Accounts Receivable
Accounts Receivable
Table of Contents Accounts Receivable ......................................................................... 4 Objectives ........................................................................................................................... 4
Introduction to Receivables.......................................................................... 5 Receivables Overview ........................................................................................................ 5 Receivables Manager ......................................................................................................... 5 Billing Account History (F4) ................................................................................................ 5 Introduction to Receivables Key Items to Remember ........................................................ 6
Receivables Manager .................................................................................... 6 Viewing Receivables in the Receivables Manager............................................................. 6 Searching in the Receivables Manager .............................................................................. 7 Control Menu Options in the Receivables Manager ........................................................... 7 Creating a New Billing Account from the Receivables Manager ........................................ 9 Miscellaneous Cash Receipts .......................................................................................... 11 Receipt Distribution Codes ............................................................................................... 11 Entering a Miscellaneous Cash Receipt ........................................................................... 12 Receivables Manager Key Items to Remember ............................................................... 14
Billing Account History ............................................................................... 14 Billing Account History Features....................................................................................... 14 Displaying Transactions by Location ................................................................................ 16 Control Menu Options in the Billing Account History ........................................................ 16 Billing Account History Key Items to Remember .............................................................. 17
Printing Customer Statements ................................................................... 17 To Print Statements for All Accounts ................................................................................ 17 To Print a Statement for One Account ............................................................................. 19 Printing Customer Statements Key Items to Remember ................................................. 20
Recording Payments ................................................................................... 20 Recording a Receipt ......................................................................................................... 20 Allocating Items to a Customer's Billing Account ............................................................. 20 Posting a Cash Receipt .................................................................................................... 22 Manually Allocating Payments.......................................................................................... 24 Allocating Open Items ...................................................................................................... 25 Making a Payment with an Adjustment ............................................................................ 26 Recording a Customer Deposit ........................................................................................ 29 Recording Payments Key Items to Remember ................................................................ 29
Making Adjustments ................................................................................... 30 Creating a Credit or a Debit Adjustment ........................................................................... 30 Criteria for Reversing a Receivables Transaction ............................................................ 32 Reversing a Receivable Transaction ................................................................................ 33 Making Adjustments Key Items to Remember ................................................................. 33
Aging Accounts ........................................................................................... 33 Aging All Accounts from the Receivables Manager ......................................................... 33 Aging an Individual Billing Account .................................................................................. 34 Aging Accounts Key Items to Remember ......................................................................... 34
Adding Finance Charges ............................................................................ 35 Adding Finance Charges to Accounts .............................................................................. 35
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Accounts Receivable Receivables Tab (Finance Charge Setup) ....................................................................... 35 To Calculate and Post Finance Charges for All Accounts ............................................... 37 To Calculate and Post Finance Charges for a Selected Billing Account ......................... 38 Reversing the Last Posted Finance Charges from All Accounts ...................................... 38 Reversing Finance Charges on an Individual Account .................................................... 38 Adding Finance Charges Key Items to Remember .......................................................... 39
Viewing Allocations ..................................................................................... 40 Allocations ........................................................................................................................ 40 Viewing Allocations ........................................................................................................... 40 Removing Allocations ....................................................................................................... 41 Viewing Allocations Key Items to Remember................................................................... 42
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Accounts Receivable
Accounts Receivable Objectives After completing this unit, the student will be able to:
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Understand the features of the RECEIVABLES MANAGER and BILLING ACCOUNT HISTORY.
Search for customer accounts, invoices and payments.
Create a new billing account.
Age all accounts or individual accounts.
Apply finance charges to overdue items.
Reverse finance charges.
Record miscellaneous cash receipts.
Record customer payments.
Allocate payments to specific items on a customer’s account.
Record a deposit received from a customer.
Record a credit or debit adjustment to a customer’s account.
Give a refund.
View allocations.
View General Ledger activity on billing accounts and receivables items.
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Accounts Receivable
INTRODUCTION TO RECEIVABLES Receivables Overview The process of working with receivables is generally handled in two separate areas of SuccessWare21, the RECEIVABLES MANAGER and the BILLING ACCOUNT HISTORY screen. Both allow you to access customer accounts, apply payments, and include finance charges and other related activities.
Receivables Manager The RECEIVABLES MANAGER is generally used to perform receivables activities that relate to all billing accounts. Additionally, transactions that are not related to any specific billing account, such as miscellaneous cash receipts, are handled in the RECEIVABLES MANAGER. Functions normally performed from the RECEIVABLES MANAGER:
View all accounts, (Ctrl+Enter)
Add New Billing Accounts
Search for a specific billing account,
Age all accounts,
Post finance charges for all accounts,
Print statements for all accounts, and
Print a statement for one account.
Record Miscellaneous Cash Receipts
Billing Account History (F4) The BILLING ACCOUNT HISTORY screen is used to perform receivables transactions that pertain to specific billing accounts. Functions normally performed from the BILLING ACCOUNT HISTORY screen:
Post cash receipts,
Enter adjustments,
Print an individual statement,
Age an individual account, and
Apply finance charges to an individual account.
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Accounts Receivable
Introduction to Receivables Key Items to Remember
Receivables processing is performed in the RECEIVABLES MANAGER and the BILLING ACCOUNT HISTORY screens.
The RECEIVABLES MANAGER is generally used to perform receivables activities that relate to all billing accounts.
The BILLING ACCOUNT HISTORY screen is used to perform receivables transactions that pertain to specific billing accounts.
RECEIVABLES MANAGER Viewing Receivables in the Receivables Manager The RECEIVABLES MANAGER allows you to display:
Accounts,
Invoices,
Payments, and
Adjustments.
Each of the item types can be searched using 5 common fields They are:
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ADDRESS,
PHONE#,
LAST NAME,
COMPANY, and
BILLING ACCT ID. SuccessWare, Inc.
