Pronto 700 - AP Training Guide

Accounts Payable
So Easy Education Guide
So Easy Education Guide – Accounts Payable Document Version © 2011

Commercial in Confidence 2.0 Page i
© Copyright 2011 Pronto Software Pty Ltd. All rights reserved.
So Easy Education Guide, Version 2.0
PRONTO-Xi Version: 700
Trademarks
® - PRONTO, PRONTO ENTERPRISE MANAGEMENT SYSTEM, PRONTO SOFTWARE (Logo) and PRONTO-Xi,
are trademarks registered by Pronto Software Pty Ltd (ABN 47 001 337 248) in Australia, the United States of
America and other countries.
™- trademarks of Pronto Software Pty Ltd (ABN 47 001 337 248)
IBM® and Cognos® are trademarks of International Business Machines Corporation.
Disclaimer
The information contained within this document is provided on an “AS IS” basis, is subject to change without notice,
and is not warranted to be error-free.
While this guide provides specific, practical examples of implementing PRONTO-Xi features, it cannot cater for all
possible requirements of our customers. We hope, nevertheless, that this guide will stimulate ideas for extending or
enhancing your PRONTO-Xi implementation, and we strongly encourage you to seek professional advice regarding
your specific business needs.
© 2011 Document Version So Easy Education Guide - Accounts Payable

Page ii 2.0 Commercial in Confidence
Table of Contents
Table of Contents
1 About this So Easy Education Guide ............................................................... 1
1.1 Course Description ..................................................................................... 1
1.2 Audience .................................................................................................. 1
1.3 Pre-requisites ............................................................................................ 1
1.4 Assumptions ............................................................................................. 1
1.5 Objectives................................................................................................. 1
1.6 Course Duration ........................................................................................ 1
1.7 Conventions .............................................................................................. 2
2 About the Accounts Payable Module ............................................................... 3
3 Purchase Invoice/Credit Entry ....................................................................... 4
3.1 Lesson Overview ........................................................................................ 4
3.2 Background............................................................................................... 4
3.3 When to use this Procedure ......................................................................... 4
4 Fast Supplier Invoice Entry .......................................................................... 13
5 Invoice Authorisation and Payment Approval .............................................. 16
5.1 Payment Approval .................................................................................... 18
5.2 Invoice Authorisation ............................................................................... 19
6 Processing Journal Entries ........................................................................... 24
6.1 Lesson Overview ...................................................................................... 24
6.2 Background............................................................................................. 24
6.3 When to use this Procedure ....................................................................... 24
6.4 Intra Supplier Journal ............................................................................... 25
6.5 GL Supplier Journal .................................................................................. 27
7 Purchase Order Invoices .............................................................................. 30
7.1 Fast Supplier Invoice Entry – Purchase Order Invoices.................................. 30
7.2 No Variance ............................................................................................ 31
7.3 Freight Charge Variance ........................................................................... 33
7.4 Freight Charge Variance – Claim Raised ...................................................... 37
7.5 Price Variance ......................................................................................... 47
7.6 Quantity Variance .................................................................................... 51
7.7 Stock Quantity Variance ........................................................................... 55
7.8 Multiple Purchase Orders on One Invoice .................................................... 58
7.9 Part Invoice Order ................................................................................... 61
8 Processing Payments ................................................................................... 65
8.1 Manual Cash Payment .............................................................................. 65
8.2 Selective Invoice Payment ........................................................................ 67
8.3 Cancel Payments ..................................................................................... 75

Commercial in Confidence 2.0 Page iii
Table of Contents
9 Periodic Payments........................................................................................ 77
9.1 Periodic Payments Update ......................................................................... 79
10 Other Administrative Functions .................................................................... 80
10.1 Converting Supplier Account Codes ............................................................ 80
10.2 Consolidating Supplier Accounts ................................................................ 81
10.3 Removing Temporary Supplier Accounts ..................................................... 82
10.4 Checking Accounts Payable File Integrity .................................................... 83
11 Tips & Tricks ................................................................................................ 84
11.1 Showing Supplier Commitments ................................................................ 84
11.2 The Invoice is only Part Paid ..................................................................... 85
11.3 The Bank Account Has Doubled the Amount ................................................ 86
12 Accounts Payable Reports ............................................................................ 88
12.1 Accessing and Generating IBM Cognos Reports ............................................ 88

Page iv 2.0 Commercial in Confidence
About this So Easy Education Guide
1 About this So Easy Education Guide

1.1 Course Description
The PRONTO-Xi Accounts Payable So Easy Education Guide covers the accounts payable
business function. Included in this course are all procedures necessary to process core
accounts payable transactions.
This course will provide an understanding of the following topics:
 Invoice and credit entry
 Retentions
 Approval of supplier’s invoices
 Journals
 Manual cash payments
 Cheque printing
 General Ledger postings
For a complete list of all the available training sessions, contact your local Pronto Support
Centre or visit the PRONTOPlus website at http://www.prontoplus.com.au.
1.2 Audience
This course is intended for those who are responsible for maintaining the Accounts Payable
module.
1.3 Pre-requisites
You should have completed the following training sessions:
 PRONTO-Xi Overview
 Accounts Payable Setup and Administration
1.4 Assumptions
In this course, the following assumptions are made:
 You have PRONTO-Xi version 700 installed
 You have access to the PRONTO-Xi Accounts Payable module
 You are familiar with the navigation and functionality available in PRONTO-Xi.
1.5 Objectives
After working through this guide, you will be able to process the various types of
transactions typically used in Accounts Payable, post these transactions, and track the flow
of these transactions through the Suppliers Ledger and General Ledger.
1.6 Course Duration

This course will take one half day to complete.

Commercial in Confidence 2.0 Page 1
About this So Easy Education Guide
1.7 Conventions
The following symbols are used in this guide.
Icon Purpose
Indicates a Pronto Software recommendation.
Indicates an important item of information.
Indicates a potential loss of data if an action is performed incorrectly or before

relevant prerequisites have been met.
Indicates a sequence of steps to be followed.
Indicates a tip or something useful to know
The images shown in this guide are for illustrative purposes only and might not reflect the
settings relevant to your company’s dataset.

Page 2 2.0 Commercial in Confidence
About the Accounts Payable Module
2 About the Accounts Payable Module

PRONTO-Xi Accounts Payable offers you the ability to effectively control your supplier
accounts. It is fully integrated with PRONTO-Xi General Ledger and Purchase Orders. It
allows you to drill-down to detailed information in your supplier accounts, giving you a full
view of supplier arrangements, transactions and approval levels.
PRONTO-Xi Accounts Payable functionalities include the following:
 Separate purchase and pay-to accounts
 Customised cheque and remittance generation
 Automated payments processing by cheque, EFT and other formats
 Full purchase/payment history
 Multi-currency support (foreign and local bank accounts)
 Withholding Tax PAYG/1099
 Bank reconciliation for multiple banks
 Current and forward commitment tracking
 Recharging expenses back to customer account
 Easy purchase order, invoice and shipment matching

Purchase Invoice/Credit Entry
3 Purchase Invoice/Credit Entry

3.1 Lesson Overview
This chapter describes the steps required to process expense and purchase order invoices and
post the transactions to the General Ledger.
By the end of this chapter, you will be able to do the following:
 Understand the flow of invoice processing from invoice entry through to General Ledger
update.
 Enter an expense invoice.
 Enter a credit note.
 Enter an invoice with a retention.
3.2 Background
The Accounts Payable invoice entry procedure is used to record suppliers’ invoices for
eventual payment.
For expense invoices, one or more General Ledger accounts can be nominated during the
invoice entry process and the costs posted directly to these accounts.
For invoices being matched to purchase orders, variances can be posted as required. (These
will be covered in detail later in this guide).
3.3 When to use this Procedure

The Accounts Payable invoice entry should be used in the following situations:
 By companies that have either expense or purchase order invoices to be recorded and
subsequently paid.
 When the invoice being entered has a retention amount.
To enter an expense invoice

1. Select Accounts Payable > AP Transactions > Purchase Invoice / Credit Entry (AP T026).
2. Enter the transaction date in the Transaction Entry screen.
The Purchase Invoice/Credit Entry screen is displayed.

