Hello,
We have a vendor for whom we have received an order to pay notice from CRA. In other words, we have been instructed by CRA to pay 30% of what is owed to this vendor directly to CRA. What is the best way to handle this within AP? We have recorded the invoice for the full amount and now have to split the payment between the vendor (70%) and CRA (30%).

Is there a way to do this automatically where we can set up an alternative payee and have 30% paid to them? Or would we have to do a cheque run with payment to the vendor for 70% (calculated manually), then change the payee in the vendor Payee page, and do another cheque run with payment for 30% (calculated manually) to CRA? For every invoice we get we would have to go through this process of calculating how much is paid to each and changing the payee details each time. Is there an easier or more automated way to handle this?

Thanks very much!
Tanja

Hi Cool Aid

The only option I can think of that doesn't require manual calculations is as follows..

Let's say the vendor has Net10 terms. Set up a new terms code called 30N10 with a description "30% Net 10 Days". For the Due Date enter 10 as the Number of Days. For the Discount date, enter the discount percentage as 30% and the Number of Days a high number like 100. Assign this new terms code to the vendor.

Now when you pay invoices to this vendor, the system will offer to take discount of 30% off the total - you can even show the gross and discount amount on the pay stub. Then you will enter an invoice for the total amount of the discount to CRA, using the discount expense account as the GL account, and issue a check for the 30% to CRA.

Make sense?

Steve