Accounts Receivable
In the Invoice view, you can also search by INVOICE NO and JOB NO. In the Pmts/Adj view, you can search by PMT/ADJ REFERENCE. You can view all records within a view by pressing Ctrl+Enter. You can further filter results by choosing to display only Open Items, Overdue Items or Out of Balance Items. Click on any item and press F4 or Enter to open the BILLING ACCOUNT HISTORY for that customer.
Searching in the Receivables Manager 1. Click on the type of item for which you want to search.
2. Enter the search term in the desired field. 3. Press Enter to perform the search (or press Ctrl+Enter to return all records of the chosen type). 4. Further limit the result set by clicking on Open Items, Over Due or Out of Bal to see only items that fit those criteria.
Control Menu Options in the Receivables Manager Right-Clicking in the results grid of the RECEIVABLES MANAGER will open the control menu which will allow you to perform a number of functions: Menu Options
Function
View
Selects which view you wish to use for the RECEIVABLES MANAGER; Accounts, Invoices, or Pmts/Adj.
Filter Items
Selects the items to include in the display; Open, Overdue and Out of Balance.
Open Account
Opens the BILLING ACCOUNT HISTORY for the selected account.
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Accounts Receivable
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Menu Options
Function
New Account
Adds a new billing account.
View Allocations
Displays items that have been allocated to the selected item. This option in only available when viewing Invoices or Pmts/Adj.
Review GL
Displays the posted General Ledger entries for the selected item. This option is only available when viewing Invoices or Pmts/Adj.
Fix Item Balance
Corrects allocations on items that are found to be out of balance. This option is only available when using the Out of Bal filter option.
Post Cash Receipts
Allows you to post cash receipts for the selected account or to post a miscellaneous cash receipt (a receipt not related to an outstanding receivable item or account)
Age Accounts
Reads transactions and moves them to the appropriate aging category (over 30, 60 or 90 days) based on the invoice date.
Post Finance Charges
Calculates and posts finance charges for all billing accounts.
Print Batch Statements
Prints statements for all accounts with open items. This option is only available when viewing Accounts.
Print Statement
Prints a statement for the selected account. This option is only available when viewing Accounts.
Preview Statement
Displays a statement for the selected account. This option is only available when viewing Accounts.
Recalc Account Totals
Reads items for the selected account and updates the account’s summary fields.
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Accounts Receivable Menu Options
Function
Reconcile
Runs the reconcile utility. The reconcile utility compares general ledger balances to the detail and reports any discrepancies.
Report
Creates a grid report.
Open
Displays a sub menu that allows you to open (billing) Account details, (billing) Account History, or (billing account) Notes.
Close
Closes the RECEIVABLES MANAGER.
Creating a New Billing Account from the Receivables Manager Typically, you will add billing accounts as you add customer locations to the system; either as a carbon copy of the location or by adding different billing accounts 1. Right-click in the grid area of the RECEIVABLES MANAGER and select New Account, or press Insert. The NEW BILLING ACCOUNT form will open in add mode.
2. Enter the information in the appropriate fields.
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Accounts Receivable Field Descriptions Field
Description
Acct #
Displays the account number for the selected billing account. You can accept the assigned number, or enter your own number. If you change the assigned number, it must contain at least one alpha character.
Service Cont
Displays the name of the person who typically contacts you for service.
A/P Contact
Displays the name of the person you contact regarding their invoices from you.
Locations
Displays a listing of locations associated with the selected billing account. If you wish to identify or add locations for the billing account, right-click and select either Add location, or New carbon copy location.
Rating
Allows you to assign a rating to your customer accounts.
Tax ID#
Enter Tax ID numbers in this field.
Terms
Enter the payment terms for the account in this field.
Pmt Mthd
If you select a credit card type or bank draft, enter the card or account number in the following fields.
Salesperson
If you assign a salesperson to the account, select the assigned salesperson from the drop-down list.
Credit Limit
If you assign a credit limit to the account, enter that limit here.
No Finance Charge
Check the additional boxes to determine whether or not this account should receive finance charges or statements, is a bad risk, should receive solicitations or happy checks (follow up calls).
No Statement Bad Risk Do Not Solicit No Happy Checks General Billing Account
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Note: The Bad Risk checkbox will cause the Customer's Rating, whether it is good or bad, to blink in red at the top of the Customer Information screen and at the top of the Call Taking form. Mark this checkbox to indicate that the new account is a general billing account. A general billing account is one that is not assigned to a particular location and can be selected for jobs and invoices for any location. Examples would be equipment manufacturers or insurance companies.
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Accounts Receivable Field
Description
Alternate Address
Click the ALTERNATE ADDRESS button if a you wish to add a separate Billing address for the customer which will be used in certain situations. The system will open a data entry form where you can add enter the alternate address. If you wish to use this address on billings, be sure that the ALTERNATE ADDRESS checkbox is selected. This is helpful for customers who may live in a location part of the year and want billing sent to another address during other parts of the year.
3. Click Save to save the new billing account.
Miscellaneous Cash Receipts You will use miscellaneous cash receipts to record money received that is not related to an accounts receivable item or billing account. Examples would be payment received from onsite vending machines, worker’s compensation refunds, or cash refunds from a vendor. Recording the receipts in this manner will include them in the un-deposited receipts cash box so they can be reconciled and deposited correctly. You WILL NOT do a journal entry to record these receipts. Journal entries will not update the Account Register. Since miscellaneous cash receipts do not affect Accounts Receivable you must select a Receipt Distribution Code, which will determine where the receipt will post in the General Ledger. The debit will post to cash and the Receipt Distribution Code will determine the offsetting account.