3. Complete the following fields in this screen, as described below:
Field Description
Account Enter the supplier account code to invoice or credit.
Invoice Type Specify the invoice type.

Press F2 (Lookup Help) to access a menu of available options.
For the purposes of this lesson, select I (Suppliers Invoice).
Full Amount Enter the amount inclusive of tax.

Supplier Inv No Enter the invoice document number.
Details Accept or change the default supplier details.

Invoice Auth Req Specify whether invoice authorisation approval is required.
Payment Appr. Req Specify whether payment approval is required.
Retention Amount Enter the amount to be withheld.

Retention is an amount which is withheld from payment until a
particular date.
The Retention Date and Retention Reason fields below are

only displayed if you enter an amount other than $0.00 in
this field.
Retention Date Enter the date that the retention amount is due to be paid.
Retention Reason Enter the reason why the retention has been created.
Invoice Date Enter the invoice document date.

Due Date Enter the due date.
Disc. Applicable Specify whether discounts are applicable.

The following options are available:

 Y – Allow Discounts
 N – No Discounts
 V – Discount by Volume
 S – Settlement Discount
 P – Withholding Tax Exempt No Discount
 D – Withholding Tax Exempt With Discount
 I – Immediate Withholding Tax Amount
For the purposes of this lesson, select N.
4. Press Enter.
The Invoice Details screen is displayed.
To enter the GL expense accounts

1. Complete the following fields in this screen, as described below:
Field Description
GL Account Enter the expense code to be debited.
Description Accept or amend the default description as required.
Tax Specify the tax indicator.

 I - Tax inclusive amount

 E - Tax exclusive amount
 O - Both amount and tax manually
For the purposes of this lesson, select I.
Inc Tax Amount Enter the amount (tax indicator rule from above applies).
Tax Code Accept or amend the tax code as required.
Tax Amount Accept or amend the calculated tax amount.
2. Continue the step above until the Remaining field is equal to zero.
3. Select Save in the Cancel/Continue Confirmation screen to confirm and save the
postings.
 If the Auto Cheque Req flag in the Maintain Supplier Accounts (AP M001)
function is set to Y, you can print a cheque at this point if required (the default
is N).
 Cheque printing from within invoice entry should be used with caution. Only
attempt this if there is a default cheque printer set up in the system
environment variables.
4. Repeat the process for remaining invoices.
5. Once all invoices have been entered, press Esc to exit Entry mode.
6. Select Post in the Purchase Invoice/Credit Entry screen to complete and update the
current batch.
On the Purchase Invoice/Credit Entry screen, the following modes are available:
Mode Description
Entry Add transactions to the batch.
Remove Remove the current transaction from the batch.
Breakdown Display the other-side General Ledger accounts and amounts.

Orders Select purchase orders for a list of ready to match purchase orders with
invoices.
Suspend Suspend the current batch of invoices, for later review, edit and posting.
Once a batch is suspended, it can be recalled at any time in the Resume
Suspended Supplier Invoices (AP T032) function (Accounts Payable > AP
Transactions > Additional Supplier Transactions).
Chk List Print an audit report of all entries in the batch, including the posting
accounts and amounts. This allows the contents of the batch to be
examined before posting.
Lines Access the Contract screen. Purchase order lines can be maintained in this
screen. The screen can also be used to display the audit history of all lines
on the order.
Inv Select Review invoice details in a summary screen.
The other side of this entry posts to the special account CCTRL (Accounts Payable
Control Account).

To enquire on the General Ledger batch enquiry postings

1. Select General Ledger > GL Transactions > Batch Enquiry (GL E009).
2. Select GL Details.
The tax has posted to the ITAX account.
To enter an expense invoice with retention amount

1. Select Accounts Payable > AP Transactions > Purchase Invoice/Credit Entry (AP T026).
2. Enter the transaction date in the Transaction Entry screen and press Enter.
3. Complete the details in the Purchase Invoice/Credit Entry screen as for the expense
invoice with the following exceptions:
Field Description
Retention Amount Enter the amount to retain.
Retention Date Enter the date the retention will require approval.
The retention date should be set to a future date.
Retention Reason Enter the reason for the retention.

To enter the expense accounts

1. Complete the following fields in the Invoice Details screen.
Field Description
GL Account Specify the expense code to be debited.
Description Accept or change the default value as required.

Tax Code Accept or change the tax code as required.
Tax Amount Accept or change the calculated tax amount as required.

postings.
To complete and post the batch

1. Press Esc to conclude entry of transactions for this batch.
current batch.
To enquire on payments showing different due dates

1. Select Accounts Payable > Supplier Enquiry (AP E001).
The Supplier Enquiry screen is displayed.
2. Select Commitments.
The invoice has two references with different due dates.
To enter a credit note

1. Select Accounts Payable > AP Transactions > Purchase Invoice/Credit Entry (AP T026).
3. Complete the details in the Purchase Invoice/Credit Entry screen as for the expense
invoice, except enter C in the Invoice Type field.

To enter the GL expense account

1. Complete the following fields in the Invoice Details screen.
Field Description
GL Account Specify the expense code to be debited.
Description Accept or change the default value as required.

Tax Code Accept or change the tax code as required.

Tax Amount Accept or change the calculated tax amount as required.

postings.

current batch.

Fast Supplier Invoice Entry
4 Fast Supplier Invoice Entry

The Fast Supplier Invoice Entry (AP T020) function can be used for any invoice or credit
note entry. In this screen, invoice entry is done through a data grid, making the processing
faster than the standard entry method. It is also a useful method to use when invoices for
multiple suppliers need to be entered.
This function cannot be used to create a retention against an invoice. If this is required,
use the Purchase Invoice/Credit Entry function.
To enter the expense invoice

1. Select Accounts Payable > AP Transactions > Fast Supplier Invoice Entry (AP T020).
The Fast Supplier Invoice Entry screen is displayed.
3. Enter the supplier account.

4. In the Type field, enter I as the transaction type.
For more information on transaction types, see the About Transaction Types topic in the
Accounts Payable help.
5. Enter the tax inclusive amount of the invoice.
6. Enter the invoice number on the original invoice document.
7. Enter the invoice details.
The information entered in this field defaults to the description field in the Invoice
Details screen and recorded on the GL transaction.
8. Enter the invoice date.
9. Enter the due by date.
The due date defaults based on the terms set against the supplier’s master record.
10. Specify whether approval is required.
 Y – Invoice Approval Required
 P – Payment Approval Required
 Blank - No Approval Required
11. Specify whether discounts are allowed.
Leave this field blank if there are no discounts on the invoice.

The Invoice Details screen is displayed.
To enter the GL expense accounts

To complete the entry, specify the General Ledger accounts to be debited in relation to the
invoice. It is possible to split the total amount of the invoice against any number of General
Ledger accounts. The default General Ledger account from the supplier master will default
here if set.
1. In the GL Account field, enter the expense code to be debited.

2. Accept or change the default description, as required.
3. Specify the tax indicator.
4. Enter the amount (tax indicator rule from above applies).
5. Accept or change the tax code, as required. (This will default from either the supplier
master or the tax master).
6. Accept or change the calculated tax amount, as required.
7. Once the amount in the Remaining field has been reduced to $0.00, select Save in the
Cancel/Continue Confirmation screen to confirm and save the postings.

1. Press Esc once to conclude entry of transactions for this batch.
2. Select Post in the Fast Supplier Invoice Entry screen to complete and update the current
batch.


