Dynamics GP – Removing Paid Transactions
Posted Tuesday, November 15th, 2011
If you work with Dynamics GP Payables Management (PM) and Receivables Management (RM) modules you will notice a difference between how fully paid transactions are handled.
- In Payables Management a vendor invoice that you have paid in full will be automatically transferred to History. The Dynamics GP inquiry window will show “HIST”.
- In Receivables Management the Sales Invoice that you have received full payment and have applied the full amount of the payment to the Sales Invoice is still in “OPEN” status.
Why does Dynamics GP Receivables Management handle fully paid documents differently?
Well…in Payables Management (PM) when you fully pay an invoice you have in essence completed the transaction’s cycle. Dynamics GP considers the accounting process complete and moves the invoice and payment to “History.”
In Receivables Management you have the capability to send a “Statement” to the customer. The print statements window is located (Microsoft Dynamics GP>>Tools>>Routines>>Sales>>Statements). Statements pick up the “OPEN” transactions even if fully paid thus allowing the customer see that you have received payment and have applied it to the invoices. In most cases Customers use your statement(s) as a comparison to ensure invoices and payments are applied correctly.
What’s does that mean to Dynamics GP and me? Good Question. In Payables Management (PM) you should have no worries about how Dynamics GP handles the transactions. Pointing out the difference between the two will cause you less confusion if and when you compare the transaction process between the two modules. However, in Receivables Management (RM) there are a few areas that should be noted.
(1) The Aged Trial Balance Report will continue to show the fully paid transaction as “OPEN” as well as the associated payments. This could at some point substancially lengthen your Aged Trial Balance Report.
(2) The Apply Sales Documents window will give you the ability to unmark applied documents. This could potentially become an accounting issue if items are unmarked after customer statements have been sent out.
How do I move the Fully Applied “OPEN” Receivables Management transactions to “HISTORY” ?
There is a process that you can run that will move the “OPEN” transactions to “HISTORY.” It is called “Paid Sales Transaction Removal.” Go to Microsoft Dynamics (GP>>Tools>>Routines>>Sales>>Paid Transaction Removal) NOTE: “Removal” DOES NOT mean Delete this process only moves the transactions from OPEN status to HISTORY. Think of it as storing old items. You pack them up in a box, label it and send it to storage. If you need those items again you can easily go to the storage closet and retrieve them. As in case with Dynamics GP the transactions can still be viewed on the “Inquiry” window the “Origin” field will say “HIST” instead of “OPEN.” NOTE: There is not an “UNDO” button and it is recommended to make a backup of your database before you run this process.
From the “Paid Sales Transaction Removal” window you have several options.
If you click the drop down on the “Customers:” field you will have options “by Customer ID,” “by Name” and you will have the option to use the “User Defined Fields” that you that you can setup. We will show you that momentarily but for now notice “by Type”.
The “by Type” option we setup on (Microsoft Dynamics GP>>Tools>>Setup>>Sales>>Receivable | click the Options button. See the “User Defined 1″ field. As we will see next this change will be reflected on the Customer’s Card enabling us to track additional Customer information.
See Customer Card below. (Cards>>Sales>>Customer). “User Defined 1″ is labeled “Type.”
Now back to the “Sales Paid Transaction Removal” window below. If you have information for the customer in this field you can use the “From” and “To” to select a range of customers. You also have the ability to select a range using “Class ID” if you are using them on your Customer Card.
The rest of the window is pretty intuitive with the exceptions of the “Cut Off dates” and “Balance Forward Consolidation” which we will explain. But if you need to understand the fields better you always have the “Help” button (the blue question mark) in the lower left corner of the window.
There are two “Cut Off Dates”
You can specify separate cutoff dates for checks because you can remove transactions, such as invoices and NSF charges, as soon as they’re fully paid. Checks are given a separate cutoff date so you can be sure they’ve cleared the bank before you remove them.
Balance Forward Consolidation
If “Balance Forward Consolidation” is marked all documents for the customer are summarized and moved from the current aging period to the non-current aging period. A Balance Forward Consolidation Register is printed after the consolidation process is complete.
Process
Removes the range of paid transactions you selected. The Paid Transaction Removal Report is printed if you select to print the report.
When should I run the “Sales Paid Transaction Removal” process???
TO Remove Paid Sales Transactions or NOT to Remove Paid Sales Transactions…That is the question?
If you are printing statements for your customers this process is best run AFTER you have printed and sent out your statments. Remember Dynamics GP statements will only pick up the “OPEN” transactions. Once the “Sales Paid Transaction Removal” is run the Sales Transactions that are fully applied are now in “HISTORY.” This is an irreversable event. Backup your database please.
It is recommended to run this process at month end after you have printed your statements. However, there are some clients that run the process once a quarter or year depending on the sales transaction volume. Even others have never run the process but it is recommended that they do so.
Tags: Dynamics GP Paid Sales Transaction Removal
Posted in AP, Dynamics GP, Purchasing, Sales
Amy Walsh
Amy Walsh is a consultant with I.B.I.S., Inc. and is a Microsoft Certified Business Management Solutions Professional. She is a graduate of Mercer University with a concentration in Accounting and Finance. She has over 15 years experience working with domestic and international enterprises ranging from start-up to established global B2B companies.
With her background in accounting / finance alongside working with Microsoft Dynamics GP as both end user and consultant allows her articulate connectivity into the world of Microsoft Dynamics GP. Her goal is to help businesses succeed in their endeavors through process streamlining, education and finding the right ERP solution.
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