ACCOUNTS RECEIVABLE PROCEDURE NOTES

The Accounts Receivable System is based on the following database tables:

Customers: Accounts Receivable invoices are assigned to Customers.

Bill Codes: Accounts Receivable invoices are made up of line items that reference Bill Codes. The Bill Codes contain descriptions, prices, and debit and credit account numbers.

General Ledger Transactions: Accounts Receivable invoices are written to the GL Transactions file under the source of entry ARI. Payments go to the source of entry ARP.

The programs that update these tables (all found in the Customers Menu) are:

Bill Code Maintenance: Used to set up billing line items, prices quantities, and accounts

Customer Maintenance: Used to set up billable Customers

Invoice Post: Posts invoices and line items to Customers and creates General Ledger Transactions

Payment Post: Posts receipts to line items and creates General Ledger Transactions

Cash Receipting: Used for posting non-Accounts Receivable cash receipts (e.g., Permits)

Invoices

All billing is done to a Customer. The Customer is set up using Customer Maintenance. Billing is done on a line item basis. Each line item references a Bill Code. The Bill Code has the debit and credit account numbers. Bill Codes may also have a price each and taxable flag specified.

Invoice transactions are posted to the source of entry ARI. For each invoice there is a source of entry type of INV that contains the Invoice Description. The Amount on this transaction is zero and is there just to hold the description.

Each line item creates a source of entry type of AR for the debit to accounts receivable (as specified by the Bill Code) and a source of entry type of REV to hold the credit to a revenue account.

Each AR or REV General Ledger transaction source of entry type also holds the Bill Code.

Payments

All payments against Accounts Receivable invoices are posted in the Payment Post program.

A Payment must be posted to a Customer and Invoice and a Line Item. Since this can be a tedious process, the Payment Post program gives you several posting options:

•Post to a Line Item: A Payment can be posted to a Customer and Invoice and to a specific Line Item (e.g., a partial payment).

•Post to All Line Items on an Invoice: If the Payment Amount is for all line items on an Invoice, a single posting will use all the Line Items posted for a selected Invoice.

•Post to All Invoices and Line Items: If the Payment Amount is for all the Invoices and Line Items for a Customer, a single posting will use all the Line Items posted on all the Invoices for a Customer.

Payments go to the source of entry ARP. The credit to the Accounts Receivable account is to the source of entry type AR and the debit to the bank account is to the source of entry type BNK.

A Line Item is considered "paid" when the Credits from the Payments equal the debits from the Invoices.