Before payments to suppliers can be processed, payment types must first be defined so that payment funds are associated with their appropriate GL accounts. Payment types can also be set up for printed (and optionally pre-numbered) cheques and preauthorized payments (i.e., funds withdrawn automatically from specified bank accounts).

Payment types are set up for each location in your company. For example, one location may accept American Express and Visa, while another location may only accept Visa.

Each payment type and location requires a GL account for postings. If there is no GL account specified, the payment type is not available at that location. If your company has multiple locations, you can choose to use separate GL accounts for each payment type and location or choose to use the same GL account for all locations that have the same payments types.

Use the Manage AP Payment Types window to add, edit, deactivate, and delete the payment types that you can use to make payments to suppliers.

 

What you'll find:

Adding AP Payment Types

Editing AP Payment Types

Deactivating AP Payment Types

Deleting AP Payment Types

Adding AP Payment Types

You can add AP payment types that you can use to make payments to suppliers (e.g., Visa).

To add an AP payment type
* indicates a required field

Navigate to Accounts Payable > Manage > AP Payment Types.
The Manage AP Payment Types window opens.

Click Add.

The Add AP Payment Type window opens.

In the Description* box, enter a unique description for the payment type.
For example, Cash.
This description appears anywhere that you select or view an AP payment type and in all related reports.

Ensure the Active box is checked.
Unchecking the box deactivates the payment type.

Check the Grain Payment box if this payment type will be used to settle grain receipts (available only when the Grain module is active).
Payments types flagged a Grain Payment types cannot be used for regular AP Payment transactions.

Select the payment Type*.

Cheque
You'll need to enter the following extra information for each location offering that payment type in the GL Accounts by Location table below.

In the Print Cheque #? column, check boxes for the locations that you want numbers printed on cheques.
If you use pre-numbered cheque stock, clear the check box.

In the Prefix Cheque No column, enter the prefix that appears on all cheques before the cheque numbers for selected locations.
Each location can have a different prefix.

In the Next Cheque No column, enter the first cheque number that you want to use for the next batch of cheques for selected locations.
Each location can have a different start number (for example, you purchased a batch of 1000 cheques; Edmonton gets cheques 1-500 and Calgary gets cheques 501-1000).
However, cheque numbers must be unique per payment type (for example, there can be only one Cheque #500 - there can't be an Edmonton Cheque #500 and a Calgary Cheque #500).

EFT
Click Settings.
The Edit EFT Settings window opens.

Select a File Format*.

Enter the following information provided by your bank:
Destination Data Centre*, Originator ID*, Short Name*, Long Name*, Next File Number*.
Depending on which File Format you selected, you may be restricted from using special characters like "%" or "!" or "#" in some fields.

Depending on which File Format you selected, you may also be required to fill in: (they will be flagged with an * if they are required)
Return Bank Number, Return Branch Number, Return Account Number, Trans. Routing Record (required for RBC Express).

Select Single Payment Date if you want to limit EFT Payment Batches to a single date (or your bank requires it).

Check Lead Date Mandatory (displayed only for the TD Canada Trust file format) if your bank account requires lead time to process EFT payments.
For example most TD Canada Trust accounts require at least 2 business days lead time, meaning if you make a payment today the lead time date must be at least 2 business days from today, allowing for weekends and bank holidays (which are different from province to province). You'll indicate a specific Lead Date when adding payments to an EFT batch.

Select the Currency Code* from the drop down list.

When making EFT payments, the payment details are exported a file that will be uploaded to your bank.
To select the File Path*, click Browse.
The Browse for Folder window opens.

Select a destination folder for the payment export file and click OK.
The Browse for Folder window closes.

Update to save.

Other (this is the default)
e.g. Cash, Debit/Interac, VISA, FCC, MasterCard. No extra settings required.

required for ALL payment types

In the GL Account* column, select a GL account for each location that offers the payment type.
Payments are posted to the selected GL accounts.

In the Accrual Account column, select an accrual account for each location that offers the payment type (it's used for future dated payments).
Accrual accounts hold funds until the specified payment date (e.g., cheques); however, postings are made immediately. Your accrual account should not be reconcilable, and it should be different than the GL account that the payment postings are made to.

Click Save.

Editing AP Payment Types

You can edit any of your existing AP payment types at any time.

To edit an AP payment type

Navigate to Accounts Payable > Manage > AP Payment Types.
The Manage AP Payment Types window opens.

In the Payment Type list, select the payment type to edit and then click Edit.
The Edit AP Payment Type window opens.

Edit the data, and/or add data to the payment type as needed.

Click Save.

Deactivating AP Payment Types

An AP payment type can be deactivated if you no longer make payments of that type.

To deactivate an AP payment type

Navigate to Accounts Payable > Manage > AP Payment Types.
The Manage AP Payment Types window opens.

In the Payment Type list, select the payment type to deactivate and then click Edit.

Uncheck the Active check box.

Save the change.
The payment type is deactivated immediately.
If the payment type was specified as a supplier default, it will be removed from the supplier account.

Deleting AP Payment Types

An AP payment type cannot be deleted if it has been or is being used on a supplier payment or account. Once you delete an AP payment type, it cannot be undone.

To delete an AP payment type

Navigate to Accounts Payable > Manage > AP Payment Types.
The Manage AP Payment Types window opens.

From the Payment Type list, select the payment type to delete and then click Delete.

Click Yes to confirm the deletion.
The payment type is deleted.