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.
Note: For information about Header Level Posting (HLP), refer to the Payable Header Level Posting article.
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. The default status is “Approved,” which indicates the Payable is finalized and can be posted.
Best Practice: It is recommended to have the daily Scheduled Post job created in Accounting Settings, which provides the ability for all Payables that have a posting status of “Approved” to automatically post based upon the Next Run Date and Preferred Start Time.
- 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.
- Unit Cost - This is the cost per unit.
Important: The Total field is recommended to be read-only on the user interface. The amount that is entered in the Unit Cost field multiplied by the Quantity will determine the Total (Quantity x Unit Cost = Total). If the Quantity field is blank, upon saving, a Quantity of one will auto-populate for the line.
The Total field is controlled by Field Level Security (FLS). Therefore depending upon the permissions granted through a user’s Profile and/or Permission Set(s), the Total field might be editable. However, editing this field directly in the UI is NOT recommended.
- 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: If calculating tax using AS Native Tax HLP, then populate the Tax Group field on the Payable Line. For information about Tax Groups refer to the Set up Accounting Seed (AS) Native Tax article.
- Save & Refresh - Save your changes and refresh the screen to display the Mass Add/Edit Rows with your changes.
- Save & Complete - Save your changes and return to the Payable screen.
- Save & Post - Save your changes and post transactions to the General Ledger.
- Save & New - Save your changes and display the New Payable dialog box to create a new Payable.
With Header Level Posting (HLP) enabled, if tax was calculated, the Tax Amount displays as part of the Payable Line.
With Line Level Posting (LLP) enabled, if tax was calculated, the Tax Amount displays as a separate Payable Line.
Note: If utilizing an approval process, the Posting Status must be “Approved” in order to post.
Note: If the daily Scheduled Post job has been created in Accounting Settings, all Payables that have a posting status of “Approved” will automatically post based upon the Next Run Date and Preferred Start Time.
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, modify the Issue Date, if necessary.
Note: If the Payable was made to a Contact or Employee, in addition to the Issue Date, the Due Date displays. The Due Date is calculated using the same length of the payment term as the original Payable. You can modify the Due Date, if necessary.
- 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.
- Header Level Posting (HLP) is available with the Iris release.
- Amount field has been removed from the Payable Line.
- The Quantity X Unit Cost = Total.
- The Total field is recommended to be read-only on the user interface.
- Tax Groups and Tax Rates can be created to support tax calculation with HLP enabled.
- When cloning a Payable, if the Payable was made to a Contact or Employee the Due Date displays.
- A Save & New button has been added to the Mass Add/Edit Rows page. This will save any entered information on the Mass Add/Edit Rows page and then open a New dialog box for creating a new header record. This can result in fewer clicks/keystrokes.
- The Scheduled Post job allows you to schedule an unattended background program to execute the automatic postings of records after business hours, overnight, or any desired time.