Payments to vendors

The following procedure describes how to enter individual payments for one vendor at a time and how to enter payments by manual check. You can pay one or more invoices for the same vendor with a single payment. To process a group of payments, see "Pay invoices".

Invoices must be merged before they can be paid.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Click . The New Payment window opens.

   

3. In the Batch field, enter a name to identify the group of AP payments to process the payment with. This field defaults to the batch name used on the last payment entered.
4. Select the Vendor you are paying.
5. Enter a Description of the payment. You can use up to 60 characters.
6. In the Date field, enter the payment date. The payment date is used to calculate the available discount amount, backup withholding, and the GL posting date.
7. In the Type field, select the method of payment. Your options are:

   • Check. Pay by printed check.

     Note

     The payment amount on check-type payments cannot be negative.

     ActivityHD will warn you if you enter a zero dollar payment, but you can still merge and print zero dollar checks. In particular, this allows you to inform vendors on the check stub how credits were applied to their invoices.

   • EFT. Pay by electronic funds transfer. If you select this option, the vendor must have EFT information set up on the selected payment location record. Furthermore, you'll need a bank account set up for EFT processing in Bank Reconciliation.

     Note

     The payment amount on EFT-type payments cannot be negative.

   • Manual. Record a manual check that was already sent or that will be sent outside of ActivityHD.

     Note

     The payment amount on manual payments can be negative or zero. This allows you to produce check stub information for the vendor which explains how credits were applied to invoices.

8. If you selected "Manual" in the Type field, the Reference field is enabled. Enter identifying information about the manual check such as the check number.
9. If you temporarily need to prevent the payment from being merged, mark the Merge Hold? checkbox. This feature is useful to flag payments that require further attention before they can be merged.
10. In the Bank field, enter the GL account to credit with the payment's net pay amount. The default account is the last GL bank account entered on a payment.
11. In the Discount field, enter the GL account or account mask to credit with the discount amount for the payment. If you enter an account mask, ActivityHD allocates the discount amount based on the discount account mask and the invoice GL distributions.
12. In the GL Batch field, enter the name of the GL batch to use when the payment is merged to GL. The default batch name is the GL batch name used on the last payment entered.
13. In the Payment Location field, select the vendor location to which the payment should be remitted. The default value is the vendor's default payment location. The accompanying text box shows address information for the selected location. In addition, if this is an EFT or EFT Canada payment, the text box shows routing information for the bank associated with the payment location.
14. Select the Invoices tab.

    

15. In the Invoices pane at the bottom of the window, locate and double-click the unpaid merged invoice to pay. Payment information for the selected invoice loads in the Payment Detail table.

    Tip

    Filter the list of invoices to show only merged, unpaid invoices.

    

    Note

    You can press F4 on an entry in the Batch - Entry # column of the Payment Detail table to drill down to the selected invoice record.

16. The Gross Pay column defaults to the unpaid balance on the invoice. To pay the full amount of the invoice, accept the default. To pay a different amount, enter the amount to pay on the invoice. When the payment is merged, the invoice's balance is reduced by the gross pay amount and the invoice's AP account is credited with the gross pay amount.
17. The Discount field defaults to the maximum discount allowed based on the payment amount, payment date, and the invoice discount dates. If you need to change the discount amount, enter the actual discount you are claiming against the invoice.
18. If you are paying additional invoices with this payment, repeat steps 15-17 for each invoice you need to pay.
19. Select the Distribution tab.

    

    Note

    The accounts and posting amounts cannot be changed in the GL Detail table. To change the posting amounts, return to the Invoices tab and change the value(s) in the Gross Pay column.

20. ActivityHD automatically creates the appropriate APCode detail lines in the APCodes table based on the APCode distribution of the invoice. However, if needed, you can add, change, or delete APCode detail lines.

21. When you finish, save the new payment. ActivityHD generates the entry number at this time.

    At this point, you can proof and/or merge the payment, or you can handle proofing and merging later for a group of payments from the Payments folder.

A merged payment record cannot be deleted.

To delete an unmerged payment, highlight the payment record in the HD view and click , or open the payment and select > Edit > Delete. In either case, ActivityHD prompts you to confirm your action. Click Delete to delete the unmerged payment.

