| □ | The Recurring Purchases Form will allow you to set up the rules for the automatic creation of the appropriate Invoices for Recurring Purchases - expenses that come due on a regular cycle for the same amount each time. |
| • | This helps eliminate the need to repeatedly enter and then pay a Bill for the same charges, over and over again. |
| • | It also helps prevent you from forgetting to make the Payment and so helps you to avoids late fees and/or credit rating issues. |
| • | These Recurring Purchases may be defined for expenses that come due on a Weekly, Monthly, Bi-Monthly, Quarterly, Semi-Annual and Annual basis. |
Recurring Purchases Form showing an Open Item Expense
| • | This Recurring Purchases Form may be Re-sized by Dragging the Top and/or Bottom up or down, and/or the Right side in or out. |
| • | Navigation Menu - The Navigation Menu is located at the top of the Recurring Purchase Form. |
| • | This Navigation Menu provides the normal Record Movement, New, Edit, Delete, Cancel, Save, and Refresh options; as well as a Search function. |
| • | Record Editing section - The details of the currently selected record are displayed below the Navigation Menu at the center (Main Body) of the Recurring Purchases Form. |
| • | Table View tab - A tabular (spreadsheet style) Table View of the currently defined Recurring Purchases is accessible by Clicking the Table View tab at the bottom of the Recurring Purchases Form. |
| • | To display a specific Recurring Purchase record in the Record Editing section, Click on that record within the Table View section. |
| • | This Table View information may be Pinned in Place by Clicking the Pin Icon on the right. |
Recurring Purchases Form - with Table View tab Pinned Open
| ▪ | You may Un-Pin this Table View by Clicking the Pin Icon again. |
| ▪ | Click on any listed record to display that information in the center (Main Body) of the Form. |
| • | There are many columns of data in this Recurring Purchases listing. |
| • | Each data column's Header Name describes the data contained in that column. |
| ▪ | Clicking on a Header Name will set the order in which the (Recurring Purchases) data will be listed. |
| ▪ | Clicking on the same Header Name will set the order in the opposite direction (ascending vs. descending). |
| ▪ | The Header Name that is determining the Order of the (Recurring Purchase) data, will have an Icon - indicating the Order in which it is displayed - to the right of that Header Name. |
| ▪ | Use the Slide Bar at the bottom of the Recurring Purchases list to see the data listed in all of the columns. |
| □ | Open Term Recurring Purchases: This option is used to define Payments that are ongoing and have no fixed expiration date. |
| • | Click the  Icon to start the Recurring Purchase entry in the Record Editing section. |
| • | Click the Open Term button. |
| • | Payment Frequency - Using the Drop-Down Selection List, Choose how often this item is to be billed: |
Payment Frequencies
| • | Annually - This Recurring Purchase is billed to your Company once each year: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| • | Bi-Monthly - This Recurring Purchase is billed to your Company once every two months: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| • | Monthly - This Recurring Purchase is billed to your Company once every month: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| • | Quarterly - This Recurring Purchase is billed to your Company once every three months: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| • | Semi-Annually - This Recurring Purchase is billed to your Company once every six months: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| • | Weekly - This Recurring Purchase is billed to your Company once each week: |
| ▪ | When the Auto Pay procedure is executed, the required set of Recurring Purchase Invoices are created for the entire Month. |
| ▪ | The first Invoice will be Dated with the Purchase Day specified (see below), and each subsequent 7 Day Period's Invoice will be Dated as appropriate, until all of the required Invoices are created for that Month. |
| ▪ | All Invoices within the set will have the same Invoice Number, but each Invoice Number will have a hyphenated numeric suffix (e.g., 1234-1, 1234-2, 1234-3). |
| ▪ | The Due Date for each Invoice within the set will be calculated based the Purchase Date assigned and the Vendor's Terms. |
| • | Starting Month - Using the Drop-Down Selection List , Choose the Month when this Recurring Purchase should start. |
| • | Purchase Day - Enter the Day number for the date - within each month - that this Recurring Purchase Invoice should be dated. |
| • | The Due Date for the Open Term Recurring Purchase will be calculated by taking this Purchase Day and adding to it the number of Days defined for this Vendor's Terms (previously entered in the Vendor Information Form). |
| ▪ | If this Recurring Purchase is billed using the Weekly Payment Frequency option, the Due Date for each individually calculated Purchase Date assigned to each Invoice in the monthly sequence is entered as follows: Initially the Purchase Date is the Purchase Day, then the Purchase Date is set at 7 days thereafter for the next Invoice, then the next Purchase Date is set as 7 days after the previous Invoice, etc., and in each case the Due Date is calculated by taking each Purchase Date and adding to it the number of Days defined for the Vendor's Terms (previously entered in the Vendor Information Form). |
