RIMAS for UNIX Software Installation

To: All Users of SLG

From: The SHARED LOGIC Group, Inc.

Re: Interface from A/P to A/R

Date: February 6, 2002

"Shared Logic has designed and programmed an interface from Accounts Payable to Accounts Receivable. We determined that this would be a significant labor saving feature in these times of lower material value and higher transportation (fuel) cost.

It works like this:

1. Transactions are entered into A/P without regard to the creation of "negative" balances on vendor accounts. This means that you can enter material (including no value) purchases, trip charges, container charges, etc. directly into A/P. Some of you have been entering the material purchases into A/P, but separating out the charges for entry into A/R. This labor intensive, and potentially error prone, split entry is no longer necessary.

2. When you want to transfer A/P transactions to A/R, you start by using the already familiar check writing programs, including

a. The Pre-Check Writing report, which will report all items eligible for payment.

b. The Item Payment Selections or Deferral program, which operates as before with one new feature. When either of these programs encounter a vendor with a selected group of items that net to a negative amount, a new question is asked of the operator. This new question allows the operator to indicate that all items that net to a negative amount are to be transferred to A/R in a later step.

Note that you may freely intermingle item selections such that some vendors will receive checks, while others will be transferred to A/R. Further, only those items that you select will appear on checks, or be transferred to A/R, meaning that you can pay or transfer some items while leaving others in A/P for future processing (just like you have been able to do with checks all along).

c. After running the selections or deferral program, you can still re-run the Pre-Check Writing Report. This time, it will actually print two reports. The first will be the A/P list of items to be paid by check. The second report will be a new listing of all A/P items that will be transferred to A/R.

d. The check writing process continues as it always has, including the ability to change selections for both checks and transfers up to the time you run the update.

d. A new update program has been added, which is run immediately before the Update Paid Items program. This new update program performs these functions:

1) A new item is created in A/P in the amount of the items to be transferred to A/R. This automatically reverses the items from A/P. This item is also created with a "manual check" status so that you do not have to later remove it from A/P. Further, this item will appear on your next A/P Daily Items Journal under batch "_APAR". This batch will net to the amount to be transferred to A/R.

2) All of the original selected A/P items are also changed to "manual check" status, so that they do not have to be removed later. All of these items, plus the new reversing item created above, will appear on your next Manual Check Register. This check register will net to zero (0).

3) A Manual Invoice is created in the Shipments/Manual Invoicing module for each customer in A/R that receives the transferred items from A/P. This manual invoice will consist of a header, plus one detail line for each A/P item that was transferred. Sufficient information is created on the invoice detail line to reference back to the original A/P transaction and to bill the customer (including ticket#, date, commodity, description, weight, price, etc.)

e. Finally in A/P, the Update Paid Items is run to complete the check writing and transfer process.

g. The standard Manual Invoice printing, reporting and posting programs are used to prepare and finalize the invoice to be sent to the customer.

3. Some basic setup is required for this to function:

a. A new field has been added to the Vendor Master to hold the "Invoice Customer" cross-reference. This is necessary only on vendors used in the transfer to A/R process.

b. Bank code "AR" is used on the items created with/changed to the manual check status.

If you want this new capability, and have a software update agreement in effect, the only additional cost will be for customization to match your programs and installation assistance. If you do not have an update agreement, you may still have this new feature for a one-time license fee. In either case, please contact Shared Logic to arrange for delivery."