Receipt Distribution Codes Receipt Distribution Codes must be defined for Miscellaneous Cash Receipts. Miscellaneous Cash Receipts are used to record incoming cash that is not applied to Accounts Receivable. Since Miscellaneous Cash Receipts are not applied to receivables, the Receipt Distribution Code is used to tell the system where to post the entry. Build a code that describes the reason the funds are being received and associate that code with the GL account to which you want the item to post. Receipt Distribution codes are found in the Accounting volume of the Reference Library. Double click on Receipt Distribution Code and press Ctrl+Enter to bring the table into edit mode. Press Insert to add a new code.
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Accounts Receivable
Column Name
Description
AdjustCode
Enter a code of up to six character to identify the adjustment code
GL_Account
Choose the General Ledger account to which you want to apply the transaction.
SubAccount
If the General Ledger account you of chosen has subaccounts, select the sub account to which you want to post.
AdjustCodeDesc
Enter a description of the adjustment code.
IsActive
Enter an X in this field to make the item active. If an item is not marked active, it will not be visible or available for users to choose from the list.
Entering a Miscellaneous Cash Receipt 1. Open the Receivables Manager 2. Right-click in the display grid and select Post Cash Receipts. The CASH RECEIPT form will open.
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3. Use the mouse or spacebar to select Miscellaneous as the method for applying the payment. It is very important that you select Miscellaneous! This selection tells the system that you are not applying the payment to a receivables or a billing account. Field
Description
Cash Box
Defaults to the register account that is marked as the default receipt account.
Date
Enter the date you wish the payment to post to the General Ledger.
Amount
Enter the amount of the receipt.
Comment
Optional field for your notes.
Payment Method
Use the drop-down list to select the type of payment (i.e. cash, check, Visa, etc.), then complete the other fields as appropriate.
Since the receipt is not applied to accounts receivable, the system will open a data entry grid where you will select distribution codes to indicate how to post the entry. Press Insert, or right-click and select New Item to enter the distribution information. Complete the distribution grid as follows: Adjust Code
Select the appropriate code from the drop-down list.
Acct
The General Ledger account will default based on the adjust code selected. This field cannot be changed.
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Accounts Receivable Field
Description
SubAcct
If the General Ledger account has sub-accounts you must select a sub-account (using the drop-down list). If you enter a sub-account when setting up the adjustment code, the sub-account will default.
Dept
Select the appropriate department from the drop-down list.
Amount
Enter the amount of the receipt that you wish to post for this line item. You can split the distribution by selecting other codes and/or departments.
Memo
Optional field for your notes.
NOTE: If you wish to split the distribution between multiple distribution codes or departments, press Insert to open another line and complete the fields. Continue until the full amount of the receipt has been distributed. 4. When all fields have been completed, click Post. The receipt will debit the cash account and credit the accounts assigned to the adjust code(s) used. There will be no record of it in the Receivables Manager or any billing account. The receipt will appear in the cash box register account used for undeposited funds where you will reconcile it to create a deposit.
Receivables Manager Key Items to Remember
The RECEIVABLES MANAGER can be used to find billing accounts, invoices and payments.
Miscellaneous cash receipts are used to record money that you are receiving that is not related to an Accounts Receivable item or billing account.
BILLING ACCOUNT HISTORY Billing Account History Features In addition to the “normal” processing of receipts, adjustments, finance charges, etc., the BILLING ACCOUNT HISTORY screen has other features to help you view, and maintain, billing account transactions. They are:
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Display transactions by location,
View allocations,
Allocate,
Review GL, and
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Accounts Receivable
Reverse receivable.
You can access the Billing Account History through either of the following methods:
From the RECEIVABLES MANAGER—locate the account and press Enter or F4
Press F4 from any active customer window
-OR-
The BILLING ACCOUNT HISTORY screen displays all activity for the selected account. These transactions can be viewed using the following filter indicators:
Select
To display
OPEN
Open items.
OVER
Overdue items.
INV
Invoice type transactions.
PMT
Payment type transactions.
ADJ
Adjustment type transactions.
REF
Refunds.
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Accounts Receivable Select
To display
FIN
Finance charges.
NEG
Items that have been negated (reversed).
LOC
Transactions for a selected location for the billing account.
You can also use a combination of filters to achieve tailored results. For instance, if you wish to display only open invoices you would click on Open and then Inv.
Displaying Transactions by Location 1. For accounts with multiple locations, you can filter by location using the LOC filter. Click on the filter and select the location for which you wish to view transactions. 2. To display all locations again, click on LOC and select Off.
Control Menu Options in the Billing Account History Right-clicking in the BILLING ACCOUNT HISTORY screen will open a control menu that gives you the following options.
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Menu Option
Function
Receipt
To post a cash receipt.
Adjust
To enter a debit or credit memo.
Allocate
To allocate a previously unapplied item.
Statement
To print an individual statement for the billing account.
Age Account
To age the current billing account (rather than all accounts).
Apply Finance Charges
To apply finance charge to the current billing account (rather than all accounts).
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Accounts Receivable Menu Option
Function
Filters
To select the filters that are also available at the top of the form.
Open
Displays a sub-menu where you can select to open (billing) Account details, the Job associated with the invoice, the INVOICE form, or (billing account) Notes.
Close
To close the BILLING ACCOUNT HISTORY screen
Billing Account History Key Items to Remember
The BILLING ACCOUNT HISTORY allows you to view all activity on a particular billing account.
Activity on a billing account can be filtered to only show activity related to a particular location.
PRINTING CUSTOMER STATEMENTS SuccessWare21 allows you to print statements that identify open items on a customer’s billing account.
You must use the RECEIVABLES MANAGER if you want to print statements for all accounts.
You can us either RECEIVABLES MANAGER or the BILLING ACCOUNT HISTORY if you want to print a statement for one account.
