AR - Course.student 803408

Accounts Receivable Student Manual
Vantage/Vista Release 8.03.408
Global business solutions for your expanding enterprise.
DISCLAIMER Copyright 2007 Epicor Software Corporation. All rights reserved. No part of this confidential copyrighted publication may be reproduced or distributed in any form without the prior written consent of Epicor Software Corporation. This document is for informational purposes only and is to subject to change without notice. The contents of this document are believed to be current and accurate as of its date of publication. Epicor Software Corporation makes no representations or warranties, expressed or implied, with respect to the contents of this manual and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose. This document is considered Confidential Proprietary Information of Epicor Software Corporation. It shall not be distributed in any way to any third party entity or person without the express prior written consent of Epicor Software Corporation. We welcome customer comments and reserve the right to revise this publication and/or make improvements or changes to the products or programs described in this publication at any time, without notice. Epicor is a registered trademark of Epicor Software Corporation. All other trademarks, registered trademarks, names, or product names contained in this publication are the property of their respective owners and are acknowledged herein. Item Code No. 10821-834-3048-584408 Product No. ED807803408, Release 8.03.408 Distribution: February 2008
Contents
Accounts Receivable Course Prerequisites Setup 5 7 9 11 3 1
Objectives Overview
Application Setup
Company Configuration 12 Workshop - Update the Accounts Receivable Module Configuration 16 Maintenance Programs 17 A/R Account 18 Product Group 19 Bank Account 21 Work Force 24 Terms 25 Workshop - Create a Terms Record 27 Freight on Board 28 Miscellaneous Charge 29 Workshop - Add a Miscellaneous Charge Record 31 Aging Report Format 32 Customer 33 Customer Detail Sheet 34 Customer Billing Sheet 35 Customer Ship To and Contact Sheets 39 Workshop - Enter a New Customer Record 40 Finance/Late Charge 42 Develop a Finance Charge Code and Assign it to a Customer Record 44 Accounts Receivable Sales Tax 46 Sales Tax Category 47 Sales Tax 48 Tax Regions 51 Link Tax Regions and Categories 52 Delegate a Tax Region to a Customer 54
Accounts Receivable Student Manual iii
Contents
AR Processes
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Invoice Entry Process 56 Advance Billing Invoices 58 Workshop - Create Advance Billing Invoices for an Existing Sales Order 59 Deposit Invoices 61 Workshop - Enter a Deposit Invoice 62 Advance Billing/Deposit Balance Report 63 Workshop - View the Balance of Deposits and Advance Billings Made on Sales Orders 64 Order Tracker 65 Workshop - Use the Order Tracker Shipment Invoices 67 Workshop - Ship a Customer's Order 68 Workshop - Invoice a Shipment 69 Credit Memos 72 Workshop - Create Credit Memos 73 Miscellaneous Invoices 75 Workshop - Enter a Miscellaneous Invoice Aged Receivables Report 78 Workshop - Use the Aged Receivables Report 79 Cash Receipt Process 80 Invoice Payments 81 Workshop - Apply Cash to Invoices 82 Debit Notes 84 Workshop - Add a Debit Note 85 Deposit Payments 86 Workshop - Create a Deposit Payment 87 Miscellaneous Cash Payments 88 Workshop - Enter a Miscellaneous Cash Payment 89 Related Processes 90 Process Finance/Late Charges 91 Invoice Adjustments 92 Workshop - Adjust an Open Invoice 93 Apply Credit Memo 94 Workshop - Apply a Credit Memo to an Open Invoice 95 Customer Credit Manager 96 Workshop - Use the Customer Credit Manager 97 Credit Card Processing 99 76 66
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Contents
Additional Reports and Trackers

Reports 102 Trackers 103
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Workshop - Use the Invoice Tracker to Review Current Information About an Invoice 105 Workshop - Use the Cash Receipts Tracker 106
Course Conclusion Appendix 111
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AR Processing Tips 112 Period-End Close Suggestions 113 AR Transaction Hierarchy - Inventory Interfaced 114
Contents
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Accounts Receivable Course

Welcome to the Accounts Receivable course. This course is designed to review the Accounts Receivable (AR) module's concepts and reporting tools. Topics of discussion include maintenance program setup, various AR processes and how to recognize the impact these processes have on the General Ledger. Included are hands-on workshops to guide you through these topics.
Prerequisites
In order to successfully complete this course, the following prerequisites must be met: 1.
Recommended Audience Controllers Accounts Receivable Staff
2.
Required Course: Navigation

