4.End of Month Process

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4.1End of Month Procedures

At the end of the month, there are certain procedures that need to be performed. They are:

Apply Any Unapplied Payments

Applying unapplied payments pertains only to those customers with Open Item AR types. There are two ways to apply unapplied credits.

Applying Payments in the Open AR Batch

In the Open AR Batch, you have the ability to apply payments one at a time or have the payments paid all at once.

Applying Payments One at a Time

1

Enter the customer with unapplied payments.

Figure 4-1Screen shot 2013-12-01 at 11.08.17 PM

2

You can see the unapplied payments in the Payment Amt. column.

Figure 4-2Screen shot 2013-12-01 at 11.08.17 PM

3

To apply the payments, select the Apply Existing Payments button.

4

The Apply Payments Window will open.

Figure 4-3Screen shot 2013-12-01 at 11.10.38 PM

5

The top panel displays all the open charges.

Figure 4-4Top

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The bottom panel displays all the open payments.

Figure 4-5Bottom

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To apply the payment to the charge, highlight the charge and then double click on the payment.

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Double clicking on the payment will apply it to the highlighted charge. The Open Charges Total Balance will reflect the total with the applied payments. The Open Payments Total Unapplied will reflect what is left in Open Payments, and the Total Applied will reflect what was just applied.

Figure 4-6Screen shot 2013-12-01 at 11.12.44 PM

9

If everything is correct, select the Save and Close button.

Figure 4-7Screen shot 2013-12-01 at 11.13.31 PM

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When the window has closed, the Open AR Batch will reflect the payments applied.

Figure 4-8Screen shot 2013-12-01 at 11.14.23 PM

NOTE:

The Balance Total will not change as payments are applied. This is because the payment has already been received and processed. With applying payments, you are simply cleaning up the customer's AR account by assigning payments to charges.

Applying Multiple Payments at Once

1

Enter the customer with unapplied payments.

Figure 4-9Screen shot 2013-12-01 at 11.15.55 PM

2

You can see the unapplied payments in the Payment Amt. column.

Figure 4-10Payment

3

To apply all the payments without having to apply each one to a specific payment, select the Auto Apply Existing Payments button.

Figure 4-11Auto

4

A window will open asking if you want to automatically apply the existing payments. Select Yes and the payments will be applied. Select No and no change will occur to the batch.

Figure 4-12Screen shot 2013-12-01 at 11.17.44 PM

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After you select Yes, the Open AR Batch will have applied all the unapplied payments.

Figure 4-13Screen shot 2013-12-01 at 11.18.13 PM

Applying Payments in the Customer Card

If the customer is an Open Item AR type, you have the ability to apply existing payments.

1

In the Tax and Terms tab, make sure the customer you are working with is an Open Item AR type.

NOTE:

You can only apply and un-apply payments if the customer is an Open Item AR type

Figure 4-14Screen shot 2013-12-01 at 11.21.05 PM

2

In the AR tab, select the apply button.

Figure 4-15apply

3

The Apply Payments Window will open.

Figure 4-16Screen shot 2013-12-01 at 11.22.07 PM

4

The top panel displays all the open charges.

Figure 4-17top 2

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The bottom panel displays all the open payments.

Figure 4-18bottom 2

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To apply the payment to the charge, highlight the charge and then double click on the payment.

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Double clicking on the payment will apply it to the highlighted charge. The Open Charges Total Balance will reflect the total with the applied payments. The Open Payments Total Unapplied will reflect what is left in Open Payments, and the Total Applied will reflect what was just applied.

Figure 4-19Screen shot 2013-12-01 at 11.24.00 PM

8

If everything is correct, select the Save and Close button.

Figure 4-20Screen shot 2013-12-01 at 11.24.00 PM

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The total on the Customer Card will not change because it will have already taken into account the payment. However, the payment will be in a line in the table.

Figure 4-21Screen shot 2013-12-01 at 11.25.02 PM

NOTE:

If payments are made and the customer is an Open Item AR Type, the total on the customer card will automatically reflect the payment made because the money has been received. However, the payment will not be applied to a specific charge until you apply it through an Open AR Batch, or through the Apply button on the Customer Card. Applying payments is to organize your customer's AR account.

Charging Interest

Interest should be charged on a monthly basis to keep your records up to date and to ensure the interest is charged accurately. Charging interest is done through the Finance Charge and is applied to anyone with an outstanding balance at least 30 days old.

1

Select the Finance Charge icon on the Navigator located under Accounts Receivable Tools.

2

The Finance Charge window will open.

Figure 4-22Screen shot 2013-12-01 at 11.26.13 PM

3

The Charge as of Date is the date from which to charge the finance charge. If the date that appears is not correct, type the correct date or select the down arrow and choose the correct date from the calendar.

The rest of the information in the top of the window defaults to what was set up in General Preferences. You are able to edit any of these fields.

