The GM-X Accounts Payable subsystem handles the processing, payment and clearing of vendor invoices, credit notes and debit notes.
The Accounts Payable capabilities of most ERP systems on the market today were designed and built years ago, before the proliferation of myriad payment methods available to businesses today throughout the world. Enterprises which rely on legacy Accounts Payable applications are unable to improve their cash flow positions, or manage their cash resources as effectively as they could, because their current systems obstruct them from taking advantage of the speed, flexibility and low cost that modern payment technologies deliver. The GM-X Accounts Payable subsystem, having been designed and built with 21st Century needs and technologies in mind, allows enterprises to overcome the limitations of their legacy ERP systems and reap these benefits.
Processing of Vendor Invoices, Credit Notes and Debit Notes
- Maintains and tracks supplier invoices and details for goods and services in functional currency as well as foreign currency, if applicable, together with general ledger account distributions
- Fully integrated with GM-X Order and Shipment subsystems for 3-way matching between invoice, purchase order and goods receipt
- Maintains supplier invoice date and tax date
- Supports multiple user-defined terms of trade for supplier invoices, including payment due days and early payment discount days
- Allows terms of trade for invoices to be linked to individual supplier invoices or invoice details
- Supports multiple user-defined supplier invoicing roles such as data entry clerk, approver, receiver
- Identifies respective roles of an invoice’s issuing and receiving parties
- Supports supplier invoice statuses such as pending, released for approval, approved for payment (at next cycle, or at a later time), on hold, paid, rejected
- Workflow-driven review and approval processes for supplier invoices, credit notes and debit notes using GM-X Alert and Workflow subsystems
- Automatically tracks the status history for each supplier invoice, credit notes and debit note
- Maintains current settlement status of supplier invoices, credit notes and debit notes
- Fully integrated with the GM-X General Ledger, Blockchain and Audit subsystems to automatically post invoices, credit notes, debit notes and write-offs to each fiscal period
- Online enquiry and summarization of invoices, credit notes and debit notes for a specific supplier
Payment Processing
- Generates and processes payment batches whenever required
- Automatically proposes the payment of open supplier invoices and clearing of open debit and credit notes for each batch according to the relevant terms of trade, with option to override invoices, payment dates, amounts and financial discounts
- Separate payment batches are created for each company, bursar, payment method, remit-from financial account and payment file format, to accommodate their unique preparation requirements,
- Option to automatically clear open invoices, credit notes and debit notes on a first-in-first-out (FIFO) basis for partial payments, and payments on account, up to but not exceeding the cash available
- Option to automatically and partially clear open invoices, credit notes and debit notes on a pro-rata basis for partial payments, and payments on account
- Option to enter individual payments, before or after the fact
- Manages cash purchases and prepayments, with automated clearing of open supplier prepayment balances
- Allows payment of multiple supplier invoices from a single payment
- Supports supplier payment statuses such as pending, released for approval, approved for payment, in preparation, dispatched, reconciled, void, rejected
- Automatically tracks the status history for each payment
- Workflow-driven review and approval processes for supplier invoices and payments using GM-X Alert and Workflow subsystems
- Supports income tax withholding from supplier payments when required
- Prepares electronic disbursements as well as paper checks
- Available electronic payment methods include e-check, bill pay service, direct deposit or ACH, wire transfer, credit or debit card, payment service provider, mobile wallet, cryptocurrency or cash
- Prepares Remittance Advices (PDF) which can be sent to suppliers automatically by email, or printed for mailing
- Maintains average days to pay by supplier
- Bank statement reconciliation and reporting
- Revaluation of foreign currency invoices at current spot rates of exchange
- Automates retrieval of current spot rates from any standards-compliant currency information service
- Automatic reconciliation of unrealized and realized foreign currency gains and losses upon full or partial payment
- Automatic reconciliation of accrued input VAT liabilities and reclaimable input VAT amounts due from tax authorities
- Fully integrated with the GM-X General Ledger, Blockchain and Audit subsystems to automatically post payments and clearings to each fiscal period
- Online enquiry and summarization of payments made to a specific supplier
- Electronic 1099 reporting (United States)
Organizational Setup
- Option to specify default balance sheet accounts for bank accounts, vendor deposits, asset acquisitions, inventories, work in process (WIP), trade payables, value-added taxes (VAT) or sales tax payable, input VAT or sales tax accrued and accrued expenses at the company level
