Create Corporate Accounts Payable Billbacks


This process reviews the different options you have for collecting monies due your company from the various clients you manage. There are basically two ways to collect the funds: 1) enter the management fees into the recurring AP invoice entry screen so that the invoices are created automatically each month, and then enter supplies and other charges manually through the A/P Invoice Entry screen, or 2) use the corporate Accounts Receivable menu (Corporate A/P Billbacks) to automatically create AP invoices, automatically post the AR charges on your corporate Accounts Receivable system, and automatically post the payment, keeping track of the receivables due your company by the various clients.

To use option number 2 requires that you keep your corporate books on the Advantos Enterprise software application. It has its advantages, however, in that most of the postings are done automatically, you can easily keep track of your company receivables, and your company accounting process is now the same as all the other processes you use for the accounting on the rest of your clients. For example, printing checks for your company are now the same as the process you use for your clients. You are now using only one software product and this process is now fully integrated and much more efficient than using two software products ? ours for all your clients and another one for your company. Further, you can restrict access to corporate information to certain selected users, maintaining the confidentiality of your corporate records.

Steps for Corporate A/P Billbacks

In order to use the more efficient billback process, certain steps need to be taken:

  1. Make sure you have an AP vendor number created for your company.
  2. Make sure this vendor number is entered in Corporate Data configuration file, as seen below.
  3. Each of your clients should have an AP vendor number. Use this same number to create an AR client number. In the example below, AP vendor 605 (Lakeway Ridge) also has an AR Customer 605.

  4. If the software is going to automatically create an AR invoice on your company for each AP check paid from your clients to you, it needs to know what income account to use when it creates these AR invoices. Check with your Advantos representative concerning how to map this information.

Steps to Take for Management Fee Bill Backs

Most management companies collect their management fees in advance of the end of the month in which fees are earned. For example, they might collect their management fees during the first week in May for the month of May. If this is the case, your steps should be as follows:

  1. Make sure your AP and AR modules are in the current month. In this example, in the month of May.
  2. Calculate the additional monthly charges due your company for the previous month, in this example, for the month of April. This will include supply charges, non-contract additional fees or any other fees due your company by your clients for the previous month.
  3. Enter these additional charges through the AP from your clients to your company.
  4. Go to Accounts Receivable/End of Month/Create Special EOM Charges. This process calculates the monthly management fees due your company and creates an invoice to your company for the management fee as well as a paper invoice for each client and for ALL charges (supplies, management fee etc.) due your company.
  5. Create a cash requirement report from all your clients on all invoices due your company. This should now include all management fees for the current month plus all additional charges due for the previous month.
  6. Review and pay these invoices.
  7. Go to Accounts Receivable/End of Month/Create Auto Charges and run it. This 1) creates corporate AR invoices for all AP invoices paid by clients to you in the current AP processing period, and 2) creates pre-deposit AR receipts for all AP invoices paid in the current AP period. Make sure you use the same date as the date you ran the checks in #6 above.
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