Accounts Receivable - SuccessWare®21€¦ · Accounts Receivable 6 SuccessWare, Inc. Introduction to Receivables Key Items to Remember Receivables processing is performed in the

Accounts Receivable

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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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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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.

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:

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.

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.

- 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.

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:

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.

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.

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.

Accounts Receivable


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.

Accounts Receivable


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


account.

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:

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 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.

Accounts Receivable


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.


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.

Accounts Receivable


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


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.

Accounts Receivable


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.

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:

The transaction is in an open fiscal period.

If the transaction is a receipt and the receipt has not been reconciled for

deposit.

Accounts Receivable


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.

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

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.

Accounts Receivable


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.

Accounts Receivable


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.

Accounts Receivable


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.

Accounts Receivable


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.

Accounts Receivable



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.

Accounts Receivable


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.

Accounts Receivable


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.

Accounts Receivable


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.

Documents

Accounts Receivable - SuccessWare®21€¦ · Accounts Receivable 6 SuccessWare, Inc. Introduction to Receivables Key Items to Remember Receivables processing is performed in the