VOUCHER PAYMENT PREPARATION – Paid with 3RD Party Vendor

i.e. Payments made to vendors using a credit card.

 

The 3rd Party Vendor pay is moving the amount owed to one vendor to a different vendor.  

For example: You owe ABC Paper $5,000.00.  ABC Paper is contacted & told to process a credit card payment for $5,000.00.  Now you owe the credit card company instead of ABC Paper.  

Another example: An employee picks up paper from ABC Paper & pays for it.  The original PO & voucher is to ABC Paper, but you actually owe the employee.  The employee has a vendor # for expenses.  The 3rd party vendor pay moves the amount owed from ABC Paper to the employee vendor #.

 

Parameter setting:

Accounts Payable (Module 3)

CLEARING’ACCT=  Enter in the G/L account number for Purchases Discounts.   This G/L account should be the same one found in the G/L module, System Management (Task  32); Setup Automatic Interface (Sub-task 5); Change Interface Parameters (Selection 2); A/P - #2 Discounts Taken.  For example, if the G/L interface parameter is: 425-00, then the A/P 3rd Party Pay Clearing account should be: 4250001

Also look for:

PRINT’3RD’PARTY’ADVICE= Options are Y/N/A Print remittance advice for vouchers paid with a 3rd party vendor in Task 25 Voucher payment preparation.

Y=Print advice if vendor record (field 27 Sep. remit) is set to print the remittance advice.

N=Never print a remittance advice for any vendor for 3rd party vendor pay.

A=Always print a remittance advice for 3rd party vendor pay regardless of vendor.

 

PRINT’EFT’ADVICE= Options are Y/N/A Print remittance advice for vouchers pad with EFT in Task 25 Voucher payment preparation.

Y=Print advice if vendor record (field 27 Sep. remit) is set to print the remittance advice.

N=Never print a remittance advice for any vendor for 3rd party vendor pay.

A=Always print a remittance advice for 3rd party vendor pay regardless of vendor.

 

Select the Vouchers:

Select the vouchers being paid with a credit card through the normal voucher payment selection process.   Go to:

________________________________________________________________________

You will be asked to choose one of the following payment methods in subtask 4. “Pay selected vouchers”.

1.         Company check

2.          EFT

3.        3rd party vendor

All selected vouchers will be paid with the same payment method.  You need to select separate batches for each payment method.

________________________________________________________________________

 

Vouchers are selected as always…see the document titled:  Task 25 - Voucher Payment Preparation for complete instructions on how to select vouchers for payment.

 

Before Processing the 3rd Party Vendor Pay

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.  An A/P Aged Trial Balance with detail (A/P Task 9, Sub-task 3 APTBAL) may be printed for the original vendor.  A credit card authorization form should be faxed or emailed to the vendor showing which vouchers are going to be paid.  This credit card authorization form can be stapled, along with a copy of the check register, to the vendor’s invoices or it may be placed in the vendors file.  This credit card authorization form is something you create outside of MV Software. It is important to verify this information with the vendor before the 3rd party vendor pay is processed in Profits Plus because backing out the 3rd party vendor pay is not a simple process.  See Backout 3rd Partry Vendor Pay

 

 Print Edit List:

Check the edit list to be sure only vouchers being paid by the credit card vendor are listed.  Each ‘method’ of payment, whether by a company check, EFT or a 3rd party vendor, must be selected and ‘paid’ separately.  

 

Pay Selected Vouchers:

Please enter the payment method for the selected vouchers.  1, 2 or 3.  

_______________________________________________________________________

Payment Methods:

1.       Company check

2.      EFT

3.     3rd party vendor

 

When #3 - 3rd Party Vendor is chosen, you will be prompted to enter the 3rd party (credit card) vendor’s number.   Continue with prompts of beginning check number, date, etc

Note: All selected vouchers will be paid with the same payment method.  You need to select separate batches for each payment method. 

