Sage Mas 90 / 200 - Accounts Payable - Sage MAS 90 A/P Prepayments and Wire Transfers
How to enter a wire transfer prepayment in Accounts Payable which will reflect in Account Payable, General Ledger and Bank Reconciliation.
There are two possible ways to handle this situation. The selection of the method will depend on how you make your wire transfer. If you actually go to the bank and use a check to purchase the wire, you will use option one. If you merely call and authorize a fund transfer from your account, you may select to use the second option.
Option 1:
Create a new account in General Ledger as a holding account for Prepayments. You may want to call this account something like Prepaid Expense. Alternatively, since this is a holding account and the transactions will “wash”, you may use your purchases clearing account.
To record the check issued to the bank for the wire transfer, use Manual Check Entry. Make certain that the GL Distribution Box is checked. Enter the amount of the check, and expense it to the Prepaid Holding account. You may also want to expense the portion of the check for the bank fee for wire transfer issue to your Bank Charge Expense account.
General Ledger posting for this transaction should look something like this
Next you will use Accounts Payable Invoice Data Entry to enter a credit memo on the vendor account. You will want to use XXXXX-CM as the invoice number (XXXXX = any combination of numbers). Enter the amount as a negative number, and on the lines tab select the Prepaid Holding account that was used when the manual check was created. The general ledger posting for this transaction should look like this:
Creating the Manual check will create a Debit to the Prepayment holding account and a Credit to the Cash account, as well as sending the check to Bank Reconciliation. Creating the Credit memo will create a Debit to Accounts Payable and a Credit to the Prepayment holding account.
When you receive the invoice from the Vendor, you will enter it with Invoice Data Entry. You will see that you have an Invoice with a positive balance and a Credit Memo with a negative balance. You may apply the Credit Memo to the Invoice with Manual Check Entry.
To apply the check you will use the Apply feature in Manual Check Entry. You must use APPxxx as the check number (xxx = any three digit number). This will automatically grey out the check amount as 0.00. Select the vendor, select the Lines Tab. First select the Credit Memo from the Invoice Number Lookup. Then select whichever Invoices you want to apply the Credit to. You may apply the full amount or a partial amount to either one or more invoices. The amount of the selected invoice(s) must be equal to the amount of the credit memo.
If you have created your Bank as a Vendor, and issued the manual check to your Bank Vendor, you will be able to drill down on the Manual Check and see information about the wire transfer in Vendor Inquiry.
Option 2:
Create a new account in General Ledger as a holding account for Prepayments. You may want to call this account something like Prepaid Expense. Alternatively, since this is a holding account and the transactions will “wash”, you may use your purchases clearing account.
Since you will not be writing a check for this transaction, you will need to make a General Ledger Transaction Journal Entry to record the transaction. We recommend that you create a source journal for wire transfers. You will use General Ledger Setup, Source Journal Maintenance to create the new source journal. You may want to create a code of WT for Wire Transfers. The journal type will be financial.
You will use General Ledger Main, Transaction Journal Entry to record the transaction. Use WT (as created in the previous step) as the Source Journal and select the next transaction number. You will Credit Cash and Debit the Prepayment holding account for the amount of the wire transfer. Make certain that you have selected the correct bank code on the header tab. This will cause the transaction to appear in the Bank Reconciliation.
General Ledger posting for this transaction should look something like this:
Next you will use Accounts Payable Invoice Data Entry to enter a credit memo on the vendor account. You will want to use XXXXX-CM as the invoice number (XXXXX = any combination of numbers). Enter the amount as a negative number, and on the lines tab select the Prepaid Holding account that was used when the manual check was created. The general ledger posting for this transaction should look like this:
Creating the Journal Entry will create a Debit to the Prepayment holding account and a Credit to the Cash account, as well as sending the check to Bank Reconciliation. Creating the Credit memo will create a Debit to Accounts Payable and a Credit to the Prepayment holding account.
When you receive the invoice from the Vendor, you will enter it with Invoice Data Entry. You will see that you have an Invoice with a positive balance and a Credit Memo with a negative balance. You may apply the Credit Memo to the Invoice with Manual Check Entry.
To apply the check you will use the Apply feature in Manual Check Entry. You must use APPxxx as the check number (xxx = any three digit number). This will automatically grey out the check amount as 0.00. Select the vendor, select the Lines Tab. First select the Credit Memo from the Invoice Number Lookup. Then select whichever Invoices you want to apply the Credit to. You may apply the full amount or a partial amount to either one or more invoices. The amount of the selected invoice(s) must be equal to the amount of the credit memo.
If you created a unique Source Journal for your wire transfer transactions, you will be able to use General Ledger Reports, G/L Detail by Source Report for all transactions with the Source Journal of WT.
If you have any questions regarding deleting old Sage MAS 90 data files, or need assistance with the above procedures, please call DSD Business Systems Professional Services for assistance.