Overview
You can create a Payable in Accounting Seed directly from a Purchase Order or an Expense Report. Recurring Payables can be set up to record recurring expenses to a particular vendor on a monthly, quarterly, semi-annually, or annual basis.
Create a Single or Partial Payment Payable
- Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Payables.
Note: You can also access the payable directly from the Vendor account. - Select a list view (other than Recently Viewed).
- Select the Payable for which you want to create a Payment.
- Click the Pay button.
Note: If the Payable is on hold, a message displays to indicate that the Payable cannot be paid. For more information, refer to the On Hold Payables article.Note: Click here to view the above image in full screen.
- (Optional) Adjust/Enter the Discount Amount.
Note: If a Discount Amount is applicable, it will be automatically calculated and displayed in this screen based upon the information entered on the Account record. The Discount Amount field will be editable if no payments or cash applications have been made and the Payable is eligible for a discount. Additionally, the Discount Amount field will also be editable if a partial Credit Memo has been applied, but no payments have been made (the Credit Memo Application Amount is greater than zero and the Balance is greater than zero and the Already Paid Amount is equal to zero). - Adjust the Amount to Pay, as necessary and verify the Date, Bank Account, and Type.
Important: When using Payment Services with Edenred Pay, Payment Services must be selected as the Type.
Note: If the check type is selected, the starting check number will automatically populate based upon the highest check number recorded against the Bank GL Account.
Note: If the Payee is a 1099 Vendor, the 1099 information defaults from the Account or Contact record. From the Partial Pay intermediate screen, the Form 1099 Type and Form 1099 Box can be updated, if necessary. - (Optional) If you would like to associate this with an already created Cash Disbursement batch, then select that batch.
- Complete one of the following methods to process payment:
- Click the Pay button to create the Cash Disbursement, but not post to the ledger. This will need to be posted at a later time.
- Click the Pay & Post button to create the Cash Disbursement and post to the ledger. This is the recommended process.
Note: If the default Posting Status on Cash Disbursement records is not “Approved,” the Pay & Post button displays disabled, along with a warning message to indicate the default status must be “Approved” in order to use this button.
- From the Cash Disbursement batch screen, click the Print Checks button if necessary.
When the Cash Disbursement is created, clicking the Applied To tab will display the APD (AP Disbursement) record. When the Cash Disbursement Source = Payable, the Applied Date on the APD record will be the same as the Cash Disbursement Date. This is true whether the Cash Disbursement Date is in a prior or future Accounting Period.
Note: If the Cash Disbursement Source = Manual, the Applied Date on the APD will be the date that was manually entered when the Cash Disbursement was created.
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Summer '24 Release
With this release, if a Payable is on hold, a message displays to indicate that the Payable cannot be paid. For more information, refer to the On Hold Payables article.
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Spring '24 Release
- When using Payment Services with Edenred Pay, Payment Services must be the selected Type.
- If the default Posting Status on Cash Disbursement records is not “Approved,” the Pay & Post button displays disabled, along with a warning message to indicate the default status must be “Approved” in order to use this button.
Comments
12 comments
The heading of this article is a little misleading. I was looking for best practice suggestions for cutting checks not based on AP. The only instructions regarding cash disbursements in the knowledge base assume they are being used to pay an AP. If creating checks that are not linked to an AP record is considered against best practice, it would be helpful to have that mentioned somewhere more specifically.
The main question I was trying to find an answer to is, "Why does every Cash Disbursement *have* to belong to a batch?"
I believe the main purpose of the batch is to manage posting/unposting and printing checks in a group, but requiring a batch even for 1-off checks can feel unwieldy for the users.
Hi Rebecca,
Requiring the batch for the cash disbursement is just an architectural decision that was made to take advantage of some of the controls offered by Salesforce for objects with Master-Detail relationships. Accounting Seed does have plans for a quick Cash disbursement button off the Account record which would setup the batch and cash disbursement record all in one click.
Thanks for the response, Tony. That will be a useful button, once it's available :-)
Prior to the implementation of that feature - what do you consider best practice for the creation of one-off Cash Disbursements?
Would you recommend creating a "default" batch on a daily/weekly/monthly basis (depending on the user's volume) so there is a batch handy to assign to the one-off payments? Or is it better to create a separate batch for each check individually?
Also - is it best to keep the disbursements in a batch to a single bank account? Or does it not matter if the Cash Disbursements within a Batch credit different bank accounts?
Rebecca,
I would just create one batch called "Manual Disbursements" and assign them here. Maybe you would want to segregate this by year like "Manual Disbursements 2016". The batch serves nothing more then the ability to unpost/post and delete a group of individual cash disbursements.
Being able to cut checks without AP would definitely be a great add. Assigning it to multiple GL accounts would also help (for example, recording a monthly loan auto payment as one single disbursement assigned to Interest and Liability GL accounts).
This seems like it should be obvious, but I'm coming up blank. How do you record a payment to a credit card account and have it show up properly in the reconciliation to both the cash account and the credit card account. Is the only option a journal entry?
An AP doesn't work, because you can't clear AP in the reconciliation - although from a workflow perspective, this would be ideal so that you could put in the credit card bill and be reminded to pay it .
A Cash Disbursement directly from the cash account paid to the credit card doesn't appear to work - it appears that you can only clear the credit side of a cash disbursement. A negative cash receipt would show up on the credit card reconciliation, but not the cash, I'm guessing.
I know a journal entry would work, but from a workflow perspective, it is the least desirable option.
Hi Rebecca,
You do need to do a journal entry to record payment of a credit card account. We are adding the ability to create debit and credit journals via bank direct connect as well.
Thanks,
Tony
Do Credit Card payments from A/P still require Journal Entry in order to Recon? If so what is best practice? Expense payment to a 'holding' acct, recon thru cash, but then JE from holding to credit card GL for credit card recon?
Thanks!
Christa
Christa,
In the Buttercup release we are adding a reverse match from cash disbursements to accounts payable. This means that you can apply a payment made on a credit card to an account payable transaction. This will allow you to use the standard bank reconciliation out of the box.
Thanks,
Tony
Another question on Cash Disbursements - there is no button on the Cash Disbursement page that lets you batch post or batch unpost selected cash disbursement records. It seems the only way to batch post or batch unpost is through the cash disbursement batch, but in the batch, you cannot select individual records - it's all or nothing.
Is there any way to enable buttons of the cash disbursement screen that let you selectively post and unpost records regardless of batch>?
I know the Cash Disbursement post/unpost class is a global class (https://accountingseed.zendesk.com/hc/en-us/articles/217371018-Cash-Out-Integrations), but I'm not advanced enough at development to know how to access it and add it to a button ...
Here is the feature request I have made for the cash disbursement list view post/unpost buttons, just in case anyone would like to go vote on it; https://accountingseed.zendesk.com/hc/en-us/community/posts/115009084188-Buttons-for-Post-Unpost-on-Cash-Disbursement-List-View
The instructions here read, "Click the Pay & Post button to create the cash disbursement and post to the ledger". I cannot see a button called "Pay & Post". Are these 2 separate buttons that need to be clicked in 2 steps? If so, I'm not sure how its different to the bullet point above it. Thanks
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