How to Create Past Pay Bills:

Recording past supplier pay bills allows businesses to establish historical supplier payment transactions that contain unapplied payment balances, such as supplier advances or prepayments, before the accounting start date. This process is commonly performed during system migration, opening balance setup, or when transferring records from a legacy accounting system.

Past supplier pay bills are recorded to carry forward unapplied supplier payment balances into the new system for supplier balance tracking, aging continuity, and payment reconciliation purposes after migration.

Depending on business requirements, past transactions may be recorded either as:

• Consolidated balances per supplier, or

• Itemized historical payment records based on original references

When recording historical transactions, ensure that:

• Unapplied balances are verified against prior accounting records

• Related historical bills, debit notes, or credit notes are also considered to maintain accurate supplier balances

The Accounts Payable opening balance is derived from the net effect of:

• Past Supplier Bills

• Past Supplier Debit Notes

• Past Pay Bills

• Past Supplier Credit Notes

Only unapplied supplier payment balances before the accounting start date should be recorded.

Scenario:

Your company is migrating from a legacy accounting system to QNE Optimum for the January to December 2015 financial year. As part of the migration, the company needs to record all unapplied supplier payment balances dated before January 1, 2015, so that supplier balances and Accounts Payable reports remain accurate in the new system.

Some suppliers have a single unapplied payment balance, while others require individual historical payment records to be recorded for tracking and reconciliation purposes.

Prerequisites:

• Supplier master records must already exist in the system.

• The financial year and opening balance period must already be configured.

• Unapplied supplier payment balances must be verified against the previous accounting records before migration.

• The user has permission to create Past Pay Bills.

• Historical supplier payment records or migration schedules are available for reference.

Procedure 1: Recording a Past Pay Bill

1. Prepare the list of unapplied supplier payment balances from the legacy records or prior accounting system.

2. Verify that the payment balances represent unapplied supplier payment amounts as of the accounting start date.

3. Review whether the past pay bills will be recorded as:

• Consolidated balances per supplier, or

• Individual historical payment records

4. In the navigation pane, go to Supplier > Past Pay Bills.

• Note: If the Quick Create Icon (the one inside the redbox) is highlighted, clicking Past Pay Bills will immediately redirect you to the new Past Pay Bills  transaction form. If the Quick Create Icon is not highlighted, you will be directed to the Past Pay Bills Listing instead.

• From there, select the New button to create a new Past Pay Bill.

5. Select the Supplier and enter the historical supplier pay bill details, such as:

• Payment #

• Description

• Form of Payment (Method used to pay the supplier)

• Doc. Date (Enter or verify the document date for the historical pay bill.)

• Purchaser (Employee or purchaser responsible for the procurement transaction. Used for tracking and reporting purposes.)

• Amount

6. Review the entered amounts carefully and save the transaction.

Note: 

• Past Pay Bills and Past Supplier Credit Notes can be matched against supplier documents through Supplier Knock-Off, where applicable. 

• If Tax/VAT details are entered for historical reference purposes, the VAT portion does not generate a separate posting to the VAT General Ledger account because only the outstanding payable balance contributes to the Accounts Payable opening balance.

7. After all entries are completed, review the reflected opening Accounts Payable balance in General Ledger > Opening Balances

8. Verify the recorded balances match the historical records.

Procedure 2: Validation of Recorded Past Pay Bill

1. After saving the transaction, verify that:

• The past pay bill is saved successfully.

• The past pay bill number is generated or displayed correctly.

• The transaction displays the correct unapplied payment balance.

• Verify that the past pay bill appears in the Past Pay Bill List.

Procedure 3: Editing a Past Pay Bill

1. Go to Supplier > Past Pay Bills, then select the Doc # of the Past Pay Bill that you want to update.

2. Once opened, make the required changes, then click Save. 

Procedure 4: Deleting a Past Pay Bill

1. In the Past Pay Bills List View, identify the document you wish to delete. Hover your cursor over the document and right-click on it. Then click Delete to remove the transaction.

2. Verify that the Past Pay Bill no longer appears in the Past Pay Bills List.

3. Preferred Method: If the Past Pay Bill is no longer required, click Cancel instead. This preserves the transaction history while marking it as inactive.

Application (General Use Cases):

Past Pay Bills are used to

• System Migration
  Transfer unapplied supplier payment balances from a legacy accounting system.

• Opening Balance Setup
  Establish opening Accounts Payable payment adjustments during system migration.

• Supplier Aging Continuity
  Maintain supplier aging information after go-live.

• Historical Reconciliation
  Support reconciliation of historical supplier payment balances.

• Accounts Payable Reporting
  Help maintain continuity and accuracy of Accounts Payable reporting.

• Audit and Historical Reference
  Retain historical supplier payment records for audit and tracking purposes.
  
  System Scope: QNE Optimum