Accounts Payable, A/P Checks vs. Direct Checks
First off le me say that, in order to use the Accounts Payable module, you have to open a checking account in flowerSoft.
This could be your real checking account or a fictitious one, but you have to have one.
Perhaps first I should explain the difference between A/P checks and Direct checks.
An A/P check is the type of check normally used to pay invoices from vendors who do not require payment on delivery. With this type of check can gather invoices from a vendor and pay all of them with 1 check st the end of the month or whenever they are due.
Direct checks is the type of check most florists use. It is a check that you issue to a vendor on the spot, such as the UPS driver when he or she delivers something cod, or a flower delivery driver when flowers are delivered.
With an A/P check, you need to go through certain procedures before the invoices are paid.
You should go through almost every single step in the Payment Procedures menu.
I say almost, because you obviously do not have to use option E if you do not want to; and you only use option F or option G, not both.
As you can imagine this is a tedious and time-consuming procedure that is only used by larger florist that have lots of bills and probably a bookkeeper as a member of the staff.
Most florists, like I previously said, use direct checks for everything.
A direct check is almost like writing a personal check from your checking account. Unlike A/P checks, it does not require that invoices be entered in the A/P module.
A direct check does not have to be printed but you must give it a check number.
So, if direct checks are so easy to use, why should anyone use A/P checks?
Good question, but I have some good answers.
Direct checks allow you to enter a memo, so you can indicate there which invoices you are paying and it allows you to enter an expense category.
Actually, it will also let you split the invoice into several expense categories but you have to have a vendor code specified. So the check above could not be split into several expense categories.
Unless, of course, you add a vendor code…
After doing, you can then split the expenses…
If you do not want to post a certain amount because you paid A/P invoices with a credit card or a bank draft and the check is just paying the credit card bill, you can enter “NONE” as the expense category and flowerSoft will not post that amount. Remember that the A/P invoices are posting those expenses, so if the direct check posts to the same expense categories, you’ll be posting twice.
So that is pretty good for most florists but some of you want to keep track of more than just expenses.
Some want to keep track of how much they paid for an item, who has the lowest price on an item, how much money you will owe vendors at the end of the month, etc. etc.
If you want to be able to do those things, you must use the A/P procedures and checks.
Like I said, A/P checks and the A/P procedures will take more time and effort on your part but it provides more information on your expenses.
So the bottom line is this, how much time do you have available to spend on the A/P module and do you need the additional information it provides.
The answer is up to you.