Proofing is an optional part of the payment process; however, it is useful for identifying problems before you attempt to merge payments. The Proof Payments process reports how many of the payments in your selection are valid for merging and how many are not. Based on this information, you can decide which payments need your attention or which payments you want to leave out of the merge process.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Proof for Merge Payments wizard.
   • To proof all or a filtered subset of payments:
     1. Right-click the Payments folder and select Select and Proof for Merge from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the payments.

        

        Tip

        Apply the "New Payments" filter to select the unmerged payments.

     3. Click Next >>.
   • To proof specifically selected payments:

     1. In the HD view, select the payments to include in proofing.

        Tip

        Apply the "New Payments" filter to see all unmerged payments.

     2. Right-click and select Proof for Merge from the shortcut menu.
3. The wizard reports the number of payments that are valid for merging.

   

   If the validation returns errors or warnings, ActivityHD lists the reasons why.

   If you want to view the Merge AP Payments Proof Report, click Report. Otherwise, skip to step 10.

   

4. In the Validation Status? field, select which payments to include on the proof report. Your options are:
   • Valid Payments. Only shows the payments that are valid for merging on the report. This option is disabled if there are no valid payments in your selection. This option is preselected and the other options are disabled if all the payments are valid.
   • Exceptions. Only shows the payments that are not valid for merging on the report. This option is disabled if there are no invalid payments in your selection. This option is preselected and the other options are disabled if all the payments are invalid.
   • Both. Shows both valid and invalid payments on the report. This option is disabled if all the payments are valid or if all the payments are invalid.
5. Ensure the checkboxes for the additional information you want to include on the report are marked. The first six checkboxes are marked by default. Your options include:
   • Validation Messages
   • Invoice Detail
   • APCodes
   • Payment Distributions
   • GL Detail
   • Addresses and Timestamps
   • Memos
6. Select the Output tab.
7. In the Design field, look up and select the report design to use.
In the toolbar, click the icon for the type of output you want:
• - Provides access to two preview options.
  • Preview - Click the icon or click the drop-down arrow and select Preview from the drop-down menu to view the report in the Crystal Reports viewer.
  • Preview to PDF - Click the drop-down arrow next to the icon and select Preview to PDF to view the report in the PDF reader.
• - Opens the Print dialog so that you can select and configure a printer and then print a paper copy of the report.
• - Opens the Report Email dialog so that you can address and compose an email that the report will be attached to. For best results, ensure your email client is running before you attempt to send a report via email.
• - Opens the Export Report dialog so that you can save the report to a file. File types include Crystal Reports (.rpt), PDF (.pdf), Microsoft Excel (.xls), Microsoft Word (.doc), rich text (.rtf), and XML (.xml).
9. When you finish proofing the payments, close the Merge AP Payments Proof Copy dialog.
10. Click Finish.

When you merge AP payments, ActivityHD creates the GL entries for the payments.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Merge Payments wizard.
   • To merge all or a filtered subset of payments:
     1. Right-click the Payments folder and select Select and Merge from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the payments.

        

        Tip

        Apply the "New Payments" filter to select the unmerged payments.

     3. Click Next >>.
   • To merge specifically selected payments:

     1. In the HD view, select the payments to include in the merge. You can use Ctrl and/or Shift selection to select multiple payments.

        Tip

        Apply the "New Payments" filter to see all unmerged payments.

     2. Click .
3. The wizard reports the number of payments that are valid for merging.

   

   If the validation returns errors or warnings, ActivityHD lists the reasons why.

   If you want to view or print the Merge AP Payments Proof Report, click Report. Otherwise, skip to step 10.

   

