Accounts Payable

Entering Invoices

Entering vendor invoices is easy.

The Payables entry form was designed for Developers to ask for information relative to Developers. Invoices relating to Contracts, Purchase Orders and even non-contract or PO invoices (we call “Other”) can be entered from a single form. Data is checked along the way to ensure that only valid data is entered. Once the invoice is saved, you’re done! There are no “Batch” processing routines to run.

Prevents entry of duplicate invoice numbers for a given vendor.

All too often, vendors send copies of an original invoice. CONTRACK™ prevents these from being entered more than once by simply not allowing the same invoice number to be used for a given vendor and will tell you right away if the invoice number is a duplicate.

Prevents overpayments against Contracts or Purchase Orders.

You don’t want to pay someone more than you owe him, or her. By tracking the various commitments (Contracts, Contract Change Orders, PO’s and PO Changes) the CONTRACK™ system knows how much can be invoiced on a given line item of a Contract or PO. When entering an invoice against a Contract or PO, the system will not allow the user to exceed the amount owing on the selected line item.

Tracks each subcontractor’s General Liability and Workers Compensation insurance lapse dates to prevent unnecessary liability.

The system will track these insurance dates as well as any “User defined” dates as a mechanism to control vendors. This function is integrated to the Accounts Payable function such that various control levels can be applied. From no control to providing an “Alert” message to Preventing an invoice from being entered to a vendor who has lapsed on a particular item, the system gives you the flexibility manage an important element of your business.

And, the “Single Fund Payables” function makes entering invoices that relate to multiple companies easy. This unique capability allows users to enter an invoice to one company on behalf of other companies with the system creating the inter-company transactions. The result is a single check out of the “Primary” entity.

The nature of the Real Estate Development business is that individual projects will be set up as separate legal entities. CONTRACK™ was built to handle multiple companies and an excellent example of this is its ability to handle “Inter-Company” transactions, (i.e. individual transactions that can apply to multiple entities). What’s more is that entering transactions across companies is very easy to do but also very well controlled if you don’t want users to do it.

Using the “Single Fund Payable” approach, the invoice is entered to one company, say the “Parent” entity, charging the “Inter-company receivable” accounts of the respective subsidiaries and crediting the “Accounts Payable” account of the Parent. At the same time, the desired expense accounts will be charged at the “Subsidiary” level and the respective Inter-Company liability accounts, to the Parent, credited. In essence, two transactions are created, one at the “Parent” level and one at the “Subsidiary” level. Only the “Parent” transaction, crediting Accounts Payable, can be used to generate a check. A single check will be printed from the “Parent” entity even though many companies were charged. This function is ideal for recording and paying invoices that apply to more than one entity.

Using the “Single Fund Disbursement” approach, the invoice is entered to the “Subsidiary” and simply paid out of the “Parent” company’s bank account. In this case, two disbursement entries will be created. The first charging the “Accounts Payable” account of the subsidiary and the second crediting the “Inter-Company liability” account to the Parent. At the same time, a disbursement transaction will be created on the Parent entity, charging the “Inter-Company Receivable” account of the subsidiary and crediting the respective cash account from which the funds were paid. This function is ideal for new entities for which a bank account has not yet been established.

The system easily handles “Joint” checks.

Joint checks are a reality of the Real Estate Development industry but most systems don’t handle them very well. CONTRACK™ allows the user to simply enter the name of the “Joint Payee” when entering an invoice. No special vendor setup is required. If a “Joint Payee” is entered with an invoice, the check will be made payable to the primary vendor and the “Joint Payee” identified.

Provides immediate on-screen inquiry of vendor invoices, which check, if any paid the invoice and if the check has cleared the bank.

Imagine, the vendor’s on the phone asking about his payment. With a couple of mouse clicks, you can see the particular invoice, or every invoice ever entered to CONTRACK™ on his behalf. If it’s been paid, you’ll see it. You’ll see the date it was paid and as mentioned above, with one more mouse click, you see if it cleared the bank.

Printing Checks

Allows an unlimited number of bank accounts.

The need to handle multiple companies means you need to handle multiple bank accounts as well. Many of our clients have multiple bank accounts per company. There’s really no limit and setting up a new bank account can be done in seconds.

With the Laser/MICR check printing module, printing to blank check stock is easy and ideal when multiple bank accounts are used.

If you have even a few bank accounts, the Laser/MICR module can help. Your cost per check should be lower and security is greatly enhanced as you won’t have pre-printed checks lying around. And, you won’t ever print checks on the wrong check stock ever again!

The “Void check” function is exceptional. Invoices on a voided check are reversed rather than deleted so prior period balances aren’t disturbed.

This is critical as many systems today simply delete the check to be voided. By creating reversing transactions, CONTRACK™ preserves an audit trail of what happened and properly accounts for the voided check in a valid open period.

Invoices on a voided check can automatically be reinstated for payment.

The last thing you want to do is to have to re-enter invoices on a check that has been voided. Why should you? The system knows everything it needs to know. By clicking a single box on the Void check form, the invoices will be “Reinstated.”

Because the same invoice number cannot be used for a given vendor, the system creates a new invoice number with an appendage to indicate that it is a “Reinstated” invoice. This also allows the user to see the progression of the void process, especially if the same item is voided multiple times. The appendage is the letter “C” (Correction) plus a number to indicate the number of times the invoice has been reinstated. After nine times, the system begins an automatic job search for a new accounts payable person.