Ent. Mgmt.: Making a Statement of the A/P variety

Have you ever wondered what happens in Enterprise Management when you group A/P invoices together on a statement? Have been hesitant to use it? Let’s walk through the process.

 We will start with the Payment entry type (under Setup, A/P-A/R accounting) that we will be using and identify the Payment method. In our example, Payment method is CHQ.

  

 

Under Common data, BP tables, Payment method, we will assign a Statement value of A to the CHQ Payment method. But first, here is how Online help defines the Statement field:

"The Statement  field is used to define how the open item statements are generated. If this field is empty, the payments using this method never appear on a statement. If this field is not empty, the open items are grouped by this statement code (in other words, the open items with payment methods using the same statement code are grouped together if the other generation parameters permit it). It is also possible, at the time of the statement generation, to only select a single statement code, which makes it possible to only process the payment methods concerned."

 

 

We will have 3 invoices to enter which will be added to a statement.

  • In A/P-A/R accounting, Invoicing, Supplier BP invoice, click Open items.
  • The Statement must equal “Yes” to be included on a statement.
  • If you find that you can’t change the Statement value, go back to the Payment method and enter a value in the Statement field.

 

 

 

We have 3 invoices for BP Supplier PNST001 on Site NA012 of Company NA10. Here’s how the invoices appear on the Aged balance to date. They are 3 individual items.

 

Below is the Manual matching for the AP account of our supplier (Financials, Matching). At this point, each invoice is a separate transaction. The Account balance is $6,000

Each of the journal entries for the invoice postings, debited expense and credited the AP control account as in the example below:

 

 

The invoices are available to be selected for payment on an individual basis in the left list’s Grouped open items drawer for A/P-A/R accounting, Payment, Manual check

  

We will leave Payment entry and head over to Open item edit under A/P-A/R accounting, Open items. Note that all the invoices have Statement = Yes, meaning they are eligible to be included on a statement.

 

 

If we want to change the invoice so that it is not eligible for a statement, we can change it via this screen. However, we can’t change the Yes to No in the Statement field. Instead, we click the Action icon and select Statement from the drop-down menu. Clicking Statement, flips the value between Yes and No.

 

We can also go back to A/P-A/R accounting, Invoicing, Supplier BP invoice and click Open items. Even if the invoice is posted, we can change the value for Statement.

 Let’s take the 3 invoices and combine them into a statement under A/P-A/R accounting, Open items, Statement creation. Click New and select the following:

  • BP supplier = PNST001
  • Company = NA10
  • Site = NA012
  • Control = AP
  • Payment Method = CHQ
  • In the grid, use the invoice Type = SPINV and select the 3 invoices

Click Validation

(See Online help for definition of the Generation and Update buttons.)

 

 

 

The Statement validation triggers the generation of a journal. Notice the journal is debiting and crediting the same account, the AP control account. Why is this?

 

Note the small letter “a” in the Matching column. This journal entry is acting to combine the invoices into one transaction within the AP account. It is no longer 3 invoices to pay, but now it is 1 statement. We can see the details under Financials, Matching, Manual Matching.

 In Manual matching, the individual invoices and the new statement are associated via the small letter matching within the AP account. The credits for the invoices equal the debit side of the statement creation journal entry. We now have 1 statement of $6,000 left to pay which is reflected in Account balance.

 

               

Will this be confusing on the aging? No, because all that is left on the aging is our statement transaction for $6,000.

 

 

 It is time to go to A/P-A/R accounting, Payment, Manual check to pay our Supplier. Both the Open items and the Grouped open items drawers display only the one entry available for payment - the statement.

 

 

 

The check #124 shows only the statement number in the grid.

 

 

We have the final journal entry which clears the AP control account and takes the $6,000 out of the bank account. We have a large letter "A in the Matching field this time.

 

 

 

 Back to Manual matching. This time click Matched to view the fully matched activity. Now all the invoices and statement entries are matched with Large letters. In this case, the letter is “A.” The matching letter allows us to maintain the relationship between the invoices, statements and payments. Note that the Account balance is now $0.

 

 

 

Let’s take one last look at the Open item edit screen for one of the invoices. The screen ties together the invoice and the statement. It displays that the invoice is paid and the statement number.

 

I hope this ties the invoice to statement to payment process together for you.

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