4. In the Validation Status? field, select which payments to include on the Merge AP Payments Transaction Report. Your options are:
   • Valid Payments. Only shows the payments that are valid for merging on the report. This option is disabled if there are no valid payments in your selection. This option is preselected and the other options are disabled if all the payments are valid.
   • Exceptions. Only shows the payments that are not valid for merging on the report. This option is disabled if there are no invalid payments in your selection. This option is preselected and the other options are disabled if all the payments are invalid.
   • Both. Shows both valid and invalid payments on the report. This option is disabled if all the payments are valid or if all the payments are invalid.
5. Ensure the checkboxes for the additional information you want to include on the report are marked. The first six checkboxes are marked by default. Your options include:
   • Validation Messages
   • Invoice Detail
   • APCodes
   • Payment Distributions
   • GL Detail
   • Addresses and Timestamps
   • Memos
6. Select the Output tab.
7. In the Design field, look up and select the report design to use.
In the toolbar, click the icon for the type of output you want:
• - Provides access to two preview options.
  • Preview - Click the icon or click the drop-down arrow and select Preview from the drop-down menu to view the report in the Crystal Reports viewer.
  • Preview to PDF - Click the drop-down arrow next to the icon and select Preview to PDF to view the report in the PDF reader.
• - Opens the Print dialog so that you can select and configure a printer and then print a paper copy of the report.
• - Opens the Report Email dialog so that you can address and compose an email that the report will be attached to. For best results, ensure your email client is running before you attempt to send a report via email.
• - Opens the Export Report dialog so that you can save the report to a file. File types include Crystal Reports (.rpt), PDF (.pdf), Microsoft Excel (.xls), Microsoft Word (.doc), rich text (.rtf), and XML (.xml).
9. When you finish with the Merge AP Payments Proof Report, close the Merge AP Payments Proof Copy dialog.
10. Back in the Merge Payments wizard, click Next >>. ActivityHD merges the payments and reports its results.

    

    If desired, you can print or preview the proof report again, this time showing only the payments which were successfully merged. To do so, click Report and repeat steps 4-9

11. Click Finish.

You can renumber checks in the "Print Checks" step of the Print Checks process. Gaps in check numbers produce a voided forms entry in Bank Reconciliation.

To renumber checks:

1. In the "Print Checks" step of the Print Checks process, select the checks to renumber. You can use Ctrl and/or Shift selection to select multiple checks if needed.

   

2. Right-click your selection to open a shortcut menu.

   

3. From the menu, select Renumber Reference. The Renumber Checks popup opens.

   

4. In the Beginning Number field, enter the first number to use for renumbering the selected checks.

   

5. Click OK. The selected checks are renumbered. You can continue processing checks as needed.

   

Electronic funds transfer (EFT) is a means of making payments electronically rather than by cash or check. Accounts Payable supports paying vendors by EFT.

If ActivityHD is set up for EFT processing and you have undisbursed merged payments that were entered with a payment type of "EFT", you can generate EFT payment transactions.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Generate Payment EFT wizard.
   • To use filters to select the payment(s) to generate EFTs for:
     1. Right-click the Payments folder and select Payment EFT > Select and Generate Payment EFT from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the data.

        

        Tip

        Apply the "Ready for EFT" filter to select the payments eligible for EFT.

     3. Click Next >>.
   • To hand-select the payment(s) to generate EFTs for:

     1. In the HD view, select the payment(s) to generate EFTs for. You can use Ctrl and/or Shift selection to select multiple payments.

        Tip

        Apply the "Ready for EFT" filter to see all payments eligible for EFT.

     2. Click .

        

3. On the Options tab in the Bank Account field, select the bank account from which funds for the EFT payments should be drawn.
4. In the Reference field, enter a code to indicate any special handling needed for all entries in the batch. Codes have no significance except to the originator and/or the ODFI.
5. In the Effective Date field, enter the date to post the transactions.
6. To allow the system to generate payments for vendors without an email address on their vendor payment location, mark the Allow Blank Email Address checkbox.
7. If you are generating payments to add to an existing ACH file, mark the Append to Existing File checkbox.
8. The File ID Modifier distinguishes multiple ACH files generated on the same day for the same participants. If this is the first or only ACH file you are generating today for the same participants, accept "A". Otherwise, enter a modifier (upper case A-Z or 0-9) to distinguish this file from other files generated today for the same participants.
9. In the ACH Filename field, enter the path and file name for the ACH file or click to browse to the location.
10. Click Next >>. ActivityHD generates the payment file.

    

11. Click Next >> to view the EFT payments processed.

    

    At this point, you can double-click a payment in the right pane to drill down to the Payment window, print the Payments Listing, generate remittance advice, or void payment(s).

12. When you finish, click Next >>.

    

13. Click Finish to mark the payments as disbursed by EFT.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Regenerate Payment EFT wizard.
   • To use filters to select the payment(s) to regenerate EFTs for:
     1. Right-click the Payments folder and select Payment EFT > Select and Regenerate Payment EFT from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the data.

