Overdue A/P payments

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Overdue A/P payments

 

Failing to pay vendor invoices on time can seriously affect your business.

As overdue balances increase:

Available credit may be reduced

Vendors may restrict purchases

Emergency parts and services may become difficult to obtain

For this reason, monitoring overdue Accounts Payable balances is extremely important.


The Overdue Vendor Function

MLS 2026 includes an Overdue Accounts function designed to help you monitor late vendor invoices quickly and efficiently.

When this option is selected:

Vendors with overdue invoices are displayed in a browse list

Vendor information appears automatically as accounts are highlighted

Current balances and pending activity are shown in the upper portion of the screen

This allows accounting staff to:

Review overdue balances

Identify payment issues

Follow up with vendors promptly


Reviewing Overdue Accounts

When reviewing overdue accounts, it is important to document all communication and follow-up activity.

Examples include:

Vendor contact attempts

Payment commitments

Missing statements

Special payment arrangements


Example Note

4/12 – Contacted vendor regarding missing monthly statement. Vendor will resend copy by email.


Why Notes Matter

Good notes help:

Prevent misunderstandings

Track commitments

Maintain consistent communication

Provide a history of vendor interactions

Because notes are attached directly to the vendor account, they can be reviewed instantly by anyone handling payables.

The Notes section supports full word-processing functionality as described in the General Concepts chapter.

⚠️ Remember to select OK after entering notes so they are saved properly.


Completing the Review

When account review is complete:

Select Close to return to the main menu


Best Practice: Review Weekly

Overdue vendor accounts should be reviewed at least once each week.

Consistent follow-up helps:

Maintain strong vendor relationships

Prevent credit restrictions

Reduce late-payment tension

Keep purchasing operations running smoothly


Important Business Principle

Vendors are often far more flexible with businesses that:

Communicate regularly

Follow through on commitments

Address problems early

Ignoring overdue balances usually creates much larger problems later.