Supplier Credit is a vital source of working capital, and as such needs to be managed effectively. The Info-Logic Purchase Ledger provides an effective means of accounting for purchases, but also for paying suppliers optimally in order to maximise discount whilst maintaining supplier relations.
In order to exercise total control over cash disbursements, timely, accurate and relevant information is necessary. The System has been designed to grant the User practical and efficient control over this crucial business function. Amongst the benefits to be realised from using the system are:
The System enables the use of multiple payment terms and related settlement discounts so that informed decisions can be made as to when suppliers should be paid. The Cash Commitment report enables the accurate forecasting of cash requirements and thereby improves the cash budgeting process.
The Purchasing function is often centrally controlled in order to maximise volume discounts and simplify payment. The System enables the purchasing function to be performed at any level in the structure so that all the benefits of Group purchasing can be realised if required.
The Purchase Ledger offers different practical methods of paying suppliers. Detailed reports of payments due by payment date are produced for scrutiny before remittance. Payments can be part paid, deferred or manually paid. Supplier payments can be passed automatically to the Cashbook and interfaced into the General Ledger.
Extensive controls have been incorporated into the System to ensure that all data is correctly captured, and that the integrity of the system remains intact at all times.
The System provides on-line access to up-to-date information on all Supplier accounts, transactions, outstanding payments, etc.
THE INFO-LOGIC PURCHASE LEDGER SOLUTION
Fundamental to the Purchase Ledger System is the manner in which the 'payment date' for each invoice is computed and used by the System to provide a unique management tool for the optimisation of payments to suppliers.
In addition to the features expected of a Purchase Ledger, the full-function INFO-LOGIC System offers a number of practical, but less common features:
MULTI-FACETED
Multi-Entity - the System will enable you to define your Entities and maintain a separate Purchase Ledger for each Entity within your organisation.
Multi-Currency - transactions with a Customer may be recorded in any number of currencies - each defined by the User.
Multi-Bank - multiple bank accounts can be managed, with Suppliers being linked to a bank account by their class.
Multi-Control Accounts - Suppliers can be linked to a General Ledger Control Account via their Class.
TRANSACTION PROCESSING
User-defined Transaction Types - All transactions and their accounting effect must be defined by the User in their own terminology.
Transaction Validation - all transactions are validated on-line and session control totals are used to ensure that the information has been correctly and completely entered.
Automatically/Manually Assigned Session Numbers - reference to sessions can be manually entered or automatically assigned by the system.
Session Suspended/Review/Edit/Add Facilities - Sessions may be suspended, reviewed, edited or added to at any point in time until they have been posted.
Automatic Calculation of
the above are calculated from the Suppliers' terms and can be overwritten.
Full General Ledger Allocation - every transaction can be allocated to multiple General Ledger accounts. The system ensures that every allocation does in fact balance.
Tax Analyzed Separately - Full provision is made for the entry and reporting of taxation. A transaction's tax element is posted to a General Ledger Account automatically by the System if required.
SUPPLIER PAYMENTS
The System offers practical methods of paying Suppliers so that settlement discount is maximised subject to cash availability constraints.
The payment date is calculated from either the Supplier invoice date or statement date, selectable by Supplier. Included amongst the many features are:
Progressive Payment Terms and Settlement Discount - three progressive payment terms and related settlement discounts are available. Failure to pay within the first terms period will automatically result in the settlement discount relative to the next terms period being calculated. Depending on cash availability, quality decisions can be made as to whether to action or defer Supplier payments.
Manual Payments - Manual payments to Suppliers can be easily recorded on the Systems with full audit trails being provided.
Part Payments - invoices can be fully or part-paid with the settlement discount being calculated accordingly.
Deferred Payments - invoices can be deferred with the settlement discount being calculated accordingly.
Link to Cashbook - the Supplier payments are automatically passed to the Cashbook for reconciliation to the bank statement.
Flexible General Ledger Interface - the User defined General Ledger interface allows interfacing to multiple Bank and Control Accounts.
Lost Settlement Discount Report - enables the cost of late supplier payments to be accurately measured.
Miscellaneous Supplier - A Supplier master can be created for a one-off payment with the Supplier being deleted at the period end.
Cheque Reversal - an already processed cheque can be reversed with the paid invoices being automatically re-instated.
PARAMETERS
System Generated Numbers - The system can generate and maintain all reference and cheque numbers.
Transaction Types - All transaction are user defined and described.
Supplier Terms - Supplier terms are user defined and can be overridden at transaction capture time.
General Ledger Allocation - A choice of capture screens is available offering both single line and full page input formats.
Re-instated Invoices - A different transaction can be defined for re-instated invoices and credit notes to differentiate them from normal transactions.
ADDITIONAL FUNCTIONALITY
Invoice Number Control - The system prevents duplication of invoices.
Global Payment Defer - In addition to the single payment defer facility, a global defer is available. All payments for any range of suppliers can be deferred(or brought forward) to any future date.
Electronic Payments - Instead of remitting cheques the system can generate payment records which are transmitted directly to the bank.
Powerful MIS System - The creditors information is incorporated into a comprehensive Management Information System which gives easy access to future cash commitments in both summary and detail.
Payment Due Date - And settlement discount due is automatically calculated by the system, but can be manually overridden.
Account Access - Supplier accounts can be accessed by account code or abbreviated name.
Payment Cycle - The payment cycle is flexible allowing payment runs at any time based on user selection criteria. Payments can be part paid, paid in full or withheld.
Prompt Payments - Payments can made immediately when required.
Remittance Run - The remittance run prints cheques if required, remittance advices, a cheque register and cashbook audit trail.
General Ledger Effect - Drill up facilities exist to show the accounting effect of every transaction.
Cheque Search - Supplier cheques can be searched for in the Cashbook by payee name or part thereof.
Paid Invoices - Comprehensive inquiries exists linking cheques to invoices.