Invoice Authorisation and Payment Approval
5 Invoice Authorisation and Payment

Approval
There are two types of approvals which can be used in the Accounts Payable module.
 Payment Approvals – Where an invoice is posted normally but is flagged as requiring
approval by a Payment Approval officer before it can be paid (payments not requiring
approval are in the Approved Payments menu).
 Invoice Authorisation – Where a supplier’s invoice is flagged for authorisation before
distribution to the correct expense accounts and made clear for payment.
The invoices awaiting authorisation will have the invoice amount posted as:
CCTRL CR Full amount

CRHOLD DR Expensed amount
ITAX DR GST Input Tax amount
The invoice approval process can be streamlined through the Approval/Auth for
Supplier Invoice major function flag (Administration > System Administration >
Major Function Flags > Accounts Payable Procedures).
Flag Description
Approval/Auth for This flag works in conjunction with the Variances for Purchase Orders
Supplier Invoice for both re-costing of inventory or the raising of a claim against the
supplier. When variances are all $0.00, inventory is automatically re-
costed for flag settings 1, 2 and 3.
0 Approval not required.
1 Invoices not relating to purchase orders. All supplier

invoices require approval before allocating to the General
Ledger
Invoices relating to purchase orders. Invoice authorisation
is not required, but if invoice value differs from purchase
order amount by more than the variance percentage or
value tolerance, set payment approval required.
Additionally, if an invoice is processed against a contract
purchase order, specify whether to complete the purchase
order or leave it open.
The authorisation process (Approve/Auth. Supplier
Invoice/Pay menu in the Accounts Payable module) will
post tax, under a GST/VAT environment.
This option does not function if the maximum invoice

variance percentage and amount are zero.
2 Invoice authorisation is not required, but if the invoice

value differs from the PO amount by greater than the % and
$ variance, payment approval is required.



value differs from the purchase order amount by greater
than the % and $ variance, payment approval is required
for the variance amount only.


value differs from the purchase order amount by greater
than the % and $ variance, payment approval is required
for the full value of the invoice - not just the variance.
It also checks the payment Approval Officer’s invoice limit.
If the invoice exceeds the limit, the transaction is put onto
payment approval.
If the invoice does not relate to a purchase order, it does not
require invoice authorisation, but payment approval is only
required if the invoice amount exceeds the invoice approval
limit set for that user.
5 As 1, but payment approval is required if the variation

between the purchase order value and the invoice value is
greater than the percentage or monetary value variance.
6 As 2, but payment approval is required if the variation

between the purchase order value and the invoice value is
greater than the percentage or monetary value variance.
7 As 3, but payment approval is required if the invoice value

differs from the purchase order amount by a value greater
than the set percentage or monetary variance.
8 As 4, but payment approval is required if the invoice value

differs from the purchase order amount by a value greater
than the set percentage or monetary variance.
Approval of This flag allows favourable variances (where the invoice is less than the
Favourable purchase order) to be processed in the same manner as unfavourable
Variances variances.
Approval Allowed This flag relates to approval of supplier transactions.

For Own Trans
0 Payment approval can be given by the user who entered the
transaction provided they are a Payment Officer.
1 Payment approval cannot be given by the user who entered

the transaction.

5.1 Payment Approval
To enter an invoice requiring payment approval

2. Complete the Fast Supplier Invoice Entry screen as with other expense invoices, but in
the Approval Required field, enter P (Payment Approval) as shown above.
3. Complete the Invoice Details screen.

batch.
To approve payments
1. Select Accounts Payable > AP Transactions > Approve/Auth Supplier Invoice/Pay >
Payment Approval (AP T043).
The Payment Approval screen is displayed.
2. Leave the Payment Ctrl field blank by pressing Tab.

The list of payments awaiting approval is displayed.

3. Select the transaction requiring approval.

4. Select Release Payment.
The transaction is now removed from the list.
5.2 Invoice Authorisation
To enter an expense invoice with Invoice Authorisation Required

3. Complete the Fast Supplier Invoice Entry screen as with other expense invoices, but in
the Approval Required field, enter Y (as shown above).
4. Enter the name of the person approving this invoice.
This field is notational only and no validation is required when the invoice is
eventually authorised and the postings completed.
To enter the expense accounts

1. Select Entry in the Invoice Details screen.

The GL account defaults to CRHOLD. There are no postings to the General Ledger at
this stage of the process. However, you can select the tax code and confirm the tax
amount in this screen.
2. Complete the details in the Invoice Details screen as for the expense invoice, with the
following exception:
GL Account will default to CRHOLD.

batch.
To enquire on the General Ledger batch postings

2. Locate and select the batch, then select GL Details.
Posting in A/C CRHOLD as other side.

To authorise invoices
1. Select Accounts Payable > AP Transactions > Approve/Auth Supplier Invoice/Pay >
Invoice Authorisation (AP T037).
3. In the Invoice Authorisation screen, enter the supplier account code in the Account field.
4. Select the invoice where Inv.Auth = Yes and Pay Appr = No.
5. Select Invoice Auth.
6. Complete the following fields as required in this screen:
Field Description
Project Enter the project number.
Proj Cost Centre Specify the relevant project cost centre.

Purchase Order Enter the purchase order number.
Retention Amount Enter the amount withholding
Retention Date Enter the retention date.
Retention Reason Enter the reason for withholding.

Modify P/O Line Accept the default value of Y.
Amount
7. Select OK to post the transaction.
 For this example, the invoice is not related to either a project or a purchase order
and the following screen is shown for completion.
 The amounts are GST exclusive as it was confirmed and posted during the
invoice entry process.
8. Specify the General Ledger account code.

9. Accept or modify the description.
10. Enter the amount and post the transaction.
GST is not included in the amount as this has already been posted to the ITAX account.
To enquire on General Ledger postings

2. Select GL Details.

CRHOLD has been cleared and the expense posted to the account that was selected during
the invoice authorisation process.

Processing Journal Entries
6 Processing Journal Entries

6.1 Lesson Overview
This chapter describes the steps required to process journal entries between two different
supplier accounts and between a supplier account and the General Ledger account.
By the end of the chapter, you will be able to do the following:
 Create adjusting entries between supplier accounts.
 Create adjustments between a supplier account and a General Ledger account.
6.2 Background
There are two journal functions available within the accounts payable transactions:
 Intra Supplier Journal (AP T023) - Which debits one supplier and credits another.
 GL Supplier Journal (AP T011) - Which debits or credits a supplier’s account and credits
or debits a General Ledger account.
Both procedures create the necessary postings within the Accounts Payable ledger and to the
General Ledger.
6.3 When to use this Procedure

Use the Intra Supplier Journal (AP T023) function to adjust transactions which had been
posted to the incorrect supplier. The same reference number can be nominated for transaction
matching purposes.
This is a journal entry transaction which posts a debit to one account and a credit to
another.
Use the GL Supplier Journal (AP T011) function to write-off transactions or part amounts of
transactions directly to a General Ledger account.

6.4 Intra Supplier Journal

This process affects two suppliers and the Creditors Control accounts in the General Ledger if
there is a split on the CCTRL special account. If there is no split on CCTRL, then there will be
no General Ledger posting, only the postings to the two supplier accounts. The screen shows
a debit side (LHS) and a credit side (RHS).
Ensure the journal is posted the correct way, as PRONTO-Xi will present an invoice in
the Accounts Payable ledger as a negative, so ensuring your signage is correct is
important.
To process journal entries between supplier accounts

1. Select Account Payable > AP Transactions > Intra Supplier Journal (AP T023).
3. Complete the fields for the Debit Side area in this screen:
Field Description
Account Specify the supplier account code to be debited.
Invoice # Enter the reference number.
Details Enter a meaningful description that will appear against the journal
entry.
4. Repeat the above steps for the Credit Side.

The values in the Invoice # and Details fields default from the debit side of the transaction
and can be overridden if required.
The Trans Amount field displays the full value of the selected reference and can be
overridden if required.
5. Select OK to confirm the transaction and post.

6. Press Esc to complete the batch.
To view the transactions against the suppliers

1. Select Account Payable > Supplier Enquiry (AP E001).
2. Select Find and locate the required supplier.
3. Select Trans.
The Supplier Transactions screen is displayed.

6.5 GL Supplier Journal

Use this function to perform a supplier to General Ledger entry, for example, write offs.
Ensure the journal is posted the correct way, as PRONTO-Xi will present an invoice in
the Accounts Payable ledger as a negative, so ensuring your signage is correct is
important.
To enter the GL Supplier Journal entry

1. Select Accounts Receivable > AR Transactions > GL Customer Journal - Local (AR T013).
3. Enter the supplier account this journal is to be posted against.