To Print Statements for All Accounts 1. Press Ctrl+Enter from any search field in the RECEIVABLES MANAGER to list all accounts, then select either Open or Overdue to view only the accounts with an open balance. 2. Right-click in the grid and select Print Batch Statements. The system will then open the STATEMENT DIALOG box.
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Accounts Receivable
The STATEMENT DIALOG allows you to choose the type of Statement to generate and allows you flexibility in determining which customer account to include or exclude. 3. Choose whether to include all accounts (batch statements) or print for a single user selected account. You can also choose to run the statement using a customer Last Name or Company Name. If you choose to run by name, the % wildcard character is available. (Ex. %Mart would return statements for both WalMart and KMart.) 4. Choose the STATEMENT TYPE that you would like to print.
Open Item – Any item with an open balance (or an unapplied balance) which is due prior to the end date specified for the statement. The From date is ignored when running an Open Item Statement.
Balance Forward –The beginning and ending statement dates are used to determine which items will be included in the statement. A “balance forward” is displayed for the account as of the beginning statement date entered, then all new account activity which was entered on the account between the beginning and ending statement dates is listed. Finally a balance as of the Ending Date range is displayed..
5. Choose the type of accounts which you want to appear or which you want to exclude in the statements generated. Use a checkmark to include accounts with:
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A credit balance
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Accounts Receivable
A zero balance
Any activity during the statement period
No Past Due Balances- allows you to include or exclude accounts that have no past due items (Accounts must be aged before this option will offer accurate results.)
6. Choose either Print or Preview to generate the statements.
To Print a Statement for One Account 1. From the RECEIVABLES MANAGER—locate the billing account for which you want to print a statement, right click and select Single Statement. -ORFrom the BILLING ACCOUNT HISTORY screen—click on Statement located at the bottom of the form, or right-click and select Statement. Double-click on the date you wish to use for the statement date. A list of items that will appear on the statement will open. Right click and choose Print or select the Print button. 2. The system will then open the STATEMENT DIALOG box with the selected Account number already recorded.
The STATEMENT DIALOG allows you to choose the type of Statement to generate and allows you flexibility in determining which customer account to include or exclude.
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Accounts Receivable 3. Modify the date range of the statement if necessary. 4. Choose the STATEMENT TYPE that you would like to print.
Open Item – Any item with an open balance (or an unapplied balance) which is due prior to the end date specified for the statement. The From date is ignored when running an Open Item Statement.
Balance Forward –The beginning and ending statement dates are used to determine which items will be included in the statement. A “balance forward” is displayed for the account as of the beginning statement date entered, then all new account activity which was entered on the account between the beginning and ending statement dates is listed. Finally a balance as of the Ending Date range is displayed..
5. Choose Print or Preview to generate the Statement.
Printing Customer Statements Key Items to Remember
Customer statements will display all open and overdue items in a particular date range for the customer.
Statements can be printed for all customers with open items or only for a particular customer.
RECORDING PAYMENTS Recording a Receipt Customer payments that are received at the time of service are generally recorded as a payment when posting the invoice. Customer payments that you receive after an item has been invoiced, payments made via multiple methods of payment or payments for which you have no invoice (such as deposits), are posted in the BILLING ACCOUNT HISTORY screen. You will use CASH RECEIPTS to post any kind of customer payment. They are considered “cash” receipts because the transactions will update a “cash” type account in the General Ledger.
Allocating Items to a Customer's Billing Account If a payment item or an adjustment is not allocated to an open item on the customer's account, the payment or adjustment will appear as an open item. If the payment or adjustment was intended to pay an open item, and it is not allocated to that open item, the balance on the account may be zero, but both the unpaid item and the payment or adjustment will appear as open items when generating statements and for aging purposes. There are 4 ways that a payment or an adjustment can be allocated or "applied" to a customer account: Auto Allocation- An auto allocation is the easiest method of allocation and is used when the receipt amount and invoice balance are equal. In order for auto allocate to be available as an allocation option the following conditions must exist:
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The open item that is being paid must be selected before the receipt or adjustment is recorded. This can often be done by simply selecting the Open filter in the Billing Account History screen.
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The amount of the payment or adjustment must EQUAL the balance due on the selected item.
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You must TAB through the payment or adjustment form. This is due to the fact that SuccessWare21 waits until you have EXITED the Amount field to confirm that the payment or adjustment amount and the open balance are equal. If they are the Auto Allocation option is made available. If you never enter (and therefore never exit the Amount field) the Auto Allocate option will not be made available.
Auto With Adjustment- This option allows you to mark an open item as fully paid by recording a payment and an adjustment through the same screen. This would be helpful, for example, when you receive a $500 payment for a $501 invoice and want to write off the $1 balance due .It also could be used when you receive a check from a finance company to pay an invoice, but the finance company fee is already taken from the check total. In this case you could record both the check amount and the finance company fee at the same time. Both the payment and adjustment will appear on the customer account and show that they were allocated to the open item. In order for the Auto with Adjustment option to be made available to you the following conditions must exist at the time that you post the receipt: -
The open item that is being paid must be selected before the receipt is recorded. This can often be done by simply selecting the Open filter in the Billing Account History screen.
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The amount of the payment or adjustment must LESS THAN the balance due on the selected item.
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You must TAB through the payment form. This is due to the fact that SuccessWare21 waits until you have EXITED the Amount field to confirm that the payment is less than the open balance of the selected item.
