A Payable represents a vendor invoice for goods or services consumed by the business and usually requires payment in a specified timeframe (payment terms). It is used to record the business’ liabilities (debts) to its vendors, and the expense that those items incur. A negative Payable is used as a vendor credit memo to represent a vendor discount or refund.
Create a Payable
- Navigate to Accounting Home and under Cash Out click Payables (Vendor Invoices).
- On the next page, click New Payable.
- Enter one of the following required fields:
Note: When using Person Accounts, either the Vendor or Contact field can be populated. However, if you would like the Vendor information to flow through to the Payee field, only the Contact field should be populated.
- Vendor (Account)
- Employee (Salesforce User)
- Payee Reference - This is typically the vendor invoice number. The system will not allow the creation of a Payable to the same vendor with a duplicate payee reference.
- Issue Date - This is the vendor’s issue date, and also the date that drives the posting of the expense to the related accounting period.
- Proprietary Payable Number (not required but very useful) - When populated, it will print under Our Reference in the remittance section of the check. If not populated, Our Reference will show the Salesforce auto-generated number.
- Posting Status - Determines the status of the payable.
- Payment terms - Upon creation of a payable, if the Payable Days Due field is populating on the related payee account, then the Due Date will be the issue date plus that number. This automation only happens with a Payable is created and not when it is edited.
- Discount Amount - If the related Payee has early payment discount terms setup on their account, then this will flow through to the discount amount field. If this payable is paid within these terms, then the discount will be applied and the difference will flow through to the discount GL account setup in Accounting Settings.
- Due Date - Upon creation the Due Date field on the Payable will populate based upon the formula for the Due Date, which is calculated as: Issue Date (from Payable) + Payable Days Due (from Account) = Due Date.
- Accounting Period - Defaults to the period related to the issue date.
- Expense GL Account - If the payee has a Default Expense GL account setup on their account profile, then this will populate here, but it can be overridden. This field is named Expense GL Account, but note that any GL account can be populated here and a debit entry will be made to it upon posting.
Note: When you are ready to post, the posting status must first be set to Approved.
Clone a Payable
The Payable Clone w/Lines feature provides an efficient way to duplicate a previously entered Payable.
- Navigate to Accounting Home and under Cash Out, click Payables (Vendor Invoices).
- On the next page, click the Payable Name you wish to clone.
- Click the Clone w/ Lines button.
- On the Clone Payable page, enter the date for the new Payable. This will populate on the Payable Header and lines.
- Click Clone Payable.
- On the Payable Edit page, update payable information as needed and click Save.
- For every Payable posted, the GL Account credited will always be the system AP Control GL Account entered in the accounting settings. Once transactions are posted to this AP Control GL Account, it cannot be changed in Accounting Settings unless those transactions are deleted.
- Payables can be set up to use Salesforce Approvals.
- After a Payable record has been paid, the system will not allow it to be un-posted. In order to un-post, the associated cash disbursement must first be un-posted and deleted. This is a safety feature so that the Payable fields can't be edited after the record has been paid.