Grace Period

Enter the number of days you will allow an invoice to be past due before a finance charge will be added.

Minimum Finance Charge

Enter the minimum finance charge amount that will be added to any past due invoice.

Interest Rate

Enter the interest percentage rate you want to charge.

4

The table will automatically find the customers that match the criteria and display them.

5

If all the information is correct, select the Apply Finance Charges button.

Figure 4-23Screen shot 2013-12-01 at 11.26.13 PM

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The window will close and a new message will pop up telling you the charges have been applied.

Figure 4-24Screen shot 2013-12-01 at 11.27.45 PM

NOTE:

If you have recently run the finance charge and you try to run it again, a warning will open when you select the Apply Finance Charge button. If you want them charged again, select Yes. If it was a mistake and you do not need to charge interest again, select No.

NOTE:

You will want to run the finance charge before you print Statements and Close the Period.

AR Statement

The AR Statement is designed to print statements for customers who have a balance on their account. It will print one statement for every customer with an outstanding balance. In the End of Month Procedures process, Statements should be printed after the Finance Charge has been run.

Column Headers

Date, Document Type, PO #, Terms, Amount, and Total

Running an AR Statement

1

Select AR Statement from the Reports window.

Figure 4-25Screen shot 2013-12-01 at 11.28.34 PM

2

Set the parameters for the report

Figure 4-26Screen shot 2013-12-01 at 11.29.57 PM

A. Date: Select the date that the report is to be run for

B. Ranges: Select how you want the report information listed. For example, select Customer ID to choose a range of customers to display.

C. Filters: You can broaden or limit your search by using the Filters.

i. Print Phone Number: check this box if you want the report to include the phone number.

ii. Print Negative Balances: check this box if you want the report to include customers with a negative balance.

iii. Print PO ID as Reference: check this box if you want the report to include the Purchase Order ID as a reference.

iv. Print Only Past Due: check this box if you want only the past due customers to appear in the report.

3

Once the parameters are set, select the Run Report button.

Figure 4-27Screen shot 2013-12-01 at 11.30.34 PM

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The report will open in a print preview screen.

Figure 4-28Screen shot 2013-12-01 at 11.31.36 PM

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To Print, Save, or Navigate through the report, use the icons at the top of the print preview screen.

AR Management Report

The AR Management Report is designed to show an accounts receivable aging report that shows outstanding customer Invoices that are still due to the merchant. In the process of end of month procedures, the AR Management Report should be run after Statements are printed, but before closing the period.

Column Headers

Company ID, Company Name, City, State, Contact Name, Phone, Email, Invoice ID, Date, PO, Terms, Current, 30, 60, and 90.

Running an AR Management Report

1

Select the AR Management Report from the Reports window.

Figure 4-29Screen shot 2013-12-01 at 11.32.48 PM

2

Set the parameters for the report.

Figure 4-30Screen shot 2013-12-01 at 11.33.35 PM

A. Dates: Select the date that the report is to be run for.

B. Filters: You can broaden or limit your search by using the Filters

i. Show Negative Amounts: Check this box if you want the report to show negative amounts.

ii. Show Zero Balances: Check this box if you want the report to show zero balances.

C. Show Detail: Check the detail check box to see the invoice broken out on the report.

3

Once you have set all the parameters, select the Run Report button.

Figure 4-31Screen shot 2013-12-01 at 11.33.35 PM

4

The report will open in a print preview window.

Figure 4-32Screen shot 2013-12-01 at 11.37.14 PM

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To Print, Save, or Navigate through the report, use the icons at the top of the print preview window.

Closing the Period

In your list of end of month procedures, closing the period will be last. As you fill out the information to close the period, there will be reminders to complete other tasks before you close the period. You only need to close the period when you have customers with a Balance Forward accounting method. All unpaid transactions are totaled into one balance forward line on the Customer Card.

1

Select the Close Period icon on the Navigator. The icon is located under AR Tools.

2

The Close Period window will open asking for the closing date.

Figure 4-33Screen shot 2013-12-01 at 11.37.52 PM

3

Enter a date by typing it in or selecting the down arrow and choosing a date from the calendar.

4

Once the date is entered, select the Close Period button.

Figure 4-34Screen shot 2013-12-01 at 11.37.52 PM

5

Another window will open asking if you would like to apply finance charges before closing the period. If you would like to apply the finance charges select Yes, if not select No.

Figure 4-35Screen shot 2013-12-01 at 11.38.51 PM

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The next window to open will as if you would like to print the AR Management Report before closing the period. Select Yes or No.

Figure 4-36Screen shot 2013-12-01 at 11.39.15 PM

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As soon as you select Yes or No, the period will be closed. Select OK to close the window.

Figure 4-37Screen shot 2013-12-01 at 11.39.40 PM

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