Manual Allocation- In situations where the amount of the receipt or adjustment and open item are not equal or you do not want to adjust off the balance due you will need to manually allocate or apply the payment or adjustment to the open items on the account. Unapplied- If the item which you have received payment for has not been entered into receivables yet or you are not sure which item the customer wants to pay, you can leave a payment Unapplied. Once the item to be paid is entered or you are sure which item was intended to be paid you can allocate the item at that time. Unapplied items can only be allocated from within the customer's Billing Account History One special type of Unapplied receipt is a Customer Deposit. Unlike a regular unapplied item, customer deposits CAN be applied from within the payment option on an Accounts Receivable Invoice.
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Accounts Receivable
Posting a Cash Receipt 1. Open the BILLING ACCOUNT HISTORY screen for the appropriate billing account. 2. If you are entering a receipt for a specific invoice, highlight the invoice. NOTE: If the receipt is for multiple invoices, or unapplied, you do not need to select a particular invoice.
3. Click on Receipt located at the bottom of the BILLING ACCOUNT HISTORY screen. You can also right-click and select Receipt, or press ALT+1. The CASH RECEIPT form will open. 4. Using the mouse or spacebar, mark the radio button to indicate how you want to apply the payment:
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Apply to invoice - to indicate that the payment is applied to the selected invoice. If you selected an invoice prior to opening the CASH RECEIPT form, this will be the default.
Apply to account - to indicate that the payment is applied to the selected billing account. (It may be distributed to multiple invoices or adjustments.)
Customer deposit - to indicate that the payment is a deposit received for work to be performed in the future. Payments marked as “customer deposit” can be applied to the invoice when it is posted later.
Miscellaneous - to indicate that the receipt is NOT for an accounts receivable item. See Miscellaneous Cash Receipts for more detail.
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Accounts Receivable 5. Complete the following fields: Field
Function
Cash Box
Defaults to the register account that is marked as the default receipt account.
Date
Enter the date you wish the payment to post to the General Ledger.
Amount
If you selected an open invoice prior to opening the CASH RECEIPT form, the amount will default to the invoice balance. Accept the amount or enter the actual receipt amount. If you are entering a receipt for multiple invoices, enter the entire amount you received. You will distribute it later.
Comment
Enter any comment that you may want to see in the future about the payment. It is recommended that whenever you receive a check payment that you record the check number in the comment field along with your notes.
Payment Method
Use the drop-down list to select the type of payment (i.e. cash, check, Visa, etc.), then complete the other fields as appropriate.
6. Using the mouse or spacebar, select the radio button that indicates how you wish to allocate the receipt.
Auto allocate payment - if the payment amount is the same as the invoice balance, the system defaults to AUTO ALLOCATE PAYMENT. The system will automatically apply the receipt to the selected invoice when you post.
Auto with adjustment - is only available when entering payments where the amount is less than the invoice balance. This option allows you to enter an adjustment at the same time you apply a payment. Selecting this option will require you to complete additional fields.
Manual allocation - if the payment amount is different than the invoice balance, the system defaults to MANUAL ALLOCATION. You will allocate the payment after you post.
Unapplied - can be selected any time and will post the payment to the customer’s account. The system will apply the receipt to the account as an open item when you post.
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Accounts Receivable 7. Press Post to save the payment.
Manually Allocating Payments If you selected to manually allocate a payment, the MANUAL ALLOCATION window will open after you post. Manual Allocation is used to tell the system how to apply a receipt when the payment amount does not match the balance of the item for which you are entering the receipt, or when the receipt is for multiple transactions. 1. After posting a payment, the MANUAL ALLOCATION window will open. You will see the BILLING ACCOUNT HISTORY screen. Notice that the bottom portion of the screen only displays the open items for the account, and that the system states you are posting a transaction (i.e., POSTING PMT: CHECK $1500.00).
The bottom of the form will display the balance of the payment that is still un-allocated in green.
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2. Move through the items allocating the payment as follows: Press Enter
Alt+Enter Del
Ctrl+End
To If the unapplied balance is greater than the item’s balance, pressing Enter will fully “pay” the item. If the unapplied balance is less than the item’s balance, pressing Enter will apply the full un-applied amount to the item. Alt+Enter will place the line item in edit mode where you can enter the amount you wish to apply to the item in the ALLOCATE column. Pressing Del will clear the allocation. If an incorrect amount is in the ALLOCATE column for the item, clear the allocation and either automatically or manually allocate the item again. Pressing Ctrl+End will auto apply the remaining balance. The system will automatically allocate the unapplied balance starting with the oldest item.
3. Once you have completed the allocations, click Post. If there is still an unapplied balance, the system will display the following prompt: “The item is not fully allocated, continue & post?”
Clicking Yes will post the item, thus leaving the un-applied balance as an unapplied payment.
Clicking No will return you to the allocation form where you can continue to allocate the payment.
Allocating Open Items If you choose to mark a payment as unallocated, it will appear in the BILLING ACCOUNT HISTORY as an open item. To allocate open items complete the following steps: 1. Highlight the item that you wish to allocate. 2. Click on the Allocate button located at the bottom of the BILLING ACCOUNT HISTORY screen, or right-click and select Allocate. 3. The system will display all open items for the billing account in the allocation form.
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You will still see the Billing Account History heading on the screen. Notice that only the open items are displayed and the system states that you are posting a transaction (i.e. Posting ADJ Credit Memo 10011 $25.00). The bottom of the form will display the balance that has not been applied. 4. To apply the full amount of the item you are allocating (or, if the highlighted open item is less than the item you are allocating, the full invoice balance), press Enter. The system will insert the allocation amount in the ALLOCATE column. You can also edit the allocation amount if desired. 5. Once the allocation is complete, click Post. If the item is still not fully allocated, the system will ask you to confirm that you wish to post the balance “on account”. Note: If you choose to mark a payment as unallocated, it will appear in the BILLING ACCOUNT HISTORY as an open item. Open items will age and show up on customer statements.