Navigation introduces you to the navigational aspects of the user interface. Designed for a hands-on environment," the focus is on general navigation principles and techniques available at each level you interface with the application. Workshops guide you through each navigational principle introduced.
3.
Required Course: System Flow

System Flow introduces you to a basic quote to cash scenario including the basic processes necessary from the customer quote through the system to final cash receipts and payment of supplier invoices. This course emphasizes the series of processes in the program that make up the quote to cash scenario. Bear in mind, this course uses a very simple scenario to highlight the various transactions.
4.
Recommended Course: Financial Foundations

The Financial Foundations course introduces you to the building blocks that make up the financial foundations of a company. It emphasizes the importance of understanding the key maintenance program configuration steps required when establishing the groundwork for the financial setup of a company. Demonstrations guide you through each maintenance program introduced.
Setup
To successfully complete this course, the 8.03.400 release (or later) must be installed and operational in a training environment. The workshops included in the Accounts Receivable course must be completed in a training environment using the Education database's Minneapolis company (VN10T). You may need to contact your manager for assistance if this environment is unaccessible to you.
Objectives
The following objectives will be met upon successful completion of this course:
Identify the company configuration and maintenance programs related to the AR processing cycle. Follow the process and transaction flow for the AR cycle. Differentiate between the seven types of AR invoices. Use debit notes, miscellaneous and deposit cash receipts appropriately. Understand the proper times to create and use AR Adjustments. Trace the AR hierarchy and flow of system-generated general ledger (GL) transactions. Recognize documents, reports and records necessary for tracking the AR cycle. Document period-end close procedures.
Overview
Key Concepts of Accounts Receivable Processing In an interfaced environment, AR and sales-related General Ledger accounts can be defined in several
maintenance programs. Hierarchical logic is used to retrieve the correct account.
Optional use of an AR Clearing account controls the timing of Cost of Sales posting. Invoices and cash receipts are posted to the GL using a group posting methodology. Typical Sales Order to Payment Process Flow
1. 2. 3. 4. Process a sales order Ship goods Invoice the customer Receive payment
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Application Setup
The Application Setup section of this course reviews the key company and maintenance program configuration factors applicable to the Accounts Receivable Cycle. Not all programs and fields that contribute to every AR process are reviewed and/or discussed in this course. After completing this course, if you would still like to learn more about programs and/or fields that were not mentioned, please visit your Manufacturing Software's Online Help application. All programs, fields and operations relating to every module contained within your Manufacturing Software are documented and defined within the Online Help application.
Accounts Receivable Student Manual 11
Application Setup
Company Configuration
Menu Path - System Management / Company Maintenance / Company
The Accounts Receivable Cycle relies greatly on certain configurations made within the Company Maintenance program. The following information helps you to identify some essential items to define during the implementation of your company's AR module.
Accounts Receivable Configuration

