Overview
Accounting Seed supports two methods of posting Billings and Payables: Header Level Posting (HLP) and Line Level Posting (LLP). There are significant advantages to adopting HLP, which includes the following:
- The reduction of data usage
- The reduction of clutter in the AP Control GL Account
- The ability to include Payable Line Level tax calculations by using a Tax Group. For more information, refer to the Set up AS Native Tax article.
With Payable LLP, once a Payable is posted, the Payable Line record creates a pair of transactions for each Payable Line:
- The debit entry is made to the GL Account that is set in the Expense GL Account field on the Payable Line
- The credit entry is made to the AP Control GL Account that is set in Default GL Accounts.
Each Payable Line will repeatedly post to the AP Control GL Account. This can result in an inefficient number of credit transactions created to the AP Control GL Account. Additionally, there will be numerous credit transactions from each line cluttering your AP Control GL Account. For example, with Payable LLP, if you have a Payable with 500 lines, this will result in 1000 transactions to the General Ledger, of which 500 will post to Accounts Payable. Under Payable HLP, you would have 501 transactions to the General Ledger, of which only one transaction will be posted to Accounts Payable.
Under Payable HLP, the credit to the AP Control GL Account does not inherit any of the Payable Line dimension characteristics, i.e., the GL Variable 1-4, Product, Project, Project Task, or the Quantity. As a result, the GL Variable 1-4 filters will not display on the following Accounting Seed Financial Reporter statements:
- Balance Sheet
- Trial Balance
- Cash Flow Statement
The filters will not display because these reports include the AP Control GL Account and you cannot filter by GL Variable 1-4 since none of the credits to this GL Account have this information.
Note: To create GL Variable 1-4 filtered reports on Financial Statements, use the Custom Reporter, but note that this same limitation applies.
For industries such as, “Not For Profits” that need to segment Balance Sheet accounts by dimension (i.e., GL Variable 1-4), Payable LLP would be a more suitable option.
With Payable HLP, the number of posted transactions for Payables can be reduced in the following two ways:
- A debit transaction is created for each unique combination of the following dimensions:
-- Expense GL Account
-- GL Variable 1-4
-- Product
-- Project
-- Project Task. - Only one credit transaction to the AP Control GL Account will be posted for all of the Payable Lines that are associated with a Payable record.
Note: Payable HLP is supported for Multi-Currency users.
Note: For users of Accounting Seed’s Orders and Inventory module, Payable HLP is available to be used with the Weighted-Average Cost system. It is not available if you are using the Standard Cost version of the Orders and Inventory module. If you wish to migrate, please contact Customer Support.
Do you want to view one of the following:
- Sample Payable Record without a Tax Amount
- Sample Payable Record - Accounting Transactions without a Tax Amount
- Sample Tax Group and Tax Rate Information
- Sample Payable Record with a Tax Amount
- Sample Payable Record - Accounting Transactions with a Tax Amount
Sample Payable Record without a Tax Amount
| Payable Record: 0005 | ||||||||||
| Payable Line | Product | Expense GL Account | Qty | Amt | Tax Group | Tax Amount | Total | GLAV 1-4 | Project | Project Task |
| APL-1000 | Control Panel | 5000-Product Expense | 1.00 | $100.00 | --- | --- | $100.00 | --- | --- | --- |
| APL-1001 | Control Panel | 5000-Product Expense | 1.00 | $200.00 | --- | --- | $200.00 | --- | --- | --- |
| APL-1002 | Control Panel | 5000-Product Expense | 3.00 | $450.00 | --- | --- | $450.00 | Dept A | --- | --- |
| APL-1003 | Control Panel | 5000-Product Expense | 4.00 | $600.00 | --- | --- | $600.00 | Dept A | --- | --- |
Sample Payable Record - Accounting Transaction without a Tax Amount
Based upon the Sample Payable record above, with Payable HLP, only three transactions will be posted to the GL. For the debit side of the entry, the Expense GL Account is the same for all four of the Payable Lines. However, there are some differences in the GLAV 1-4 dimension. On the first two Payable Lines, no department is listed. But, on the last two Payable Lines, Department A is listed. Therefore, two debit transactions will be posted based upon the two unique dimension combinations.
