1. Vendors and Purchases Controlled Online Accounting

2. Vendors and Purchases Main Page Clicking the “Purchases” tab displays the Vendors and Purchases Main Page. This page provides navigation to all forms and functionality related to vendors, purchases, vendor invoices, and accounts payable. Normal (daily) purchasing activities include creating, editing and approving vendor invoices, purchase orders, and recording vendor payments. Reports of purchases and accounts payable are designed to aid in working capital management and expense analysis. Existing approved vendor invoices can be voided or adjusted only by users granted the Purchase Approval permission, and such changes are recorded in the general ledger, thus preserving an audit trail and the integrity of the accounting transactions.

3. Record Vendor Invoices Recording a vendor invoice adds expenses to the income statement and creates an accounts payable to the vendor. Select the vendor Select a preset expense Item or the appropriate expense account Select a preset expense Item or the appropriate expense account Select the approver for this invoice (this can be the same person entering the details, if they have been granted the Purchase Approval permission) Select the approver for this invoice (this can be the same person entering the details, if they have been granted the Purchase Approval permission) Enter the description, quantity and price per unit for each item Users can be given only the ability to create and/or approve vendor invoices, making it easy to delegate the recording and/or approval of vendor invoices to purchasing or operational personnel. Users can also upload a pdf version of the vendor invoice, supporting a paperless process. Invoices can be associated with specific departments and the invoice date can be modified to record expenses from prior periods.

4. Create a Purchase Order Purchase Orders can be used to authorize expenditures before the vendor invoice is received. If an approved Purchase Order exists, an invoice can be recorded and paid without additional approval. For example, rent payments for the upcoming year can be approved in advance, and paid when due without seeking additional approval. Users can be given only the ability to create and/or approve purchase orders, making it easy to delegate the recording and/or approval of purchase orders to purchasing or operational personnel. Purchase orders can be associated with specific departments and the effective date can be modified to record expenses incurred in prior periods.

5. Edit and Approve Purchases Saved invoices, purchase orders and employee expenses submitted for approval are accessed from the “Edit/Approve” tab. Vendor invoices, purchase orders and employee expenses must be approved before the payment can be recorded, and before they have an impact on the company’s expenses. Saved (not submitted or approved) invoices can be accessed by anyone with Purchase Entry or Purchase Approval permission.

6. Create and Edit Vendors Users with permission to Add/Modify Vendors can create or modify vendor details from the “New Vendor” and “Modify Vendor” tabs. Accounting best practices dictate that the entry and modification of vendor information should be performed by someone not involved in the payment or purchase approval process, thus protecting the company from fraud. SafeBooks supports this best practice by allowing users to be set up with the ability to modify vendors without also giving them the ability to enter or approve purchases, or to record payments (Quickbooks Online does not do this). Select the vendor Select the payment terms (this determines when vendor balances are due and payable) Select the payment terms (this determines when vendor balances are due and payable) Optional information for vendors can be stored to aid in payment or to identify independent contractors providing services that quality for IRS form 1099 reporting.

7. Record Vendor Payments Users with permission to Apply Vendor Payments can do so from the “Payments” tab. Enter the payment amount Enter the payment date Select the appropriate cash account Payments can be recorded as being made from one of many bank accounts. Partial payments can be recorded, resulting in a reduced ‘Unpaid Amount’ remaining outstanding.