AP Invoices can be automatically paid by using the Autopay feature. Autopay can be enabled automatically for Vendors that utilize the Auto-Direct Debit (ADD) or Credit Card Payment Methods, or it can be manually set on each AP Invoice for Vendors with any Payment Method. The Autopay feature will automatically create and apply an AP Payment to the AP Invoice when the invoice is Approved.
Important Note: When this feature is used, ensure the following occur before Approving the Invoice so that the Payment is easily reconciled in Bank Activity:
- One-to-One Relationship - There is a one-to-one relationship between the Invoice and the Payment. Therefore, if an Invoice is $500, the Payment made to the Vendor should be 1 payment of $500 and not 5 payments of $100. I
- Payment Terms - The Payment Terms should be set to 'Due Upon Receipt' and the Due Date should be entered as the current day.
- Applied Credit Memo - A Credit Memo should not be applied to the Invoice. The Credit Memo amount will decrease the amount due but will not be applied until after the Payment has been created for the total amount.
Click here to learn more about these best practices.
Vendor Settings for use with Autopay
Vendors with the 'Auto-Direct Debit' and 'Credit Card' Payment Methods can have Autopay enabled by default on each AP Invoice. To set Autopay to default, open the Vendor record and navigate to the 'Vendor Additional Info' tab.
Set the Payment Method to 'Auto-Direct Debit' or 'Credit Card'. The 'Default Mark as Paid' and 'Use Loc Bank Acct' toggles will appear. Set 'Default Mark as Paid' to 'Yes' (green), and save the record.
Autopay will use the Location's default Bank Account as the source of the AP Payment it creates. If needed, this can be changed to use a different source Bank Account.
To make this change, toggle the 'Use Loc Bank Acct' to 'No' (red), then select the desired source Bank Account. Save the record to complete the change.
Autopay can be used on any AP Invoice, for any Vendor. If the Vendor has the 'Auto-Direct Debit' or 'Credit Card' Payment Method, Autopay can be enabled as the default option on the Vendor record.
Toggle Autopay and Select the Bank Account
Enter the details of the AP Invoice, then below 'Credit Expected', toggle the 'Mark as Paid' toggle to 'Yes' (green). Next, select the Bank Account that will be the source of the funds on the AP Payment.
Approve the AP Invoice to complete the Autopay Process
When the AP Invoice has been approved, an AP Payment will be created and automatically applied to the AP Invoice
- The Location that is set on the AP Payment that is automatically created will be the Default Location on the Bank Account used for the payment. If the Bank Account does not have a Default Location (as it is a non-required field), then the Location that was set on the AP Invoice will be used instead.
- The Date of the AP Payment will reflect the 'Due Date' value on the AP Invoice. In the above example the Due Date is 7/9/2018, and the Date on the AP Payment on the 'Apply' tab is also 7/9/2018.