ACCOUNTS PAYABLE GENERAL LEDGER POSTING LOGIC

When Invoices are entered into the system via Invoice Entry (AP1100) the liability account is increased. The distribution of the liability is handled by the detail entry of the invoice itself. The General Ledger module is updated with the postings by means of the Accounts Payable (AP) to General Ledger (GL) update (AP4300) for the total invoice amount. Cheques are created either manually or automatically based upon a run of the cash requirements (AP1200, AP6400) which analyzes the payables outstanding. The cheques produced get updated to the G/L when the cheque register (AP1400) is run. The cheques are tracked and reconciled to the AP and G/L via cheque reconciliation (AP4200).

Accounts Payable General Ledger Posting:

During invoice entry in Accounts Payable Invoice Entry (AP1100), the payable detail is distributed to default accounts or manually to specific G/L accounts.

When an Accounts Payable to General Ledger update is run:

AP4300 (Accounts Payable – General Ledger Update)

Debit -	Account entered in AP1100 detail line with amount entered. If the ‘General Ledger Account’ on the Vendor Master file is populated then this would be the default account populated at Invoice Entry (AP1100). If not then the ‘Accrued Liabilities’ on the currency/branch combination (GB0700) is used. This account could also be overridden with any valid account entered.
Credit -	A liability account with invoice amount. If the ‘Account Payable Regular’ account on the Vendor Master file is populated then this is the account credited. If not then the ‘Account Payable Regular’ on the currency/branch combination (GB0700) is used.

If using inter-branch balancing additional postings will occur (See Multi-Branch Transactions and Inter Branch Balancing below).

When an Accounts Payable Cheque Register printed:

AP1400 (Cheque Register)

Debit -	Account with cheque/payment amount. If the ‘Account Payable Regular’ account on the Vendor Master file is populated then this is the account credited. If not then the ‘Account Payable Regular’ on the currency/branch combination (GB0700) is used.
Credit -	‘Bank Account’ of bank entered on Invoice Entry (AP100) with cheque/payment amount.
Credit –	The ‘Discount’ account for the currency/branch combination (GB0700) with any discount amount (if applicable).
Posting for Quick Cheques entered with NO Invoice.
Debit –	Unapplied Cheque Account for Accounts Payable that is defined for the vendor currency. The entire amount of the cheque is debited to this account.
Credit –	‘Bank Account’ of the bank which is specified in the screen. The entire amount of the cheque is credited,

For payables in multi-currency and currency exchange postings see Accounts Payable Foreign Exchange Postings.

Multi-Branch Transactions and Inter Branch Balancing

Dynamic 3i also allows for and balances multi-branch transactions. A simple Due From / Due To hierarchy is used to maintain the balance, and its corresponding general ledger accounts when transactions occur involving more than one branch. Defining a relationship between valid branches and accounts using Dynamic3i Inter-Branch Balancing table – GL7900 does this. Whenever there is activity on Inter-Branch – Due From Account a corresponding offsetting activity is done to the header Branch – Due To Account

Example.

The example below shows an accounts payable invoice to one branch of which a portion really belongs to another branch.

Dynamic3i Invoice Entry – AP1100.

Invoice for $300.00 to Branch 1

Distribution entry to allocate the $20.00 to branch ‘01’ results in allocating $280.00 to branch ‘1’ and $20.00 to branch ‘01’. A warning will appear stating that the G/L distribution branch does not match the invoice branch but the transaction will still be allowed in a multi-branch environment. With the above posting, branch 1 would be out of balance by $20.00 (A/P regular account (defined on currency file) gets hit with full invoice amount $300.00 and offset in A/P invoice distribution only gets $280.00)

By setting up the Inter Branch Balancing table as follows:

Dynamic3i Inter-Branch Balancing – GL7900.

When the posting of the $20.00 occurs to branch ‘01’- account, a transaction for $20.00 is automatically created to the Branch – Due To Account, in this case branch ‘1’ account interco.1.1.

The resulting A/P invoice update transactions from the above example would result in the postings below. The $20.00 posting to the defined inter-branch balancing account keeps branch ‘1’ in balance.

Dynamic3i Accounts Payable Update Report – AP4300.