Do you routinely pay out vendors using check batches, manually entering your vendors into each and every batch? That can get a bit mundane, not to mention time-consuming. Luckily, vendors can be grouped in a couple of different ways in Microsoft Dynamics GP. By classifying your vendors using either of the following two methods, you can import all the vendors into a check batch at one time, rather than entering each vendor individually.
Classifying by “Class ID”
The first step is to identify your vendor classes based on your specific classification needs. For example, let’s say your organization pays its inventory vendors on a routine, weekly basis. You can create a Class ID for “Inventory Vendors” in the Vendor Class Setup window, and assign that Class ID to the appropriate vendor cards (in this case, all your inventory vendors). From there, you can assign the Class ID to your check batch on the Select Payables Checks window. Your check batch will then automatically include each vendor from that Class ID.
Classifying by “Payment Priority”
This same concept can be applied by utilizing the Payment Priority field in your Vendor Maintenance Options screen. Like Vendor Class ID, this only requires a simple one-time setup. Simply populate the Payment Priority field for each vendor with a word or number you’ll use to classify them by. When starting a check batch from the Select Payables Checks window, select “Payment Priority” from the drop-down menu instead of “Class ID”. After choosing the specific payment priority, the check batch will be populated with all vendors assigned to that payment priority.
A good example of how to use the Payment Priority field might be adopting a numerical type priority model. Assign a “1” to the Payment Priority of inventory vendors, “2” for maintenance vendors, “3” for utility vendors, etc.
The way you classify your vendors is arbitrary to your needs and your routines for creating check batches. Examples may include vendor type, vendor invoice due dates, vendor relationship managers, etc.
By utilizing Class ID or the Payment Priority field, Microsoft Dynamics GP enables accounting departments to regain valuable time that was spent manually adding vendors to every routine check batch.
We can help you with this and any other issues you may be facing to optimize your accounting processes! Please give us a call if you have any questions.