| • | Payment Information - Define the rules for this Recurring Purchase transaction. |
| • | Purc Item - Using the Drop-Down Selection List, Choose the Purchase Category for this Recurring Purchase Expense. |
| • | Description - By default, this will be the Description defined for the selected Purchase Category code. |
| ▪ | Edit this default Description, if appropriate. |
| • | Start Date - Using the Drop-Down Date Selection Box provided, Choose the Date on or after which this Recurring Purchase should begin. |
| • | Net Pay - Enter the Amount of the Recurring Purchase - exclusive of any Sales Tax (if any) that must be charged. |
| • | Local Tax - Enter the Amount of the Local Sales Tax, if applicable. |
| • | National Tax - Enter the Amount of the National Sales Tax, if applicable. |
| ▪ | Note: If you do not have a Local and/or National Sales Tax, those field(s) will not be displayed. |
Local and National Tax fields
| • | Pay Amt - Full amount of the Recurring Purchase will be inserted by the system when the record is saved. |
| ▪ | Using the Drop-Down Selection List , Choose the Department number for this Recurring Purchase, if required. |
| • | Note - Enter any additional information related to this Open Term Recurring Purchase. |
| • | Click the  Icon to record this Open Item Recurring Purchase entry. |
| □ | Fixed Term Recurring Purchases:- This option is used to define Payments that have a fixed term with an agreed upon expiration date, and/or a gross amount to be Paid. |
Recurring Purchases Fixed Term record
| • | Click the Icon to start the Recurring Purchase entry in the Record Editing section. |
| • | Click the Fixed Term button. |
| • | Payment Frequency - Using the Drop-Down Selection List , Choose how often an Invoice is to be created for this item: |
Payment Frequencies
| • | Annually - This Recurring Purchase is billed to your Company once each year: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| ▪ | The final Invoice for this Fixed Term obligation will be created within the Month of the End Date. |
| • | Bi-Monthly - This Recurring Purchase is billed to your Company once every two months: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| ▪ | The final Invoice for this Fixed Term obligation will be created within the Month of the End Date. |
| • | Monthly - This Recurring Purchase is billed to your Company once every month: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| ▪ | The final Invoice for this Fixed Term obligation will be created within the Month of the End Date. |
| • | Quarterly - This Recurring Purchase is billed to your Company once every three months: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| ▪ | The final Invoice for this Fixed Term obligation will be created within the Month of the End Date. |
| • | Semi-Annually - This Recurring Purchase is billed to your Company once every six months: |
| ▪ | The Recurring Purchase Invoice that is created will be Dated on the Purchase Day specified (see below), with the Due Date for the Invoice calculated based on that Vendor's Terms. |
| ▪ | The final Invoice for this Fixed Term obligation will be created within the Month of the End Date. |
| • | Weekly - This Recurring Purchase is billed to your Company once each week: |
| • | When the Auto Pay procedure is executed, the required set of Recurring Purchase Invoices are created for the entire Month. |
| • | The first Invoice will be Dated with the Purchase Day specified (see below), and each subsequent 7 Day Period's Invoice will be Dated as appropriate, until all of the required Invoices are created for that Month. |
| • | All Invoices within the set will have the same Invoice Number, but each Invoice Number will have a hyphenated numeric suffix (e.g., 1234-1, 1234-2, 1234-3). |
| • | The Due Date for each Invoice within the set will be calculated based the Purchase Date assigned and the Vendor's Terms. |
| • | The final set of Invoices for this Fixed Term obligation will be created within the Month of the End Date. |
| • | Starting Month - Using the Drop-Down Selection List , Choose the Month this Recurring Purchase will start. |
| • | Purchase Day - Enter the Day number for the date - within each month - that this Recurring Purchase Invoice should be Dated. |
| • | The Due Date that is created for this Fixed Term Recurring Purchase will be calculated by taking this Purchase Day and adding to it the number of Days defined for the Vendor's Terms (previously entered in the Vendor Information Form). |
| ▪ | If this Recurring Purchase is billed using the Weekly Payment Frequency option, the Due Date for each individually calculated Purchase Date assigned to each Invoice in the monthly sequence is entered as follows: Initially the Purchase Date is the Purchase Day, then the Purchase Date is set at 7 days thereafter for the next Invoice, then the next Purchase Date is set as 7 days after the previous Invoice, etc., and in each case the Due Date is calculated by taking each Purchase Date and adding to it the number of Days defined for the Vendor's Terms (previously entered in the Vendor Information Form). |
