You can set up the Accounts Payable system to automatically post to General Ledger. To do this, set the GL distribution flag in the AP Static Control F/M to one of the following: 0-indicating no GL distribution is printed or posted; 1-indicating the GL distribution is printed (printing is in detail format) but not posted to GL; 2-indicating the GL distribution is printed (printing is in detail format) and posted to GL in summary (posting includes the total amount posted to each account number); or 3-indicating the GL distribution is printed (printing is in detail format) and posted to GL in detail (posting includes each item contributing to the amount for each account number).
Two other flags control automatic posting from AP to GL. The GL expense journal and GL disbursements journal flags, also located in the AP Static Control F/M program, allow you to direct transactions posted from the Document Entry Register and Check Register to specific GL Journals.
In Accounts Payable, transactions from the Document Entry Register and the Check Register programs print a GL distribution and post to GL. The GL distributions are built and posted through the use of GL posting tables.
You must establish your own set of valid GL posting tables to be assigned to each vendor. For example, all invoices from freight companies may be expensed to the same GL account number. Then, you can assign one GL posting table to all freight vendors. Posting tables may be alphabetic or numeric and should be easily recognized. During Document Entry, you must enter the vendor number. The GL posting table code assigned to that vendor is displayed and may be overridden on the invoice. The GL account numbers stored with the GL posting tables become the default value for the expense account number entered in Document Entry. Document Entry also allows a search to display all G/L numbers set up in a posting table.
In Document Entry, you can expense an invoice to up to 999 expense accounts. The GL posting table allows you to set up to five default expense accounts to make entry of AP documents easier.
The GL posting table also contains the Accounts Payable G/L number to post and the Discounts G/L number to post when a discount is taken.
Example: Southern Bell is a vendor set up in the vendor file and for GL posting purposes is considered a telephone vendor. Therefore, set up a GL posting table TEL-telephone. When posting most phone bills from Southern Bell, you would normally expense to the telephone GL expense account. However, if occasionally, you advertise in the yellow pages and when those bills are entered, you would expense them to the advertising GL expense account. You could set up this GL posting table as follows:
GL Table TEL
Description Telephone
G/L # Description
Expense 1 735-00-00 Telephone
Expense 2 710-00-00 Advertising
Expense 3 000-00-00
Expense 4 000-00-00
Expense 5 000-00-00
Accounts Payable 310-00-00 Accounts Payable
Discounts 490-00-00 Discounts Taken
In Document Entry, if the GL posting table is TEL for the invoice being entered, the system automatically defaults to 735-00-00 for the first GL number to be expensed. You can also perform a search to display all of the GL expense numbers set up in the TEL GL posting table. In the example given, 735-00-00 telephone and 710-00-00 advertising are displayed.
Therefore, when a regular telephone bill is entered, you can allow the system to default to 735-00-00 telephone. However, when an occasional advertising bill is entered, you can search to see the other possible expense GL numbers to use.
If the Post by Branch flag is set to Y in the AP static control record, the Document Entry program automatically inserts the branch in the proper position in the GL number when displaying the expense numbers of the GL posting table.
Within each GL posting table there is also an account number for accounts payable. This number is posted when entering an accounts payable document or writing a check and paying it off. The discounts number is posted when a discount is taken, i.e., when the payment is made and the check is written. Discounts are not posted upon initial entry of the document, but when the discount is entered when payment is made (i.e., when the discount is taken).
For example: If you enter two bills for Southern Bell - a telephone bill for $350 and an advertising bill for $150, the summary Document Entry Register GL distribution using the GL posting table listed above would be as follows:
Account Debit Credit
310-00-00 Accounts payable -500.00
730-00-00 Telephone 350.00
710-00-00 Advertising 150.00
If you pay the two bills and takes a 2% discount on the advertising bill, the summary Check Register GL distribution using the GL posting table listed above would be as follows:
Account Debit Credit
* 100-00-00 Cash in Bank -497.00
310-00-00 Accounts Payable 500.00
490-00-00 Discounts Taken -3.00
* The cash G/L number comes from the Bank G/L number set up in the Bank F/M in the banking and check system in system management.
If the Post by branch flag is set to Y in the AP Static Control F/M, the Document Entry & Adjustments Register and Check Register automatically insert the branch (assigned to each document) in the AP and discounts GL numbers when posting to General Ledger.
When setting up the GL Posting Tables, because they are user-defined, there is no limit to the number set up. Any of the expense numbers may be entered as defaults in the AP Document Entry. The AP and Discount G/L numbers are mandatory numbers and may not be overridden during entry of current payment selection or check writing.
If you want to enter a loan and post the balance to Notes Payable rather than an accounts payable account, set up GL posting tables, as follows:
GL Table LN
Description Loans
G/L # Description
*Expense 1 735-00-00 Telephone
Expense 2
Expense 3
Expense 4
Expense 5
Accounts Payable 320-00-00 Notes Payable
Discounts 490-00-00 Discounts Taken
Ü If a GL posting table is set up with no expense accounts, the user has no default expense numbers in Document Entry.
The Document Entry program, Document Entry & Adj. Register and Check Register programs use information stored in these records.