Setting Up Accounts Payable in Sage 50

Set Up Accounts Payable in Sage

For small businesses, accounts payable is an important part of managing finances. This is especially true if your business grows and you’re dealing with larger amounts of money and more complex transactions. Setting up accounts payable in Sage 50 can help streamline the process and make it easier to manage your money. In this article, we’ll look at what steps are involved in setting up accounts payable in Sage 50, so that you can get started on taking control of your finances.

With the financial world raving about the benefits and the advantages of Sage 50 time and again; it is not a surprise that the software has emerged to become a popular choice among businesses of all types and sizes. The remarkable features and the easy-to-understand aspects of the software make it an instant pick even for people who are not from a finance background. The best part about Sage is the easy application on the go that allows the users to make the most of the various advantages of the software no matter what place you are. Worth a mention is the all-new Sage C or the Sage cloud that allows the users an application that is up to the modern mark on the current digital age.

Likewise, the Setting Up Accounts Payable in Sage 50 is one of the most attractive features of the software. But what are Accounts Payable in sage all about? Let us find out

Accounts Payable in Sage

Essentially the Accounts payable is a feature in Sage that refers to the Debt that is owned by the company. This is in exchange for services or goods within a brief period of time. The main advantage of Accounts payable is that it offers simplified practices by the company and comprises a line of credit with a vendor that has to be paid within a certain duration of time. This way one does not have to comply with the need for frequent invoicing as all the accounts are assembled into a single account and can be settled on a regular basis. 

Read More : Accounts Receivable and Accounts Payable in Sage 50

So, to speak one can declare that the Accounts payable is a short-term debt of the company or a department that can easily manage the debts. Therefore, the ease with Accounts Payable comes with the fact that in case of any money owed by the company is recorded as a liability till the time it is finally paid off. Thus, the Accounts payable software is a great way for the easy management of such an item in a business in order to avoid ‘any potential default with the creditors’.

How to Set Up Accounts Payable in Sage 50

Let us now, take a look at how to set up the Accounts Payable in Sage 50. To do so, you will need to

  • Access the Accounts Payable module for the new company
  • The accounts payable wizard is activated in this case
  • Set up the Accounts payable wizard by following the prompts
  • Go to the Accounts Payable Set up Wizard page
  • Click on the Wizard Listing in order to print the list of wizard selections and the other module default settings. 
  • Select the Access Accounts Payable options check box in order to review and change any default options that are not included in the Setup Wizard. 
  • Go to the Accounts Payable option and review the settings to make any adjustments as required. 
  • Next, you need to complete the following set-up tasks
    • Use the A/P Division maintenance in order to set up the vendor and invoice information by divisions. In order to ensure that the system works correctly, one needs to select the related General ledger account numbers for the Accounts Payable and the discounts earned for every division number.
    • In case of the lost accounting for the discount, you need to assign the discount taken and discount lost Accounts
    • In the case of division 00, you still need to enter the information despite the Accounts Payable Division check box being cleared in the Accounts Payable option Windows.
    • Use the Bank Code maintenance in case you need to establish bank accounts
    • One needs to bear in mind to ignore the Bank code maintenance in case the cash account is defined for the bank code, or if the cash account is defined in A/P Division maintenence.
    • Use of A/P terms code maintenance to set up terms code
    • Use the Sales tax Account maintenance to set up the Sales tax accounts.
    • USe the Vendor and customer link Maintenence to link Accounts payable vendors to Account receivable customers
    • In case of performing the process of clearing you do not need to use the bank code Z. This is the bank code that is used during the Accounts payable from the Accounts Receivable clearing process.
    • USe the Memo Manager Maintainenece to create the Vendor memo.
    • Use the ACH maintenance to make the ACH electronic payments to the vendors in order to define the settings for each of your banks that will access this aspect.
    • Use the expense distribution Table Maintenence to be able to set up the table with the general Ledger Accounts and distribution percentage.

Latest in the Accounts Payable Software

The latest in the Sage 50 is the Sage Intact which has further eased the process of Accounts payable. This can be done in a single solution, where the entire process including bill and vendor creation, payments through reconciliation and reporting and approvals can be accomplished. Along with this, better visibility, and traceability across the centralized, electronic access to the bills payment status, audit trials and approvals are also accomplished. 

With this latest feature, one does not have to juggle in between the systems to complete payments, reconcile or check status.

Also Read-: Setting up Prepayments and Accruals in Sage 50


So, there you have it people, these are the facts, features and other aspects of Setting Up Accounts Payable In Sage 50. Now, one can easily make the most of this feature in the Sage 50 and enjoy better productivity and efficiency in the overall results. However, in case of any issues and problems, you can very well reach out to us and we will be more than happy to help you out.

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Frequently Asked Questions(FAQs)

How to Record Entry to Accounts Payable?

While recording the accounts payable one can easily debit the asset or expense account into which a purchase is related and credit the accounts payable account. This is the on how to enter to record accounts payable

Name a few Rules of the Accounts Payable.

Some of the prime rules of the Accounts Payable are:
1. Prevention of having to pay the fraud invoice.
2. Prevention of having to pay inaccurate invoices.
3. Preventing the payment of a vendor twice
4. Having all the vendors well accounted for

How to Entering Vendors into Sage 50

If you’re setting up Accounts Payable in Sage, you’ll need to enter your vendors into the system. Here’s how to do it:
1. Log into Sage 50 and go to the “Vendors” menu.
2. Click on the “Add Vendor” button.
3. Enter the vendor’s name, address, and contact information.
4. Click on the “Save” button.
5. That’s all there is to it! Now you can start adding invoices from your vendors and paying them through Sage 50.

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