Issue/Symptom/Question

We remitted state sales taxes and payroll taxes through an electronic funds transfers. How do I record the payments in PENTA?

Applies To

PENTA for Windows

Accounts Payable > Check Processing > Manual Payment Entry

Accounts Payable > Check Processing > Automated Check Processing > Select Items For Payment 

Accounts Payable > Check Processing > Automated Check Processing > Start AP Check Processing

Accounts Payable > Check Processing > Automated Check Processing > Complete AP Check Processing

Finance & Accounting > Setup > Bank Information > Bank Account Numbers

Finance & Accounting > Setup > Accounts > Chart of Accounts

Finance & Accounting > Setup > Form Information

PENTA Reports > Report Initiation > SALESUSETAX

Resolution/Fix/Answer

When PENTA creates Sales and Use tax entries to the taxing authorities/ jurisdictions, an open payable is created in the A/P subledger. There are (2) ways to record the payment of these tax payables for which you have submitted an electronic payment:

1) You can use the Manual Payment Entry window. In this case you record the amount of the payment as the check amount on the Document tab. Since the items you are paying are open invoice amounts, you should use the Open Payables tab to select the items you paid, you should not use the Account Distribution tab. When you post the payment, PENTA closes out the open payable amounts you selected on the Open Payables tab. The shortcoming to this approach is there could be many open payables for tax, so it can take a long time to select all the invoices you paid electronically. Option #2 may be a better approach.

2) We have an option that enables users to record these payments via an automated A/P Check run rather than using the Manual Payment Entry window. The benefit of this approach is you can do a mass selection of invoices you want to pay electronically, rather than manually selecting all the invoices you paid electronically. If you take this approach, then you will want to set up a new check form for which you can indicate you do not want to generate a check. You won't need a physical check because you will submit the payment electronically. If you choose this method, you would select and record the payment in PENTA before submitting the electronic payment, this way you don't have to spend time selecting individual invoices in PENTA to get the PENTA payment to tie out to the electronic payment.

Option #1 Setup

1) Create a fake bank/ bank account # (will be required when creating Cash Account)

• Finance & Accounting > Setup > Bank Information > Bank Account Numbers

2) Create new general ledger cash accounts for each vendor, these accounts will be used for clearing the A/P check run with the wired transfer JE

• Finance & Accounting > Setup > Accounts > Chart of Accounts
• Class Code: "A"
• Edit Rule Code: "CASH"

3) Create new Cash Accounts for each vendor, one for each check form

• Finance & Accounting > Setup > Accounts > Cash Accounts
• OU: balance sheet OU for the company remitting the tax payments
• GL Account: one of the accounts setup in step #2 above
• Bank account information: the fake bank information set up in step #1 above

4) Create new check forms for each vendor

• Finance & Accounting > Setup > Form Information
• Form Type: "AP"
• Cash Account #: account created in step #2
• Print AP Checks/DD Advice Notices (Y/N): "N"

Option #2 Process

1) Run the Sales & Use tax report for each vendor

• PENTA Reports > Report Initiation 
• Report Code: SALESUSETAX
• Begin Date
• End Date
• Additional Criteria > VEN_ID

2) Select Items For Payment (Accounts Payable > Check Processing > Automated Check Processing > Select Items For Payment)

• Query the Vendor ID
• Click "Mark ALL Selected" and a pop-up window will open
• Enter "N" for Net
• Form ID: new check form you created for the specific Vendor
• Selected Distribution: enter "Y" for Yes
• Close the pop-up window
• "Total Selected For Payment" should be equal to the total amount in the Sales & Use Tax report
• Close the window - A/P items have now been selected for payment
• Repeat these steps for remaining vendors

3) Start AP Check Processing (Accounts Payable > Check Processing > Automated Check Processing > Start AP Check Processing)

• Enter "Check Date"
• Select the Form IDs for each vendor
• Click "Start Check Processing"

4) Complete AP Check Processing (Accounts Payable > Check Processing > Automated Check Processing > Complete AP Check Processing)

• Select the Form IDs for each vendor
• Click "Complete Check Processing"