How do I set up Payables for a new company?

Set up the shared lists first (payment terms, methods, vendor groups), then the company's Account Payable Setting and journals, then the vendors. The posting accounts come from the General Ledger posting setup.

Screen

The Payables setup screens, in the order below

Who

The implementation consultant

Takes effect

On save of each record

Needs first

The company, its chart of accounts, currencies, tax codes and number ranges, set up in Company setup and General ledger

Before you start

• The company and its ledger exist (Company setup; see Set up a new company for the order).
• Transaction Journals exist for vendor invoices (against receipt and free text), vendor memos, payments and, if used, payment requests, each with its number range and posting statuses (Transaction Journal; see How do I set up a transaction journal?).
• The posting profile names a payable account for each vendor group, and the process post keys of the Payables screens are set (Posting Profile and Process Post Key).

Steps

1. Open Payment Term (Accounts Payable › Payment). Create the terms you buy on: immediate, 30 days, 60 days.
2. Open Payment Method. One per way of paying, each with its bank or cash accounts and one Default.
3. Open Payment fee and Adjustment Type if bank charges or write-offs are booked on payments.
4. Open Vendor Group (Accounts Payable › Vendor). One per payable control account, with required registrations.
5. Open Account Payable Setting for the company. Set the Cost Revaluation Journal, the Memo Journal, and Auto Invoice on Receiving if wanted.
6. Set up Cost Elements if purchases carry freight or duty.
7. Create the vendors on Vendor In Legal Entity, each with Payment Term, Payment Method and Currency.
8. Enter the opening balances. See How do I bring in vendor balances when we go live?

Check it worked

• A test free-text Vendor Invoice saved as Posted shows a voucher with the vendor group's payable account.
• A test Payment of it posts and the invoice drops off the Vendor Aging list.

If something looks wrong

• "Account is not configured in Posting Profile ... against Post Key ..." The posting profile lacks the vendor group's line.
• "Process Postkeys have not been configured in the system" The screen has no process post keys.
• The vendor does not appear on the invoice. Give it a Currency.

Related

• Payables setup screens.
• What posts in Payables.