4. Enter the full amount of the journal.
5. In the Group Allocations field, specify whether to allow group allocations for multiple
references.
Entering N in this field will require an individual GL allocation to be entered for each
reference entered.
Entering Y in this field will display the following message:
It does not matter how many reference lines are entered in the Journal Transactions
screen, you are only required to complete the Balance to Allocate screen after the amount
has been fully allocated. The GST is reported based on the GL transactions entered in the
Balance to Allocate screen.

If you have a requirement for the GST to be reported for each reference, you must enter
N in this field.
6. Complete the following fields in this screen:
Field Description
Details Enter a meaningful description for the journal or accept the

default. F2 (Lookup Help) allows you to select from a list of
existing transactions. Using this option ensures the correct
reference number is allocated to the journal.
Amount Enter the amount or accept the default amount.
Invoice Enter the invoice date or accept the default date.
7. Complete the details in the Balance to Allocate screen.
Field Description
Account Code Enter the General Ledger account code.
Details Enter a meaningful description or accept the default description.

The following options are available:
I Tax inclusive amount
E Tax exclusive amount
O Both amount and tax manually

Amount Enter the amount (the tax indicator rule from above applies).
Tax Code Enter the tax code.

Tax Amount Enter the tax amount or accept the calculated tax amount.
8. Continue the above steps until the amount remaining is reduced to zero.
9. Select Save Transactions in the Other Side Transaction Confirmation screen to confirm
and save the postings.
10. Post the transactions.
To enquire on the journal postings

The effect of the journal entry can be examined by viewing the transactions on the Customer
Account Transaction screen.
1. Select Accounts Payable > Maintain Supplier > Maintain Supplier Accounts (AP M001).
2. Find the required supplier and select Transactions.
The journal appears as a JE type transaction, displayed directly underneath the transaction
reference that was nominated.

Purchase Order Invoices
7 Purchase Order Invoices

7.1 Fast Supplier Invoice Entry – Purchase Order
Invoices
Use this option when posting an invoice related to a purchase order that is not associated
with a shipment. The purchase order examples below illustrate the different invoice
processing options available while attached to purchase orders.
Variance Type Supplier Stock Qty PO Price Creditor Invoice

(ex tax)
No Variance SUP002 5710112358 120 $720.00 $792.00

5710112359 120 Tax = $72.00
Freight Charge Variance SUP002 5710112358 120 $720.00 $814.00

($20.00 additional freight) 5710112359 120 Tax = $74.00
**Using Variance Type E
Freight Charge Variance – SUP002 5710112358 120 $720.00 $814.00

Claim Raised 5710112359 120 Tax = $74.00
($20.00 additional freight) **Using Variance Type E
Not accepted – raise claim
Price Variance SUP002 5710112358 120 $720.00 $858.00

(5710112358 cost is $3.00 5710112359 120 T = $78.00
not $2.50) **Using Variance Type E
Quantity Variance SUP002 5710112358 120 $720.00 $737.00

(5710112358 quantity 5710112359 120 T = $67.00
received 100 not 120) **Using Variance Type E
Stock Quantity Variance SUP002 5710112358 120 $720.00 $737.00

(5710112358 quantity 5710112359 120 T = $67.00
received 100 not 120) **Using Variance Type A
Multiple Purchase Orders SUP002 5710112358 120 $720.00 $3168.00

Variance 5710112359 120 T = $288
(One invoice received which **Using Variance Type M
relates to four purchase
orders) SUP002 5710112358 120 $720.00
5710112359 120
SUP002 5710112358 120 $720.00

5710112359 120
SUP002 5710112358 120 $720.00

5710112359 120
Part Invoice Order SUP002 5710112358 120 $720.00 $330.00

Variance 5710112359 120 T = $30.00
(Invoice only has **Using Variance Type P
5710112358 stock)

7.2 No Variance
Scenario
A purchase order and invoice have the same value of net $720.00 plus $72.00 GST.
To process the purchase order

1. Select Account Payable > AP Transactions > Fast Supplier Invoice Entry (AP T020).
The Fast Supplier Invoice Entry for Transaction data grid is displayed.
3. Complete the fields in this screen, as described below:
Field Description
Account Specify the supplier account code.
Type Specify P.
The Extra Details – Purchase Invoice (P – Type) screen is displayed.
Field Description
Invoice Details Enter the invoice number appearing on the original invoice
document.
Invoice Date Accept the default date or enter the invoice document date.
Purchase Order Enter the purchase order number and suffix if applicable.
Supplier Discount Enter the discount amount to be offered by the supplier.

Currency If the purchase order selected is in a foreign currency, the currency
code from the purchase order will be displayed.
Conversion Rate Enter the conversion rate to be used for this transaction or accept
the default. This is only applicable if the purchase order is in
foreign currency.
Curr. Amt Ex Tax Accept the default invoice amount or enter the invoice amount, as

required. In this case accept the default of $720.00.
5. Select OK.
6. Confirm the GST for this invoice and select OK.

The information entered in the Details – Purchase Invoice (P – Type) screen is now
displayed in the Fast Supplier Invoice Entry for Transaction data grid.
7. Complete the transaction by entering values in the Payment Control Unit and Discount
fields, if applicable.
8. Press Esc to exit Entry mode.
9. Select Post to finalise the invoice entry.

Dr/Cr Special Account Description
Cr CCTRL (Creditors Control) Full value of invoice

Dr ITAX (Input Tax) GST amount on invoice
Dr SPPNP (Purchase Provision) Clear Provision account for value of stock

7.3 Freight Charge Variance

Scenario
A purchase order of $720.00 plus $72.00 GST was missing a freight charge of $20.00. The
invoice value was $740.00 plus $72.00 GST.
To add freight charge to a purchase order

Field Description

Type Specify P.
4. Enter details in the following fields:
Field Description
Invoice Details Enter a meaningful description.
Invoice Date Accept the default invoice date or enter the invoice document date.
Curr. Amt Ex Tax Enter the ex GST amount of $740.00.
5. Specify E in the Action field of the Warning! Invoice Variance Exists screen.
6. In the Variance For Purchase Order screen, select Charge.

The Extra Charges screen is displayed.
7. Select Entry.

Using the Method column allows the user to post the variance in multiple ways.
In this example the charge variance has been posted to a nominated General Ledger
account.
Field Description
Method  Blank - Allows the charge amount to be posted to a

nominated General Ledger account.
 V - Splits the variance based on the volume of the stock.
 $ - Splits the variance based on the $ value of the stock.
 W - Splits the variance based on the weight of the stock.
 Q - Splits the variance based on the quantity of the stock.
Field Description
Method Leave this field blank or press Space.
Amount Enter $20.00.
Action Specify R.
Account Specify the GL account code to be debited.
Description Enter Freight.
9. Press Esc to return to the Variance For Purchase Order screen.

The value of 20.00 is displayed in the Total Charges field at the top right of the screen, as
shown in the image above.
10. Select Exit to close the Variance For Purchase Order screen.
11. Enter Y when prompted to accept the variance.
The Extra Details screen is displayed, showing the tax and total details.
12. Accept the default amount or change the calculated amount, as required.
13. Select OK.
The Invoice Tax Details – Breakdown screen is displayed. Accept or amend as required.
14. Select OK to confirm and return to the Fast Supplier Invoice Entry For Transaction
screen.
15. Complete the Control Unit and Disc/ WHT fields as required.


There are two batches. As the variance was recosted, based on the major function flags,
the variance was cleared from the purchase variance account to the nominated General
Ledger account.
Cr CCTRL (Creditors Control) Full value of invoice

Dr ITAX (Input Tax) GST amount on invoice
Dr PURVAR (Purchase Variance) Difference between original purchase

order amount and the invoice amount
(exclusive of GST)

Cr PURVAR (Purchase Variance) Clear variance account for value of

charge.
Dr Nominated General Ledger account.
This posting will depend on the method selected in the Extra Charges screen. If V, $, W
or Q are selected, the account debited will be based on the special account IN.
7.4 Freight Charge Variance – Claim Raised

Scenario
A purchase order of $720.00 plus $72.00 GST was missing a freight charge of $20.00. The total
invoice value was $740.00 plus $74.00 GST.
This $20.00 freight charge is not accepted and a claim is to be raised.
To add freight charge to a purchase order

Field Description
Type Specify P.
Field Description
Invoice Details Enter the invoice number from the original document.
Invoice Date Accept the default invoice date or enter the invoice document date.

