Credit Card/3rd Party Vendor

The 3^rd Party Vendor pay is moving the amount owed to one vendor to a different vendor.

For example: You owe ABC Paper $5,000.00. ABC Paper is contacted & told to process a credit card payment for $5,000.00. Now you owe the credit card company instead of ABC Paper.

Another example: An employee picks up paper from ABC Paper & pays for it. The original PO & voucher is to ABC Paper, but you actually owe the employee. The employee has a vendor # for expenses. The 3^rd party vendor pay moves the amount owed from ABC Paper to the employee vendor #.

Parameter setting:

Accounts Payable (Module 3)
- System Management functions (Task 32)
  - Modify parameter files (Sub-task 22)
    - 1 A/P – General. Look for 2 parameters:

CLEARING’ACCT= Enter in the G/L account number for Purchases Discounts. This G/L account should be the same one found in the G/L module, System Management (Task 32); Setup Automatic Interface (Sub-task 5); Change Interface Parameters (Selection 2); A/P - #2 Discounts Taken. For example, if the G/L interface parameter is: 425-00, then the A/P 3^rd Party Pay Clearing account should be: 4250001

Also look for:

PRINT’3RD’PARTY’ADVICE= Options are Y/N/A Print remittance advice for vouchers paid with a 3rd party vendor in Task 25 Voucher payment preparation.

Y=Print advice if vendor record (field 27 Sep. remit) is set to print the remittance advice.

N=Never print a remittance advice for any vendor for 3rd party vendor pay.

A=Always print a remittance advice for 3rd party vendor pay regardless of vendor.

PRINT’EFT’ADVICE= Options are Y/N/A Print remittance advice for vouchers pad with EFT in Task 25 Voucher payment preparation.

Y=Print advice if vendor record (field 27 Sep. remit) is set to print the remittance advice.

N=Never print a remittance advice for any vendor for 3rd party vendor pay.

A=Always print a remittance advice for 3rd party vendor pay regardless of vendor.

Select the Vouchers:

Select the vouchers being paid with a credit card through the normal voucher payment selection process. Go to:

Accounts Payable (Module 3)
- Voucher Payment Preparation (Task 25)
  - Select Vouchers to be Paid (Sub-task 1)
  - The first screen message:

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You will be asked to choose one of the following payment methods in subtask 4. “Pay selected vouchers”.

1. Company check

2. EFT

3. 3^rd party vendor

All selected vouchers will be paid with the same payment method. You need to select separate batches for each payment method.

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Vouchers are selected as always…see the document titled: Task 25 - Voucher Payment Preparation for complete instructions on how to select vouchers for payment.

Before Processing the 3^rd Party Vendor Pay

It is recommended to verify with the vendor the total of the credit card transaction & what the vendor is applying the payment too, before completing the posting for the 3^rd party vendor pay. An A/P Aged Trial Balance with detail (A/P Task 9, Sub-task 3 APTBAL) may be printed for the original vendor. A credit card authorization form should be faxed or emailed to the vendor showing which vouchers are going to be paid. This credit card authorization form can be stapled, along with a copy of the check register, to the vendor’s invoices or it may be placed in the vendors file. This credit card authorization form is something you create outside of MV Software. It is important to verify this information with the vendor before the 3^rd party vendor pay is processed in Profits Plus because backing out the 3^rd party vendor pay is not a simple process. See Backout 3^rd Party Vendor Pay

Print Edit List:

Check the edit list to be sure only vouchers being paid by the credit card vendor are listed. Each ‘method’ of payment, whether by a company check, EFT or a 3^rd party vendor, must be selected and ‘paid’ separately.

Pay Selected Vouchers:

Accounts Payable (Module 3)
- Voucher Payment Preparation (Task 1)
  - Pay Selected Vouchers (Sub-task 4).

Please enter the payment method for the selected vouchers. 1, 2 or 3.

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Payment Methods:

1. Company check

2. EFT

3. 3^rd party vendor

When #3 - 3^rd Party Vendor is chosen, you will be prompted to enter the 3^rd party (credit card) vendor’s number. Continue with prompts of beginning check number, date, etc

Note: All selected vouchers will be paid with the same payment method. You need to select separate batches for each payment method.

