Accounts Receivable
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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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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 Objectives
After completing this unit, the student will be able to:
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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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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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:
ADDRESS,
PHONE#,
LAST NAME,
COMPANY, and
BILLING ACCT ID.
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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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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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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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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).
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.
No Statement
Bad Risk
Do Not Solicit
No Happy
Checks
General Billing
Account
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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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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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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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:
Display transactions by location,
View allocations,
Allocate,
Review GL, and
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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
-OR-
Press F4 from any active customer window
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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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.
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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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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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:
A credit balance
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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.
-OR-
From 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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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.
- The amount of the payment or adjustment must EQUAL the balance due
on the selected item.
- 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.
- The amount of the payment or adjustment must LESS THAN the balance
due on the selected item.
- 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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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:
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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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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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 To
Enter 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 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.
Del 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.
Ctrl+End Pressing Ctrl+End will auto apply the remaining
balance. The system will automatically allocate the un-
applied balance starting with the oldest item.
3. Once you have completed the allocations, click Post. If there is still an un-
applied 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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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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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 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.
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.
Adjust Code Select the appropriate code from the drop-
down list.
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 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.
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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:
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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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
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 right-
click 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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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
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.