AP: Entering Beginning Balances for Vendors

Use this procedure when you first set up WinTeam to enter beginning balances and open invoices for vendors. Entering all outstanding invoices (rather than a lump sum) enables you to apply payments made to specific vendors and invoices.

Preparation:

  1. Ensure all vendors have been entered into the system before completing this procedure.
  2. Ensure Accounts Payable Defaults have been setup.

Entering Vendor Balances:

  1. From the Accounts Payable Menu, select Invoice Entry.
  2. Type the Vendor Number in the Number field, or use the Lookup to locate the Vendor Number.
  3. Type the Invoice # in the Invoice # field. You may want to use BegBalance as the Invoice Number or use the date you went live with WinTeam. This way you will know that the invoice was brought forward as an outstanding invoice from another system.
    It is a good idea to enter each invoice separately.
  4. Enter the outstanding amount in the Invoice Amount field. This is the amount owed to the Vendor.

    5. Example:  If the original invoice amount was $1000.00, and you have already paid $650.00, the amount to bring forward is the balance you owe. In this case $350.00.

  5. Select Check as the Payment Method.
  6. Under Payment Plan, select Standard.
  7. Enter the Invoice Date. Normally this is the date you want to use for aging this invoice.
  8. The Posting Date does not matter because this invoice will have no affect on the GL.
  9. Enter the date the invoice is due in the Due Date field. The Due Date defaults based on the Terms selected for this Vendor in the Vendor Master File. Compare this with your statement in order to allow sufficient mailing time.
  10. Discounts field should be left blank.
  11. Select the Include 1099 check box if this vendor requires a 1099 at the end of the year. If the vendor is a corporation and does not require a 1099 , leave the check box cleared. Normally, any non-corporate vendor who is paid more than $600.00 a year is issued a 1099 form at the end of the year.
  12. The Permanent Hold field and Pay Use Tax field should not be selected.
  13. Enter information that you want to print on the check in the Memo Line 1 and Memo Line 2 fields.
  14. In the General Ledger Distribution grid, the General Ledger Account Number should be the account number that you entered in the A/P defaults as the GL Accounts Payable Number (AP Trade Account). In this example, it would be GL # 2000. Since we have already included this amount in the AP Trade Account beginning balance, this invoice has already been expensed and we do not want to expense this invoice again. We use the GL Accounts Payable Number (AP Trade Account) for the expense GL number because the system debits and credits the same account when these invoices are updated to GL.
  15. The Job Number should be your Balance Sheet Job Number.
  16. The amount field should be the balance of this invoice. This transaction debits the GL Accounts Payable Number (AP Trade Account) and credits the same account. When this transaction posts to the General Ledger it has no affect on the General Ledger balance, but the AP invoices are now in the system waiting to be paid.
  17. Click Close to save the record.
  18. To verify the beginning balance you just created, run the Vendor Aging Analysis Report.