Explanation of what occurs:

For an example, there are three vouchers, from two different vendors, being paid with an AMERICAN EXPRESS credit card.

Vendor 150 XEROX

Voucher 150190 200.00

Vendor 1200 OFFICE DEPOT

Voucher 1118 5,000.00

Voucher 1168 1,000.00

Vendor 1200 total: 6,000.00

Total for 3 vouchers: 6,200.00

The vouchers will be paid using vendor 627 – American Express (AMEX).

A new credit voucher is created for every vendor selected for payment by a 3^rd party vendor. The credit voucher is for the total amount of the vouchers selected for the vendor i.e. OCE has 2 vouchers totaling $6,000, therefore one credit voucher is created for OCE for $6,000. In the reference note field (on the Voucher History) you will see the debit voucher number for the third party vendor. This credit voucher is ‘paid’ with check #99997. The G/L account number for the credit voucher comes from the A/P parameter “CLEARING’ACCT=xxxxxxx”.

A new debit voucher is also created for the 3^rd party vendor for the total of the selected vouchers for each vendor. Therefore if you have selected two different vendors, two separate debit vouchers will be created for the 3^rd party vendor i.e. AMEX has new two vouchers, one for $6,000 and another for $200. In the reference note field you will see the credit voucher number relating to this transaction. The new debit voucher is unpaid. The G/L account # for this debit voucher comes from the A/P parameter “CLEARING’ACCT=xxxxxxx”.

The Edit List will look like this: (found in 3/25/3)

VENDOR VOUCHER ----INVOICE------ DUE INVOICE DISCOUNT NET DIV

NO NO NO DATE DATE AMOUNT TAKEN PAYABLE # VENDOR NAME

*********************************************************************************************

00150 XEROX

150190 156332 01/21/xx 02/21/xx 200.00 0.00 200.00 01

VENDOR TOTALS: 200.00 0.00 200.00 TOTAL: 200.00

--------------------------------------------------------------------------------------------------------------------------------

01200 OFFICE DEPOT

001118 123211 02/11/xx 02/21/xx 5000.00 0.00 1000.00 01

001168 356 02/04/xx 02/14/0xx 1000.00 0.00 5000.00 01

VENDOR TOTALS: 6000.00 0.00 6000.00 TOTAL: 6000.00

--------------------------------------------------------------------------------------------------------------------------------

GRAND TOTALS: 6,200.00 0.00 6,200.00

The Voucher Posting will print BEFORE the Check Register, the Voucher Posting looks like this:

Batch number 000605

VCH # VEN DOC # DOC-DATE DOC AMT NON-DSC DISC-AMT DISC-TAK DSC-% DUE-DATE CHECK# DIV# EXP ACT #

VENDOR NAME ------ ----- REF NOTES ---- # PAY EXP AMT

******************** ***************************************************************************************************

00165 00150 AMEX 02/18/xx 200.00- 0.00 0.00 0.00 0.00 03/18/xx 999997 01 121-00-01

XEROX see vch. 001164 1 200.00-

001164 00627 XEROX 02/18/xx 200.00 0.00 0.00 0.00 0.00 03/01/xx 01 121-00-01

AMEX see vch. 001165 1 200.00

001167 01200 AMEX 02/18/xx 6000.00- 0.00 0.00 0.00 0.00 03/18/xx 999997 01 121-00-01

OFFICE DEPOT see vch. 001166 1 6000.00-

001166 00627 OFFICE DEPOT 02/18/xx 6000.00 0.00 0.00 0.00 0.00 03/18/xx 01 121-00-01

AMEX see vch. 001167 1 6000.00

2 REGULAR ENTRIES REGULAR TOTAL (NET CHANGE TO A/P): 6,200.00

2 PREPAID ENTRIES PREPAID TOTAL (NET CHANGE TO CASH): -6,200.00

4 GRAND INVOICE TOTAL: 0.00

When finished, the GRAND INVOICE TOTAL on the last page of the posting journal will be zero. (Unless a discount is taken. If a discount is taken, the GRAND INVOICE TOTAL will be a negative amount….the amount of the discount.) If a spreadsheet is used to balance A/P Daily, the GRAND INVOICE TOTAL amount should go into the voucher column of the spreadsheet.