        

     3. Click Next >>.
   • To hand-select the payment(s) to regenerate EFTs for:

     1. In the HD view, select the payment(s) to generate EFTs for. You can use Ctrl and/or Shift selection to select multiple payments.

     2. Click the down arrow next to in the toolbar and select Regenerate EFT from the drop-down menu.

        

3. On the Options tab in the Bank Account field, select the bank account from which funds for the EFT payments should be drawn.
4. In the Reference field, enter a code to indicate any special handling needed for all entries in the batch. Codes have no significance except to the originator and/or the ODFI.
5. In the Effective Date field, enter the date to post the transactions.
6. To allow the system to regenerate payments for vendors without an email address on their vendor payment location, mark the Allow Blank Email Address checkbox.
7. If you are regenerating payments to add to an existing ACH file, mark the Append to Existing File checkbox.
8. The File ID Modifier distinguishes multiple ACH files generated on the same day for the same participants. If this is the first or only ACH file you are generating today for the same participants, accept "A". Otherwise, enter a modifier (upper case A-Z or 0-9) to distinguish this file from other files generated today for the same participants.
9. In the ACH Filename field, enter the path and file name for the ACH file or click to browse to the location.
10. Click Next >>. ActivityHD regenerates the payments.

    

11. Click Next >> to view the EFT payments processed.

    

    At this point, you can double-click a payment in the right pane to drill down to the Payment window, print the Payments Listing, generate remittance advice, or void payment(s).

12. Click Finish.

You can use the Generate Payment EFT wizard to create an ACH file that contains payments to child support State Disbursement Units (SDUs) plus garnishment detail. When your bank processes the ACH file, it transmits the payment and garnishment detail through the ACH network to the SDU's bank. The SDU's bank posts the payment to the SDU's bank account and passes the garnishment detail along to the SDU. Subsequently, the SDU disburses payments to the custodial parent based on the garnishment detail.

The EFT payment process currently supports the CCD/CCD+ ACH standard which allows for only one addendum per transaction; therefore, the process generates separate ACH transactions for each payroll garnishment payment. You can pay multiple garnishment AP invoices with a single payment. You can even combine multiple garnishment deductions from Payroll into a single AP invoice. The EFT payment process automatically splits combined payments into different ACH transactions.

Prerequisites

Before you can generate ACH addenda records, you should complete the following setup:

• Enable the PR to AP interface. This gives you access to the Post to AP process on payroll check lines.
• Create an AP vendor record for each SDU from which you have received a garnishment order. On these vendor records, select "EFT" in the Preferred Payment field.
• For each SDU vendor, create a vendor location with the appropriate ACH information set up on the EFT tab.
• In Payroll, create an AP control for each SDU vendor.
• In Payroll, create a deduction-type PRCode for child support garnishments. The calculation expressions should be similar to:

  Source: SumCheck('DispPay Result') - SumCheck('DispDed Result')

  Rate: Garnishment.MaximumPercentage

  Result: Garnishment.Deduction

• In Payroll, create a garnishment record for each child support garnishment order. Be sure to reference the deduction PRCode and the SDU's AP control.

Processing

1. In Payroll, garnishment deductions are automatically added to checks when you process payroll or time sheets.
2. From the Payroll Check Lines folder, run Post to AP. This process creates AP invoices from the garnishment deductions.
3. Merge and pay the AP invoices to generate EFT payments.
4. In the Payments folder, run the Generate Payment EFT wizard on the payments to SDUs. This creates the ACH file with garnishment addenda records.
5. Submit the ACH file to your bank.

Remittance advice is notification to a payee that payment has been made. If you have an email address on record for a vendor's payment location, you can use that email address to send remittance advice to the vendor when you make a payment by electronic funds transfer (EFT). You can also generate remittance advice for paper checks and manual checks.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Generate Remittance Advice wizard.
   • To use filters to select the payments to generate remittance advice for:
     1. Right-click the Payments folder and select Remittance Advice > Select and Generate Remittance Advice from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the data.

        

        Tip

        Apply the "Ready for EFT Advice" filter to select the EFT payments available to generate remittance advice for.

     3. Click Next >>.
   • To hand-select the payment(s) to generate remittance advice for:

     1. In the HD view, select the payment(s) to generate remittance advice for. You can use Ctrl and/or Shift selection to select multiple payments.