Curr. Amt Ex Tax Enter the ex GST amount of $740.00.
6. In the Variance For Purchase Order screen, select Charge.

The Extra Charges screen is displayed.
7. Select Entry.

Field Description
Method Leave this field blank.
Amount Enter $20.00.
Action Enter C to raise a claim the additional charge.
Note Description Enter Freight-claim raised.
9. Press Esc to return to the Variance For Purchase Order screen.
The value of 20.00 is displayed in the Total Charges field at the top right of the screen, as
shown in the image above.
10. Select Exit to close the Variance For Purchase Order screen.
11. Enter Y when prompted to accept the variance.
The Extra Details screen is displayed.

12. Select OK.

The Invoice Tax Details – Breakdown screen is displayed.
13. Accept or amend the tax amount as required.
14. Select OK to confirm and return to the Fast Supplier Invoice Entry for Transaction
screen.
15. Complete the Control Unit and Disc/WHT fields as required.
16. Press Esc, then select Post to finalise the invoice entry.
17. Complete the Notes field in the Creating Credit Claim Order screen.


Cr CCTRL (Creditors Control) Full value of the invoice
Dr ITAX (Input Tax) GST amount on the invoice
Dr PURVAR (Purchase Variance) Difference between the original purchase

order amount and the invoice amount
(exclusive of GST)
To enquire on the Supplier Commitments

2. Find the required supplier and select Commitments.
To complete the Purchase Order variance

This task can be completed by the Purchasing Officer.
1. Select Purchase Orders > Maintain Purchase Orders (PO M006).

2. Select Extra > Print to print the purchase return.

The status will change to Ready to Return.
3. Select Update to complete the purchase return.
4. Confirm the transaction date in the Transaction Entry screen.
5. Complete the Purchase Order Update screen, as indicated below.
The status of the purchase return is now Goods Returned.


Cr PURVAR (Purchase Variance) Clear variance account for the value of the
claim.
Dr SPPSP (Purchase Provision) Amount of the purchase return.

To enter the credit note relating to the claim raised

Field Description
Type Specify R.
The Extra Details – Return PO Credit Note (R – Type) screen is
displayed.
4. Complete the fields in this screen, as indicated below:
Field Description
Invoice Details Enter the invoice number this credit note refers to.
Invoice Date Accept the default invoice date or enter the invoice document date,
as required.
Purchase Order Enter the purchase order return number.
Curr. Amt Ex Tax Enter the purchase return amount of $20.00.

Credit Note Enter the credit note number from the original document.
Number
5. The Invoice Tax Details – Breakdown screen is displayed. Accept or change the details as
required.

6. Select OK to continue.
7. Complete the Due By, Control Unit and Disc/ WHT fields as required.
8. Select Post to finalise the credit note entry.

Cr SPPSP (Purchase Provision) Clear Purchase Provision for the amount of

the claim.
Dr CCTRL (Creditors Control) Total amount of the credit note.
Cr ITAX (Input Tax) GST amount on credit note.

To enquire on the Supplier Commitments

2. Find the required supplier and select Commitments.
The amount now due for payment is $792.00. This is the net value between the original
invoice of $814.00 and the credit note of $22.00.

7.5 Price Variance

Scenario
The purchase order was $720.00 plus $72.00 GST; however the invoice is $780.00 plus $78.00
GST.
The second inventory item on the purchase order was priced at $2.50 each, but the invoice
shows $3.00 each. This price increase has been confirmed by the Purchasing Officer.
To adjust the price variance on a purchase order

3. Complete the fields in this data grid, as described below:
Field Description
Type Specify P.
The Extra Details – Purchase Invoice (P – Type) screen is
displayed.
Field Description
Curr. Amt Ex Tax Enter $780.00.
6. In the Variance For Purchase Order screen, select the purchase order line with the price
variance.

7. Select Price.
8. Enter 3.000 in the Invoice Price field.
9. Accept R for re-cost.
10. Specify whether to update the supplier last buy price.
The value specified (Y/N) will depend on your specific business practice.
11. Select Exit to exit the Variance For Purchase Order screen.
12. Enter Y when prompted to accept the entered variances.
13. Select OK to continue through the Extra Details – Purchase Invoice (P – Type) screen.
14. Accept the defaults for invoice value.
15. In the Invoice Tax Details – Breakdown screen, accept or overwrite the calculated tax
amount (using the Correct mode).
16. Select OK.
17. Complete the Fast Supplier Invoice Entry For Transaction screen by completing the
Control Unit and Disc/WHT fields as required.


There are two batches. As the variance was recosted, based on the major function flags,
the variance was cleared from the purchase variance account to the relevant inventory
account in the balance sheet.
Supplier Invoice Batch
Cr CCTRL (Creditors Control) Full value of the invoice.

Dr ITAX (Input Tax) GST amount on the invoice.
Dr SPPNP (Purchase Provision) Clear Provision account for value of stock.

Dr PURVAR (Purchase Variance) Difference between original purchase order
amount and the invoice amount (exclusive of
GST).

Purchase Invoice Batch
Cr PURVAR (Purchase Variance) Clear variance account for the value of the
charge.
Dr IN (Inventory) Posts the variance amount, in this case

increasing the inventory balance in the
balance sheet

7.6 Quantity Variance

Scenario
The invoice has one item more than the purchase order and the first item on the purchase
order has 120 ordered, but 100 were delivered and invoiced. The purchase order has been
updated with the quantity of 120 received, however only 100 were physically received into
the warehouse.
The purchase order is for $720.00 plus $72.00 GST, but the invoice is for $670.00 plus $67.00
GST.
If this option is used for inventory item variance, the variance amount stays in
PURVAR and IN keeps the stock value of the original purchase order quantity.
A stock adjustment is required to correct stock values as this process does not adjust
stock. Depending on the mapping of the SA special account, this might not clear the
variance account.
To adjust the quantity variance on a purchase order

3. Complete the fields in this data grid, as described below:
Field Description
Type Specify P.
Field Description
Invoice Date Accept the default date or enter the invoice document date, as
required.
5. Select OK.

7. Select the purchase order line with the quantity variance.

8. Select Qty.
9. Enter 100 in the Invoice Qty field.
10. Accept the default value of blank as a variance, or enter C if a claim is to be raised.
A blank entry creates a purchase order sub-order for the variance (it does not re-cost
the purchase order or add variance). There is no separate General Ledger posting for
the variance, and the variance amount remains in PURVAR and SPPNP debits by the
amount of the original purchase order.
11. Select Exit to exit the Variance For Purchase Order screen.
12. Enter Y when prompted to accept the entered variances.
13. Select OK to continue through the Extra Details – Purchase Invoice (P – Type) screen.
14. In the Invoice Tax Details – Breakdown screen, accept or overwrite the calculated tax
amount (using the Correct mode).
15. Select OK to confirm.
16. Complete the Fast Supplier Invoice Entry for Transaction screen by completing the



Dr SPPNP (Purchase Provision) Clear Provision account for the value of

stock.
Dr PURVAR (Purchase Variance) Difference between the original purchase

order.
To enquire on the purchase order variance raised

This purchase variance is completed – a stock adjustment is required to correct inventory
levels.
2. Locate the purchase order, then select Lines.


7.7 Stock Quantity Variance

Scenario
The invoice has one item more than the purchase order and the first item on the purchase
order has 120 ordered, but 100 were delivered and invoiced. The purchase order has been
updated with the quantity of 120 received, however only 100 were physically received into
the warehouse.
The purchase order is for $720.00 plus $72.00 GST, but the invoice is for $670.00 plus $67.00
GST.
The following process should only be used if it is in line with current business process
for Accounts Payable to adjust inventory.
To adjust the inventory and create a new purchase order for the difference
Field Description
Type Specify P.
4. Complete the details in the Extra Details screen.

5. Specify A in the Action field of the Warning! Invoice Variance Exists screen.
Field Description
Item Code Enter the item code.