- Option to specify balance sheet accounts for inventories and work in process (WIP) by product category
- Option to specify default income or expense accounts for cost of goods sold (COGS), purchase price variances (PPV), recoverable VAT, direct and indirect labor, reimbursable expenses, employee expense claims (direct and indirect staff), and commissions and fees at the company level
- Option to specify income and expense accounts for COGS, PPV, direct and indirect labor, discounts and allowances taken, surcharges (including freight and insurance), reimbursable expenses and employee expense claims (direct and indirect staff) by product category
- Option to specify income or expense accounts for financial discounts offered and taken upon payment to suppliers at the company level
- Option to specify income or expense accounts for unrealized as well as realized foreign exchange gains and losses, at the company level
Financial Account Setup
- Financial accounts may be current/checking or savings accounts held with commercial banks, credit cards or bank lines of credit, cryptocurrency accounts or cash vaults
- May be denominated in any currency (functional or foreign)
- Ownership of each financial account (or liability to repay a credit issuer) is assigned to a specific company
- Maintains commercial banks and other financial account custodians as organizations or persons in the GM-X Party subsystem
- Option to allow or disallow payment by credit or debit card from each financial account
- Option to allow or disallow electronic funds transfers (direct deposits or ACH payments) from each financial account
- Option to specify the clearing type, routing number, SWIFT code and/or account number for each financial account
- Option to specify if a financial account receives credits by way of an intermediary bank, and to specify the intermediary’s clearing type, routing number and/or SWIFT code
- Clearing types must be specified when electronic funds transfers are allowed and are further validated by currency
- If specified, the number of digits in routing numbers are validated against the specified clearing types
- Option to specify the balance sheet account for each financial account
Vendor Setup
- Maintains suppliers as organizations or persons in the GM-X Party subsystem
- Option to create templates having default balance sheet, income and expense account distributions, and assign each template to one or more suppliers
- Different templates may be assigned to a supplier for invoices, credit notes, debit notes and payments
- Option to assign each supplier to a specific purchasing organization in the GM-X Party subsystem
- Supports default user-defined terms of trade for each supplier, including payment due days and early payment discount days
- Each supplier is assigned to a financial account denoting the default source of funds for paying the supplier
- Each supplier is assigned a separate financial account denoting the default beneficiary account for payments made by electronic funds transfers (direct deposits or ACH payments), wire transfers or cryptocurrency
- Indicates each supplier’s default payment method (check, e-check, bill pay service, direct deposit or ACH, wire transfer, credit or debit card, payment service provider, mobile wallet, cryptocurrency or cash)
- Option to indicate responsibility for payment of fees and commissions due when paying the supplier (remitter or payee)
- For wire transfers, responsibility for payment of fees and commissions may be split evenly
- Ability to specify the file format for payment instructions uploaded to a commercial bank (direct deposit or ACH payments, wire transfers)
- Option to specify if straight-through processing (STP) is required for direct deposit or ACH payments, or wire transfers
- Option to assign suppliers to third party bursars such as commercial banks, payment services or agencies responsible for disbursing funds to the supplier
- Option to indicate if the third party bursar is responsible for preparing and issuing remittance advices or withholding tax certificate documents to the supplier, on the company’s behalf
Tax Setup
- Input VAT and sales tax rates configurable for standard, reduced and zero rates by supplier, product category and geographic area
- Option to specify balance sheet accounts for VAT or sales tax payable, withholding tax payable and accrued VAT or sales tax by tax category
- Option to specify balance sheet accounts for income tax withheld by individual supplier
- Option to specify income and expense accounts for tax recovery and recoverable tax by tax category, or by individual supplier
- Option to specify each supplier’s tax authorities as organizations in the GM-X Party subsystem
- Option to indicate, for each supplier, whether input VAT or sales tax becomes due and payable to tax authorities upon issuance or payment of an invoice
- Option to indicate if withholding tax is applicable for each supplier
Reporting and Analytics
- Extracts Supplier Invoice Report to spreadsheet
- Extracts Cash Disbursements Report to spreadsheet
- Extracts Aged Payables Report to spreadsheet
- Extracts Payables Distribution Report to spreadsheet