Set up journals, accounts, and summaries—Accounts Payable

As part of the initial set up for Accounts payable, configure the journals and GL accounts that you want the application to use, as well as how frequently you want Sage Intacct to generate summaries.

1. Go to Accounts Payable > Setup > Configuration.

   If you are configuring for the first time, go to Company > Admin > Subscriptions > Accounts Payable > Configure.

2. Under Accounting settings, select the default for each of the following:
   • Journals: for recording AP supplier invoice, adjustment, and payment transactions.
   • GL liability accounts: for posting transactions, such as accounts payable and more.
   • Retainage: enable retainage and identify GL account used when you create an AR sales invoice to withhold retainage.
   • Summary frequencies: how often Intacct posts AP supplier invoices, adjustments, manual payments, and payment groups to the GL.
   What's a summary?

   Summaries are collections of the same type of transactions, grouped together for processing. The advantage of using a summary is that the transaction group posts to the GL as one line. From that one line, as needed, you can drill down to any of the individual transactions.

   You can have Sage Intacct create, post, and close summaries automatically at a frequency that you specify by selecting a time interval. Or, you can create, post, and close summaries yourself.

   When you first create a summary, it's open, and you can enter transactions. After you close a summary, you can't post transactions to it, which prevents posting transactions to the wrong period. To add or delete transactions from a closed summary, reopen it.

   See AP summaries overview for more information.

Default for departments without specific rules field descriptions

Field	Description
Journals	Defines the journals where Sage Intacct automatically records the following accounts payable transactions: AP supplier invoices Adjustments Payments Configure journals at the top level. If you enabled multi-book accounting, you can select the default journals to be used for accrual books and cash books.
GL Accounts	Specifies the general ledger accounts that Sage Intacct uses when posting accounts payable transactions. Configure this option at the top level. Accounts payable: The standard account for offsetting transactions. You can override the AP offset account on individual transactions if you configure your company to allow it. To do so, select Enable Accounts Payable GL account override in AP supplier invoice and adjustment entry in Enable functionality. Discounts: For applied discounts, as calculated based on payment terms. Penalties: For applied penalties, as calculated based on payment terms. Supplier advances: For AP advances. This serves as a default GL expense account for advances, but you can override it when entering an individual advance. Multi-currency gain and losses: Used in currency conversion for multi-currency companies.
Retainage	Enable AP retainage: Enable functionality to withhold retainage on AP supplier invoices. Retainage payable: GL account to use for retainage in Accounts Payable. Retainage release AP supplier invoice document sequence: Retainage release AP supplier invoice document sequence for auto-numbering IDs. Calculate retainage tax: If you are a customer that has VAT or GST installed, you can choose one of the following options. However, if you do not have VAT or GST installed, the first option is selected by default and cannot be changed. The following options are: Calculate tax on retainage held (gross AR sales invoice line amount) for all tax solutions: When you hold retainage, tax is calculated on the gross of the AR sales invoice. Example: Calculate tax on retainage held If you create an Order Entry AR sales invoice for $10,000 and held $1,000 in retainage, you are taxed on $10,000. When you release the $1,000 in retainage, tax is not calculated when retainage is released. Calculate tax on retainage release (AR sales invoice line amount net retainage) only for VAT/GST enabled transactions: When you release retainage, tax is calculated on the net of the AR sales invoice. Example: Calculate tax on retainage released If you create an Order Entry AR sales invoice for $10,000 and held $1,000 in retainage, you are taxed on $9,000. When you release the $1,000 in retainage, you are taxed on the $1,000. Learn how to configure retainage.
Payments	Determines how frequently Sage Intacct creates auto-summaries that group payments, excluding manual payments. Transactions are posted in real time, regardless of the summary frequency you select. Configure this option at the top level. Daily: Intacct creates a daily summary and posts it to the GL for each transaction day. Daily is recommended because it gives you the most granular reporting. Monthly: Intacct creates a single summary at the end of each month. No matter what the transaction date is within that period, it will always be posted as of the last day of that month. This frequency doesn't provide the daily granular level of reporting. One per payment: Intacct creates and posts a summary for each payment. For Daily and Monthly summaries, you can further group transactions by one or both of the following: Per bank Per payment method If you leave both checkboxes unselected, Intacct does not group the summaries beyond Daily or Monthly.

3. Optionally, select or enable features, such as warning thresholds in posting transactions, dimensions that you want to track and report on, payment approval requirements, and more.
   Learn more about the Accounts Payable configuration options.
4. Select Save.