Accounts Receivable

The Accounts Receivable module tracks invoices on an open item basis and will optionally generate General Ledger entries. Over payments and/or payments that cannot be assigned to a particular invoice when received are handled as unapplied payments. Invoice credit and debit memos are supported. Numerous reports are available to give a complete picture of receivables.

Invoices:
Most often invoice transactions are created by an Order Entry or Point-of-Sale module, but in the event that neither of these are being used, invoices may be entered into the Accounts Receivable module directly. The usual procedure is to create a batch of all invoices created on the previous business day: (screen shot)

1. The bookkeeper or operator runs a dollar amount total of all invoices to be entered. The batch total amount is entered and a batch control number is assigned by the program.
2. Each invoice is then entered, and in turn the account detail is entered for each invoice.
3. When the dollar amount of the invoices equals the batch total, a 'Batch Invoice Report' is printed.
4. If the bookkeeper or accountant is satisfied the batch is in order, it is posted to the master files. Multiple batches may be entered and edited at the same time, however only batches that are in balance can be posted.

Payments:
Payments are entered by batch, similar to the invoices. When a payment is entered the user is asked which invoices and late charges are included. A pick list is available to show unpaid invoices for the customer remitting payment. Any payment amount not applied is designated as an unapplied payment. The payment batches are printed and posted in the same manner as the invoice batches.

Debit and Credit Memos:
Debit memos and credit memos can only be entered against a particular invoice or late charge. When entering payments and memos, the invoice balance is not updated until they are posted.

Unapplied payments can be applied at any time with the 'Apply Unapplied Payments' option. An unapplied payment report can be printed to facilitate this.

Interface to the General Ledger:
General Ledger entries are created based on the logical field SYS.GL. If SYS.GL is false, the user is not asked for any accounting codes or accounting periods and no General Ledger entries are created. If SYS.GL is set to true, General Ledger entries are generated based on the accrual accounting method.

If SYS.MULTIACCT is set to T., separate General Ledger cash and receivable account entries will be generated for each entity. If SYS.MULTIACCT is set to F., there will be one cash account and one receivable account. All offsetting entries will be rolled up into this single cash account and receivable account, even if they are for different entities.

Each group of General Ledger records generated will be added to BATCHDET.DBF. One record for each group will be added to BATCHTTL.DBF. These records will then be ready to post to the permanent General Ledger files through the General Ledger module.

Installation:
The user can set up a customer file with Edit Customer Information' option.

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Last updated: Tuesday, February 03, 2004 05:24:26 PM