Posting A/R Transactions

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Transactions are the activities that take place which affect the  balances of your Accounts Receivable.

 

Whenever a balance exists on  a workorder, and it is posted to receivables, the item is marked.  When the system  runs its Daily Closing, transaction tickets are written, and posted  to the transaction file in the receiveables file.  These tickets are  individualized for each invoice, and account.

 

Charges  from workorders will normally be posted  automatically into this section.  Payments, and non-invoice charges, however, must be entered manually.

 

Once  the Transaction option of the Receipts Menu is selected, the system  will ask for an account number.  Once a number is entered, the system will display a data input screen, and all active invoices for that client.  Information should be entered into the fields as discussed below.

 

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The following buttons are provided for processing these transactions:

 

SAVE

The Save  button must be selected after all of the data is entered.  If you do not select this button, your activity will not be saved.

 

New

Selecting the New button will prompt for a new account number to permit processing another transaction.

 

Close

The Exit button will exit from the transaction posting window.

 

The following information is entered on each transaction:

 

Account

When an account is found, the number is displayed in this field.  This field cannot be changed.

 

Client data

The name and address information for the client is displayed here.  The information cannot be changed.  It is shown so that the person entering the information can verify the transaction being posted is for the right account.

 

Pending Credits

The system will sum, and display all available credits for this account.

 

Balance Due

The system will display the actual amount currently due on this account.

 

Date

The  current date is displayed as the posting date, but may be changed to  reflect when the charge, or payment, was actually incurred or  received.

 

Note

The note field is for an invoice, or check, number,  and is long enough to accept both.

 

Charge

The charge field is used when entering an amount not automatically transferred from a workorder.  If a charge is presented,  and paid, at the same time, but the account manager wishes to have  it tracked in the system for history purposes, the amount can be  entered here.  If a credit is to be applied, it would be entered as  a negative number in this field, reversing a portion of the previous  charges.

 

Payment

In most cases, the primary activity to be posted will be payments.  Enter the total payment in this field, even though it may be posted  against multiple invoices.  If a check has bounced, a negative amount may be entered  into this field.

 

G/L numbers

Verify the G/L numbers entered by default and make changes if necessary.  The charge and payment each have individual debit and  credit account numbers.  Typically, a charge is debited to the Asset  Accounts Receivable number, and credited to the Income side.  The  Executive automatically posts income to its appropriate categories,  and the Accounts Receivable portion of the receipts is posted to  Assets.  The payment generally will debit the Asset Cash account,  and credit the Asset Accounts Receivable.  This enables the system  to remove the owed amount from receivables and enter it into the  cash pool.  From there it may be deposited in one of the bank  accounts.

 

Transactions

This is a listing of all current invoices with open balances.

 

Available funds

This field displays the total available to be applied to open invoices.  It is important to reduce this amount to zero before pressing the OK button to process the transactions.

 

Applying Funds

The transactions listed will show the activity, original total,  current balance due, date, and transaction description.  The  activity space will be blank until an amount is to be applied to the  transaction.

Once the amount is entered, it will be listed in the  activity space.  The current amount will be adjusted when the total  transaction is accepted, and completed.

 

Move the highlight bar to the first invoice to be  paid.  Double click the left mouse key, and the system will ask for the  amount to be applied.  It will show a default which will be the  current amount due, if funds are still available, or the balance  remaining to be applied.  The amount can be changed to provide a  partial payment, but it is not possible to apply more than is  available.   Press the Enter key once you are satisfied with the amount to be applied, and it will be added to the transaction, and the available funds adjusted accordingly.

 

You may move up and down the entries until all monies  have been applied, or you have cleared all the available invoices.  If the later situation occurs, and more funds remain, the system  will ask if you wish to apply the amount as a credit to the account.  Once you are finished, select the Save button, and the system will process  the activity.  All invoices will be marked, payments applied, and  records will be written to the general ledger.  Items will only be cleared when the original charge is fully  balanced with payments.

 

Entering Payments

 

When payments are received, they should be immediately posted to the account.    You will see a list of accounts, and you must find, and select, the appropriate account to process.

 

The following screen is then displayed.

 

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The information in the shaded fields is provided by the system automatically.  Default values for the General Ledger accounts and the date are provided.

 

Enter the amount of the payment, and an identifying Note.  In the example, there is a $ 750 balance on an open invoice, and a $350 payment was received.  In the browse list, double click on the invoice to which the payment should be applied and the following screen will pop up.

 

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This shows the amount you wish to be applied. By default it will display an amount not greater than the available funds or the balance due.  For example, if you had two invoices of $ 250 and $ 400, and a payment of $600, when you click on the first invoice, it would show the expected payment amount to be $250.  If you accept that amount, then click the second item, it will show a payment amount of $350 which is the total funds remaining.  You can apply less than the amount due on an open invoice, and the balance will be adjusted accordingly.  If you have funds left over after applying payments, it will be saved in the system as a credit.