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Program Description:
This program posts the A/P transactions to the General Ledger.
WARNING: This program requires exclusive use of the A/P files. This means that no one can access
the booking or A/P system while this program is running.
Program Explanation:
Enter the date of the last transaction to process. The posting process will run automatically. This date
should be the last date of the last period of your current finacial statements.
There are 6 classes of G/L postings:
1. Departure date estimate updates:
On the departure date of the tour, the estimated costs must be posted to the expense account(s)
to match the income which is being posted from the A/R system.
The cost of tours account in the Tour header is debited, and the Uninvoiced Tour Cost
account in the Tour header is credited.
5-Dec-89 Cost of Tours Sold 100.00
Uninvoiced Tour Cost 100.00
The amount isn't adjusted again until the invoice date.
2. Invoice update:
On the day that the invoice is received, the tour cost is adjusted to the actual amount (There
may have been changes to the cost due to service changes, incorrect estimates, etc.)
The Uninvoiced Tour Cost account is debited for the exact amount that it was credited for at the departure date. The Accounts Payable Account (From the Tour Header) is credited for the exact amount of the invoice, and a Over/Under estimate account (From Tour Header) is debited/credited for the difference.
8-Jan-90 Uninvoiced Tour Cost 100.00
Over/Under estimate 1.00
Accounts Payable 101.00
If the invoice was entered without a departure estimate, then the cost of tours account is
debited on the entry date. This type of transaction should be rare.
8-Jan-90 Cost of Tours 100.00
Accounts Payable 100.00
If an invoice is entered without a tour, Then the account entered in invoice entry is debited.
8-Jan-90 Postage/UPS Cost 200.00
Non-tour A/P 200.00
The amount isn't adjusted again until the payment date.
3. Credit Memo update
Usually Credit Memos are entered as invoices, but the cost is not associated with a tour. For
example, if a payment were to get lost in transit, the charge against your account would have
to be re-entered. This charge should not be entered as an invoice. After the check was
cancelled and the checking account adjusted, the following entry would have to be made:
12-Dec-89 Printing Expense 200.00
Accounts Payable 200.00
The credit memo isn't adjusted again until the payment date.
4. Prepayment Paid Update
When a prepayment is paid, the amount has to be set-up in a prepayment account (Upon
prepayment distribution, the amount is reversed).
2-Feb-89 Prepayment 150.00
Cash 150.00
No more adjustments are required for a prepayment.
5. Debit Memo update
A debit memo is very similar to a Prepayment. A debit memo is usually a payment by a means
other than cash. The amount of the Debit memo can be distributed to invoices just like
prepayments.
For example, some co-op advertising is done for a vendor and debited to their account:
6-Mar-89 Prepayment 170.00
Advertising expense 170.00
No more adjustments are required for a Debit memo.
6. Payment Applied Update --> 6 or 0 (if bal = 0)
Broker Payment Applied Update
Prepayment Distributed Update
Debit memo Distributed Update
As the invoices are paid off, the Accounts Payable account must be adjusted to reflect the new
balances.
The Accounts Payable account should be debited on the payment date for the exact amount
of the credit on the invoice date. The cash account should be debited for the amount of
payment, and any difference should be debited/credited to a Gain/Loss on currency account.
Payment Applied/Broker Payment:
22-Jan-89 Accounts Payable 100.00
Gain/Loss on curr. 10.00
Cash 110.00
A partial payment would be handled the same way:
22-Jan-89 Accounts Payable 22.50
Gain/Loss on curr. 2.25
Cash 24.75
Prepayment Distributed:
22-Jan-89 Accounts Payable 100.00
Gain/Loss on curr. 10.00
Preaid Tour Cost 110.00
Debit memo Distributed:
22-Jan-89 Accounts Payable 100.00
Gain/Loss on curr 10.00
Prepayment 110.00
After the invoice (or credit memo) is fully paid, no more adjustments are required.
Note: No G/L entries are required for broker payments, as long as the cash account numbers are transfered
to the invoices at the time of payment.
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Program Operation:
Enter the date of the last transaction to process. The posting process will run automatically. This date should be the last transaction date to post.