Liability Accounts Tab of Accounts Payable Settings

Use this tab to define the vendor types and liability codes to automate AP voucher processing. You set up vendor types to distinguish groups of vendors, such as consultants and trade. You then set up liability codes and associate each code with a general ledger liability account and vendor type.

When you enter a voucher in AP Vouchers Transaction Entry, the associated liability code for the vendor type that is assigned to a vendor is automatically entered in the AP Liability field on the AP Voucher form. The general ledger account that is associated with the liability code receives the implicit credit entry when you post the AP voucher.

Global Liability Account Settings

When you use multiple companies, the Global Liability Account Settings options displays with two grids: Vendor Type and Liability Codes. The Vendor Types grid applies to all companies and the Liability Codes grid only applies to the active company.

If you have only one company in Vantagepoint, only the Vendor Type grid displays on this tab.

Vendor Type Grid

Use the Vendor Type grid to set up vendor types. Vendor types enable you to identify and group vendors so they can be associated with liability codes to automate transaction postings for AP vouchers.

Field	Description
Type	Enter a code by which to identify this vendor type throughout Vantagepoint.
Description	Enter a description for this vendor type. This description appears in place of the vendor type code in all lookups and on reports.
+ Add Vendor Type	Click this option to add a new vendor type to the grid.

Liability Codes Grid

When you use multiple companies, the Liability Codes grid displays and its contents only apply to the active company.

Field	Description
Code	Enter a code to identify this liability code, using up to 10 characters of free text. For example, you can define your accounts payable consultant account as Consult.
Description	Enter a description for the liability code. The description is used in place of the code on accounts payable reports. If you use Organization Reporting, you can include the name of the organization in the description.
Account	Enter the account or select an account on the Account lookup. The account that you specify will receive the implicit posting when you use this liability code in transaction entry/posting routines.
Account Description	When you enter the account number, the account description displays automatically.
Organization	If you are using the Organization Reporting application and are maintaining separate balance sheets by company, specify the organization code to which vouchers using this liability code will post. You can enter an organization in this field or click and select an organization on the Organization lookup. You can post the accounts payable credit to the same organization as the debit (in other words, the organization to which the project belongs). If you want to do this, leave the Organization field blank. If you use a liability code that defines an organization when entering a voucher, the debit and credit may post to separate organizations. If this situation occurs, a tolerance appears if you are maintaining separate balance sheets. However, a consolidated balance sheet should not show a tolerance. To avoid the possibility of a tolerance, enter your vouchers in batches according to the organization of the debit. If you cannot enter your vouchers in batches according to the organization of the debit, you should enter the vouchers using a liability code that does not define an organization. In this situation, the debit and credit amounts are posted to the organization associated with the project of the debit.
+Add Liability Code	Click this option to add a new liability code for the company.