Accounts Receivable
  1. General A/R Info
  2. Cash Receipts
  3. Advance Payments
  4. Discounts and Adjustments
  5. Reconciling Aged A/R
  6. Sales Journal

General A/R Info

Accounts Receivable programs and reports are available via the Accounts Receivable Menu.

Customers can be designated as Import, Ocean Export and/or Air Export. Special profile data is stored for Import and Ocean Export customers.

The history of a customer's transactions can be displayed. Complete detail is shown including Invoice number, date and amount, together with payment date, check number and balance due. A unique inquiry shows both receivables and payables for a specified file. This permits a complete analysis of the file and assists management in deciding whether to pay a given invoice.

Specified management personnel can designate a given customer as unusable for new business. The user will be told who to contact.

A Statement printing program is included. The user can designate the minimum age of invoices to include. This program uses BMS's Formgen features. It can print statements either on pre-printed forms or in letter format.


Cash Receipts

The Cash Receipts sub-system provides great flexibility in accounting for application of cash receipts. Receipts can be recorded either against Accounts Receivable or as Miscellaneous Receipts. Accounts Receivable Cash Receipts include the ability to do write-offs against up to two General Ledger accounts.

    Cash can be entered as:
  • Full or partial payment against specific invoices,
  • An overpayment against one or more invoices,
  • An advanced payment against a specific file, or
  • Unallocated cash for a specified customer.

The Cash Receipts Journal shows the application of cash and the batch total received by bank.

The Field labeled "BANK" is the account to which the cash is deposited. The accounts receivable account is in the System file. The net of "BANK" plus discount amounts is credited to the accounts receivable account.

To edit a previously entered cash receipt leave the "CUST#" field blank and enter the cash receipt number in the "C/R#" field. The year and leading zeros will be generated automatically, thus you can simply enter 123 to retrieve cash receipt 99000123.

A cash receipt can be edited unless:

  • The period is closed.
  • There was unallocated cash from this receipt used on another subsequent receipt.


Advance Payments

In all cases, the cash is recorded using the Cash Receipts program. (AR Menu option 1).   No discount account data is entered.

  • If the file has been set up and an invoice created:

    After entering the cash information use F7 to create a prepayment. The file number will be requested and if the file exists, a line will be displayed on which the amount of the prepayment will be entered. You must type in the amount of the prepayment even if the entire amount is to be used as a prepayment on one file. The cash receipt can be allocated to any combination of pre-payments and invoice payments.

  • If no file has been set up or no invoice exists:

    Enter the cash information and leave any prepayment amounts as unallocated cash. When there is an invoice available a new cash receipt can be used to allocate all or part of the unallocated cash to the appropriate invoice. If an invoice is later created and you want the invoice to show that a payment was applied, you can create a new cash receipt with no cash but use F7 to create a prepayment and allocate a negative amount to the unallocated cash entry created by the original cash receipt.

The aged A/R report gives a summary of true receivables and prepayments. A report option is available to report only prepayments.


Discounts and Adjustments

Discount amounts are posted as debits.

An advance payment that is not to show as unallocated cash which would reduce A/R can be entered as a negative discount using a liability account as the "DISC ACCT".

To use an advance payment to pay a later invoice, Enter the bank acct number but no "AMT". Enter the advance account number in the "DISC ACCT" field and the amount of the advance to be applied in the "DISCOUNT" field.

The best way to get handle "no value" adjustments on receivables is to use the discount field of the cash receipts to write the amounts off to some revenue account, such as Misc Revenue.


Reconciling Aged A/R

Aging can be printed in detail or summary as of any specified date. The system can reconstruct aging for any past day. This simplifies reconciliation of the ledger and sub-ledger totals.

If the Aged A/R report does not agree with the balance in the G/L Accounts Receivable account:

  1. Validate G/L Balance

    1. Verify Summary File
      Use G/L Inquiry. Display A/R acct for end of previous month (eg 8/31/95). Then use G/L Inquiry to display start of month to be reconciled (eg 9/01/95). If there is a difference, run GLBLD for previous month (eg 8/95).

    2. Verify S/J Posting
      Run Sales Journal for entire month, all depts. (Can be run to a file, all we need is the summary at the end.) Run G/L Detail by Journal for the Sales Journal. Verify that postings agree. If there is a difference, the date of the difference needs to be determined and reconciled.

    3. Verify C/R Posting
      Run Cash Receipts Journal for entire month, all banks. (Can be run to a file, all we need is the summary at the end.) Run G/L Detail by Journal for the Cash Receipts Journal. Verify that postings agree. If there is a difference, the date of the difference needs to be determined and reconciled.

  2. Analyze Aged A/R Report Entries

    (Currently, this can only be done by BMS).

    Use ardiff.q. This is a set of sql routines to identify the differences.

    There is a new file, ACCT.REC.HIST that will maintain the aged ar entries as of the last time the report was run. The format is: Report AS OF date, Cust, date, invoice, amount (report date+aropen buffer).

    ardiff.q is a set of sql statements and notes that creates a file, ar, in a work directory with 6 fields: invoice#, s/b, s/j data, c/r data, ending balance, and difference.


Sales Journal