Expense GL Account = 5000-Product Expense
GLAV 1-4 = No department specified, with a total amount of $300.00
Expense GL Account = 5000-Product Expense
GLAV 1-4 = Department A, with a total amount of $1,050.00
| Accounting Transactions | |||||||||
| TRN | Product | Expense GL Account | Qty | Amount | GLAV 1-4 | Project | Project Task | Account | Payable |
| TRN - 01 | Control Panel | 5000-Product Expense | 2.00 | 300.00 | --- | --- | --- | Alpha Comm | 0005 |
| TRN - 02 | Control Panel | 5000-Product Expense | 7.00 | 1,050.00 | Dept A | --- | --- | Alpha Comm | 0005 |
There will be one transaction to credit the AP Control GL Account, which is the total of $1,350.00.
$100.00 + $200.00 + $450.00 + $600.00 = $1,350.00 (total amount)
| Accounting Transactions | |||||||||
| TRN | Product | GL Account | Qty | Amount | GLAV 1-4 | Project | Project Task | Account | Payable |
| TRN - 03 | --- | 2000-AP Control GL Account | (1,350.00) | --- | --- | --- | Alpha Comm | 0005 | |
Note: Click here to view the above image in full screen.
Sample Tax Group and Tax Rate Information
For information on how to set up a Tax Group and add a Tax Rate(s), refer to the Create a Tax Group article.
| Tax Rate Name | Tax Type | Tax Rate GL Accounts | Tax Group A | Tax Group B | |
| Purchase Tax Expense GL Account |
Sales Tax Liability GL Account | ||||
| Tax Rate 1 | Purchase | 6000-DC Tax Expense | 5.000% | ||
| Tax Rate 2 | Purchase | 6000-DC Tax Expense | 2.000% | ||
| Tax Rate 3 | Purchase | 6000-MD Tax Expense | 3.000% | ||
| Tax Rate 4 | Purchase | 6000-MD Tax Expense | 1.000% | ||
| Tax Rate 5 | Purchase | 6000-MD Tax Expense | 2.000% | ||
| Tax Rate 6 | Sales & Purchases | 6000-MD Tax Expense | 2501-MD Tax Liability | 3.000% | |
| Tax Rate 7 | Sales & Purchases | 6000-MD Tax Expense | 2501-MD Tax Liability | 1.000% | |
| Combined Tax Rate | 13.000% | 4.000% | |||
The Combined Tax Rate for Tax Group A includes all of the rate percentages that are in Tax Rates 1-5 (5.000% + 2.000% + 3.000% + 1.000% + 2.000% = 13.000%). The Combined Tax Rate for Tax Group B consists of the two percentage rates that are in Tax Rate 6 and 7 (3.000% + 1.000% = 4.000%).
Sample Payable Record with a Tax Amount
| Payable Record: 0005 | ||||||||||
| Payable Line | Product | Expense GL Account | Qty | Amount | Tax Group | Tax Amount | Total | GLAV 1-4 | Project | Project Task |
| APL-1000 | Control Panel | 5000-Product Expense | 1.00 | $100.00 | Grp A | $13.00 | $113.00 | --- | --- | --- |
| APL-1001 | Control Panel | 5000-Product Expense | 1.00 | $200.00 | Grp B | $8.00 | $208.00 | --- | --- | --- |
| APL-1002 | Control Panel | 5000-Product Expense | 3.00 | $450.00 | Grp B | $18.00 | $468.00 | Dept A | --- | --- |
| APL-1003 | Control Panel | 5000-Product Expense | 4.00 | $600.00 | Grp B | $24.00 | $624.00 | Dept A | --- | --- |
Sample Payable Record - Accounting Transactions with Tax Amount
Based upon the Sample Payable record above, with Payable HLP, for the debit side of the entry, the Expense GL Account is the same for all four of the Payable Lines. However, there are some differences in the GLAV 1-4 dimension. On the first two Payable Lines, no department is listed. But, on the last two Payable Lines, Department A is listed. Therefore, two debit transactions will be posted to the Expense GL Account based upon the two unique dimension combinations.