Accounts Receivable Default Account Most general ledger accounts you select in the Company Maintenance program to populate the multiple account fields related to the AR cycle can also be defined somewhere else within your product. These places include Product Groups, Customers, and alternate AR Accounts. The reason you must configure a default set of AR related accounts is because if an AR transaction posts, but the AR hierarchy can not find another maintenance program that contains an account to debit or credit for that transaction, the accounts you define on this sheet are there to catch the data. Receivables, Pre-Payment, Unapplied Cash, Deferred Revenue, Payment Discount Accounts These fields represent the default AR accounts to be used if no other AR account record(s)are defined in the AR module or linked to customers. AR accounts are typically defined here unless your internal business processes require customer-specific AR accounts or inter-company AR accounts for specific customers. Receivables Enter the default GL account number for the majority of your company's receivables. Prepayments Down payment, or deposit invoices, entered in the Invoice Entry program use this account to offset the Cash account. Deposit payments entered in the Cash Receipt Entry program use this account to offset the Receivables account. Unapplied Cash If cash receipts are entered and not applied to an AR invoice, this default GL account number is used as the offset to cash. Payment Discount If discounts for early customer payments are allowed, this default account number is used during entry of cash receipts. AR Clearing Account This optional field is an intermediary account between WIP/Inventory and COS for goods that have been shipped but not yet invoiced. If an AR Clearing account is identified here, cost dollars are directed to this account at the time of shipment. After the shipment is invoiced and posted and the Capture COS/WIP Activity is run, the cost dollars are moved from the Clearing account to COS. If no account is entered here,
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cost dollars are moved directly to COS when running the Capture COS/WIP Activity function. Only one AR Clearing account can be defined per company. Do not enter an account number here if it is preferred to have COS booked at time of shipment rather than time of invoicing. Rebates The account defined here is used when posting Rebates in the AR Invoice module. If you would like to learn more about rebates and their process flow, it is recommended that you sign up for the Rebates, Promotions and Royalties course at your convenience. Sales, Returns, Sales Discount Accounts Accounts defined here are hit with Debits and Credits if no other accounts are defined within the A/R Account Maintenance program or on a product group linked to an applicable part. If you choose to define product-specific Revenue and Expense accounts on a product group, the account numbers you would typically elect to enter here are Suspense Accounts. Sales Enter the most common GL account number to contain your company's sales/revenue amounts. Returns Enter the most common GL account number for your company's returns and allowances. When entering a credit memo, this account offsets receivables account. If you prefer not to keep a separate Returns account for credit memos, you have the option to enter the Sales account here instead of a seperate returns account. Sales Discounts Enter the most common GL account number for your company's sales discounts. Starting Invoice Number During initial implementation, you must enter a starting invoice number. The number you enter represents the first consecutive invoice number assigned during invoicing. The number you add must be higher than any invoice previously entered via the Open Invoice Load process. Sales Tax Calculation Options You have the option to decide and define how you would like sales tax to calculate on your company's AR Invoices. Your choices include, (Per Line) or (Per Invoice). If the former is selected, taxes are calculated based on each individual line entered on all invoices. The latter basis its calculation on the invoice's total amount. The selection you make here is the default calculation for invoice taxes, but it can be changed if ever your company's needs change. Depending upon the option you select, the sales tax amounts will display differently on the AR Invoice form. If you select Per Line, the line sales tax is displayed with each invoice detail line. If you select Per Invoice, the sales taxes will be totaled and displayed with the final totals on the invoice. Ready to Calculate Checkbox
Application Setup
If this checkbox is available to enable in the AR module configuration, this means that your company is licensed with Tax Connect, a program that calculates taxes automatically with the help of a third party. If this checkbox is disabled, it holds no value to your company's AR process cycle. If enabled and selected, the Ready to Calculate checkbox located on all AR Invoice summary sheets always defaults in as checked. If Tax Connect is licensed to your company, invoices are only able to post if the Ready to Calculate checkbox is turned on. This is because the checkbox tells the system that the invoice is ready to have its totals calculated by the third party and accurately posted. If you choose to leave the Ready to Calculate checkbox unchecked in the company maintenance program, you must check the box on each AR invoice summary sheet before you attempt to post. Journal Codes Journal Codes match similar transactions together. They are used each time you post transactions to the General Ledger. Journal Codes identify the source of each journal entry and aid in tracking entries to their original source on reports and trackers. Ten journal codes are delivered with your Manufacturing Software, including the Sales Journal (SJ) code and the Adjustment Journal (AJ) code. These codes often populate the following default fields: Invoicing Select the journal code that will describe your company's AR Invoice related postings to the GL. Adj./Apply CM Select the journal code that will illustrate your company's invoice adjustments created within the AR Adjustments program and record each time a credit memo is applied to an invoice within the Apply Credit Memo program. Journal codes are maintained in the GL module. Use Shipment Date for Invoice Date If you checkmark the Use Ship Date for Invoice Date check box, it indicates that the Invoice date should always reflect the shipment date of the order being invoiced. If that is your company's normal practice, this box should be marked. You can adjust the invoice date on an individual basis for any exceptions to the rule. This can be done on an invoice's header prior to its posting. Default Aging Report Format You are able to define multiple formats for Aging Reports within the AR Module. Having this option gives you a chance to define different aging buckets for different reporting purposes. The format you enter in this field is what defaults when you execute the Aged Receivables report. You may define standard aging buckets for month-end reporting (30 days, 60 days, 90 days, 120 days) and weekly aging buckets for analysis purposes.
Sales Order Configuration