        Tip

        Apply the "Ready for EFT Advice" filter to see all EFT payments available to generate remittance advice for.

     2. Click .

        

3. On the Options tab, to generate remittance advice for vendors who do not have an email address on their payment location, mark the Allow Blank Email Address checkbox.
4. In the Payment Types to Include section, mark the checkbox for each payment type to generate remittance advice for. Your options are:
   • Check
   • EFT
   • Manual
5. Click Next >>. ActivityHD determines which payments are valid for remittance advice.

   

6. Click Next >>.

   

   At this point, you can double-click a payment in the right pane to drill down to the Payment window, print the Payments Listing, or void payment(s).

7. Click Next >>. If you are using the Email > Email to Vendors option to email remittance advice to vendors, select the Email Defaults tab. Otherwise, skip to step 11.

   

8. From the From drop-down list, select the email account from which to send the email. Your options are:
   • Windows user default account. Sends email using the user's Windows default email account. For most users, this is the account configured in Outlook or another email client application.
   • Server personal. Sends email using the email configuration for the system or company server and the email address on the current user's authorized user record. The authorized user record must have a confirmed email address.
   • Server generic. Sends email using the email configuration and "from" address for the system or company server. This option requires "Send generic" access to the Server Email resource.
9. Use the CC and BCC fields to enter any email addresses to copy and/or blind copy on the email. The email will automatically be sent to the email address assigned to each vendor's payment location.
10. Enter a Subject and body for the email. You can use keywords to customize the content of the subject line and body text of the email. Keywords are replaced in the resulting email with the corresponding information from the payment. Click here to see the keywords available for use when you customize an email for remittance advice.
11. Select the Sorting tab. In the Available Sort Options list box, highlight the field(s) to sort remittance advice by, then click to move your selection(s) to the Assigned Sort Options list box.

    

12. If you selected multiple sort fields, use and to arrange the sort fields in the order you want them applied.
13. Select the Output tab.
14. In the Design field, look up and select the remittance advice design to use.
15. Output the remittance advice in your preferred format.
    • Preview. Click to open the remittance advice in the Preview window. From the Preview window, you can view the advice, print it, or export it.
    • Print. Click to open the Print dialog box where you can select a printer, tweak printer settings, and print the advice.
    • Email. Click to open a drop-down menu. Select Email from the drop-down menu to send the remittance advice to a list of recipients you specify. Select Email to Vendors to send each vendor a copy of their remittance advice.
    • Export. Click to export the remittance advice to a file on your local machine or network. You can export the file in a variety of formats including Crystal Reports (.rpt), PDF (.pdf), Microsoft Excel (.xls), Microsoft Word (.doc), rich text (.rtf), and XML (.xml).
16. To attach remittance advice to the corresponding payment records, click . When ActivityHD prompts you to confirm this action, click Yes.
17. Click Next >>.

    

18. Click Finish to mark the payments as having remittance advice sent.

Remittance advice is notification to a payee that payment has been made. If you have an email address on record for a vendor's payment location, you can use that email address to send remittance advice to the vendor when you make a payment by electronic funds transfer (EFT). You can also generate remittance advice for paper checks and manual checks.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Regenerate Remittance Advice wizard.
   • To use filters to select the payments to regenerate remittance advice for:
     1. Right-click the Payments folder and select Remittance Advice > Select and Regenerate Remittance Advice from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the data.

        

     3. Click Next >>.
   • To hand-select the payment(s) to regenerate remittance advice for:

     1. In the HD view, select the payment(s) to regenerate remittance advice for. You can use Ctrl and/or Shift selection to select multiple payments.

     2. Click .

        

3. On the Options tab, to regenerate remittance advice for vendors who do not have an email address on their payment location, mark the Allow Blank Email Address checkbox.
4. In the Payment Types to Include section, mark the checkbox for each payment type to regenerate remittance advice for. Your options are:
   • Check
   • EFT
   • Manual
5. Click Next >>. ActivityHD determines which payments are valid for remittance advice.

   

6. Click Next >>.

   

   At this point, you can double-click a payment in the right pane to drill down to the Payment window, print the Payments Listing, or void payment(s).

7. Click Next >>. If you are using the Email > Email to Vendors option to email remittance advice to vendors, select the Email Defaults tab. Otherwise, skip to step 11.

