Settings in the Payables module - Account Usage A/P
You should use the Account Usage A/P setting to choose the Accounts and Tax Codes that will be used as defaults in your Accounts Payable transactions (i.e. Purchase Invoices and Payments). These defaults will be used in the absence of Accounts or Tax Codes being specified elsewhere (for example, in the Items or Vendors used in the transactions). The Accounts that you use here must exist in the Account register, otherwise Books by HansaWorld will not be able to create transactions.
If you created your database using the 'Start with standard chart of accounts' option as described on the Starting Books by HansaWorld - New Database page), you will find that most of the fields in the Account Usage A/P setting already contain suggested values. If you have modified this Chart of Accounts or have used your own, you must ensure that you replace these suggested values with the correct Accounts.
To open this setting, first ensure you are in the Payables module and then click the [Settings] button in the Master Control panel. Then double-click 'Account Usage A/P' in the 'Settings' list. Fill in the fields as described below. Then, to save changes and close the window, click the [Save] button. To close the window without saving changes, click the close box.
- Creditors
- Paste Special
Account register, General Ledger/System module
- When you approve a Purchase Invoice (i.e. post it to the General Ledger), its value including Tax will be credited to a Creditor Account. When you approve a Payment, its value will be debited to the same Account. This Account therefore shows how much your company owes at a particular time.
- Specify here the Account that you wish to be used as your main default Creditor Account. This Account will be overridden if you have specified a separate Creditor Account for a Vendor or its Vendor Category.
- Bank Fee
- Paste Special
Account register, General Ledger/System module
- Specify here the Account that you want to be debited by any bank changes you may incur when issuing Payments.
- Cash
- Paste Special
Account register, General Ledger/System module
- The Account entered here will be credited instead of the Creditor Account whenever you approve a cash purchase (a "Cash Note"). Please refer to the description of the Payment Terms setting for details about Cash Notes.
- This Cash Account will be overridden if you have specified a separate Cash Account for the Payment Term used in a Cash Note.
- Settl. Discount
- Paste Special
Account register, General Ledger/System module
- In the event of a Purchase Invoice attracting a settlement discount when you pay it on time, the Account specified here will be credited with the discount amount in the General Ledger Transaction resulting from the Payment. You can define settlement discounts using the Payment Terms setting.
- Settl. Discount Tax
- Paste Special
Account register, General Ledger/System module
- As described immediately above, if you enter a Payment with a settlement discount, that discount will be credited to the Settlement Discount Account.
- In some countries, the entire settlement discount should not be credited to the Settlement Discount Account. Instead, the settlement discount less tax should be credited to that Account, and the tax element should be credited to this Settlement Discount Tax Account. If you need to divide the settlement discount in this way, specify a Settlement Discount Tax Account here. The tax element will be calculated using the following formula:
Settlement Discount * Purchase Invoice Tax Total |
Purchase Invoice Total (including Tax) |
- Please refer to your financial adviser for more advice on this subject.
- On Account A/C
- Paste Special
Account register, General Ledger/System module
- You can issue a Payment to a particular Vendor without reference to a specific Invoice (an "On Account" Payment). You may want to use a special Account for such Payments. Specify that Account here, and switch on the On Account check box on the 'Terms' card of the Contact record for the Vendor in question. When you enter and approve an On Account Payment, its value will be debited to this Account. Usually this Account should be one that acknowledges that issuing a deposit creates an asset. On Account Payments are described here.
- Prepayment Tax
- Paste Special
Account register, General Ledger/System module
- The Post Payment Tax option described below allows you to account for Tax based on Payments. When you approve a Payment, Tax will be moved from a temporary Tax Input Account to the final one. Usually, the final Input Account will be the I/P Account specified in the Tax Codes setting. If a particular Tax Code does not have an I/P Account, the Tax Value will be debited to this Account instead.
- Local Tax Code, Domestic Tax Code, Export Tax Code
- Paste Special Tax Codes setting, General Ledger
- The Tax Code will determine the Input Tax Account that will be debited when you post a Purchase Invoice to the General Ledger and the rate at which Tax will be charged.
- The default Tax Code offered in each Purchase Invoice row will be chosen as follows:
- The Purch. Tax Code for the Vendor will be used.
- It will be taken from the Account record.
- This Tax Code in the Account Usage A/P setting will be used.
In the last case, the appropriate Tax Code for the Zone of the Vendor will be used.
- You can change this default in a particular Purchase Invoice row if necessary.
- Post Payment Tax
- This option allows you to post Tax from Payments and On Account Payments. An On Account Payment is a Payment with no Purchase Invoice Number. If you need to use this option, you should enter I/P Accounts for all your Tax Codes (in the Tax Codes setting in the General Ledger), or at least a Prepayment Tax Account in the field above. Please refer to the description of flip B of the 'Payment: New' window here for details.
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