Improving financial reporting clarity by splitting purchasing accounts
By default, in Dynamics GP, when a payables invoice is fully or partially paid via the Payables Transaction Entry window, the payment portion of the transaction doesn't flow through the payables account. Typically, this occurs when payment is recorded at the same time as the invoice is entered into Dynamics GP. It can make it more difficult to trace a transaction since the transaction could skip the payables account alltogether by crediting cash and debiting an expense.
GP provides an optional setting to force transactions to flow through the payables account and that's what we'll look at in this recipe.
How to do it…
Setting up GP to pass voucher payments through payables is as easy as following these steps:
Select the Administration button from the Navigation pane on the left. In the Administration Area page, under Setup, click Company in the Company section.
Click the Options button. Scroll down to the setting marked Separate...
