The accounts receivable sub-system or “A/R” tracks money owing to the company. It does this by tracking invoices and payments. It can also track fees for taking payments through certain channels such as Paypal.
Anything going through accounts receivable is done through journal transactions. The main screen in A/R displays any transactions that have not yet been added to a journal. To journalize these transactions there is an input field to input a date. Put the last day of the previous month there and enter. The system will create a new journal and attach any un-journalized transaction up to that date to it.
To view an existing journal enter it’s number in the appropriate field. You can also list all journals and select from the list.
Receivables start with transactions. These can be imported from another module such as billing or generated within the A/R by invoice payments, etc. The transactions contain a number of fields to track who the transaction is for (client), how much, what G/L it applies to and other information for tracking purposes.
Payments are tracked in a few ways. First, manual entry of cheques, Paypal and direct deposits. The amounts and other information is entered into a “Pay invoices” screen. If there are handling fees associated with the deposit type chosen then that value is requested as well.
Another way is to use Pre-Authorized Credit Cards (PACC) which are stored in the client record. Depending on how this is set up it may happen automatically or the system can be configured to make it a semi-automatic process so that the charges can be reviewed before being applied to the account.
Finally, clients can pay specific invoices on-line using a credit card.
Periodically, usually at the end of the month, any un-journalized transactions can be journalized. By putting the end date of the period in the field all transactions that have not yet been journalized are put onto a new journal. At this point a summary of the journal is created and is added to the G/L import table to be picked up by the G/L module and put into a G/L entry.
There are reports that show the state of accounts receivable. Besides the ones below we can customize a report to your requirements.
At any point in time an aged listing can be pulled from the system. This report shows a list of all clients owing money with the amounts separated into 30, 60 and 90+ columns. Adjustment transactions to clear clients in collections are not included in the calculation so that it is always possible to see the actual amount owed.
The collections report is split into three sections:
- Clients eligible for collections.
- Clients in collections.
- Clients with outstanding credit
The last is not really a collections report but is included in order to give a more complete picture.