Accounts Payable An accounts payable (AP) department has many responsibilities to fulfill to ensure that payments to suppliers are made on time and the needs for flexibility in the organization are met. Some of those responsibilities are described subsequently, followed by a discussion of how Oracle’s JD Edwards EnterpriseOne Accounts Payable system helps you fulfill those responsibilities. The Accounts Payable system provides many user-defined features that enable you to adapt the system to your unique business environment and to effectively manage your accounts payable. These features include: • Managing supplier Relationships. The accounts payable department needs to manage the organization’s relationships with its suppliers so that goods and services are received and paid on time, according to established payment terms. Those payment terms may be the same for all suppliers, or they may have been negotiated with some or all of the suppliers according to the mutual needs of the suppliers and the organization. The accounts payable department is responsible for creating and maintaining a partnership with each supplier to ensure that all terms and conditions of the relationship are met. • Processing invoices The accounts payable department receives invoices and records liabilities and corresponding expenses or assets. Depending on the size of the company, the accounts payable department might receive hundreds of invoices daily and would need a system that creates vouchers quickly and accurately. Often, the accounts payable department will have to match vouchers with invoices and purchase orders from other departments such as purchasing. So the department will need an accounts payable system that integrates easily with the software systems of other departments. • Processing payments The goal of the accounts payable department is to ensure that payments are made in the most timely, accurate, and efficient manner possible. Before paying its suppliers, the accounts payable department needs to consider several factors, such as the due date of the invoice, whether a discount can be taken, and the amount of cash on hand versus the amount due to suppliers. Suppliers are paid by various payment methods, such as electronic funds transfers (EFTs), drafts, and paper checks. They may want specific information included on the check such as an invoice number or purchase order number. An international company might need to pay in more than one currency. Suppliers commonly require payment before delivering goods or services. The prepayment must be matched with the actual invoice when the goods are received. Thus, an accounts payable department needs an accounts payable system capable of matching prepayments with future invoices, one that is flexible, and one that offers a variety of payment options. • Accounts payable with software The JD Edwards EnterpriseOne Accounts Payable system provides the tools to fulfill all the responsibilities described previously and much more. It accommodates the need for accurate and timely payables that follow standard procedures, but it also enables you to select options that are unique to your organization. If you need to set up a suspense account while processing vouchers, the JD Edwards EnterpriseOne Accounts Payable system enables you to do so without interrupting the flow of processing. While processing payments, you can set up the system to take advantage of discounts and pay your suppliers according to their needs. The JD Edwards EnterpriseOne Accounts Payable system can pay by EFTs, tape, drafts, or paper. You can even set up multiple bank accounts to take advantage of discounts that banks might offer for using the same bank as your supplier. The Accounts Payable system enables you to prepay for services or goods and still maintain the integrity of the system. You have the flexibility that you need for effective cash management because you, not the system, manage your workflow. At each stage in the workflow, you specify the next step, and the system calculates taxes, discounts, and currency conversions according to your specifications. The Accounts Payable system allows you to consider many variables before submitting a payment to the supplier, such as the due date of the invoice, whether a discount can be taken, and the amount of cash on hand versus the amount due to the supplier. A critical step in building a strong supply chain for your organization is developing an ongoing partnership with your suppliers. The JD Edwards EnterpriseOne Accounts Payable system provides various features to help you build that partnership, such as payment terms and preferences, account balance information by supplier, and the ability to review total purchases from suppliers so that your organization can negotiate better prices with your suppliers. The JD Edwards EnterpriseOne Accounts Payable system also provides the option of allowing your suppliers to independently review their vouchers and payments in your system through the supplier self-service mode. For organizations that have offices around the world, the JD Edwards EnterpriseOne Accounts Payable software provides the flexibility needed to operate in multiple countries, each with unique currency, language, and statutory requirements. Upon completion of this module, you will be able to: Set up the Accounts Payable system. Enter supplier information. Enter vouchers. Using other voucher entry methods. Process recurring vouchers. Process logged vouchers. Work with unposted vouchers. Process vouchers. Work with posted vouchers. Prepare vouchers for payment using the automatic payment process. Create and revise payment groups using the automatic payment process. Write payments using the automatic payment process. Process manual payments. Work with unposted manual payments. Work with manual payments. Work with supplier ledger and payment information. Process accounts payable drafts. Work with accounts payable netting. Update and review tax information. Use accounts payable reports. Run the accounts payable period-end processing. Process multicurrency. Setting Up Automatic Payment Processing.