Payments for a Shared Vendor: Activity

In this activity, you will learn how to process payments for a vendor that is shared by different companies of your organization.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that the head office of the SweetLife Fruits & Jams company has received a $2,000 bill from the Blueline Advertisement vendor on January 30, 2023. The head office of the Muffins & Cakes company has also received a bill from this vendor for $1,500 on the same day. The SweetLife Fruits & Jams company and the Muffins & Cakes company use different cash accounts to pay the bills.

Acting as an accountant, you need to create and release the bills in the system, prepare payments for these bills, and process the payments through their release.

Configuration Overview

For the purposes of this activity, the Blueline Advertisement vendor has been created on the Vendors (AP303000) form.

Process Overview

In this activity, you will first review the settings of the shared vendor on the Vendors (AP303000) form and the settings of the vendor's payment method on the Payment Methods (CA204000) form. To process bills from a shared vendor of two related companies, you will create and release the bills on the Bills and Adjustments (AP301000) form. You will then prepare payments for the created bills on the Prepare Payments (AP503000) form. From there, you will open the Process Payments / Print Checks (AP505000) form and process the payments through the review of the printable payments. You will then release the payments on the Release Payments (AP505200) form.

System Preparation

To prepare the system, do the following:

  1. Launch the MYOB Advanced website with the U100 dataset, and sign in as an accountant by using the following credentials:
    • Username: pasic
    • Password: 123
  2. In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, click the Business Date menu button and select 1/30/2023.
  3. On the Company and Branch Selection menu, also on the top pane of the MYOB Advanced screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu to view the list of companies and branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Reviewing the Settings of the Vendor and the Payment Method

To review the settings of the BLUELINE vendor and its payment method, do the following:

  1. Open the Vendors (AP303000) form.
  2. In the Vendor ID box, select BLUELINE.
  3. On the Payment tab, review the settings in the Default Payment Settings section.

    The default payment method of this vendor is CHECK. The Cash Account box is empty, which means that no cash account is associated with the vendor and payments to the vendor can be created from cash accounts of different companies.

  4. Open the Payment Methods (CA204000) form.
  5. In the Payment Method ID box, select CHECK.
  6. On the Allowed Cash Accounts tab, review the cash accounts associated with this payment method.

    Notice that the 10200WH (Wholesale Checking) account related to the HEADOFFICE branch of SweetLife and the 10200MF (Muffins Checking) account related to the MHEAD branch of Muffins & Cakes are both listed. The AP Default check box is selected for the cash accounts. It means that in the HEADOFFICE branch, the 10200WH account will be used by default in the AP payments having the CHECK payment method, and in the MHEAD branch, the 10200MF account will be used in the AP payments with the CHECK payment method.

Step 2: Creating and Processing a Bill for the SweetLife Company

To create and process an AP bill for the SweetLife company, do the following:

  1. Open the Bills and Adjustments (AP301000) form.
    Tip: To open the form for creating a new record, type the form ID in the Search box, and on the Search form, point at the form title and click New right of the title.
  2. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
    • Type: Bill
    • Vendor: BLUELINE
    • Date: 1/30/2023
    • Description: Advertising services
  3. On the Details tab, click Add Row, and specify the following settings in the new row:
    • Branch: HEADOFFICE
    • Transaction Descr.: Advertising services
    • Ext. Cost: 2000
  4. On the form toolbar, click Save to save the bill.
  5. On the form toolbar, click Remove Hold, and then click Release to release the bill.
  6. In the Default Payment Info section of the Financial tab, notice that the payment method is set to CHECK and the cash account is set to 10200WH. The system has inserted these settings because the bill has been created for the HEADOFFICE branch and the BLUELINE vendor.

You have created the bill for the SweetLife company and processed it through its release. You will now perform the same instructions for the bill for the Muffins & Cakes company.

Step 3: Creating and Processing a Bill for the Muffins & Cakes Company

To create and process an AP bill for the Muffins & Cakes company, do the following:

  1. On the Company and Branch Selection menu, on the top pane of the MYOB Advanced screen, click the selection menu to view the list of branches that you have access to, and then click Muffins Head Office & Wholesale Center.
  2. While you are still on the Bills and Adjustments (AP301000) form, click Add New Record on the form toolbar, and specify the following settings in the Summary area:
    • Type: Bill
    • Vendor: BLUELINE
    • Date: 1/30/2023
    • Description: Advertising services
  3. On the Details tab, click Add Row, and specify the following settings in the new row:
    • Branch: MHEAD
    • Transaction Descr.: Advertising services
    • Ext. Cost: 1500
  4. On the form toolbar, click Save to save the bill.
  5. On the form toolbar, click Remove Hold, and then click Release to release the bill.
  6. In the Default Payment Info section of the Financial tab, notice that the payment method is set to CHECK and the cash account is set to 10200MF. The system has inserted these settings because the bill has been created for the MHEAD branch and the BLUELINE vendor.

Now that you have processed both bills of the companies who share the vendor, you will prepare the payments for these bills and process them.

Step 4: Preparing the Payments for the Bills

To prepare the payments for these bills and process these payments through their release, do the following:

  1. Open the Prepare Payments (AP503000) form.
  2. In the Branch box, make sure that MHEAD is selected.
  3. In the Payment Method box of the Summary area, select CHECK.
  4. In the Cash Account box, make sure 10200MF is selected.
  5. In the Vendor box, select BLUELINE.
  6. Clear the Pay Date Within x Days check box.
  7. On the Documents to Pay tab, select the unlabeled check box in the row of the bill you created in Step 3.
  8. On the form toolbar, click Process.

    The system has opened the Process Payments / Print Checks (AP505000) form with the payment created for the bill.

  9. On the form toolbar, click Process.

    The system opens a separate browser tab showing the printable version of the payment.

  10. Review the printable version of the payment, and close the browser tab. (For the purposes of this activity, you do not need to actually print the check. In a production setting, you would click Print on the form toolbar to print the check before closing the browser tab.)
  11. On the Release Payments (AP505200) form, which the system has opened, notice that the system has added a row with the payment and selected the unlabeled check box for it. On the form toolbar, click Process.
  12. On the Company and Branch Selection menu, on the top pane of the MYOB Advanced screen, click the selection menu to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.
  13. Open the Prepare Payments form again.
  14. In the Summary area, specify the following settings:
    • Branch: HEADOFFICE
    • Payment Method: CHECK
    • Cash Account: 10200WH
    • Vendor: BLUELINE
    • Pay Date Within x Days: Cleared
  15. On the Documents to Pay tab, select the unlabeled check box in the row of the bill you created in Step 2 (the bill dated 1/30/2023 for the amount of $2000).
  16. On the form toolbar, click Process.

    The system has opened the Process Payments / Print Checks (AP505000) form with the payment created for the bill.

  17. On the form toolbar, click Process.

    The system opens a separate browser tab showing the printable version of the payment.

  18. Review the printable version of the payment, and close the browser tab.
  19. On the Release Payments form, which the system has opened, notice that the system has added a row with the payment and selected the unlabeled check box for it. On the form toolbar, click Process.

You have processed two payments for a vendor that is shared by related companies, from the creation of the bills through the creation and release of the associated payments. The payments have been made from the cash accounts that belong to the originating branches of each bill.