Making a Payment with an Adjustment Making an adjustment with a payment allows you to apply a payment to a billing account item and cancel any additional amount that is owed. This is useful when payment for an invoice is being made by a finance company that withhold a portion of the payment as their fee. The balance remaining on the open item once the payment amount is applied is charged against an Accounts Receivable adjustment code that you will choose 1. Open the BILLING ACCOUNT HISTORY screen for the appropriate billing account.
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Accounts Receivable 2. Highlight the item to which you want to apply a payment. 3. Right-click on the item and select Receipt or Press Alt+1. 4. Choose to Apply the payment to the invoice.
5. Enter the AMOUNT of payment, as well as other payment information. 6. Enter a COMMENT which explains the fact that this is partial payment or other note you would want available in the future when viewing this transaction. 7. Choose AUTO WITH ADJUSTMENT. You must complete the adjustment portion of the screen. That section will only be available when the AUTO WITH ADJUSTMENT selection is made.
7. Complete the fields as follows:
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Accounts Receivable Field
Function
Adjust Code
Select the AR Adjustment code that best represents the reason that you are removing the remaining balance due from the open balance of the item.
Adjust Amount
The system will calculate the difference between the invoice balance and the payment amount to determine the amount of the adjustment.
Acct
The General Ledger account will default based on the ADJUST CODE selected. This field cannot be changed.
SubAcct
If the General Ledger account has sub-accounts you must select a subaccount (using the drop-down list). If you enter a sub-account when setting up the adjustment code, the subaccount will default.
Dept
Select the appropriate department from the drop-down list.
Reference
Will default to the invoice number for which you are posting the receipt. You can change the field if desired.
Comment
It is very important that you record a comment that explains why you have removed the remaining balance from the open item as this comment will be your reminder when you view this transaction in the future.
8. Click on Post to save the transaction. If manual allocation is the allocation mode, the system will display the allocation form so you can indicate how to apply the payment. Otherwise, the system will post the receipt and return to the BILLING ACCOUNT HISTORY screen. See the Manually Allocating Payments section.
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Recording a Customer Deposit Cash receipts from a customer can be recorded as a deposit. It is important that CUSTOMER DEPOSIT is chosen, as opposed to merely applying the amount to the customers account. By marking the receipt as a deposit the deposit can be applied directly as a payment through the payment option on an Accounts Receivable invoice. Note: When recording Customer Deposits, it is very important that you enter a note regarding the deposit in the Comment field of the Receipt form. This comment will appear in the AR invoice payment form when you apply the deposit to the invoice. If you have many deposits on record for a customer (such as a builder) you can use the comment to help you to identify which deposit is intended for which job. 1. Open the BILLING ACCOUNT HISTORY screen for the appropriate billing account. 2. Click Receipts. 3. In the CASH RECEIPTS form, select the CUSTOMER DEPOSIT option
4. Enter the required information regarding the payment amount and method. 5. Click Post to save the deposit.
Recording Payments Key Items to Remember
You will use CASH RECEIPTS to post any kind of customer payment.
Manual Allocation is used to tell SuccessWare21 how to apply a receipt when the payment amount doesn't match the balance or for when the receipt is for several transactions.
If you choose to mark a payment as unallocated, it will appear in the BILLING ACCOUNT HISTORY as an open item.
Making an adjustment with a payment allow you to apply a payment to a billing account item and cancel any additional amount that is owed.
By marking the receipt as a deposit the deposit can be applied directly as a payment of the invoice for a job.
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MAKING ADJUSTMENTS Creating a Credit or a Debit Adjustment If you make an error when posting an invoice, you can adjust (reverse) the invoice in the A/R INVOICE form and make the necessary corrections before re-posting it. Adjustments that need to be made to an account later, either credit memos or debit memos, are posted from the BILLING ACCOUNT HISTORY screen. You will use the adjustment feature to make changes to increase or decrease a billing account’s balance. Adjustments are made for reasons such as customer refunds, “give backs”, or to record balances due do bounced check fees and even to put a balance BACK on a customer's account after an check used to pay an open invoice was returned as NSF.. To post an adjustment 1. Open the BILLING ACCOUNT HISTORY screen for the appropriate billing account. 2. If you are entering the adjustment for a specific invoice, highlight the invoice. NOTE: If you are adjusting multiple invoices, or applying it to the account, you don’t need to select a particular invoice. 3. Click on Adjust located at the bottom of the BILLING ACCOUNT HISTORY screen. You can also right-click and select Adjust, or press ALT+2. The A/R ADJUSTMENT form will open.
4. Using the mouse or spacebar, mark the radio button to indicate how you want to apply the adjustment.
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APPLY TO INVOICE - this option is chosen to apply the adjustment to the selected invoice. If you selected an invoice prior to opening the A/R ADJUSTMENT form, this will be the default
APPLY TO ACCOUNT - this option is chosen to indicate that the adjustment is applied to the selected billing account. (It may be applied to multiple invoices, other adjustments, or to the account.)
5. Using the mouse or spacebar, mark the radio button to indicate whether the adjustment is a CREDIT MEMO (to reduce the account’s balance), or a DEBIT MEMO (to increase the account’s balance). NOTE: If this is a customer refund, select the Credit for refund button. The refund adjustment code will automatically be entered in the ADJUST CODE field. If you are refunding an overpayment to a customer, you will not use this option, rather you will make a Debit adjustment to the account.
Field
Function
Date
Enter the date you wish to post the adjustment to the General Ledger. Select the appropriate code from the dropdown list.
Adjust Code Adjust Amount
If you are applying the adjustment to an invoice that has a balance, the amount will default to the invoice balance. You can accept the amount or change it. If the adjustment is unapplied, enter the amount.
Acct
The General Ledger account will default based on the ADJUST CODE selected. This field cannot be changed.
