Accounts Payable Workflow - Decision Tree

Overview

This article serves to provide a "birds-eye view" of the AP Workflow, and the decisions that are made throughout the process. Included in this article are breakdowns of each decision involved in the AP Workflow, to aid the user in deciding when to move on to the next step in the workflow. This article will also aid users in figuring out which step of the AP Workflow they need to troubleshoot, so that they can seek the correct guidance depending on which stage of the workflow they are. For specifics on how to perform the AP Workflow and Fundamental Skills, please see:

  1. Accounts Payable Fundamentals - Skills Check
  2. Accounts Payable (AP) Overview
  3. Step-by-Step AP Invoice Cycle
  4. Step-by-Step AP Payment Cycle

Accounts Payable Workflow - Decision Tree (Birds-Eye View)


Decision 1: Are my Invoices Ready to be Posted?

Questions to ask yourself:

  1. Are the amounts on my Invoices correct?
  2. Are the vendors on my Invoices correct?
  3. Are the dates on my Invoices correct?
  4. Do I have the correct AP GL Account?
  5. Do I have the correct Expense/Fixed Asset GL Accounts on my AP items?

If you are answering NO to any of these questions, then you should not proceed with posting the AP Invoice(s). An unposted AP Invoice/Item is completely updatable, and can be easily altered or removed up until it is posted. All the information on an AP Invoice/Item, especially the amounts and GL Accounts, should be reviewed BEFORE the AP Invoice/Item is posted. 

What Happens when an Invoice is Posted:

Once an AP Invoice/Item is posted, a Journal Entry is created and posted to the GL recording the Expense/Fixed Asset incurred and accrual of Accounts Payable. As a result, any changes to the amounts/GL Accounts on the AP Invoice/Item after posting will also need to be posted to the GL in order to correct the amount that was originally posted with the AP Invoice/Item.  AP Invoice Headers and AP Items that have been posted can no longer be deleted, and can only be altered using the Temp Adj fields on the AP Invoice/AP Item.

Decision 2: Are my Invoices Ready to be Scheduled for Payment?

Questions to ask yourself:

  1. Do I need to adjust the amount of an AP Invoice/Item?
  2. Do I need to change the Expense/Fixed Asset GL Account for an AP Item(s)?
  3. Do I need to cancel an AP Item?
  4. Do I need to cancel an AP Invoice?

If you are answering YES to any of these questions, then you should not proceed with scheduling the AP Invoice(s) for payment. Any adjustments that need to be made to a posted AP Invoice/Item should be made prior to  scheduling it for payment.  If AP Invoices are scheduled for payment before necessary adjustments are made, it will be eligible to be pulled into a check batch, which may result in an over/under payment if mistakenly paid. 

What Happens when an Invoice is Scheduled for Payment:

Once an AP Invoice/AP Item is flagged as "Pay in Full", it will appear in the Scheduled Payments Report, where it will be eligible to be pulled into a Check Batch for payment. 

Decision 3: Are my Invoices Ready to be Paid?

Questions to ask yourself:

  1. Are all the Invoices in the Scheduled Payments Report ready to be paid?
    1. The scheduling batch field can be used to specify which Invoices should be pulled into the check batch.
  2. Do any Invoices need to be paid with a separate check?
    1. If so, the Check Sequence Number can be used to separate AP Invoices with the same vendor from being paid on the same check.
  3. Do any Invoices need to be unscheduled for payment?
    1. If so, drill into the AP Invoice, and in the action menu, run the action Unschedule AP Payment.

You should not create a check batch until appropriate action is taken to ensure the correct AP Invoices will be included in the check batch once it is created.

Decision 4: Are my Checks ready to be Prepared?

Questions to ask yourself:

  1. Is the first check number correct?
  2. Is the Cash GL Account correct?

If you are answering NO to any of these questions, then you should not proceed with preparing the checks. As long as the Check Batch does not have the Prepare Checks? flag set to YES, the check batch can simply be deleted by clicking on the organize button (white plus sign) from within the check batch and select "Delete Record". If the check batch already has the Prepare Checks? flag set to YES, then you will need to follow the steps outlined in Decision 5 to undo the check batch.

Decision 5: Are my Checks ready to be Printed?

Questions to ask yourself:

  1. Are the check numbers correct?
  2. Should all the Invoices in the check batch be paid?
  3. Is the Cash GL Account correct?
  4. Have the checks been electronically signed? (If applicable) 
  5. Does the check preview look accurate?

If you are answering NO to any of these questions, then you should not proceed with printing the checks. If there are any issues with a Check Batch after the Prepare Checks? flag has been set to YES, Undo the Check Batch by navigating to the Post / Cancel tab of the Check Batch, and select the disposition code "Undo Checks". This will undo the check batch and return the included AP Invoices to the Scheduled Payments Report, where they can be pulled back into a new Check Batch.

Decision 6: Did my Checks print correctly?

If your checks did not print properly, it is critical to determine the extent of the checks that printed incorrectly, so that appropriate action can be taken. For additional guidance on Voiding Cash Disbursements in Veracross, please see The Void Matrix.

What Happens When a Check Batch is Posted:

When the disposition code "Post Checks" is applied to a check batch, the cash disbursement records that were generated will be flagged as posted. A Journal Entry will also be generated and posted to the GL to record a reduction in Accounts Payable and "cash" payment from the Cash Account.

What Happens When a Check Batch is Voided:

When the disposition code "Void Checks" is applied to a check batch, the cash disbursement records that were generated will all be flagged as "Entered as Void", and the Check Numbers will appear in the Void Check Report. The AP Invoices that were included in the Check Batch return to the Scheduled Payments Report where they can be pulled into a new Check Batch.

Do I need to void the Check Batch if the checks printed correctly, but the check number on the check stock is different from the check number on the disbursement record in Veracross?

If the checks printed correctly and the checks that were printed are still viable, but the check numbers on the check stock  differ from the check numbers on the disbursement records in Veracross, then the check batch does not need to be voided. In this instance, the check numbers in Veracross can be updated  on the disbursement records by using the following process:

  • From the disbursements report on the check batch, click into a disbursement record using the check number link and navigate to the History / Misc tab. Using the Check Number (U) field, input the correct check number and click update.