Although the majority of AR-related settings are defined within the Finance sheet, some settings which affect AR are listed below.
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Credit Limit Actions If a customer has exceeded their established credit limit, these actions can be used to warn or stop sales orders and/or shipments from occurring. Counter Sales Orders Invoice Group Prefix Counter sales automatically create invoice and AR invoice groups from the sales being processed. The AR invoice group ID that is created uses the prefix defined here followed by the current month and day. Credit Card Payments Cash Group Prefix When a Sales Order is paid by a Credit Card, the prefix entered in this field allows you to identify the cash group that was created automatically at the time of shipment, which is the same time as when the payment was processed against the order. Invoice Group Prefix In addition to a cash group being created at the time a credit card order is shipped, an invoice record is also created to record the transaction. The prefix entered in this field allows you to identify and track the invoice group which was created by the transaction. Default Bank Account The bank account automatically used for any credit card transactions processed in the Order Entry program.
Application Setup
Workshop - Update the Accounts Receivable Module Configuration

1.
Navigate to the Company Maintenance Program using the following path

Menu Path - System Management / Company Maintenance / Company
2.
Update the Accounts Receivable Module's Settings

2.1. 2.2. 2.3. Click on the Finance sheet. Click on the Accounts Receivable sheet. If it isn't already, enable the Ready to Calculate calculate check box The Ready to Calculate check box is related to a third party software available to customers known as Tax Connect. Because our testing database has Tax Connect installed, this check box must be enabled to prevent additional steps that would have to be taken in order to process many transactions in the Accounts Receivable module.
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Maintenance Programs
Maintenance Programs
In this section of the Accounts Receivable course, review the most significant maintenance programs applicable to the AR processing cycle. In most cases, not all of the fields within each program are described, but if you are interested in learning more, they are fully defined in the Online Help application.
Application Setup
A/R Account
Menu Path - Financial Management / Accounts Receivable / Setup / A/R Account
AR Trade and Revenue related accounts may be defined for specific customers or groups of customers and linked to specified Customer maintenance programs. Used in conjunction with product groups (Expense/COS and WIP), part classes (Inventory), and/or specified AP Trade accounts, you can potentially create an entire set of financial statements for an indicated customer or business unit. By enabling the Inter-Company check box, unique COS accounts for inter-company eliminations may also be defined. All account number fields in this screen must be populated, however, you may choose to repeat the defaulted accounts defined in the Company Maintenance program.
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Product Group
Product Group
Menu Path - Financial Management / Accounts Receivable / Setup / Product Group
Product groups are used to classify the different types of parts sold. These classifications are used for GL and sales analysis purposes. Product groups can be defined in conjunction with business practices and could ultimately impact large portions of the chart of accounts (COA). Use the Product Group Maintenance Accounts sheet to establish specific General Ledger accounts for each product group. You can enter general accounts, accounts used for cost of sales (COS), and accounts for works in process (WIP). Examples of Product Group Definitions:
Customer ID (Boeing) Product Line (Televisions, Radios) Product Type (Configured, Machined, Spares) Any combination of each
Application Setup
AR and Sales/Revenue accounts hierarchy:
Sales, Returns, Sales Discount

Product groups can be linked to Part records to drive the assignment of sales-related accounts, as well as COS and Work in Process (WIP)-related accounts.
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Bank Account
Bank Account
Menu Path - Financial Management / Accounts Receivable / Setup / Bank Account
This file contains information pertinent to the company's bank account(s), and defines the cash account and journal codes to be used on the general ledger. Bank Account files are shared by the Accounts Receivable, Accounts Payable and Payroll modules. At least one record must be defined during implementation; however, if your company has more than one bank account, it is possible to define multiple Bank Account records to aid in the bank reconciliation process. A user account must be set up as a security manager in order to maintain bank account records. Users that are not security managers are not only unable to maintain these accounts, they are restricted from even accessing the setup option.
Bank Account ID
A user-defined code to identify the Bank Account record. It can be up to five alpha-numeric characters long.
Description
A brief and concise description for this bank account. It may be desired to include the bank account's name in the description.
Closed
When selected, this check box indicates that this account can no longer be used. While you make payments, closed accounts do not appear as options.
Debit Notes Only

