In Accounts Payable (Module 3), vouchers can be paid with a different vendor. This may be used for paying a vendor with a credit card. This may also be used if an employee pays for company merchandise. For instructions on this please see the document titled: Credit Card / 3rd Party Vendor . 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 3rd party vendor pay. In the event the 3rd party vendor pay needs to be backed out, this document explains how to do this.
When the 3rd party vendor pay was completed the system should have printed out a check register. This check register would have included:
- The vendor’s original vouchers on it paid with check #999997
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A negative voucher for your vendor paid with check #999997
- The total of the check register should have been zero.
- Please find the check register.
- Below is an example of a check register:
The Check Register will look like this:
---- PAYMENT ---- VENDOR -------- -------VOUCHER ---------INVOICE -------- DISCOUNT DIV PAYMENT
# DATE # NAME # DATE AMOUNT AMOUNT # AMOUNT
999997 02/28/xx 00150 XEROX 001165 AMEX 02/28/xx -200.00 0.00 01
02/28/xx 01200 OFFICE DEPOT 001167 AMEX 02/28/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 02/28/xx 00150 XEROX 150190 156332 01/28/xx 200.00 0.00 01
02/28/xx 01200 OFFICE DEPOT 001118 1255 02/11/xx 5,000.00 0.00 01
02/28/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
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When the 3rd party vendor pay was completed the system should have printed out a voucher posting register. Here is an example of a 3rd party vendor pay, voucher posting register:
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 02/28/xx 200.00- 0.00 0.00 0.00 0.00 02/28/xx 999997 01 121-00-01
XEROX see vch. 001164 1 200.00-
001164 00627 XEROX 02/28/xx 200.00 0.00 0.00 0.00 0.00 02/28/xx 01 121-00-01
AMEX see vch. 001165 1 200.00
001167 01200 AMEX 02/28/xx 6000.00- 0.00 0.00 0.00 0.00 02/28/xx 999997 01 121-00-01
OFFICE DEPOT see vch. 001166 1 6000.00-
001166 00627 OFFICE DEPOT 02/28/xx 6000.00 0.00 0.00 0.00 0.00 02/28/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
For this example we are going to say the $200.00 Xerox payment needs to be backed out. The original voucher was:
Vendor #150 XEROX, voucher #150190, invoice #156332, dated 01/28/xx, for $200.00
The vouchers posted during the 3rd party vendor pay were:
Vendor #150 XEROX, voucher #1165, invoice #AMEX, dated 02/28/xx, for $-200.00
Vendor #624 AMEX, voucher #1164, invoice #XEROX, dated 02/28/xx, for $200.00
Step 1:
Go into A/P (Module 2)
· Voucher history (Task 19)
o Change existing vendor hst record (Sub-task 2)
§ Bring up ALL of the vouchers on the check register
§ 3 fields need to be blank:
· Field 11 Check #
· Field 12 Dsc taken
· Field 13 Paid date
Step2:
Go into A/P (Module 2)
· A/P open items (Task 21)
o Change existing open-item record (Sub-task 2)
§ Bring up ALL of the vouchers on the check register
§ 2 fields need to be corrected:.
· Field 9 Check # needs to be blank
· Field 8 Status needs to be 1 unpaid
Step 3:
A/P Task 1 Voucher entry & editing, Subtask 1 enter new. Two new vouchers will need to be entered. The same G/L account # will be used on both vouchers.
- The first voucher is for the original real vendor, for a current date, it should be for the amount of this credit card payment, for a positive amount.
-
The second voucher is for the Credit Card vendor, for a current date, for a NEGATIVE amount of the credit card payment. Post these two vouchers, the voucher posting should be for a total of zero.
- Vendor #150 Xerox, 03/10/xx, $200.00, new voucher #2000
- Vendor #627 AMEX, 03/10/xx, -200.00, new voucher #2001
-
The vendor’s account should now have the original vouchers unpaid, the credit voucher unpaid & the new positive voucher unpaid.
-
The credit card vendor’s account should have the positive voucher & the negative voucher.
Vendor #150 XEROX, voucher #150190, invoice #156332, dated 01/28/xx, for $200.00
Vendor #150 XEROX, voucher #1165, invoice #AMEX, dated 02/28/xx, for $-200.00
Vendor #150 XEROX, voucher #2000, invoice #AMEX CORRECTION, dated 03/10/xx, $200.00
Vendor #624 AMEX, voucher #1164, invoice #XEROX, dated 02/28/xx, for $200.00
Vendor #624 AMEX, voucher #2001, invoice #XEROX CORRECTION, dated 03/10/xx, $-200.00
STEP 4:
Go into Task 4 Apply A/P credits for the original vendor, apply the negative voucher created when the 3rd party vendor pay was posted, & the new positive voucher to each other. In this example voucher #’s 1165 & 2000 would be applied to each other.
Still in Task 4 Apply A/P credits for the Credit card vendor, apply the positive voucher created when the 3rd party vendor pay was posted & the new negative voucher to each other. In this example voucher #’s 1164 & 2001 would be applied to each other.
Now the original vendor only has the original vouchers unpaid on their account. The credit card vendor doesn’t have anything related to this transaction unpaid on their account.
STEP 5:
The original vendor & vouchers can be paid just as if they were never paid with a 3rd party vendor pay. They can be paid with a 3rd party vendor pay or with a real check or with an EFT.
If these vouchers are never going to be paid a credit voucher can be posted in Task 1 Voucher entry & editing or if the inventory was sent back to the vendor a shipper & credit voucher can be entered in the Purchase Order module.
NOTE: If the 3rd party vendor pay was posted in the previous month, if a discount was taken at that time, a manual journal entry would need to be made for the amount of the discount taken. If a discount wasn’t taken, no manual journal entry would need to be made, since the total A/P balance is still the same. If A/P is separated between A/P vendors and credit card vendors in G/L, a manual journal entry may be needed. Verify this with your controller or outside accountant.