Partial Payments in A/c Payable

[melloby]

Hi,

Is there any way to make partial payments in accounts payable? If not are there any plans in place to make this feature available in accounts payable?

This feature will help greatly, because we normally don't have to pay all our bills in full. We can pay in installments, but PCP+ only allows you to pay in full. Even, if you use a manual check and make a partial payment the payment is not reflected on the invoice. PCP + asks you to print the check and then it automatically pays in the invoice in full with a computer generated check. Thus, you have a manual and computer generated payment in the vendor history.

Any help would be appreciated.

Thx

melloby

[Matt]

Sounds like these bills should be recorded as liabilities in Fund Accounting instead of invoices in Accounts Payable since you are making installment payments on them. If you record them as liabilities, then when it's time to make the monthly payment just create an invoice for the installment amount.

[melloby]

Hi Matt,

Thx for your replies. Are you suggesting that I setup in my COA seperate accounts payable for my vendors? For example our utility bills can be paid over a period of time, thus we have a revolving credit. Or we have vendors that allow us to pay a portion of our bill net 30, net 60 and net 90.

I would have to setup a different accounts payable for each vendor on the chart of accounts to reflect the true balance outstanding and I would have the luxury of putting a due date on the bills like in a/c payable.

If I used a/c payable and only invoice my partial pmt to match the check I am writing, I won't be able to keep record of the o/s due amount to vendor. So, it will leave me to mannually keep track of everything.

I hope I am understanding you correctly? If not please elaborate on your solution for my partial payments needs. I would like to keep vendor records and there o/s due amount and show my partial pmts reducing the o/s bill.

Thx

Tamico

[Matt]

Yes, I would suggest that you consider setting up separate accounts in your chart of accounts for each vendor that you have ongoing outstanding balances with. These are liabilities and should be reported as such on your financial statements.

Because PC+ is a cash basis accounting system you will need to set up separate liability accounts in your COA for each vendor to show the amounts owed. When you receive the bills enter them as a debit to expense and a credit to the liability account in Fund Accounting. Then, when it's time to make a partial payment, enter an invoice and then cut a check for the partial payment amount in Accounts Payable. The debit on the partial payment will be to the liability account and the credit will be to cash. Under this process the liability account on your ledger will allow you to see the outstanding balance owed to each vendor at any point in time.

If you have a lot of vendors that you make partial payments to you might want to consider purchasing a more robust accounting software for your church that does accrual accounting.

[melloby]

Hi Matt,

Thx for your reply. Any suggestions on the accrual accounting system?

Otherwise thx for the info.

melloby

[NeilZ]

Hi Matt,

Thx for your reply. Any suggestions on the accrual accounting system?

Otherwise thx for the info.

melloby

I think the problem is going to be more in finding a program that integrates all the functions of a church (IE: Membership, Contributions, Etc). and gives accual accounting.

Here's a suggestion. Since you're running a bookstore, I would have a separate retail and inventory program for this function. Quickbooks POS would be a perfect choice for this area. You could setup the PC as a cash register, as well as maintain inventory, and the books.

Profits would then be routinely deposited into the general church fund via PC+, which would integrate them into the churches finances.

In this way you can see if this function is actually paying its way or not.

[melloby]

Hi Neilz,

I would like to have this feature in, because in the A/C Recd Module you can make partial pmts there without any problems.

Thx'

melloby

[NeilZ]

OK, I think the issue will be can that functionality be easily added to the A/P module with a system using a cash basis ??

[Jeff]

Neil is right. We have looked at what it would take to do this in the past and being cash basis really makes it hard. In a cash basis system you don't record the expense until you make a payment. Here is the problem if you have a $100 payment broken evenly over a 4 expense lines for $25 each and you then make a $30 payment. Which expense accounts get the money? What happens if you later come back and change the expense allocations?

We have allowed for this in accounts receivable, but to be honest it is very complex and a big source of confusion for people who have tried to use it. And fixing problems is very difficult. We have decided that any partial payment feature in Accounts Payable will have to be put off until the module is redesigned to allow for accrual accounting. And then it will only be allowed if you setup AP to do accrual not cash. This change to AP is not planned for version 10. In the years I have been here there really hasn't been that many request or problems about making partial payments.

[TAG185]

Any update on this 2004 requested A/P feature over the years?

[NeilZ]

Any update on this 2004 requested A/P feature over the years?

Its still not setup to use accrual accounting but you can do partial payments in v12.