SubAcct
If the General Ledger account has subaccounts you must select a sub-account (using the drop-down list). If you enter a sub-account when setting up the adjustment code, the sub-account will default.
Dept
Select the appropriate department from the drop-down list.
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Accounts Receivable Field
Function
Reference
If you wish to use a reference ID, enter it here. If you are applying the adjustment to an invoice, you may wish to enter the invoice number as the reference.
Comment
Enter a comment which identifies why you are lowering or raising the balance on the customer's account. If the Adjustment creates a balance on the customer's account, the comment will be displayed on statements that you generate for the customer.
Using the mouse or spacebar, select the radio button to indicate how you wish to allocate the adjustment.
If the adjustment amount is the same as the invoice balance, the system defaults to AUTO ALLOCATE ADJUSTMENT. The system will automatically apply the adjustment to the selected invoice when you post.
If the adjustment amount is different than the invoice balance, the system defaults to MANUAL ALLOCATION. You will allocate the adjustment after you post.
UNAPPLIED can be selected any time and will post the adjustment to the customer’s account. The system will apply the adjustment to the account as an open item when you post.
6. After completing all fields for the adjustment click Post If the allocation mode is manual allocation, the system will display the allocation form where you will indicate how to apply the adjustment. Otherwise, the system will post the adjustment and return to the BILLING ACCOUNT HISTORY screen.
Criteria for Reversing a Receivables Transaction There may be times when a transaction such as a payment or an adjustment that has been made on a customer's account needs to be removed. This is referred to as Reversing the transaction. You can reverse posted Accounts Receivable transactions only if they meet certain conditions:
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The transaction is in an open fiscal period.
If the transaction is a receipt and the receipt has not been reconciled for deposit.
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The transaction doesn't have allocations. If it has been allocated, the allocation must be removed.
The transaction is not an invoice. Invoices must be adjusted in the INVOICE form.
The transaction was created in the BILLING ACCOUNT HISTORY screen. (For instance, payments that were posted as part of an invoice must be reversed there.)
Reversing a Receivable Transaction If you want to reverse a receivables transaction and it meets the requirements listed above: 1. Highlight the transaction you wish to reverse. 2. Right-click, select Reverse Receivable, and confirm that you wish to reverse the transaction. If you wish to view transactions which have been reversed, select the NEG filter indicator in the BILLING ACCOUNT HISTORY screen and the transactions will be displayed.
Making Adjustments Key Items to Remember
If you make an error when posing an invoice, you can adjust (reverse) the invoice in the A/R INVOICE form and make the necessary corrections before reposting it.
If you are adjusting several invoices you do not need to select a particular invoice.
AGING ACCOUNTS Once accounts with an open balance have remained unpaid for a certain amount of time, you will want to be able to identify those open items for the sake of pursuing payment as well as assigning finance charges. Aging accounts reads the open items' transaction date (either invoice date or adjustment date), compares them against the current date and then classify the items as being 30, 60 or over 90 days overdue. These items are then displayed in the appropriate aging column in the RECEIVABLES MANAGER.
To Age all accounts, you will age accounts from the RECEIVABLES MANAGER.
To Age a selected billing account, you will open that account’s billing account history.
Aging All Accounts from the Receivables Manager SuccessWare21 allows you to update all of your accounts with their current aging status at once from the Receivables Manager. This action should be performed before you apply finance charges to your receivables accounts.
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Accounts Receivable 1. From the Receivables Manager, right-click in the grid and select Age Accounts. 2. SuccessWare21 will display the following prompt: “All users must be out of receivables while accounts are aged. This may take a while. Continue?” Make sure that no other users have receivables open and confirm. This includes invoicing through customer service. 3. The system will age the accounts and return to the RECEIVABLES MANAGER.
Aging an Individual Billing Account If as a practice you do not apply finance charges to all customer's SuccessWare21 allows you to apply finance charges to a single billing account. In relation to this you can also age an individual account, identifying items on that customer's account as 30, 60, or over 90 days old, without affecting your other receivables customers. To age a single account: 1. Open the account’s billing account history. by searching for the customer in the Receivables Manager and then pressing F4 or Enter. 2. Click on the Age indicator located at the top of the form, or right-click and select Age Account. 3. The system will display a calendar. Double-click the date you wish to use as an "as of date" for aging, then click on Post. The account will be aged accordingly.
Aging Accounts Key Items to Remember
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Aging accounts updates those that are not paid to reflect whether they are 30, 60 or 90 days overdue.
All accounts can be aged or you can choose to age only particular accounts.
Aging is performed to accommodate the application of finance charges to an account.
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ADDING FINANCE CHARGES Adding Finance Charges to Accounts SuccessWare21 allows you to add finance charges to the accounts of your customers who have overdue balances on their accounts. Generally a finance charge is not applied until a customer is at least 30 days overdue; however you can control this in your Finance Charge Setup At the General Ledger level, finance charges great an AR balance due and the countering GL entry posts to the Default Account that you have identified for Finance Charges. Finance charges are always posted as revenue to department 00 (Administrative) and should be reversed against that department as well. There are two ways that you can apply finance charges in SuccessWare21.
You can calculate finance charges for all accounts in the RECEIVABLES MANAGER.
You can calculate finance charges for one account in the account’s billing account history.
To ensure that the proper finance charges are applied, the account should be aged before posting finance charges. Finance charges often serve as good "motivation" in getting a customer to pay their open balance. Finance charges will appear as an due item when you generate a statement for a customer. Finance charges can very easily be reversed either from all billing accounts or from an individual account in a situation where the customer may remit their total original balance due, but not the finance charge.
Receivables Tab (Finance Charge Setup) The RECEIVABLES TAB of Setup Options allows you to set options in regards to the application of finance charges to customers. Setup options are available by opening the Main Menu, selecting Setup in the left column and then selecting the General button at the top of the right column.
