Add Account Types and add Payment Terms to your Payable Accounts
Assigning Account Type and Payment Terms when Adding a Payable Account
Assigning Account Type and Payment Terms to Existing Payable Accounts
Overview
In Lentune, the Trial Balance reports for Payable Accounts and Receivable Accounts are based on the standard accepted practice of showing invoice aging by the invoice date. Therefore the aging of Current, Month 1, Month 2, Month 3 + for each invoice is calculated as Invoice Date in this month as Current, then Invoice date +30 days, Invoice Due date + 60 days, Invoice date + 90 days or more.
Where you have Payable accounts that you need to pay earlier or later than, say, 20th of the month following invoice date, we recommend using Account Types to group your Payables and setting the Payment Terms for each Payable. Then the Trial Balance will be grouped by Account Type, showing you the due amounts with the appropriate aging for each Account Type. You can also use the Manage / Pay accounts menu option to assist.
Add Account Types and Payment Terms to your Payable Accounts
We'll show you how to set up Account Types and Payment Terms for your Payable Accounts so you can categorise them according to when you want to pay due invoices.
A. Set up Account Types for the categories of Payables
This will then group the Trial Balance by these Account Types.
For example, you could use categories like this:
-
- 30 days.
- 60 days.
- 90 days.
- Cash.
- Import (that you might pay in advance).
- Direct Debit (for utilities that you may pay by automatic payments).
| Note: Account Types can be set up in the Payables menu or from the Administration menu. |
Click here to read how to add a new Payable Account Type.
Below we cover how to Update Existing Payable Accounts, or the fields to complete when adding a new Account.
B. Add an appropriate Payment Terms option (based on the due days) for each Payable Account
The options for Payment Terms are hard coded in Lentune, so all you need to do is to select the required option for each Payable Account.
This can be done either:
- From the Payables > Supplier Accounts menu, select the Payable Account and select the required option on the Payment terms field in the Details > Additional details section; or:
- From the Invoice Automation > Payables menu, select the Payable Account and click through to the Payable Account from the edit icon in the ERP Payables section of the screen. Then select the required option in the Payment terms field in the Details > Additional details section; or:
- Using the Export option detailed below. This is an efficient method to update all your existing Accounts.
To update an Account manually, take one of the above menu options and select the required setting from the dropdown list in the Payment terms field.
Assigning Account Type and Payment Terms when Adding a Payable Account
The screens are slightly different if you add a new Account from the Administration or Payables modules, so we'll show you both options.
A. Adding a new Payable Account from the Administration > Payables menu > New Payable Account
- Create the new Payable Account.
- When you add a new Payable Account from this menu, there are two steps:
1. In the Create Payable Account window, select the required Payment Terms for this Account
This will then set the due date for incoming invoices. In the example below, this field is set to Ninety days.
2. In the Details section of the next window, select the appropriate Account Type for this Account
The Account Type field can be used for various reports, such as your Payable Accounts Trial Balance, where Accounts will be grouped by Account Type.
- In the ERP Supplier details section, select the Account Type that corresponds to the Payment terms you have selected.
- Untick the field for Non erp account in the Additional details section.
B. Adding a new Payable Account from the Payables > Supplier Account menu > New payable account
- Create the new Payable Account.
- Select the Account Type and Payment terms on the Details page.
Assigning Account Type and Payment Terms to Existing Payable Accounts
For existing Accounts, you can access both fields from the Administration > Payables menu, select the Account and click through using the edit icon, or directly from the Payables > Supplier Accounts menu, and select the Account.
Alternatively, you can export your list of Payable Accounts, edit the resulting spreadsheet to add the fields for PayablePaymentTerms and AccountTypeCode for each account, then reimport it. Refer to Import / Export Payable Accounts for information on this process.
Check and Approve Invoices
Whether you check invoices from the Invoice Automation > Check and Approve or ERP approve menu options, or the Payables > Approve Payable Invoices menu, you can check and edit the due date for an invoice.
Where you have set the Payment Terms for the Payable Account, the Due Date is established from the invoice date and the Payment Terms, although you can edit that field if necessary.
| Note: The Due date will not be changed retrospectively for existing invoices if you later add Payment Terms for a Payable Account. |
Reporting Options
Payable Accounts Trial Balance
When you have categorised your Payable Accounts by Account Type, the Payable Accounts Trial Balance will group each of the sections for Account Types.
Manage / Pay Accounts
Using this menu allows you to select the invoices you want to pay according to the due date of each invoice.
- From the Payables > Manage / pay accounts menu:
- Here you can select a Due date, a Company or Branch and an Account Type.
- Click search to view all Payable accounts that have balances due on your selected date.
To view the transactions for any individual Payable Account, double click the line for that record.
Now you can see the transactions that compose the balance to pay for that Account from the previous screen.
If you wish, you can approve all or selected invoices for all Accounts from the first screen, or for the individually selected Account in the individual screen.
- Once you have approved the invoices you wish to pay, tick the Approved field in the search area and click Search again. This will refresh the list to show the invoices you have approved to pay.
- Now you can click Pay all in list.
This action will create a cash book entry for the payment, which will be posted to the Payable Account after the payment has been presented.
- Click Confirm to complete the payment process.
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Need more help? We’re here! We hope our article was helpful! If you need more info or want to connect, drop us an email at support@lentune.com. Thank you. We love to hear from you! |