New Action Enter A.
New/Returned Qty Enter 100.
7. Select OK.
8. Confirm the updated on-hand value in the Received Goods screen.
9. Select OK to continue through the Extra Details – Purchase Invoice screen.
10. Accept or overwrite the calculated tax amount.
12. Complete the Fast Supplier Invoice Entry for Transaction screen by completing the
Control Unit and Disc/WHT fields.

There are two batches. The second batch clears the remaining balance from the
purchase provision account to the relevant Inventory account.

stock excluding the stock adjusted quantity
of 20.

Dr SPPNP (Purchase Provision) Clear Provision account for the stock

adjusted quantity.
Cr IN (Inventory) Updated the Inventory account with the

stock adjusted amount.

7.8 Multiple Purchase Orders on One Invoice

Scenario
Four purchase orders plus GST combined on the one invoice.
Purchase Orders:
 $720.00 plus 72.00 GST
 $720.00 plus 72.00 GST
 $720.00 plus 72.00 GST
 $720.00 plus 72.00 GST
Invoice:
• $2880.00 plus $288.00 GST
To process multiple purchase orders on one invoice

Field Description
Type Specify P.
4. Complete the details in this screen, as described below.
Field Description
Invoice Date Accept the default date or enter the invoice document date, as
required.
Purchase Order Enter the first purchase order number covered by this invoice.
5. Specify M in the Action field of the Warning! Invoice Variance Exists screen.
6. Complete the details in the Multiple Purchase Orders data grid.

If a variance exists on any purchase order, the Variance screen will re-display. Process
the variance as set out in the previous scenarios.
7. Continue entering the purchase orders until the Invoice Amount Outstanding field = $0.00.
8. Press Esc to complete the entry.
10. Accept the default tax amount or overwrite the calculated tax amount, as required.
13. Press Esc to exit Entry mode.
There is now an individual line for each purchase order. This enables drilldown to each
purchase order from the supplier maintenance and enquiry screens.



stock.
In this example there was no variance. If there had been, then postings would be as
previously noted depending on the variance type.

7.9 Part Invoice Order

Scenario
The purchase order has been fully received, however the invoice received is not for the full
amount. Another invoice has been received for the balance.
The purchase order has two lines with a total value of $720.00 plus $72.00 GST. The invoice
received only has one line with a value of $300.00 plus $30.00 GST.
This process will split the purchase order, creating an additional purchase order with a suffix,
for the uninvoiced goods so when the second invoice is received, this order can be used.
To process a purchase order with part invoice order

Field Description
Type Specify P.
4. Complete the details in the Extra Details screen.
Field Description

5. Specify P in the Action field of the Warning! Invoice Variance Exists screen.
The Split Order screen is displayed, showing the order lines.

6. Select the partly invoiced, or in this example, not invoiced order line.
7. Select Item-Split.
The cursor moves to the Quantity 1 field.
8. Enter 0 in the Quantity 1 field.
The balance of 120 goes to the Quantity 2 field, which is the backorder quantity.
9. Confirm the entry in the line.
10. Continue the split for each line item as required.
11. Select Quit to exit when all changes are complete.
13. Accept or overwrite the default value for the invoice.
Control Unit and Disc/WHT fields.


There are two batches. The second batch is posting in and out of the purchase provision
account, totalling the original purchase order reference to $0.00 and leaving the
outstanding amount against the suffixed invoice.
Cr CCTRL (Creditors Control) Full value of invoice.

included in this invoice.
Dr SPPNP (Purchase Provision) Clear Provision account for the original

purchase order number.
Cr SPPNP (Purchase Provision) Post back to the provision account the

amount remaining against the suffixed

purchase order number.
To enquire on the suffixed purchase order created

2. Locate the purchase order, then select Lines.

Processing Payments
8 Processing Payments
8.1 Manual Cash Payment
The Manual Cash Payment (AP T034) function records manual payments to suppliers. It is
used to record payments made to suppliers where the automatic cheque generation option is
not required. In particular, payments to bring forward suppliers will be made using this
facility.
Cheques or remittances cannot be printed using the Manual Cash Payments function. To
generate a cheque or EFT payment, use the Selective Invoice Payment (AP T003) function.
To process a manual cash payment

1. Select Accounts Payable > AP Transactions > Manual Cash Payment (AP T034).
This step is very important. The date must be the date the payment is made as it can
cause issues with the bank reconciliation if dated incorrectly.
3. The Bank Account Selection data grid is displayed. Select the bank the payment is made
from.
The Manual Cash Payment screen is displayed.

Processing Payments
Field Description
Account Specify the account code.
Cash Payment Specify P.

Allocation
5. Highlight the first invoice to be paid in the Cash Payment Entry screen.
6. Select Mark Item.

7. Repeat steps 5 and 6 to include all the invoices in the payment.
8. Select Post.
The Confirm Posting screen is displayed.
Field Description
Charges Amount Accept the 0.00 amount.

(Local)
Enter Cheque Number Enter the cheque number being used to pay this supplier.

Processing Payments
OK to post Enter Y.
transactions?
The value in the Charges Amount (Local) field is not the amount of the cheque, but rather
the bank fees for the payment. The amount entered increases the amount posted to
bank and debit bank fees. In most cases, this field would be left as $0.00.
To enquire on the journal posting

2. Locate the supplier.
3. Select Trans.
The Supplier Transactions screen is displayed.
The cash payment entry has the same reference as the original invoice with a
transaction type of CP. If multiple invoices have been included, the payment will be
one CP transaction created for every invoice paid.
8.2 Selective Invoice Payment

Use the Selective Invoice Payment (AP T003) function to create either a cheque or EFT
payment run.
A combined payment cannot be processed. That is, a payment run can only include
either suppliers being paid by cheque or those being paid by EFT.
This process offers the ability to select invoices for payment based on the ranges of the
Payment Selection and Supplier Type fields on the Supplier master and the supplier account
codes, transaction and due dates. Once these criteria are met, selection can be further refined
based on the individual supplier or invoice.
To create a cheque payment run

1. Select Accounts Payable > Cheque Maintenance/Print > Selective Invoice Payment
(AP T003).

Processing Payments
Field Description
Start Account Enter the start supplier account code.
End Account Enter the end supplier account code.
Start Trans Date Enter the transaction start date.
End Trans Date Enter the transaction end date.
Pay By Date Enter the pay by date.
Minimum Payment Enter the minimum amount to be paid.
Maximum Payment Enter the maximum amount to be paid.
Limit Amount Enter the maximum amount the total payments cannot exceed.
3. Select OK.
The Selective Invoice Payment data grid is displayed.

Processing Payments
4. Select the invoices to be included in the payment run using one of the following methods.
Mode Description
Mark This will mark the highlighted invoice to be included in the

payment run.
Mark Supplier This will mark all the invoices for the highlighted supplier to be
included in the payment run.
Mark All This will mark all invoices in the data grid to be included in the
payment run.
 The selected invoices are marked with an *. Using the modes while
highlighting transactions that have already been selected will deselect them
from the payment run.
 The total value of invoices available for payment displays at the top of the
screen in the Total Invoices field. Similarly, the Total Selected and Total Paying
fields update as invoice payment selections are made.
The following modes are also available:
Field Description
Correct Correct the amount to be paid against the highlighted invoice in the
event that the full amount is not to be paid.
List List of transactions (by supplier) that are committed for payment.
Process Payment Print and update a remittance for the selected transactions. Cheques
are produced and updated for only those invoices selected for
payment.
Summary View the amounts outstanding in a summary view by supplier.
From within this screen, suppliers can be marked for payment using
the Mark Supplier mode. This will mark all invoices and when you
return to the main selection screen, all invoices for that supplier will
be individually marked for payment.
Supplier Add a supplier not currently included in the selection to allow
payment.
To create the Payment Commitments report

1. Select List.
The Payment Commitments report is created.
The report can be used as a management authorisation tool before payment is completed.

Processing Payments
2. Close the report when finished reviewing.

Processing Payments
To process the payment

1. Select Process Payment.
The Bank Account Selection screen is displayed.
2. Select the bank from which the payment will be made.
The Selective Invoice Payments screen is displayed.
Field Description
Remittance Only Enter N.
Transaction Entry Accept or enter the transaction date in the Transaction Entry
screen and press Enter.
Ensure the date entered is the date the cheques will be

printed. Not recording it correctly could cause problems
when processing the bank reconciliation.
Print Direct Specify whether to send the report to a spooler.

