How To Complete A Payable Charge

What you need to know: 

When you receive a supplier invoice, bill, or unpaid expense that will not be paid right away, it should be recorded as a payable charge. This creates an invoice for the supplier that will be cleared when payment is made. Until then, the expense is posted to Accounts payable, the supplier balance is updated, and the transaction remains available for review and reporting. 

What you need to do: 

• Have your invoice or bill on hand 

• Identify important sections such as the supplier, invoice number, date, payment amount, and tax breakdown. 

How to (Step by Step): 

There are two ways to start a payable charge transaction: 

• Click the orange plus sign (+) and select Payable charge 

  OR 

• Click Purchases from the left menu options, select Transactions, and use the New Transaction drop-down to select Payable charge 

Once the transaction entry window is open: 

1) Use the drop-down menu to choose Supplier.  If your desired supplier does not already exist in your books, click Add new supplier and fill out the details in the slide-out, and click Save. 

• Note: Only First name and Last Name OR Company name is required to be entered, but it is recommended to also check the box so that the contact is both a Supplier and a Customer. 

2) Enter the Date of your transaction by using the calendar or manually entering the day, month, and year. 

• Note: Available credit will indicate if you have a credit balance with a supplier 

3) Add a Payable charge total.   

• Note: Each time you add a new row below, the system will try to balance the transaction by entering the amount.  If you don’t enter an amount, the system will automatically credit your Accounts Payable account to balance the transaction when you save it. 

4) Add a Reference (optional) – This could be an invoice number, receipt number or any other way you want to identify the transaction 

5) If you wish to add Attachments to the transaction, click Add and browse your computer to select a file, then click Open. 

6) Select EX to choose the expense type using the drop-down  

• Note: Typically, a payable charge would be an expense although you may have some situations where you might use A+ (Asset purchase) or C+ (Capital asset purchase) because you are purchasing an asset. 

7) Select an Account using the drop-down menu. 

• Add a Description (optional) – Descriptions can be important in reports; without a good description, some reports won't make a lot of sense. 

• Enter the Amount.  You also have the option to enter the Quantity and Unit price, and the system will then calculate the Amount for you. 

8) Select the Tax option(s) applicable using the drop-down menu (see appendices for descriptions to help you select the best option).   

9) Verify that the subtotal, taxes, and total are correct for the withdrawal.  

10) Click Review to expand and review the balanced debit and credit entries. 

11) Before saving the transaction, you can click Save transaction template to add the transaction to your templates. 

• Tip: Saving a template can speed up future transactions by having the framework of frequent, similar transactions.  Once you have the template, you just use the drop-down menu at the top of a new transaction to bring up the template, then adjust the dates and amounts. 

12) When the transaction shows as Balanced, you can:  

• Click Save and close to record the transaction and take you back to the last screen you were viewing, or: 

• Click Save and new to record the transaction and open a new Payable charge screen. 

Appendices 

Use the following list of tax drop-down options to choose the best option: 

• N – No tax in amount – The system will calculate the appropriate taxes and add them to the transaction as if the tax were not included in the Amount 

• G – GST in amount (PST exempt) - The system will calculate the GST as if it was already included in the Amount and not include any PST 

• G – GST in amount (QST exempt) - The system will calculate the GST as if it was already included in the Amount and not include any QST 

• G – HST in amount - The system will calculate the GST as if it was already included in the Amount 

• B – Both taxes in amount – The system will calculate both taxes as if they were already included in the Amount 

• T – GST in amount (Add PST) - The system will calculate GST as if it was included in the Amount and add PST calculated as if it was not included in the Amount 

• T – GST in amount (Add QST) - The system will calculate GST as if it was included in the Amount and add QST calculated as if it was not included in the Amount 

• P - PST in amount (Add GST) - The system will calculate PST as if it was included in the Amount and add GST calculated as if it was not included in the Amount 

• P - QST in amount (Add GST) - The system will calculate QST as if it was included in the Amount and add GST calculated as if it was not included in the Amount 

• A – Add GST (PST exempt) - The system will calculate and add GST to the transaction line as if the tax were not included in the Amount 

• A – Add GST (QST exempt) - The system will calculate and add GST to the transaction line as if the tax were not included in the Amount 

• U – User entered – no tax in amount – You can manually enter the tax in the appropriate tax box, and it will be added to the total in Amount 

• U – User entered – tax in amount – You can manually enter the tax in the appropriate tax box, and it will not increase the amount of the transaction 

References and Additional Resources 

• How to set up a new customer or supplier 

Still have questions? Contact support  

Contact us at 1-888-667-7893 or email support@fccagexpert.ca if you require additional support. You can find other help options under the Question Mark Icon in the top right of AgExpert Accounting at any time.