Expense GL Account = 5000-Product Expense
GLAV 1-4 = No department specified, with a total amount of $300.00
Expense GL Account = 5000-Product Expense
GLAV 1-4 = Department A, with a total amount of $1,050.00
| Accounting Transactions | |||||||||
| TRN | Product | Expense GL Account | Qty | Amount | GLAV 1-4 | Project | Project Task | Account | Payable |
| TRN - 01 | Control Panel | 5000-Product Expense | 2.00 | 300.00 | --- | --- | --- | Alpha Comm | 0005 |
| TRN - 02 | Control Panel | 5000-Product Expense | 7.00 | 1,050.00 | Dept A | --- | --- | Alpha Comm | 0005 |
For the tax amount, Payable Line 1000 is in Tax Group A, which includes two different Purchase Expense GL Accounts. Refer to the Sample Tax Group and Tax Information table. Payable Line 1001 is in Tax Group B, which has the same MD Purchase Tax Expense GL Account as Tax Rates 3-5 under Tax Group A. Therefore, the Tax Group B portion of these two Payable Lines (APL 1000 and APL 1001) can be combined into one transaction. The debit transactions for purchase tax will require three separate transactions.
Purchase Tax Expense = 6000-DC Tax Expense
GLAV 1-4 = None
Tax Group A - Tax Rate 1, 5.00% + Tax Rate 2, 2.00% = 7.00%
$100.00 X 7.00% = $7.00
Purchase Tax Expense = 6001-MD Tax Expense
GLAV 1-4 = None
- Tax Group A - Tax Rate 3, 3.00% + Tax Rate 4, 1.00% + Tax Rate 5, 2.00% = 6.00%
$100.00 X 6.00% = $6.00 - Tax Group B - Tax Rate 6, 3.00% + Tax Rate 7, 1.00% = 4.00%
$200.00 X 4.00% = $8.00
Purchase Tax Expense = 6001-MD Tax Expense
GLAV 1-4 = Department A
Tax Group B - Tax Rate 6, 3.00% + Tax Rate 7, 1.00% = 4.00%
$1050.00 X 4.00% = $42.00
| Accounting Transactions | |||||||||
| TRN | Product | Expense GL Account | Qty | Amount | GLAV 1-4 | Project | Project Task | Account | Payable |
| TRN - 03 | 6000-DC Tax Expense | 7.00 | --- | --- | --- | Alpha Comm | 0005 | ||
| TRN - 04 | 6001-MD Tax Expense | 14.00 | --- | --- | --- | Alpha Comm | 0005 | ||
| TRN - 05 | 6001-MD Tax Expense |
42.00 |
Dept A | --- | --- | Alpha Comm | 0005 | ||
There will be one transaction to the credit AP Control GL Account, which is the total of $1,413.00.
$100.00 + $200.00 + $450.00 + $600.00 = $1,350.00 (subtotal amount) + $63.00 (tax amount) = $1,413.00
| Accounting Transactions | |||||||||
| TRN | Product | GL Account | Qty | Amount | GLAV 1-4 | Project | Project Task | Account | Payable |
| TRN - 06 | --- | 2000-AP Control GL Account | (1,413.00) | --- | --- | --- | Alpha Comm | 0005 | |
When Payable Header Level Posting is enabled, keep the following points in mind:
- The debit transaction(s) consolidates any Payable Line that has the same dimensions, i.e., the
-- Expense GL Account
-- Product
-- Project
-- Project Task
-- GL Variable 1-4. - The credit AP Control GL Account will NOT include a sum of the Payable Line Quantity. The debit to the Payable Lines will include the sum of the Payable Line Quantity.
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