RELATED IDEAS
Aging Report, Balance Sheet, AP GL codes
There are two scenarios for APs on AgilLink in case of accrual basis.
The entered invoice are shown on company’s Balance Sheet, the aging report can be run properly and these invoices are sitting in Pending box. This scenario is perfect when company has small number of outstanding invoices and is making payments consistently. The only question in this case is recurring invoices as they also are shown on Balance sheet with $0.1 or $1.0 amount. It means that AP balance of $559,026.70 is incorrect. This is critical on year end when Tax Return is filed.
It turns into disaster when company has large number of outstanding invoices and does not have enough funds to pay consistently. Let's say company has 100+ outstanding invoices including the prior year. All of them have to be accrued in order to have correct Balance Sheet. And when company doesn’t have funds to pay its payables then all of these invoices will be sitting either in “To Review” or “Pending” box.
When vendor agrees to make settlement after the fiscal year end invoices can not be changed as they were already accrued for tax purposes. The solution in this case is to delete all invoices, enter journal entry for accrued expenses on 12/31 and create invoice in current year against AP balance. It is time consuming process. And it does not allow you to differentiate AP balance by vendor.
And even though each invoice is paid in full in the future there are still disadvantages when company has hundreds of outstanding invoices:
The workflow is getting slower as you have to go through all invoices on daily basis to make sure what to approve for payment.
This time is billable to client and makes its monthly NKSB invoices bigger for dollar amount. The more unpaid invoices are the larger monthly bills.
It’s an easy target to make a mistake. The more unpaid invoices are entered the more chances to approve the one that shouldn’t be paid.
Due to all reasons above we would like to request to expand the Chart of Accounts for Accounts Payable GL codes. Currently there are only two GL codes available: one for NKSFB, another one for all other vendors.
If adding 2001-xx05, xx15, xx20 etc. codes will be available option then all outstanding invoices can be recorded through journal entries and it gives the ability to differentiate AP balance by vendor.
Please see full version with the screen shots in the attachment.
Thank you.
