In this section we’ll cover the following:
- Add Vendor
- Enter Vendor Invoices
- Create Check Batch
- Print Checks
Entering vendors into Dynamics GP is easy to do. Generally all you need to complete a vendor master file record is a Vendor ID, Name, and Primary Address ID. The other fields are available to record additional information as you may need to operate your organization. Navigate to the Vendor Maintenance screen: Purchasing>>Cards >> Vendor.
To enter vendors do the following:
Enter a Vendor ID. The Vendor ID field is an alpha-numeric field with a 15 character maximum. Usually a company will identify a naming convention that will be used to define new Vendor ID’s. The example in the screen below uses a naming convention that is the first eight letters of the vendor’s name, plus a four digit number. The four digit number is used to allow for duplicates that might result from more than one vendor having the same first eight letters in their names.
Enter the Name of the vendor.
Enter a Primary Address ID. This is merely a “name” for the particular address. Examples would be: HEADQUARTERS, RECEIVING, DALLAS, NYSALES, etc. A vendor may have an unlimited number of addresses entered in to Dynamics GP.
My advice is to also assign each vendor to a Class ID. When you do this, the new vendor record you’re creating will be populated with default values from the Class ID. This will speed up data entry. The default values can always be overwritten for any specific vendor if necessary.
Add additional information to the vendor record as required by your organization’s business rules.
When setting up the vendor it is important to assign 1099 status if applicable
When the Tax Type is changed to Miscellaneous, Dividend, or Interest the 1099 amount is captured from the payables invoice transaction amount. This can be adjusted at the end of the year the vendor is not setup correctly but it’s nice to have the system calculate the appropriate amount during the year.
The Payables Transaction Entry screen can be used to enter vendors’ invoices and credit memos.
To enter a payables transaction, do the following:
- Tab past the Voucher No. The system should enter the next voucher number for you.
- Select the document type you want (Invoice)
- Enter a Description (optional)
- Enter Batch ID
- Enter Vendor ID
- Enter Document number
- Enter Purchases amount
At this point you should click on the distributions button
The top distribution account is the expense account the voucher relates to. If the default purchases account was setup in the vendor maintenance card this will be defaulted automatically.
Let’s talk about batches. What follows is generally true for all of Dynamics GP: Batch ID’s are user-defined, meaning that you can name them whatever you want. You can use your name, the date, the type of transaction, etc.
When you enter a new Batch ID, a batch entry screen will pop up. You generally only need to click on Save, and the batch will be created. In the case of the Payables Batch Entry screen, you will need to supply the Checkbook ID if it does not default in from your system settings.
If you want to add a transaction to an existing batch, you merely look up the Batch ID using the lookup button.
If you want to move a transaction from one batch to another, you just lookup a new Batch ID in the Batch ID field, and click Save on the transaction.
Generally Dynamics GP doesn’t care whether you post transactions in a batch or you post them on-line in real time. The posting process works the same in both cases.
Let’s enter a transaction together:
- Enter or lookup the Vendor ID.
- Enter a Document Number. This is the vendor’s invoice number, credit memo number, etc.
- Enter the amount of the vendor’s invoice in the Purchases field.
- It’s a good idea to check the general ledger account distributions by clicking on the Distributions button. If you need to change the general ledger account that will be charged when the transaction is posted, you can change it here.
- Either save the transaction to a batch by clicking on the Save button, or post it real-time by clicking on Post (for this to work the Batch ID field must be blank).
If you decided to enter a batch ID, the following screen will appear: At this point enter a description of your batch in the Comment field. Then select a frequency – most batches are single use, but if you want to create invoices that are recurring, then you can select other options from the drop down menu. Select the date you want your batch to post to the General Ledger. The posting date of the batch will override any document dates you entered on the Voucher Entry screen. The Document date on the Voucher Entry screen will be used for Aging the document. If you do NOT use a batch, then the document date will be the posting date in the General Ledger. Select a Checkbook ID from which you want to pay this vendor. A default will appear, based upon what was set up in the Vendor Master File or Vendor Class, but you can override here if you like.
This is the Payable Transaction Entry Distribution Screen. This screen is used to determine how you want to distribute (expense) the payable amounts. Notice that the default Account Payable or “PAY” has been defaulted. The PURCH is your expense account. You can override it here by tabbing down to the field and you can enter additional PURCH lines or expense lines below. A default expense or PURCH line will appear if you have created it in the vendor master file. To remove a line in the distribution just go to File>>Delete. By tabbing through the fields you can enter additional fields.
If you want to see the transaction description and distribution reference, simply click on the blue down arrows on the right hand side of the screen, this will now display three lines of data instead of one.
To view your chart while entering in your GL account, simply click “Control L” and the entire chart will appear. Remember, you can enter in as many distribution lines as you like, but the debits must equal the credits before you can leave this transaction.
There are a few ways to print checks. Let’s take a look at how to use the Edit Payables Check Batch screen to build a batch of payables invoice for which to print checks.
Navigate to the Edit Payables Check Batch screen: Purchasing>>Transactions >> Edit Check Batch
The Vendors list on the left lists all vendors for whom there are open payables invoice. Select a vendor from this list, and the open vendor’s invoices are displayed in the list on the right, along with the open invoice amounts. Select the open invoices you want to include on a check run by marking the box just to the left of the Voucher Number. As you select individual vouchers, the amount to be paid to the vendor is accumulated next to the Vendor ID.
If you do not wish to include the total open amount of an invoice, you can click on the Edit Check button, and then click on the Apply button to change the amount to be paid for any specific invoice.
When the check batch includes all the invoices you want to pay and the amounts you want to pay, you can either click OK to save the batch or click on Print Check to print out the checks.
Here’s an example where I did not want to include the total amount of invoice 8001 in my check batch. The original amount of the invoice is $5,560.34. However I only wanted to pay $1,200.00 in this check run. I merely entered $1,200 as the Apply Amount for invoice 8001. The system adjusted the Amount Remaining to $4,360.34. (This example is different than the example in the video.)
If you click on Print Checks the Print Payables Check screen will pop up. You will want to make sure that the check number showing in the Check Number field is the number on the next check in your check stock.
When you’re ready to print checks, click on the “Print” button.
Once the checks have been printed the Post Payables Checks screen pops up. At this point you have four options:
- Post Checks – This will post all related checks and transactions, and you’re finished.
- Print Stub Alignment – This will allow you to realign your check forms before reprinting checks.
- Reprint Checks – This will allow you to reprint a range of checks.
- Void Checks – This will void the checks and return the related payables invoices to an open status. You will have to create a new check batch in order to pay these invoices.
Select your option and click on “Process”.
If you don’t want to do anything at this time, you can click on the Process Later button.
Take a look at this video to see this in action: Vendors, Payables Invoices, and Checks in Dynamics GP
Blank check stock that is already formatted to fit Dynamics GP can be purchased from Deluxe Checks. These are the three formats that are available for laser printers:
You can contact Deluxe Checks here:
Monday – Friday 24 hours
Saturday 9:00 – 1:00 CT