Handling special A/R Situations

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Handling special A/R Situations

Even with a well-managed Accounts Receivable process, situations arise that require special handling. This section outlines common problems and the practical steps to resolve them using MLS 2026.


Running a Single Account Statement

If you need to print a statement for one account:

Steps

1.Go to Receipts → Edit

2.Locate the account

3.Change the Billing Cycle to a temporary code (for example, X)

4.Go to Reports → Statements

5.Enter the same temporary cycle (X)

6.Enter the closing date and interest settings

7.Print the statement

8.Return to Receipts → Edit and restore the original billing cycle

Tip

If a client regularly requires individual statements, assign them a dedicated billing cycle.


A/R Totals Do Not Match the General Ledger

If the A/R total does not match the A/R asset account in the General Ledger, a transaction is usually not properly tied to an account.


How to Find the Problem

Run a Transaction Report for a wide date range

(example: 01/01/1980 – 12/31/2099)

Look for:

Transactions tied to accounts with no billing cycle

Transactions with unusually old dates

Accounts that have not been closed


How to Fix It

Assign affected accounts to a temporary billing cycle

Re-run balance reports

If correct:

oPrint statements

oClose the period

Ensure old accounts are properly closed


If the Problem Persists

There may be file corruption in aartrn.dbf.

Run dSalvage to test and repair the file

A common issue is a stray end-of-file marker, which can be removed


Posting Returned Checks (NSF)

When a check is returned:

Post a negative payment (example: -125.00)

Apply it to the original invoice

If the invoice is already cleared:

Post the amount as a negative credit


Posting a Credit

Preferred Method: Credit Invoice

This method is strongly recommended because it:

Adjusts income correctly in the General Ledger

Provides a clear explanation

Produces a printed record

Creates a permanent audit trail


How to Create a Credit Invoice

Enter a negative part price using a part named Credits

Enter negative labor with an explanation


Alternative Method (Not Recommended)

You can enter a negative charge directly in A/R.

Limitations:

You must manually select the correct G/L account

Parts, labor, and profit reporting are not adjusted


Correcting Posting Errors

Standard Correction Method

1.Enter a reversing transaction

oSame details

oAll amounts negative

2.Enter a new, correct transaction


If Invoices Were Already Cleared

If payments were applied and invoices are closed:

Do not reverse the entire transaction

Post only the difference between:

oWhat was entered

oWhat should have been entered


Handling Account Defaults (Bad Debt)

When an account becomes uncollectible:

Steps

1.Create a negative invoice

oInclude notes describing the situation and collection efforts

2.Total the invoice (it will be negative)

3.Post it to A/R (no payment entered)


Result

Creates a permanent record

Maintains a clear audit trail

During the next closing:

oMLS 2026 will clear the balanced account automatically


Best Practices

Always document adjustments clearly in Notes

Use credit invoices whenever possible

Avoid leaving unresolved discrepancies between A/R and G/L

Close periods regularly to prevent buildup of errors