| • | Payment Information - Enter the transactional information for this Recurring Purchase expense. |
| • | Purc Item - Using the Drop-Down Selection List , Choose the appropriate Purchase Category for this Expense. |
| • | Description - By default, this will be the Description enter for the selected Purchase Category code. |
| ▪ | Edit this default Description, if appropriate. |
| • | Start Date - By default, this will be the first Day and current Year of the selected Starting Month. |
| ▪ | Using the Drop-Down Date Selection Box , Choose a Date on or after the default Date on which this Recurring Purchase should begin. |
| • | Number of Repayments - Enter the total number of Installment Payments which will be billed. |
| • | Balance - Enter the Total Balance Due not including any Sales Tax. |
| • | Local Tax - Enter the Gross Amount of the Local Sales Tax for the entire Fixed Term, if applicable. |
| • | National Tax - Enter the Gross Amount of the National Sales Tax for the entire Fixed Term, if applicable. |
| ► | Note: If neither a Local and/or a National Sales Tax is required, these field(s) will not be displayed. |
Example of Local and National Sales Tax fields
| ▪ | Using the Drop-Down Selection List , Choose the Department number for this Recurring Purchase, if required. |
| • | Note - Enter any additional information related to this Fixed Term Recurring Purchase. |
| • | Net Pay - The Amount of the Recurring Purchase Payment - calculated by adding the Gross Amount (Balance Due) and the Local and/or National Sales Tax, if any, and dividing that sum by the defined Number of Payments. |
| • | End Date - Calculated by the system based on the number of Payments and the Start Date that was entered. |
| • | Click the Icon to record this Fixed Term Recurring Purchase entry. |
| □ | Cancel Purchase - How to Cancel an Open Term or Fixed Term Recurring Purchase item but preserve the original information: |
| • | Sometimes, a Recurring Purchase has to be canceled (e.g., because of poor service, changing needs, a better deal elsewhere). |
| • | In previous versions of MKMS, to stop a Recurring Purchase item from being billed, you had to delete the record. |
| • | Although that worked, it also deleted the historical record of how and when that Recurring Purchase was originally established. |
| • | The better solution is to use the Cancel Purchase function (implemented in Version 5.1.34.X.) which provides Users the ability to cancel both Open Term and Fixed Term Recurring Purchases and still preserve the original Recurring Purchase record in the database for future reference.. |
| • | To Cancel an existing Recurring Purchase: |
| • | Press F4 to Open the Vendor Form |
| • | Use the Vendor Search dialog to Locate the appropriate Vendor record. |
Recurring Purchase Form
| • | Use the Recurring Purchases Search dialog to Locate the appropriate Recurring Purchase record. |
| • | If this is an Open Term Recurring Purchase being canceled: |
| • | Click the Cancel Purchase Icon |
Terminate Recurring Purchase?
| • | Terminate Recurring Purchase? - By default, this will be Today. |
| ▪ | Using the Drop-Down Date Selection Box , Choose the Date after which this Recurring Purchase should end. |
| ▪ | Yes / No - Answer accordingly (No aborts the cancellation). |
| ▪ | End Date - When you answer Yes, the Date entered above will be inserted into an End Date field. |
| ▪ | This Detail Line Item in the Record Listing will now be displayed in Red indicating that this Recurring Purchase item has been canceled. |
| ▪ | After this End Date, the Open Term Item will no longer be billed during the Auto Pay procedure. |
| • | The Cancel Purchase Icon now reads Re-activate Purchase. |
Cancel Purchase button converts to a Re-activate button
| • | To Re-Activate an Open Term Recurring Purchase that was previously Canceled, Click the Re-activate Purchase button: |
| ▪ | Click Yes and the End Date information will be removed, thereby restarting this Recurring Purchase. |
| • | If this is a Fixed Term Recurring Purchase being canceled: |
| • | Click the Cancel Purchase Icon |
Terminate Recurring Purchase? (Fixed Term)
| ▪ | Terminate Recurring Purchase? - By default, this will be Today. |
| o | Using the Drop-Down Date Selection Box , Choose the Date after which this Recurring Purchase should end. |
| ▪ | Create a new record based on remaining Payments/Balance? - Check this box to end the existing Fixed Term Recurring Purchase but save the existing information (e.g., Start Date, Payment Terms, Balance Due) as a new Recurring Purchase entry. |
| ▪ | Yes / No - Answer accordingly (No aborts the cancellation). |
| o | End Date - When you answer Yes, the Terminate Recurring Purchase? Date entered above will be inserted into an End Date field of the Recurring Purchase record being canceled. |
| o | After this End Date Date, this Fixed Term Recurring Purchase item will no longer be billed during the Auto Pay procedure. |
| o | The Cancel Purchase button is removed. |
| o | This Detail Line Item of this Recurring Purchase record - displayed in the Table View tab's Record Listing - will now be shown in Red indicating that this Recurring Purchase item has been canceled. |
