How Check Writing Limits Affect Check Processing
Depending on how your company is installed, check writing limits can vary. Refer to Controls for Existing AdVault Financials Companies and Companies Moving to AdVault Financials below for the controls applicable to your company:
Controls for Existing AdVault Financials Companies:
Controls have been built into the A/P System to ensure that checks cannot be processed for amounts over limits you specify. The hierarchy used to determine how check writing limits affect check processing follows.
First, the system checks to see if the invoice has been added to the Override Vendor Invoice Limits file using the entry company/office as the key. This file is created when you use option Accounts Payable|Process Vendor Invoices|Override Vendor Invoice Limits. If invoices have been added to this file for the entry company/office, the check for the specified vendor will print regardless of any other limits that have been set up for the vendor or agency.
Second, if invoices have not been added to the Override Vendor Invoice Limits file, then the system checks to see if a check writing limit has been set up for the vendor. Checks writing limits for a vendor are set up in the Common Vendor option in the Central Data Base. If a check writing limit exists for the vendor, the system checks the limit in this file. If the check for this vendor is over the limit, the check cannot be produced.
Third, if invoices have not been added to the Override Vendor Invoice Limits file and if a check writing limit has not been set up for the vendor, the system checks the limit set up in the Agency Profile. If the check amount exceeds this limit, the check cannot be produced unless security has been set up allowing the user who is processing the check to exceed the limit.
Controls for Companies moving to AdVault Financials:
Controls have been built into the A/P System to ensure that checks cannot be processed for amounts over limits you specify. Check writing limits can be set up at a vendor level as well as House, Production, and Employee expense levels. During check processing, if the check total exceeds the specified check limit, a check is not produced. Invoices remain unpaid until an adjustment to the number of selected invoices is made to keep within the specified check limit or the check limit is increased.
If the check total is over the limit, the following error messages display on the ”What If” Report:
Common Vendor Limit ”Charges EXCEED VENDOR limit”
House Expense Limit ”House charges EXCEED limit”
Production Expense Limit ”Production charges EXCEED limit”
Employee Expense Limit ”Employee charges EXCEED limit”
Note: All production charges, house charges, and employee charges will be added up separately. If any type of charge exceeds the limit set in the agency profile as described below, an error message will display. Therefore, depending on the check writing limits set up for each type, it is possible for 3 separate error messages to display for a vendor.
Process Vendor Invoices
First, the system checks to see if the invoice has been added to the Override Vendor Invoice Limits file using the entry company/office as the key. This file is created when you use option Accounts Payable|Process Vendor Invoices|Override Vendor Invoice Limits. If invoices have been added to this file for the entry company/office, the check for the specified vendor will print regardless of any other limits that have been set up for the vendor or agency.
Common Vendor
A check writing limit control is built into the Common Vendor option in the Central Data Base that applies only to the vendor for which you are setting up limits. During check processing (for all companies/offices), the browser A/P system checks to see if there is a check writing limit for any of the selected vendor invoices. If a vendor limit exists and the check total for the vendor is over the specified limit, the check cannot be processed.
EXCEPTION: If invoices for a specified vendor have been set up to override the vendor check writing limits, then the check can be processed. Vendor invoice limits can be overridden in Accounts Payable|Process Vendor Invoices|Override Vendor Invoice Limits and Production|Charge Entry|Vendor Charge Entry|Override Vendor Invoice Limits.
Maintain Agency Profile (Option 01 on the FINIV Data Base Menu)
For House, Production, and Employee expenses, a check writing limit control is built into the Maintain Agency Profile option in the Financials Data Base at a disbursing company/office level. During check processing, the browser A/P System first checks the Central Data Base to see if there is a check writing limit at a Common Vendor level. If a limit exists, payment is based on this limit not the limits you set up in the Agency Profile.
If there is no check writing limit set up at a Common Vendor level, the system then checks to see if there is a check writing limit for selected house, production, and/or employee expenses as described on the following pages.
Maintain Agency Profiles Selection Screen
Select A/P House, A/P Production, or A/P Employee to set up vendor/employee check limits as described below.
Accounts Payable House
Key the Maximum Vendor Check Amount for House expenses. During Check Processing and assuming there is no limit set up in Common Vendor, the system checks to see if a Maximum Vendor Check Amount limit has been set up for House expenses. If a limit has been set up and selected house invoices do not exceed the limit, then the vendor check can be processed. If limits have been exceeded, the vendor check cannot be processed. However, if house invoices for a specified vendor have been set up to override the vendor limits, then the check can be processed. Vendor invoice limits can be overridden in Accounts Payable|Process Vendor Invoices|Override Vendor Invoice Limits and Production|Charge Entry|Vendor Charge Entry|Override Vendor Invoice Limits.
Accounts Payable Production
Key the Maximum Vendor Check Amount for Production expenses. During Check Processing and assuming there is no limit set up in Common Vendor, the system checks to see if a Maximum Vendor Check Amount limit has been set up for Production expenses. If a limit has been set up and selected production invoices do not exceed the limit, then the vendor check can be processed. If limits have been exceeded, the vendor check cannot be processed. However, if production invoices for a specified vendor have been set up to override the vendor limits, then the check can be processed. Vendor invoice limits can be overridden in Accounts Payable|Process Vendor Invoices|Override Vendor Invoice Limits and Production|Charge Entry|Vendor Charge Entry|Override Vendor Invoice Limits.
Accounts Payable Employee
Key the Maximum Employee Check Amount for Employee expenses. During Check Processing and assuming there is no limit set up in Common Vendor, the system checks to see if a Maximum Employee Check Amount limit has been set up for employee expenses. If a limit has been set up and selected invoices do not exceed the limit, then the employee check can be processed. If limits have been exceeded, the employee check cannot be processed. However, if invoices for a specified vendor/employee have been set up to override the employee limits, then the check can be processed. Vendor invoice limits can be overridden in Accounts Payable|Process Vendor Invoices|Override Vendor Invoice Limits and Production|Charge Entry|Vendor Charge Entry|Override Vendor Invoice Limits.