When selected, this check box indicates that this bank account can only process debit notes. Debit notes are records you enter when a deduction is required on a customer's payment or invoice. You can only select a cash receipts journal on these special bank accounts.
Routing Information
The routing information directly relates to your companies bank account. Routing The Routing number is commonly found at the bottom of the checks being used. It is made up of the ABA Institution Identifier, the Federal Reserve Routing Symbol, and the check digit. Check Digit The number populating this field is typically the final digit of a routing number. By using an algorithm, this number is used by the bank to test the validity of the routing number. Entry Class Code
Application Setup
Three Entry Class codes are currently supported by the software:
PPD Prearranged payments and deposits for consumer items CCD Cash concentration and disbursements for non-consumer items REV Reversal items
Service Class Code Currently only one service class code is supported:
200 - Mixed debit or credit entries and pre-notification entries. Accounting Information
Cash Disbursements Select the journal code to be used when a payment entry group is posted. The Cash Disbursements Journal (CD) is typically selected for this field. Payroll Processing Select the journal code to be used when a payroll entry group is posted. The Payroll Journal (PJ) is typically selected for this field. Cash Receipts Select the journal code to be used when a cash receipts entry group is posted. The Cash Receipts Journal (CR) is typically selected for this field. Bank Transactions Select the journal code to be used when bank adjustments are posted through the Bank Reconciliation program or Bank Adjustments program. The Cash Disbursements Journal (CD) or a user-defined journal code is commonly selected.
Cash Account
The account entered here is the COA record defined for cash for this bank account.
Transfer Account
This account is used as a clearing account when dollars are transferred between bank accounts using the Bank Funds Transfer program.
Optional Accounts
The following account fields are optional if the user does not intend to use the software's Bank Reconciliation program. Otherwise, they should be left blank. Pending Cash
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Bank Account
This account is provided as a float to temporarily account for the lag time between when an AP check is cut and when the bank account is finally credited. This method allows the user to more accurately track their cash position at any given time. Bank Fees This account is defaulted when a bank adjustment is created in the Bank Reconciliation or bank Adjustment programs. Variance Account This account records any difference between each check's written amount and its cleared amount. This program is also used to define some set up requirements for electronic banking. This functionality should be implemented with the help of an Epicor consultant and your company's banking institution.
Application Setup
Work Force
Menu Path - Financial Management / Accounts Receivable / Setup / Work Force
The Work Force Maintenance program is used to define persons or groups of people that are involved in your company's sales process. Using the Work Force Maintenance program you can link specific work force IDs to individual customers, invoices, and/or sales orders. When a work force ID is linked to a customer, it carries over to all of that customer's orders, shipments and invoices. If need be, you have the option to delete or change the work force ID at any of the latter levels. The work force ID(s) that is selected on the invoice at the time it posts is the only one(s) eligible to receive a commission based on the values entered on their Work Force master record. Further, the Commission Report tracks the commission amounts for each specific work force person. An important portion of the Work Force Maintenance program is located on a screen called Authorized Users. Here, user IDs that are authorized to work within certain work force records are selected. When you authorize a user ID on a work force ID, that user is granted permission to view, add, and maintain sales-related records for ID. Example: A persons manager can be added as an authorized user to approve phases of the persons workflow. A co-worker can be authorized to manage the persons workflow while that person is on vacation. If more than one person is designated as an authorized user, one may be chosen as the default authorized user.
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Terms
Terms
Menu Path - Financial Management / Accounts Receivable / Setup / Terms
Terms are the conditions governing the frequency of payments, applicable discounts and number of installments by which customers pay. When a terms code is linked to a customer within its maintenance program, it become the default for all sales orders entered against that customer. If need be, the default code can be changed on an individual sales order basis. The terms code that is selected on the customer record is also the one that defaults onto every one of their AR Invoices. At the time of invoice entry, you also have the option to change an individual invoice's terms code.
Terms ID
A user-defined, unique code identifying a particular purchasing payment terms method. It can be up to four alpha-numeric characters long.
Description
A brief and concise description for the term. It is typical to include a discount percent as part of the description.
System Default
A terms record can optionally be defined as the default for new customers by enabling this check box. Only one payment terms record can be the system default. Example: You create a new terms code, Net 10, and select it as the system default. Thereafter, any new customers entered are automatically assigned the Net 10 terms code.
Due Days
The number of days from the invoice date that the payment is due.
Number of Payments
If any number greater than one is entered in this field, the Terms record becomes an installment plan. The schedule of due dates appears on the bottom of the customer invoice. Example: Due Days = 30 and Number of Payments = 1 This results in one payment due 30 days from the invoice date. Example: Due Days = 30 and Number of Payments = 3
Application Setup
This results in three payment dates each for 1/3 of the total, spaced three months apart. A payment schedule prints on the initial invoice only. Amounts due in the future display in the Future bucket on the Aging report and begin aging as each scheduled receipt becomes due.
Monthly
If payments are received on an exact day of a month, mark this check box to gain access to the Month(s) From Invoice's Month and Due Day of Month fields. When this option is used in conjunction with Number of Payments option, you can define recurring receipt due dates on a quarterly or yearly basis. Month(s) From Invoice's Month Indicates how many months from the invoice month until the payment is due. Example: If three was entered in this field, payments would be due three months from the current period. Due Day of Month The day of the month the payment is to be received. Example: The Due Day of the Month is 15. Assuming that the number 1 was entered in the Months from Invoice's Month field, an invoice that is dated on May 4 actually carries a due date of June 15. One month after the invoice date, on the 15'th day.
Discount Percent
The percentage used to calculate a prompt payment discount amount for invoices assigned to these terms. The number of days during which a prompt payment discount can be taken depends on the number of days entered in the Discount Due Days field.
Discount Due Days