The Check Register will look like this:

---- PAYMENT ---- VENDOR -------- -------VOUCHER ---------INVOICE -------- DISCOUNT DIV PAYMENT

# DATE # NAME # DATE AMOUNT AMOUNT # AMOUNT

999997 02/18/xx 00150 XEROX 001165 AMEX 02/18/xx -200.00 0.00 01

02/18/xx 01200 OFFICE DEPOT 001167 AMEX 02/18/xx -6,000.00 0.00 01

PAYMENT TOTALS: -6,200.00 0.00 -6,200.00

=========================================================================

PRE-PAID PAYMENTS: 0001 TOTAL PRE-PAID PAYMENTS: -6,200.00 0.00 -6,200.00

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999997 02/18/xx 00150 XEROX 150190 156332 02/28/xx 200.00 0.00 01

02/18/xx 01200 OFFICE DEPOT 001118 1255 02/11/xx 5,000.00 0.00 01

02/18/xx 01200 OFFICE DEPOT 001168 123211 02/04/xx 1,000.00 0.00 01

PAYMENT TOTALS: 6,200.00 0.00 6,200.00

================================================== ===================

COMPUTER PAYMENTS: 0001 TOTAL COMPUTER PAYMENTS: 6,200.00 0.00 6,200.00

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PREPAID AND COMPUTER PAYMENTS 0002 TOTAL ALL PAYMENTS: 0.00 0.00 0.00

Payment of vouchers OK? (YES/NO):

Answer YES, and the paying of the vouchers is complete.

In the Voucher (Task 19):

Ø The original voucher, being ‘paid’ by the 3^rd party vendor, will be ‘paid’ with check #999997.

Ø The new credit voucher (to ‘pay’ the original voucher) will be ‘paid’ with check #999997 and will reference the new voucher (to the credit card vendor) along with the credit card vendor’s name.

Ø The new voucher, to the credit card vendor, will reference the original voucher number and vendor name.

In A/P Open Items (Task 21):

Ø The original voucher, being ‘paid’ by the 3^rd party vendor, will have a status of 3 – paid voucher, with check #999997 and will reference the new credit voucher number.

Ø The new credit voucher will have a status of 3 – paid voucher, with check #999997 and will reference the new voucher (to the credit card vendor) along with the credit card vendor’ name.

Ø The new voucher, to the credit card vendor, have a status of 1 – unpaid, and will reference the credit voucher.

Answer NO, and the payment of the vouchers will be rejected. You would "reject" because:

1. A voucher was selected that should not have been selected. Or the 3^rd party vendor was incorrect.

2. The new vouchers are now gone and so are their voucher #’s. So the Voucher posting and Check Register is no good. We suggest you keep the posting and check Register write “Rejected” on it.

3. The system gives the message that the voucher history, check file, and the A/P open items file were successfully restored.

4. Always let the restore process finish. It should not take very long.

5. After the restore is finished, the vouchers are still selected for payment.

Overall Effect:

The original vouchers (1118, 1168 & 150190) are ‘paid’ and no longer on the original vendor’s account.

In A/P Open (Task 21), the following fields are affected on the paid vouchers:

08. Status: 3 (voucher is paid)

09. Check # 999997 (means it was paid by a 3^rd party vendor)

12. Voucher xref: 1174 (reference to the new voucher number for the 3^rd party vendor)

In Voucher History (Task 19), the following fields are affected on the paid vouchers:

11. Check # :999997

19. Voucher xref:1174 (reference to the new voucher number for the 3^rd party vendor)

In both Voucher History and A/P Open two new vouchers were created…a debit and a credit for the full amount each vendor’s vouchers being paid for by a 3^rd party vendor. i.e. Xerox & American Express for $200; Office Depot and American Express for $6,000

Looking at the 3^rd party vendor’s account (i.e. American Express), the newly created voucher will appear, waiting until it is selected for payment by a company check or EFT.

Paying the 3^rd Party Vendor

In this example the 3^rd party vendor American Express is now owed $6,200.00. When it is time to pay American Express the payment process in Voucher payment preparation (Task 25) is the same as paying any other vendor with a company check or an EFT. It is recommended to balance the American Express statement with the A/P aged trial balance with detail (APTBAL) before paying American Express. See document Pay 3rd Party Vendor - Pay Credit Card Vendor