Explanation of what occurs:

For an example, there are three vouchers, from two different vendors, being paid with an AMERICAN EXPRESS credit card.

Vendor 150                 XEROX

Voucher 150190         200.00

Vendor 1200               OFFICE DEPOT

Voucher 1118              5,000.00

Voucher 1168              1,000.00

     Vendor 1200 total:             6,000.00

Total for 3 vouchers:             6,200.00

The vouchers will be paid using vendor 627 – American Express (AMEX).

A new credit voucher is created for every vendor selected for payment by a 3rd party vendor.  The credit voucher is for the total amount of the vouchers selected for the vendor i.e. OCE has 2 vouchers totaling $6,000, therefore one credit voucher is created for OCE for $6,000.    In the reference note field (on the Voucher History) you will see the debit voucher number for the third party vendor.  This credit voucher is ‘paid’ with check #99997.  The G/L account number for the credit voucher comes from the A/P parameter “CLEARING’ACCT=xxxxxxx”.

A new debit voucher is also created for the 3rd party vendor for the total of the selected vouchers for each vendor.  Therefore if you have selected two different vendors, two separate debit vouchers will be created for the 3rd party vendor i.e. AMEX has new two vouchers, one for $6,000  and another for $200.   In the reference note field you will see the credit voucher number relating to this transaction.  The new debit voucher is unpaid.  The G/L account # for this debit voucher comes from the A/P parameter “CLEARING’ACCT=xxxxxxx”.

The Edit List will look like this:  (found in 3/25/3)

VENDOR  VOUCHER  ----INVOICE------     DUE        INVOICE         DISCOUNT       NET      DIV

   NO                  NO            NO       DATE       DATE      AMOUNT      TAKEN        PAYABLE     #     VENDOR NAME

 *********************************************************************************************

 00150                                                                                                                                                                                             XEROX

                     150190         156332   01/21/xx   02/21/xx    200.00         0.00                 200.00           01

                                                 VENDOR TOTALS:         200.00         0.00                 200.00           TOTAL:         200.00

 --------------------------------------------------------------------------------------------------------------------------------

 01200                                                                                                                                                                              OFFICE DEPOT

                        001118    123211   02/11/xx    02/21/xx      5000.00        0.00              1000.00           01

                        001168         356    02/04/xx  02/14/0xx      1000.00        0.00              5000.00           01

                                                        VENDOR TOTALS:  6000.00        0.00              6000.00             TOTAL:           6000.00

 --------------------------------------------------------------------------------------------------------------------------------

                                                         GRAND TOTALS:    6,200.00        0.00          6,200.00

 

The Voucher Posting will print BEFORE the Check Register, the Voucher Posting  looks like this:

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               02/18/xx     200.00-       0.00      0.00                   0.00         0.00               03/18/xx     999997     01            121-00-01  

XEROX                                     see vch. 001164       1                                                                                                                                       200.00-

001164 00627 XEROX            02/18/xx     200.00        0.00      0.00                   0.00         0.00               03/01/xx                       01          121-00-01

AMEX                                      see vch. 001165       1                                                                                                                                       200.00

 

001167 01200 AMEX               02/18/xx    6000.00-     0.00      0.00                  0.00         0.00                03/18/xx       999997      01         121-00-01

OFFICE DEPOT                       see vch. 001166       1                                                                                                                                      6000.00-

001166 00627 OFFICE DEPOT 02/18/xx   6000.00        0.00      0.00               0.00          0.00                03/18/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

 

When finished, the GRAND INVOICE TOTAL on the last page of the posting journal will be zero.  (Unless a discount is taken. If a discount is taken, the GRAND INVOICE TOTAL will be a negative amount….the amount of the discount.) If a spreadsheet is used to balance A/P Daily, the GRAND INVOICE TOTAL amount should go into the voucher column of the spreadsheet.

