We have recently joined a buying group where our vendors now submit their invoices directly to the buying group, who then invoice us. If all the invoices I receive are to be paid to the buying group, no matter who the vendor is, how can I keep track of sales volumes etc. for the individual vendors since I won't be posting to their accounts?
Thanks

Hi Zoe:
That concept is becoming more popular. There is an add-on product named Link2Points for exactly that situation from a developer called Stief Group. Ask your Adagio reseller for more information.

Hi Zoe

1) Create a new GL account called Buying Group Clearing and put it near your Accounts Payable account as a liability. For the sake of this discussion, let's call it GL account 2001

2) Create a new bank in AP and point the cash account to GL account 2001

3) For every vendor that will be paid through the buying group, modify the vendor record and put something in the report group field, such as a "B" - it doesn't matter what, just be consistent.

4) Enter the invoices to the individual vendors as usual

5) When creating a Pre-check register for the non-buying group vendors, make sure to blank out the "zzzzzz" in the ending Report Group field - this will exclude the buying group vendors from the check run

6) Enter the invoice to the buying group itself in total, coded to GL account 2001, and pay it as normal, it will debit account 2001 for the amount of the invoice.

7) Do a "fake" check run to the new bank, selecting report group "B" to "B", and print the checks on white paper (it doesn't matter what the check numbers are). This will zero out the buying group vendor invoices and show them as paid. The credit will be to GL account 2001, offsetting the debit above.

The control is that the fake check run has to agree in total to the amount you are paying the buying group. This will assure that the balance in account 2001 will be zero.

Steve

Steve:

As I understand it you are entering the amounts to the buying group vendor as lump sums. How does the buying group know which invoices you are paying?

Doug

You enclose the statement. It's just like a credit card company.

Steve

Hi Zoe,

When you have time, please call us and we can arrange a demo of Link2 Points. Or have your Adagio dealer call us to set up a demo. It is another module that is used for maximizing credit card payments (for the loyalty points) but also was designed specifically for the Buying Group model, you are requesting a solution for.

You identify which vendors are to be paid by the buying group, and then enter invoices as normal. You can then select the invoices to be transferred to be paid to the buying group, and cut payments as normal. Invoices can be selected by invoice, by vendors, by date range, with the ability to calculate payment discounts on the transfer.

Your vendor statistics continue as normal, and the transactions under the buying group show the originating vendor and invoice number. The originating transactions under the originating vendor show the payment transfer to the buying group.

Some of our site users have hundreds of vendors associated with their buying group(s).

The software is available from your Adagio dealer.

Our Link2Systems.com website is currently being redeveloped, but you can still see a product PDF there for reference.

Best,
Brian