We suggest this is set to N so there is a copy saved in
the spool file.
Cheque/Draft/EFT Accept C (for cheques).
Next Chq/EFT No Enter the next cheque number to be printed.
This value defaults from the YY table with the cheque

number PRONTO-Xi believes is next. Ensure this is
checked before continuing.
Pause After Cheque Enter the last cheque to be printed.
You can accept the default of 9999999999.
Format Specify the format the cheque will be printed in.

Processing Payments
This defaults to the layout specified in the override table.
Remittance Messages Enter the remittance messages.
The remittance message will only print if the cheque layout

has been set to accept them.
4. Select OK.
5. Enter Y to confirm the cheque print process when prompted.
The following reports are created:
Report Description
Cheque Audit This report lists the payment parameters chosen in the Selective
Invoice Payment screen together with a list of the cheques
printed.
Cheque Log This report lists the cheques printed.
Cheques If the Print Direct field is set to N, the spool file containing the
cheques is created and available for printing.

Processing Payments
To create an EFT payment run

This is processed in the same way with the following exceptions:
1. Select Accounts Payable > Cheque Maintenance/Print > Selective Invoice Payment
(AP T003).
2. Specify E in the Cheque/Draft/EFT field.
3. Mark the required supplier and select Process Payment.

The Selective Invoice Payments screen is displayed.
Field Description
Cheque/Draft/EFT Will default to E (for EFTs).
Next Chq/EFT No Will default to next EFT number defined by the YY table.

Processing Payments
If E was entered and the following warning message is displayed, the EFT mailboxes
have not been setup correctly for this bank account. The supplier’s account and the
General Ledger will be updated correctly but the EFT file required for upload to the
bank will not be created.
Contact the Pronto Administrator for assistance if required.

The following reports are created at the completion of a cheque run:
Field Description
Cheque Audit This report lists the payment parameters chosen in the Selective
Invoice Payment screen together with a list of the payments
included in the EFT run.
Cheque Log This report lists the payments included in the EFT run.
EDI Log This report will give the path and name of the flat file created for
loading into bank software.
EFT Remittances If the Print Direct field is set to N, the spool file containing the
EFT remittances is created and available for printing.

Processing Payments
8.3 Cancel Payments

Payments can be cancelled at any time before they are flagged as presented. Cancelling the
payment will write back the requisition and reverse the postings.
To cancel a payment
1. Select Accounts Payable > Cheque Maintenance/Print > Cancel Payment (AP T038).
The Bank Account Selection screen is displayed.
3. Select the bank from which the cheque was drawn (if multiple banks are set up).
The Cancel Payment screen is displayed.
Field Description
Payment By Enter C (Cheque) or E (EFT).
Start Enter the start range of cheques or EFTs to be cancelled.
End Enter the end range of cheques or EFTs to be cancelled.

Reference Enter a meaningful description.
The reference description is for the General Ledger

reference for the bank account.
5. Select OK to confirm the cancellation.
To enquire on the journal posting


Processing Payments
2. Select Trans.
The Supplier Transactions data grid is displayed.
The invoice and requisition are reinstated against the supplier.

Periodic Payments
9 Periodic Payments
Some supplier accounts need to be paid regularly for the same amount each time the
payment is made. These can include rental accounts, insurance accounts and maintenance
accounts.
After these details have been set up, periodic payments can be processed as frequently as
required. Only those invoices with a next run date equal to or less than the specified date will
be processed.
To create a periodic payment

1. Select Accounts Payable > AP Transactions > Additional Supplier Transactions >
Periodic Payments > Periodic Payments Maintenance (AP M012).
2. Select Entry.
The Period Payment Maintenance screen is displayed.
Field Description
Other side account Enter the general ledger account code to be debited.
Our reference number Enter the supplier’s transaction reference number.
GL Details Enter the full description for this transaction. This is recorded
against the general ledger transaction posting.
Details Enter a short description. This is recorded against the supplier

transaction.
Tax Amount Accept the default tax code or enter an alternative.
Amount Enter the amount to be paid per periodic payment (tax

Periodic Payments
exclusive).
Payment Start Date Enter the periodic payment start.
Payment End Date Enter the periodic payment end.
Last Payment Date Enter the last payment date.

Payment period Specify M (Monthly).
The following payment frequency types are also available:
 W = Weekly
 M6 = Six monthly
 W2 = Fortnightly
 M3 = Quarterly.
4. Select OK to complete the payment entry.

Periodic Payments
9.1 Periodic Payments Update

Use the Periodic Payment Update (AP T035) function to create supplier invoices for all
periodic payments which have fallen due since the last time the update was run. A
requisition is created for each invoice.
To update a periodic payment

1. Select Accounts Payable > AP Transactions > Additional Supplier Transactions >
Periodic Payments > Periodic Payment Update (AP T035).
3. Select Yes when prompted with a Confirmation screen.
The due periodic payment is posted.
This will update the Last Payment Date and Next Payment Due fields.

Other Administrative Functions
10 Other Administrative Functions

This chapter describes the following administrative functions:
 Convert supplier account codes.
 Consolidate two supplier account codes into the one account.
 Remove a range of temporary suppliers.
 Run the Suppliers Integrity routine.
10.1 Converting Supplier Account Codes

Use the Convert Supplier Account Codes (AP M020) function to convert a supplier account
code and all its associated files, for example, all related transactions, purchase orders and
history data, to a new supplier account code.
This function accesses all the records within PRONTO-Xi where the old account code was
stored and then changes it to the new account code.
To convert the supplier account code

1. Select Accounts Payable > Maintain Supplier > Convert Supplier Code > Convert
Supplier Account Codes (AP M020).
The Convert Supplier Account Codes screen is displayed.
Field Description
Bulk Conversion Specify N to convert one supplier or Y to convert multiple

suppliers.
Old Supplier Enter the supplier account code to be converted.
New Supplier Enter the new account code for the supplier.
Convert Pay-To’s Also Specify Y to check and change the pay-to code on other suppliers
where the old code has been used as a pay-to account.
Convert G/L Trans Specify whether to convert the General Ledger transactions sub-
ledger code to the new supplier account code for reference

Also purposes.
It is recommended that this field is set to N.
3. Select OK to complete the conversion process.
10.2 Consolidating Supplier Accounts

The Account Consolidation (AP M019) function converts the balances from the old account
code into the new supplier account code, merging the two records and all associated data.
Extreme care must be taken when using this method of conversion, as no record is kept of
the old account code.
To consolidate supplier accounts

1. Select Accounts Payable > Maintain Supplier > Convert Supplier Code > Account
Consolidation (AP M019).
Field Description
Bulk Consolidation Specify N to consolidate one supplier or Y to consolidate

multiple suppliers.
From Account Enter the supplier account code to be consolidated into another
account code.
To Account Enter the supplier account code into which you want to
consolidate the from account.
Convert Pay-To Also Specify Y to check and change the pay-to code on other suppliers
where the old code has been used as a pay-to account.
Convert G/L Trans Specify whether to convert the General Ledger transactions sub-
Also ledger code to the new supplier account code for reference
purposes.

It is recommended that this field is set to N.
3. Select OK to complete the consolidation process.
10.3 Removing Temporary Supplier Accounts

The Temp Supplier Removal (AP M050) function can be used to remove dormant supplier
accounts that meet the following criteria:
 Zero balance
 No transactions
 No outstanding purchase orders
 No purchases since a specified date
To remove temporary supplier accounts

1. Select Accounts Payable > Maintain Supplier > Temp Suppliers Removal (AP M050).
The Temp Suppliers Removal screen is displayed.
Field Description
Supplier Type Specify the supplier type to remove.
Last Purchase Enter the date or accept the default date, which is three months
before today’s date.
Start Account Enter the account code to start the range.
End Account Enter the account code to end the range.
3. Select Yes to confirm.

A report which lists the suppliers that have been removed is automatically created.

