Accounts Receivable gives you the ability to set up, track, and manage a customer's account. At the time of sale, or at the time of payment received, a record is created on the Customer Card in the AR tab. Most customer transaction information can be adjusted from the Customer Card or you may use the Open AR Batch. You may charge interest to past due accounts, generate customer statements, or print reports summarizing your Accounts Receivable.
Balance Forward and Open Item
There are two methods of accounting that can be used for Accounts Receivable, Balance Forward and Open Item. You can decide the accounting method you want to use for each customer by selecting the desired method of the Customer Card under Tax and Terms.
The Balance Forward method allows you to post sales and payments to maintain a balance for the current period. At the end of the period, statements are printed and the period is closed. All period transactions are summarized and posted as the balance forward for the next period. A list of individual transactions can still be viewed from the Customer Card, but will be displayed as one total until chosen to see otherwise. Payments can be made in the Open Invoice or Open AR Batch and will automatically be applied to the oldest invoice.
The Open Item method allows you to maintain all unpaid invoices on the customer account. Payments can be made in the Open Invoice and Open AR Batch. These payments will remain as unapplied payments on the AR Customer Card until they are applied to a specific invoice. Payments can be applied in the Open AR Batch, or the Customer Card. The invoice detail of theOpen Item method is beneficial for collection purposes, but it requires a higher level of maintenance.
Posting an Invoice on Account
Charging a sale On Account is done through the Open Invoice. The same procedure is used for both Balance Forward and Open Item accounting methods.
Create an Open Invoice by selecting the Open Invoice Icon on the Navigator.
Enter the customer information and item line information as explained in the Open Invoice section.
Click the Post button or use the quick key F3 for On Account.
If you use the Post button, select the AR button as the method of payment.
A window will open asking you to enter the amount that you want charged On Account. Enter the dollar amount and select OK.
The amount will be entered into the payment box. If everything is correct, select Post.
The information for the sale will be shown on the Customer Card under the AR tab.
If a customer does not have terms with your company or has already exceeded his credit limit, you are able to override this through the Open Invoice. When you select the AR button as the method of payment, a window will open telling you the customer does not have any credit to use. Select the override button and you will be able to post the sale on the customer's account.