   

8. From the From drop-down list, select the email account from which to send the email. Your options are:
   • Windows user default account. Sends email using the user's Windows default email account. For most users, this is the account configured in Outlook or another email client application.
   • Server personal. Sends email using the email configuration for the system or company server and the email address on the current user's authorized user record. The authorized user record must have a confirmed email address.
   • Server generic. Sends email using the email configuration and "from" address for the system or company server. This option requires "Send generic" access to the Server Email resource.
9. Use the CC and BCC fields to enter any email addresses to copy and/or blind copy on the email. The email will automatically be sent to the email address assigned to each vendor's payment location.
10. Enter a Subject and body for the email. You can use keywords to customize the content of the subject line and body text of the email. Keywords are replaced in the resulting email with the corresponding information from the payment. Click here to see the keywords available for use when you customize an email for remittance advice.
11. Select the Sorting tab. In the Available Sort Options list box, highlight the field(s) to sort remittance advice by, then click to move your selection(s) to the Assigned Sort Options list box.

    

12. If you selected multiple sort fields, use and to arrange the sort fields in the order you want them applied.
13. Select the Output tab.
14. In the Design field, look up and select the remittance advice design to use.
15. Output the remittance advice in your preferred format.
    • Preview. Click to open the remittance advice in the Preview window. From the Preview window, you can view the advice, print it, or export it.
    • Print. Click to open the Print dialog box where you can select a printer, tweak printer settings, and print the advice.
    • Email. Click to open a drop-down menu. Select Email from the drop-down menu to send the remittance advice to a list of recipients you specify. Select Email to Vendors to send each vendor a copy of their remittance advice.
    • Export. Click to export the remittance advice to a file on your local machine or network. You can export the file in a variety of formats including Crystal Reports (.rpt), PDF (.pdf), Microsoft Excel (.xls), Microsoft Word (.doc), rich text (.rtf), and XML (.xml).
16. To attach remittance advice to the corresponding payment records, click . When ActivityHD prompts you to confirm this action, click Yes.
17. Click Finish.

Update Payment APCodes from Invoices recalculates APCode information for selected payments based on current invoice APCode detail. Before you run Update Payment APCodes, use Update Invoice APCodes from Vendors to set amounts on the appropriate invoice 1099 APCodes and ensure that invoice APCode detail is correct, then run Update Payment APCodes from Invoices to recalculate payment APCodes based on amount paid, discount taken, and invoice APCode detail. Since you have APCode information on individual payments and invoices rather than one lump amount, you have the detail you need to calculate, reconcile, and audit reported 1099 amounts.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Update Payment APCodes from Invoices wizard.
   • To update APCodes for all or a filtered set of payments:
     1. Right-click the Payments folder and select Select and Update APCodes from the shortcut menu.

     2. On the Selection tab, define any filters to apply to the payments.

        

   • To update APCodes for specifically selected payments:
     1. In the HD view, select the payments to update. You can use Ctrl and/or Shift selection to select multiple payments.
     2. Right-click in the HD view and select Update APCodes from the shortcut menu.

3. Select the Options tab.

   

4. In the Update Actions section, mark the checkbox for each action to perform on the payment APCodes. Your options are:
   • Add APCodes that are on the invoice but not on the payment. This option is marked by default.
   • Delete APCodes that are on the payment but not on the invoice
   • Update existing APCode amounts if different than invoice APCode amounts
5. In the APCode Types section, mark the checkbox for each type of APCode to update. Your options are:
   • Update "Payment Reporting" APCodes. This option is marked by default.
   • Update "Payment Withholding" APCodes

6. Click Next >>. ActivityHD prompts you to confirm that you want to update APCodes for the selected payments.

   

7. Click Yes. ActivityHD updates the APCodes on the payments and reports its results.

   

8. Click Next >>.

   

   At this point, you can double-click the payment(s) in the right pane to drill down to the Payment window or you can perform any of the actions represented in the toolbar.

9. When you finish working with the updated payments, click Finish.

Use the Void Payments process to reverse AP payments. Payments must be merged before they can be voided. When you void a payment, a payment with a type of "Void" is created that reverses the original payment. The original payment is flagged as "Voided" and the new payment is flagged as "Reversal". The reversal invoice is validated and merged immediately in the void process.

