Fusion Financial Configuration – Bills Payables

Title : Fusion Financial Configuration – Bills Payables

Overview: 

Future dated payments or Bills Payable in Fusion Application is used to control the timing of your payments, and therefore control your cash flow. A future dated payment helps bank to disburse funds to your supplier’s bank on a specific date which is known as the maturity date. For future dated payments, Payables creates journal entries in two stages, first to recognize the payment , and the second to recognize the clearing of the payment.

Configuration: 

1. Create Payment Method for Bills Payables
2. Set Bills Payable Account at Common Options for Payables and Procurement
3. Set Bills Payable A/C at supplier site assignment
4. Assign Payment Method to Bank
5. Create AP Invoice with Bills Payable Payment Method, Validate & Accounted
6. Create Payment
7. Manage Payment and verity the status of payment
8. Run “Update Matured Bills Payable Status” Program and check the payment status
9. Run ” Create Accounting” Program
10. Accounting Impact

 

1. Create Payment Method for Bills Payables

Navigation : Setup and Maintenance—> Manage Payment Method

2. Set Bills Payable Account at Common Options for Payables and Procurement

Navigation : Setup and Maintenance—> Manage Common Options for Payables and Procurement

3. Set Bills Payable A/C at supplier site assignment

Navigation : Procurement –> Suppliers–>Manage Suppliers –> Site–> Site Assignment

4. Assign Bills Payable Payment Method to Bank

Navigation: Setup and Maintenance–> Bank Accounts

 5. Create AP Invoice with Bills Payable Payment Method

Navigation : Payables –> Invoices –> Create Invoice

6. Create Payment and apply to invoice

Navigation : Payables –> Payment –> Create Payment

Set maturity date for Payment

Apply payment to invoice

7. Manage Payment and verity the status of payment

Navigation: Payables–> Payments–>Manage Payments

8. Run “Update Matured Bills Payable Status” Program and check the payment status

Navigation: Navigator–> Tools–> Scheduled Process

9. Run ” Create Accounting” Program

Navigation: Payables–> Invoices–> Create Accounting

Accounting Impact for Bills Payable Functionality:

1. When Invoice is created

Item Expenses A/C      Dr

AP Liability A/C                 Cr

2. When Payment is issued/created against Invoice

                 Payment status is Issued

AP Liability A/C           Dr

Bills Payable A/C              Cr

3. When payment is matured

               Payment status is Negotiated

Bills Payable A/C        Dr

Cash Clearing  A/C            Cr

4. When Payment is Reconciled in Cash Management

                Payment status is Cleared

Cash Clearing  A/C       Dr

Cash A/C                Cr