Looks like we’re still in the setup phase. Accounts payable and accounts receivable setup is pretty straight forward. I guess we are skipping Company and GL setup. There’s not much to setup in those area’s but I’d still look at Tools>>setup>>company>>company and Tools>>Setup>>Financial>>General.
Another topic not discussed in any of these steps is security in Dynamics GP. Seems like whenever I get a call from a frantic owner regarding someone stealing money from them it always relates somehow to AP, Bank Reconciliation and the GL.
Side Story – An owner (“Marco”) of a small business called me a few weeks back and asked if I had done anything with “Mary” (name has been changed to protect the…guilty) with some GL entries. I indicated that I worked with Mary the week before and found several transactions that had been deleted from the AP sub module. Marco cussed a lot and said “My bank is $70,000 off”.
To make a long story short the AP/GL/Bank Rec/Accounting lady had been making manual check payments to herself. She’s only worked there for the past 5 years so who knows the actual ramifications. She reconciled the bank account each month so was able to cover her tracks. Also, in the past few months she had moved a considerable amount of money from the company credit line to the operating account to cover for the missing money. Marco found out about it when he tried to use his credit line and no credit was available.
Moral: In all businesses, especially small businesses where there are little separation of duties you must have someone other than the person receiving and cutting checks do the bank reconciliation.
You can limit security to any GP windows by navigating to Microsoft Dynamics GP>>tools>>setup>>system>>User Security.
Step 3 – Accounts Payable and Accounts Receivable Setup
Here is the payables setup window.
The setup guide says you can have up to seven periods but note that the trial balance is defaulted to 4 periods so you have to modify the TB if you want any other periods you create to show up on that. It’s kind of a pain. If you really don’t need the aging periods I would leave the number of aging buckets the same.
The check mark on Previously Applied Documents on Remittance often causes issues. Un-checking that box will take off previously applied credit memos from your check stub.
The Vendor Class setup is a good suggestion. This allows you to add vendors quicker and makes reporting on classes easier. I usually at least start with a Vendor Class called Default.
AR is similar to Payables as shown below.
I’d leave the aging periods the same for the same reasons as AP. One option to consider is the Due Date aging versus the Document Date aging. This option affect when which aging bucket the customer invoice will be sent to.
In the options window I usually leave the numbering the same but you can change it if you like.
A Customer Class is good to define. The documentation discusses this well.
I think we are ready to start inputting vendors and customers. Now the real fun begins as Dynamics GP really starts to take life.
On to Step 4.