| o | You cannot Re-Activate a Fixed Term Recurring Purchase which has been canceled. |
| ▪ | If you Checked the Create a new record based on remaining Payments/Balance? box, a new Recurring Purchase record will be created. |
| o | Select and Edit this new Fixed Term Recurring Purchase record (by changing the Start Date, Balance, Number of Repayments, etc.), as appropriate. |
| o | It becomes an active record - based on the re-set Start Date - when processed by the Auto Pay procedure. |
| □ | Entering Multiple Lease Payments - For Leases (Fixed Term Payments) that are paid to the Same Vendor. As a typical example: |
| • | You have several Vehicle Lease Payments being paid to the same Lease Company (all 5 of your Cadillac's are leased through G.M.A.C.). |
| • | You want them entered as Recurring Purchases so that they will be internally Invoiced in the Accounts Payable System and then Paid - all automatically - when Due. |
| • | There are two ways that you can accomplish this: |
| 1. | Create a Vendor record for the Lease Company and then enter multiple Recurring Purchase entries, one for each Lease. |
| o | The result is that all Leases will be on the same itemized Bill and will be Paid together on the same Check at the same time. |
| 2. | Create multiple Vendor entries, one for each Lease, and enter one Recurring Purchase for each Vendor. |
| o | The result is that each Lease will be on its own Bill and will be paid individually at different times throughout the month. |
| • | The choice is yours and the decision should be based based on your needs. |
| 1. | If the Leases all have about the same Due Dates and Expiration Dates (they were contracted at the same time), the first choice is probably the best. |
| 2. | If the Leases all have different Due Dates and different Expiration Dates, the second choice is probably the best. |
| □ | Entering Mortgage and Bank Loan Payments - (Fixed Term) Payments that are based on an amortization chart separating Principal and Interest: |
| • | Amortized Payments, such as loans and mortgages, often represent two or three separate types of remuneration incorporated into the same payment: |
| • | Principal - The part of the payment that actually pays off a portion of the Principal balance still owed. |
| • | Interest - The part of the payment that is the Interest or carrying charge for the current month for the Principal balance still owed. |
| • | Escrow - The part of the payment that is set aside to pay taxes and/or insurance on the collateral (home, car, company boat, etc.). |
| • | If you are going to properly track these loans, you should separately define each portion of the Recurring Purchase payment. |
| □ | Mortgage and Bank Loan Cost Averaging Method: |
| • | Check with your accountant as to the precise procedure to follow. You may be allowed to average the annual Principle payment and Interest payment costs for the year and charge 1/12th of each, each month. You may even be allowed to do the same for the term of the loan (a 36 month loan would have 1/36th of the Interest and the same of the Principle paid each month). If either of these choices are available to you: |
| • | Enter a Fixed Term Recurring Purchase record for the 1/12th (or whatever is allowed) average Annual Interest paid. |
| • | Enter a Fixed Term Recurring Purchase record for the 1/12th (or whatever is allowed) average Annual Principle reduction. |
| • | Do the same for any Escrow that is being paid. |
| • | When the Recurring Purchase Invoice is created, each of these categories will be entered as a Detail Line Item, as appropriate. |
| □ | Mortgage and Bank Loan Actual Cost Method: |
| • | If your accountant has determined that you cannot average the Principle or Interest costs, and so these must be correctly amortized each month based on the loan's actual amortization schedule. |
| • | Enter a Fixed Term Recurring Purchase record for the Gross Payment minus any Escrow amount (which is actually calculated on a monthly basis). |
| • | Enter a Fixed Term Recurring Purchase record for the Escrow amount that is being paid monthly. |
| • | When the Recurring Purchase Invoice is created, one Detail Line Item will have the entire Payment posted as a Principle Reduction and, if Escrow required, a second Detail Line Item will have that amount. |
| • | Go to the Bill Form and locate each of the Invoice(s) in question. |
| • | Modify each of these special Fixed Term Bills as follows: |
| • | Enter one Detail Line Item with the correct Principle amount. |
| • | Enter one Detail Line Item with the correct Interest amount. |
| • | Do nothing with the escrow entry, if it has one. |
| • | Drag and Drop the original Gross Payment minus any Escrow amount's Detail Line Item to the Trash. |
| • | If you only have a few of these transactions, you may want to just manually Bill them, instead. |
| □ | Using the Search Function on the Navigation Menu at the top of the Recurring Purchases Form: |
| • | Search - Click the Search Icon to open the Search Recurring Purchases dialog. |
Search Recurring Purchases dialog
| • | See the "Using the Generic Search dialog" section in the Advanced Search Dialog chapter for more information about this Search dialog. |