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Field
Description
Minimum Days
Minimum number of days that must pass after the items' transaction date (invoice or adjustment date) before the item is eligible to receive a finance charge.
Interval (days)
Number of days that must pass before a new finance charge can be applied to an item.
Day of Month
Default day of the month on which you want to apply finance charges.
Monthly Rate
Total percentage that will be used to calculate finance charges each month. (Annual Interest Rate/12)
Compound Interest?
If checked, additional interest charges will be applied based upon the total of outstanding principal balance plus any accrued finance charges.
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To Calculate and Post Finance Charges for All Accounts 1. From the RECEIVABLES MANAGER, right-click and select Post Finance Charges. The APPLY FINANCE CHARGES TO ALL ACCOUNTS form will open.
2. Click on Prepare to calculate finance charges for accounts that meet the following conditions:
Account has open items over 30 days (specified in setup),
Account is not marked No finance charge, and/or
Account has not had finance charges applied in the current period (normally 30 days, specified in setup).
The system will display all accounts that meet these conditions including the calculated charges. 3. To delete items from the list, move to the items and press Ctrl+Delete or right-click and select Delete. NOTE: To clear the list and prepare again, click on Reset. 4. Click Post to post the prepared charges NOTE: The Review Last button will display the last list of finance charge items. The Reverse button will reverse previously applied finance charges.
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To Calculate and Post Finance Charges for a Selected Billing Account 1. Open the billing account history for the selected account. This can be done through the Receivables Manager or by pressing F4 from any other screen where the customer is selected. 2. Double-click the Finance indicator located at the top of the form, or rightclick in the grid and select Apply Finance Charge. The APPLY FINANCE CHARGES TO . . . form will open. 3. Click Prepare to calculate finance charges for the account. 4. Press the Post button to apply the finance charge against the customer's account.
Reversing the Last Posted Finance Charges from All Accounts After finance charges have been posted, the last finance charges created can be reviewed and reversed. This may be done in a situation where the wrong percentage was applied or perhaps if you forgot to age your accounts before you applied the finance charges. 1. Open the RECEIVABLES MANAGER, right click and choose Post Finance Charges. 2. In the APPLY FINANCE CHARGE window, click the Review Last button
The list of finance charges last posted will appear in the window. 3. To reverse all of the listed finance charges, click the Reverse button 4. You will be asked to confirm the reversal of all associated accounting information. Click Yes to continue.
5. Press Enter to confirm the deletion of the finance charges.
Reversing Finance Charges on an Individual Account If there is a situation where you decide not to hold a customer responsible for paying a finance charge, which has already been applied to their account, you can reverse the finance charge. This will not delete the finance charge, but will rather create an adjustment which will be applied to the finance charge, therefore creating a zero balance due on the charge. The original (but now satisfied) finance charge will remain part of the customer's billing account history.
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Accounts Receivable 1. Open the BILLING ACCOUNT HISTORY screen for the appropriate billing account. 2. Click on Adjust, located at the bottom of the BILLING ACCOUNT HISTORY screen. You can also right-click and select Adjust, or press ALT+2. 3. Click on the Credit finance balance button at the bottom of the window. 4. The AMOUNT field will default to the total finance charges on the account. The ADJUST CODE will also default to the finance charge code. 5. The DEPARTMENT number will default to 00, the department used to post finance charges. 6. Click Post
Whether the reversed finance charges are equal to a single finance charge item, or are the result of multiple finance charge postings you will need to manually allocate the reversed balance.
Adding Finance Charges Key Items to Remember
You can calculate finance charges for all accounts in the RECEIVABLES MANAGER.
You can calculate finance charges for one account in the account’s billing account.
To ensure that the proper finance charges are applied the account should be aged before posting finance charges.
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VIEWING ALLOCATIONS Allocations An allocation is a link to another transaction. This allows you to identify, for example, to what invoice a payment was applied or which open item an adjustment was applied against. That allocation links the transactions, showing you what was used to pay for what.
Viewing Allocations Allocations can be viewed for items in the Billing Account History. 1. Select the item for which you want to view the allocations. 2. Double-click on the item or press Enter.
The above example shows allocations to Invoice 100071. The invoice amount is $2046.60. A payment of $1923.80 and an adjustment of $122.80 have been applied to the invoice to bring the balance to $0.00. Since the items are fully allocated, they are no longer considered “open items”. Items that have no allocation are considered “open items” and will continue to be included on A/R Aging and Open Receivables reports until they have been allocated. In the following example there is an invoice for $75.80 and a payment for $75.80 that has been allocated. Notice that the balance column is blank on those transactions.
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There are also two adjustments; one for $25.00 and one for negative $25.00. Those transactions were NOT allocated. Even though the balance of the account is $0.00, those transactions will continue to be considered “open”. Notice that both items still have a balance. If you do not allocate an item when you post it, you can allocate it later. When you select an item that has no allocation, the allocate option will be enabled.
Removing Allocations There may be situations where a payment or and adjustment has been allocated to the wrong open item or perhaps the amount was incorrectly entered and the entry must be reversed and reentered. In both cases the existing allocation must be removed. In order to reverse a receivable transaction such as a payment or adjustment it cannot be currently allocated to any item. 1. Right-click on the item that contains the allocation you wish to remove. 2. Right-click on the allocation and select Delete selected allocation.
The item will be returned to the billing account as an open item. At this point it can be reallocated, or the item can be reversed if you choose.
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Viewing Allocations Key Items to Remember
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An allocation is a link to another transaction.
Items that are not allocated are considered “open items” and will show up on the A/R Aging and Open Receivables report until they are allocated.
If you do not allocate an item when you post it, you can allocate it later.
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