 

 The Check Register will look like this:

---- PAYMENT ---- VENDOR -------- -------VOUCHER   ---------INVOICE --------          DISCOUNT  DIV   PAYMENT   

#         DATE         #          NAME                       #                        DATE       AMOUNT     AMOUNT     #      AMOUNT

999997   02/18/xx   00150  XEROX              001165 AMEX         02/18/xx       -200.00             0.00       01

                02/18/xx  01200  OFFICE DEPOT 001167 AMEX         02/18/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

 -------------------------------------------------------------------------------------------------------------------------------------------------------------------

 999997   02/18/xx    00150  XEROX              150190 156332           02/28/xx              200.00    0.00     01

                02/18/xx    01200  OFFICE DEPOT 001118 1255               02/11/xx          5,000.00     0.00      01

                02/18/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

------------------------------------------------------------------------------------------------------------------------------------------------------------------

        PREPAID AND COMPUTER PAYMENTS  0002   TOTAL ALL PAYMENTS:            0.00      0.00                      0.00

 

 

 Payment of vouchers OK? (YES/NO):

 Answer YES, and the paying of the vouchers is complete.

In the Voucher  (Task 19):

Ø     The original voucher, being ‘paid’ by the 3rd party vendor, will be ‘paid’ with check #999997.

Ø     The new credit voucher (to ‘pay’ the original voucher) will be ‘paid’ with check #999997 and will reference the new voucher (to the credit card vendor) along with the credit card vendor’s name.

Ø     The new voucher, to the credit card vendor, will reference the original voucher number and vendor name.

In A/P Open Items (Task 21):

Ø     The original voucher, being ‘paid’ by the 3rd party vendor, will have a status of 3 – paid voucher, with check #999997 and will reference the new credit voucher number.

Ø     The new credit voucher will have a status of 3 – paid voucher, with check #999997 and will reference the new voucher (to the credit card vendor) along with the credit card vendor’ name.

Ø     The new voucher, to the credit card vendor, have a status of 1 – unpaid, and will reference the credit voucher.

Answer NO, and the payment of the vouchers will be rejected. You would "reject" because:

1.     A voucher was selected that should not have been selected.  Or the 3rd party vendor was incorrect.

2.     The new vouchers are now gone and so are their voucher #’s.  So the Voucher posting and Check Register is no good.  We suggest you keep the posting and check Register write “Rejected” on it.

3.     The system gives the message that the voucher history, check file, and the A/P open items file were successfully restored.

4.     Always let the restore process finish. It should not take very long.

5.     After the restore is finished, the vouchers are still selected for payment.

 

Overall Effect:

The original vouchers (1118, 1168 & 150190) are ‘paid’ and no longer on the original vendor’s account.

In A/P Open (Task 21), the following fields are affected on the paid vouchers:

08. Status:                   3  (voucher is paid)                           

09. Check #                 999997   (means it was paid by a 3rd party vendor)

12. Voucher xref:        1174   (reference to the new voucher number for the 3rd party vendor)

In Voucher History (Task 19), the following fields are affected on the paid vouchers:

11. Check #     :999997  

19. Voucher xref:1174  (reference to the new voucher number for the 3rd party vendor)

In both Voucher History and A/P Open two new vouchers were created…a debit and a credit for the full amount each vendor’s vouchers being paid for by a 3rd party vendor.  i.e. Xerox & American Express  for $200; Office Depot and American Express for $6,000

Looking at the 3rd party vendor’s account (i.e. American Express), the newly created voucher will appear, waiting until it is selected for payment by a company check.

 

Paying the 3rd Party Vendor

In this example the 3rd party vendor American Express is now owed $6,200.00.  When it is time to pay American Express the payment process in Voucher payment preparation (Task 25) is the same as paying any other vendor with a company check or an EFT.  It is recommended to balance the American Express statement with the A/P aged trial balance with detail (APTBAL) before paying American Express.  See document Pay 3rd Party Vendor - Pay Credit Card Vendor