How to Track A/P Unit by Unit
Appendix ››
To track Accounts Payable on a unit by unit basis, you must input a separate invoice for each unit. Most invoices that come from vendors are not broken out in this manner. However, if you do input invoices on a unit basis, you can receive all Accounts Payable reports on a unit basis.
Most operators don't track Accounts Payable on a unit by unit basis since it requires more disk space and more time to input the data. Since most vendors don't break out the invoices on a unit basis, you must invent an invoice number for each invoice. All references (reports and payments) will then refer to the invented invoice numbers. If you do elect to enter one unit per invoice, the system will track it just fine, giving you even more detail in Accounts Payable.
Invoices from vendors often contain more than one line item of charges, and each line item may be for a different unit. As you enter each line item an expense debit for the referenced unit is added to the Transaction file. When you have finished entering all line-items a credit to Accounts Payable for the total amount of the invoice is added to the Transaction file. This works just fine for Operating Statements (line items for each unit can be billed to Investors). However, when you print an Accounts Payable Inquiry report, only the total invoice amount is listed (not a line by line listing for each unit). This is the normal method used by nearly all operators.
If you want to see an Accounts Payable Inquiry report, showing the obligations of each unit (rather than just invoice totals) it requires more entry time and a lot more disk space. This method requires you to enter only one unit per invoice. This will cause each invoice to contain only the amount for one unit. Additionally, since each invoice number must be unique for each vendor, and if your vendor does not invoice you with only one unit on a single invoice, you must assign a different invoice number for each unit. Therefore, tracking Accounts Payable by unit is not the normal method, because the benefit gained (Accounts Payable Inquiry Report by Unit) usually does not merit the time it takes to enter invoices in that fashion nor the increased disk storage needed.
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