you are adding a posted invoice to the A/P Checks file, a discount percentage may default to this field from the Vendor record, but may be overridden. Numeric, 5 positions with a 2-place decimal.
Gross due days	The number of days used to calculate the due date for the invoice. This field defaults from the Terms code, but may be overridden. When the terms type is “days,” the value in this field is added to the invoice date to determine the gross due date. When the terms type is EOM (end-of-month), the value in this field is added to the end of the month to determine the gross due date. Numeric, 3 positions; required if entering a direct disbursement or defaults if adding a posted invoice to the A/P Checks file.
Net due days	The number of days after the invoice date, but before the due date, that you may take the discount on the invoice, if one exists. This field may default from the terms code, but may be overridden. Numeric, 3 positions.
G/L expense #	The General Ledger account number against which this A/P transaction will post. General Ledger account numbers are defined in and validated against the G/L Accounts file. Numeric, 8 positions.
Cost	The cost to purchase the item. Numeric, 11 positions with a 4-place decimal.
Units	The number of units of the item for which you are remitting payment. This field defaults to 1. Numeric, 7 positions.
Apply discount	This value indicates whether the system will take any eligible discounts for this A/P transaction. Valid values are: Y (default) = Apply any applicable discount to this transaction N = Do not apply the discount (in the case of an invoice for other charges such as sales tax, freight, etc.) Alphanumeric, 1 position; required.

Creating a Check for an Existing Invoice

Step-by-step instructions: Use this option if you want to cut a check for an existing invoice without first selecting Work with A/P Checks (WCHK).

6. Enter Y in the Direct disbursement field; this indicates that you want to add an invoice to the A/P Checks file without using the Generate A/P Checks option.

7. Enter the vendor number in the Vendor # field.

8. Enter the number of the vendor's invoice in the Invoice # field. The system validates your entries and displays the appropriate invoice information in the fields located in the bottom half of this screen.

9. Optionally, adjust any values on this screen and press Enter to update the record.

10. Press F9 to generate the A/P check record or press F11 to reject the A/P check record; the system returns you to the menu.

Entering a Direct Disbursement

Step-by-step instructions: To enter a direct disbursement to pay off a vendor invoice that has not been posted to the Accounts Payable system:

1. Enter Y in the Direct disbursement field to indicate that you want to pay an invoice that you have not posted to the system.

2. Enter the vendor number in the Vendor # field.

3. Enter the invoice number in the Invoice # field.

4. In the Merch amount field, enter the dollar amount that you will be applying towards merchandise.

5. In the Other amount field, enter the dollar amount that you will be applying towards miscellaneous charges on the invoice, such as sales tax or freight.

6. Enter the date of the vendor's invoice in the Invoice date field.

7. Enter the code for the vendor's payment terms in the Terms field. The system will highlight the remaining required fields; however, the system will default values to the Discount %, Gross due days, and Net due days fields based on the Terms code. Verify or adjust these values, if necessary.

8. Enter the General Ledger account number against which you will post this transaction in the G/L expense # field.

9. In the Cost field, enter the dollar value at which you purchased the item.

10. Enter the number of units for which you are remitting payment; otherwise, accept the default of 1 unit.

11. Enter N in the Apply discount field if you are creating a check for miscellaneous charges (such as sales tax or freight) or accept the default to apply any applicable discount to each detail line on the invoice.

12. Press Enter to validate your entries and make any necessary corrections.

13. Press F9 to add a check to the A/P Checks file based on your entries to this screen or press F11 to cancel this action. The system clears the screen if you pressed F9. You may create another A/P check or press F11 to return to the menu.

Creating the Check Record

Processing the check record: The system will check the Max # of Invoices on a Check (C53) field in the System Control file to determine the maximum number of invoices that can be included on a single check. If the number of eligible invoices for which you are generating checks is greater than this value, the system will generate additional checks. In any case, the system does not include more than 10 invoices on a check.

If you have overpaid on an invoice, so that there is a negative invoice on the system (representing a credit):

• The system will use the invoice date as the due date so that the credit can be applied immediately.

• The system will apply the credit (negative invoice) against an invoice or invoices that are due, automatically subtracting the credit from the invoice.

• The system will not print a negative or .00 value check.

Updates: These updates occur when you create a check for an existing invoice or you perform a direct disbursement towards an A/P invoice that has not been posted to the Accounts Payable system:

• the check displays on the Work with A/P Checks Screen in a P (pay) status

• the direct disbursement check is added to the A/P Check Reconciliation file

• an A/P invoice is created and paid for a direct disbursement

• the Open A/P field and appropriate aging bucket(s) in the Vendor record are reduced by the amount of the check

Working with the new check: You can select Work with A/P Checks (WCHK) and use one of these options to work with the check:

• enter 7 next to the check to delete the check from the A/P Checks file if you do not want to pay the check at this time

• enter 8 next to the check to pay the check without printing the check if the vendor receives payment via a wire transfer or a direct deposit.

• enter over the amount in the Pay field to adjust the amount that the vendor will be paid

• press F21 to rerun the Accounts Payable Due List to reflect the addition of this check to the A/P Checks file

• press F8 to print all eligible checks, run the Accounts Payable Due List, and generate the Disbursements Journal.

Screen Option	Procedure
Add the check to the A/P Checks file	Press F9.
Cancel the creation of the check or return to the menu after creating a check.	Press F11.