MAN05 Accounts Payable - Creditors

This module processes suppliers and subcontractors invoices.

FEATURES:

The Muli Accounts Payable solution offers extensive features including:-

• Interface with Incoming Unapproved Invoices
• Subcontract Retentions
• Withholding Tax
• GST (Goods & Services Tax) / Value Added Tax
• Transport/Delivery Charge options for Sales & Inventory
• Prompt Settlement Discount
• Multiple (26) Banks
• Sharing Bank Accounts across companies in the Group

• Extended solutions for the management of subcontractors including:-

  • Contract signed Y/N
  • Insurance up to date
  • Pay Advice (Security of Payment)
  • Final Certificate

• Payments managed by:-

  • Traditional Computer Cheques
  • Direct Deposits
  • Use Credit Card (default Bank)

SPECIAL NOTES:

Project Costs & GST

All costing activities at the project level exclude GST. Budgets, Commitments, Amendments, Approvals, Project Payables all exclude GST.

GST is added on as a separate value to the base transactions on both payable and receivable. If the GST is input taxed, then the cost is added to a project in allocation 1799 and to the overhead in allocation 0139. In accounting terms, GST is stripped from Accounts Receivable on the way in and added to Accounts Payable on the way out, being totally dealt with as control accounts with the General Ledger.

Multiple Bank Accounts

Muli can accommodate up to 26 bank accounts. By default Bank Z is always allocated for Muli internal transactions such as payroll journals and is not available for normal cheque and cash receipts processing.

Before creating bank accounts for each legal entity in the Group, you should consider the major administration benefits of being able to use a single (or limited number) of real physical bank accounts being managed by Muli. Muli has the ability to maintain a a group wide payment selection. While a single payment run may be prepared for the whole Group (or individual companies in the Group), you may have the same Supplier being paid from the same bank account. Separate remittance advices and cheques (or Direct Deposits) are created for each company with the “for and on behalf of “ statement being written on the relevant physical cheque or from the field of Direct Deposit.  

Purchase Payment Cycle

If you are using Muli correctly, an Incoming (Unapproved) Invoice would have been previously entered in the Unapproved Register (maybe digitised copy attached) and subsequently approved for payment by the project administrator/manager.

In this situation the default start method for invoice entry is displayed Authorised Unapproved Invoices (rather than Desc)

Account Processing Credit Request

Where an invoice is received for more than you are prepared to pay. Muli recommends that you approve the full invoice value and at the same time raise credit for the difference. This approach makes Accounts Payable reconciliation much easier. The original invoice would have a folio suffix of 'a' and the credit request a folio 'b'. The Supplier will only be paid the net amount, and reasons for not paying the invoiced value are correctly documented via the created request process.