1. In the Navigation pane, highlight the Accounts Payable > Payments folder.
2. Start the Void Payments wizard.
   • To use filters to select the payments to void:
     1. Right-click the Payments folder and select Select and Void from the shortcut menu.
     2. On the Selection tab, define any filters to apply to the data.

        

     3. Select the Void tab.
   • To void specifically selected payments:
     1. In the HD view, select the payments to void. You can use Ctrl and/or Shift selection to select multiple payments.
     2. Click .
   • To void a particular payment from the Payment window.
     1. In the HD view, locate and double-click the payment to void. The Payment window opens with the payment loaded.
     2. Click .

   

3. In the Void Batch field, select the payment batch to include the reversal payment(s) in. Your options are:
   • Original Payment Batch
   • <batch name>. If you select this option, enter a name for the payment batch. The default batch name is the name of the last payment batch used.
4. In the Void Date field, select the date to assign to the reversal payment(s). Your options are:
   • Original Payment Date
   • <date>. If you select this option, enter the date.
5. In the GL Batch field, select the GL batch to include the journal entries for the reversal payment(s) in. Your options are:
   • Original GL Batch
   • <batch name>. If you select this option, enter a GL batch name. The default GL batch name is the name of the last GL batch used.
6. Click Next >>. ActivityHD prompts you to confirm that you want to void the selected payment(s).

   

7. Click Yes. ActivityHD voids the payment(s) and creates the reversal payment(s).

   

   If problems are encountered during the void process, ActivityHD lists the reasons.

8. Click Next >>.

   

   At this point, you can double-click a reversal payment in the right pane to drill down to the Payment window or you can print the Payments Listing. Remember that ActivityHD automatically validates and merges reversal payments for you.

9. When you finish viewing information about the reversal payments, click Finish.

Processing payments by electronic funds transfer (EFT) consists of the following steps:

1. Set up ACH information for your company's bank account in Bank Reconciliation.
2. Set up ACH information for the payment locations of vendors who want to be paid by EFT.
3. Generate prenotes (optional, but advised).
4. Submit the prenote file to your bank.
5. When entering AP payments for vendors who want to be paid by EFT, select the payment type "EFT": individual invoices | multiple invoices
6. Merge payments.
7. Generate EFT payments.
8. Submit the payment file to your bank.
9. Generate remittance advice.

A prepayment or unapplied payment is a payment that has not been applied to an actual invoice.

There are several reasons you may want to make a payment to a vendor but not apply it immediately to an invoice:

• The vendor requires a deposit before shipping your order.
• A payment is due, but you have not received the invoice or the invoice hasn't been posted yet.
• The vendor requires full payment in advance.
• An invoice is in dispute, but you need to make a payment to keep your account current. If the payment is applied to the disputed invoice, the dispute may be more difficult to resolve.

To enter a prepayment for a vendor:

1. Enter a zero dollar invoice for the vendor and merge it. Since the invoice description prints on the check stub, you can use it to explain the reason for the prepayment.

2. Create a new payment and select the zero dollar invoice for payment. Change the payment amount to the amount you need to prepay.

   Note

   The "Outstanding Invoices" filter will not show the zero dollar invoice because it has a balance of zero.

3. Merge and disburse the payment. The zero dollar invoice will now show a negative (credit) balance.
4. When you receive the actual invoice, create it and merge it.
5. Create a new payment and select the invoice with the credit balance and the actual invoice for payment.

Do the following to correct withholding amounts on merged AP payments:

1. Void the original payment that contained the withholding APCode. This automatically corrects the withholding. If other invoices and payments have been entered in an attempt to fix the problem, void them as well. This leaves only the original invoice which is now outstanding.

   Note

   You may need to unreconcile payments before you can void them.

2. Create a partial payment against the invoice for the amount of the invoice less the withholding amount. This is the same as the original payment sent to the vendor.

   Example

   If the original invoice was for $100 and the withholding amount was $20, enter a partial payment of $80.

   Make this a manual check and put the check number from the original payment on it. If the original payment was reconciled, reconcile this payment to the same statement.

3. Create a second partial payment against the balance of the invoice for the withholding amount but do not use a withholding APCode. This check will reimburse the vendor for the withholding amount that is still owed to him.

   Note

   If a second invoice and payment were previously issued for the withholding amount and then voided as part of the cleanup process, make this a manual check containing the check number from the withholding check that was already sent to the vendor.