Payable types determine which liability payable accounts are credited (when invoices are posted) and debited (when they are paid).

Each line of a transaction entered in the AP Transaction Entry and AP Recurring Invoices forms must be assigned one of the pay types you set up in the AP Payable Types form. The assigned pay type determines which liability payable account is credited when the invoice is posted and debited when it is paid.

If you assigned pay types in the AP Company Parameters form to the Payable Types for Expense, Job, Subcontract, and Retainage, then transactions entered in the AP Transaction Entry and AP Recurring Invoices forms automatically default to one of these assigned pay types, depending on the type of transaction.

For example, if you have two pay types—one for expenses and one for retainage—you would assign them to the four Payable Type options in the AP Company Parameters form as follows:

Then, in the AP Transaction Entry and AP Recurring Invoices forms, the system will assign pay type 1 to all transactions you post for jobs, subcontracts, and other expenses, and pay type 2 to the retainage portions of the transactions.