10.4 Checking Accounts Payable File Integrity

The Suppliers Integrity (AP M041) function can be used to check for consistency between
the Suppliers master file, the Suppliers transaction file, and the General Ledger. Each
supplier is checked to ensure that the current and future balance stored on the master file
agrees with the total of current and future transactions for that supplier.
In addition, the balances outstanding on the supplier’s ledger are checked against the
balances stored in the suppliers control accounts in the General Ledger.
To check suppliers integrity

1. Select Accounts Payable > Maintain Supplier > Suppliers Integrity (AP M041).
2. Select Report & Correct.

Field Description
Start Supplier Enter the account code to start the range.
End Supplier Enter the account code to end the range.
4. Press Enter to confirm.
Other Modes
The following modes are also available in the Supplier Integrity screen:
Mode Function
Report Only Creates a report listing the errors detected but does not attempt any
correction of data.
Compare Batch Reports any batches where the transaction totals posted to the
Totals Accounts Payable module do not balance with those posted to the
General Ledger.

Tips & Tricks
11 Tips & Tricks

11.1 Showing Supplier Commitments
When running a Payment Commitments report, not all invoices show for suppliers. When
viewing the Supplier Commitments screen, no records are shown.
To enquire on the supplier commitments

2. Ensure the value in the Auto Cheque Req field is Y.
If the value is N, no RQ (Requisition) transactions will be created for the supplier.
To run a supplier integrity report

Run the integrity report to create the requisition transactions.
1. Select Accounts Payable > Maintain Supplier > Suppliers Integrity (AP M041).
2. Select Report & Correct.


Tips & Tricks
Field Description
Start Supplier Enter the account code to start the range.
End Supplier Enter the account code to end the range.
4. Specify I to run the report immediately.

The Supplier Integrity report is created.
11.2 The Invoice is only Part Paid

A supplier invoice is processed, but when the payment is processed, only part of the invoice
amount is paid. This can be because there is no ABN or there is a withholding tax record.
To reprocess a payment with a Withholding Tax record

2. Select Extra > Withholding Tax.
3. Select Remove to remove any withholding tax record that was created in error.
4. Correct the ABN field on the supplier record.
5. Check the supplier Z-TAX-DEPT for a transaction that relates to part of the original
amount.
Account will be Z-TAX-DEPT<supplier type code>.
7. After the withholding tax record has been removed, cancel and re-process the payment.

Tips & Tricks
11.3 The Bank Account Has Doubled the Amount

A manual cash payment processes with double the amount of the payment posting to the
bank General Ledger account. The supplier shows the correct amount.
When entering the manual cash payment, the cheque amount has been entered in the Charges
Amount field in error. This doubles the payment to the bank and posting the payment
amount to the bank charges account.
To reprocess a payment that posted double the payment amount to the bank
2. Select Trans.
3. Select GL Detail.
Confirm the amount has been posted to bank charges and the amount posted to the
BANK account is doubled.

Tips & Tricks
4. Cancel the payment.

5. Reprocess the payment through the Manual Cash Payment screen, leaving the Charges
Amount field as zero.
To change a supplier transaction reference

A supplier invoice is processed but the invoice reference is incorrect.
1. Select Accounts Payable > Maintain Supplier > Maintain Supplier Account (AP M001).
2. Select Trans.
3. Select the transaction to be changed.

4. Select Ref.
The Change Reference/Invoice screen is displayed.
Field Description
New Invoice No Enter the new invoice number.

Details Accept the defaulted reference.
Copy or Move Notes Specify C (Copy) or M (Move).

Accounts Payable Reports
12 Accounts Payable Reports

This chapter describes the steps required to create five reports that can be used to analyse the
processing that have occurred in the Accounts Payable module.
The following reports are covered in this guide:
 Accounts Payable – Aged Trial Balance by Supplier
 Accounts Payable – Aged Trial Balance by Supplier Type
 Accounts Payable – Retrospective Aged Trial Balance by Invoice Date
 Accounts Payable – Payment Commitment by Supplier
 Accounts Payable – Foreign Currency Exposure
12.1 Accessing and Generating IBM Cognos Reports

Use the Reporting Portal (EMS E006) function to access the IBM Cognos reports.
Use the following steps to generate the required reports.
To generate a Accounts Payable-Aged Trial Balance by Supplier report

 Enter the selection criteria in the parameters page shown below and select Finish:

Report Output
To generate a Accounts Payable-Aged Trial Balance by Supplier Type

report
 Enter the selection criteria in the parameters page shown below and select Finish.
In this example, the supplier type FRGT – Freight Supplier has been selected.

Report Output
To generate an Accounts Payable-Retrospective Aged Trial Balance by

invoice date
This report allows you to create an aged trial balance as at a date in the past irrespective of
the period the Accounts Payable ledger is in. In this example, the AR ledger is in November
but the required report is as at the 30/6/10.
 Enter the selection criteria in the parameters page as shown below and select Finish:

Report Output
To generate a Accounts Payable-Payment Commitment by Supplier

 Enter the selection criteria in the parameters page shown below and select Finish:

Report Output
To generate a Accounts Payable-Foreign Currency Exposure

1. Enter the selection criteria in the parameters page shown below and select Finish:
Report Output
2. Select Page Down at the bottom of the page to view the detailed invoice listings
subtotalled by currency.



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Accounts Payable

So Easy Education Guide

So Easy Education Guide – Accounts Payable Document Version © 2011

So Easy Education Guide, Version 2.0

PRONTO-Xi Version: 700

™- trademarks of Pronto Software Pty Ltd (ABN 47 001 337 248)

IBM® and Cognos® are trademarks of International Business Machines Corporation.

© 2011 Document Version So Easy Education Guide - Accounts Payable

So Easy Education Guide – Accounts Payable Document Version © 2011

© 2011 Document Version So Easy Education Guide - Accounts Payable

1 About this So Easy Education Guide

1.6 Course Duration

So Easy Education Guide – Accounts Payable Document Version © 2011

Indicates a Pronto Software recommendation.

Indicates an important item of information.

Indicates a potential loss of data if an action is performed incorrectly or before

Indicates a sequence of steps to be followed.

Indicates a tip or something useful to know

© 2011 Document Version So Easy Education Guide - Accounts Payable

2 About the Accounts Payable Module

So Easy Education Guide – Accounts Payable Document Version © 2011

3 Purchase Invoice/Credit Entry

3.3 When to use this Procedure

To enter an expense invoice

© 2011 Document Version So Easy Education Guide - Accounts Payable

3. Complete the following fields in this screen, as described below:

Account Enter the supplier account code to invoice or credit.

Invoice Type Specify the invoice type.

For the purposes of this lesson, select I (Suppliers Invoice).

Full Amount Enter the amount inclusive of tax.

Details Accept or change the default supplier details.

Payment Appr. Req Specify whether payment approval is required.

Retention Amount Enter the amount to be withheld.

The Retention Date and Retention Reason fields below are

Invoice Date Enter the invoice document date.

Disc. Applicable Specify whether discounts are applicable.

So Easy Education Guide – Accounts Payable Document Version © 2011

For the purposes of this lesson, select N.

To enter the GL expense accounts

GL Account Enter the expense code to be debited.

Description Accept or amend the default description as required.

Tax Specify the tax indicator.

© 2011 Document Version So Easy Education Guide - Accounts Payable

 I - Tax inclusive amount

Tax Amount Accept or amend the calculated tax amount.

Entry Add transactions to the batch.

Remove Remove the current transaction from the batch.

Breakdown Display the other-side General Ledger accounts and amounts.

Inv Select Review invoice details in a summary screen.

So Easy Education Guide – Accounts Payable Document Version © 2011

To enquire on the General Ledger batch enquiry postings

The tax has posted to the ITAX account.

To enter an expense invoice with retention amount

Retention Amount Enter the amount to retain.

The retention date should be set to a future date.

Retention Reason Enter the reason for the retention.

© 2011 Document Version So Easy Education Guide - Accounts Payable

To enter the expense accounts

GL Account Specify the expense code to be debited.

Description Accept or change the default value as required.

Tax Specify the tax indicator.

Tax Code Accept or change the tax code as required.

Tax Amount Accept or change the calculated tax amount as required.

So Easy Education Guide – Accounts Payable Document Version © 2011