PAY WHEN PAID - Special Topic AP-12

With Costpoint's pay-when-paid functionality, you can hold payments for a specified voucher until you have billed and received payments from a selected customer and/or project. Using the setup features for Costpoint Accounts Payable and the setup features in the Projects folder, you can enter one or more accounts payable vouchers with the status of "pay when paid." These vouchers will not be released for payment until you have billed and posted the appropriate cash receipt from your designated pay-when-paid customer.

The pay-when-paid function will create a link between the items you have entered as A/P vouchers and the voucher amounts that you have billed, when both share the same project name. The pay-when-paid function uses Costpoint Projects, Billing, Accounts Payable, and Accounts Receivable. We suggest that you meet with the employees of your company that are responsible for these other sections to ensure the pay-when-paid functions will work together correctly.

1. Begin in the Project Account Groups screen in Costpoint Project Setup. Review settings to ensure the project account that will be used in your customer bill has been selected as either labor or non-labor. Labor and non-labor items will allow the account information to be stored in the Open Billing Detail table.

2. Go to the Maintain Project Master screen in Costpoint Project Setup. Retrieve the project you will use for your pay-when-paid bill. Select the Billable Project checkbox for this project.

3. While you are in the Maintain Project Master screen, open the Project Billing Info subtask by selecting the Billing Info pushbutton, or exit the Maintain Project Master screen and enter the Project Billing Info screen, also in Costpoint Project Setup. The Project Billing Info screen will show which customer(s) will be billed on the project. Select the Other Info pushbutton in the Project Billing Info screen to open the Other Info subtask and select the Pay When Paid checkbox for this project.

4. For A/P vendors that are subject to pay-when-paid, go to the Maintain Vendors screen and open the Defaults subtask. Select the Pay When Paid checkbox.
   
   This will NOT set previous vouchers for this vendor to pay-when-paid status, but vouchers entered after this screen has been updated will default to pay-when-paid status. Individual vouchers for a pay-when-paid vendor can be disabled for pay-when-paid status by unchecking the Pay When Paid checkbox in the Header Info subtask of the Enter A/P Vouchers screen. To review the pay-when-paid status of all your vendors, print a report from the Print Vendor Information Reports screen.

5. Enter and post an A/P voucher for the vendor in the Enter A/P Vouchers screen. The Header Info subtask on this screen should have the Pay When Paid checkbox selected. At least one line of this voucher must contain a billable project that has been flagged as pay-when-paid.
   
   Hint:  To enter any non-pay-when-paid items for this vendor, use a different voucher number and uncheck the Pay When Paid checkbox in the Header Info subtask of the Enter A/P Vouchers screen.

6. To review the pay-when-paid status of a voucher, go to the Edit Payment Status by Vendor screen (or Edit Payment Status by AP Account screen) and use Find or Query to retrieve the payable information for your pay-when-paid vendor (or A/P account). Enter the Pay When Paid subtask and review the pay-when-paid item(s). If the PAYWPD pushbutton is disabled (grayed-out), there are no pay-when-paid transactions for this vendor or A/P Account.

7. When preparing to pay your A/P vouchers, first run the Update Pay When Paid Voucher History screen to retrieve those pay-when-paid items that are ready to be paid. You must then select "Validate Pay When Paid" from the Options drop-down box in the Select Vouchers screen and run this process before actually selecting vouchers.
   
   Then select vouchers for payment via the Select Vouchers screen. Always run the Update Pay When Paid Voucher History screen before the Select Vouchers procedure each time you prepare A/P payments. The Update Pay When Paid Voucher history process will go to Costpoint Billing and Accounts Payable to see whether the pay-when-paid vouchers have been billed. It will also look in Cash Receipts to determine whether any invoice that has pay-when-paid vouchers has received any posted cash payments.
   
   Once a pay-when-paid voucher has been billed (the total amount of the pay-when-paid voucher) and these bills have been paid in total (via the Post Cash Receipts screen in Costpoint Accounts Receivable), the pay-when-paid voucher can then be selected for payment.
   
   The Select Vouchers screen will then include all vouchers on Hold that meet the criteria you entered for payment.

Note:  Any partial payments made to your pay-when-paid bill will NOT release the A/P voucher, but you are always free to override the pay-when-paid function in the Edit Payment Status by Vendor screen (or Edit Payment Status by A/P Account screen) by changing the Status field from PAYWPD to PAY. The system will issue a warning when you save, but you will be allowed to override the pay-when-paid function.