The number of days during which a prompt payment discount can be applied to an invoice. This number will be added to the date of the invoice to calculate a discount due date. Payments on the invoice made on or before the discount due date will receive a discount. Example: The Discount Due Days assigned to a terms code is 10. A discount percent of 2.00 is also assigned. An AR invoice for $200.00 is created with these terms. The invoice's date is May 1. If the payment is received by May 11, a $4.00 discount ($200 X 2%) is auto applied during cash receipts entry.
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Workshop - Create a Terms Record
Workshop - Create a Terms Record

Your company has decided to lease an unoccupied portion of their plant to another business. Create a Terms record that establishes a payment schedule for the new tenant. Complete the following steps to create a Terms record: 1.
Navigate to the Terms program using the following path

Menu Path - Financial Management / Accounts Receivable / Setup / Terms
2. 3.
Click the New icon. Enter the following information in the indicated fields
12Mo 12mo. pymt sched 12 Enable this checkbox 1 15
Terms ID Description Number of Payments Monthly Month(s) From Invoice's Month Due Day Of Month
4.
Save the record, and exit the Terms program.
Application Setup
Freight on Board
Menu Path - Financial Management / Accounts Receivable / Setup / FOB
Freight on Board (FOB) is the point where legal title passes from you to your customer. This maintenance program is used to set up freight-on-board descriptions and delivery terms codes. The codes assigned here can be selected in sales-related activities as well as purchasing-related activities.
FOB Code
A user-defined code can be up to 15 alpha-numeric characters long. Since the word FOB may be preprinted on the system forms, including FOB in the description may be redundant.
Description
The description of the FOB record. This can be a generic FOB used in either purchasing or sales transactions. Examples of FOB Descriptions:
My Plant's City Origin Destination Delivery Terms

These are the Intrastat delivery terms code as defined in the system. These codes are set and may not be added to the list, nor can they be edited or deleted.
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Miscellaneous Charge
Miscellaneous Charge
Menu Path - Financial Management / Accounts Receivable / Setup / Miscellaneous Charge
Miscellaneous charges are additional, predefined charges that can be selected on an order (header and/or line item), customer shipment (header), and AR invoice (line). A default amount for a miscellaneous charge can be defined in this record but may be overridden during one of the procedures mentioned. Miscellaneous charges on an order header do not display as unique line items, but rather as additional costs below the final invoice line which makes it indistinguishable from a line item charge.
Shipping Access
You may choose whether shipping personnel are allowed to add a specific miscellaneous charge during customer shipment entry. Example: You may allow shipping personnel to add a miscellaneous charge for Freight to the shipment but not allow them access to the Engineering miscellaneous charge.
Sales Analysis
You may also determine whether a miscellaneous charge is to be included in the Sales Analysis Report. Charges included on the Sales Analysis report do affect the gross margin calculation.
Frequency
The frequency of miscellaneous charges can be defined as follows:
First: only the first invoice for an order Last: only the last invoice for an order Every: every invoice for an order GL Income Account
The general ledger account number that is credited when you invoice this miscellaneous charge. Although you can leave this field blank, you are not able to post an invoice if a miscellaneous charge is attached and does not have an income account selected on its maintenance program.
Tax Information Fields

Tax Category The applicable tax category for this miscellaneous charge. Categories determine whether or not the charge is subject to sales tax. They are also used for sales tax reporting in the Accounts Receivable module. Intrastat
Application Setup
The Intrastat Commodity code that applies to this miscellaneous charge code. This field is only available if you have Intrastat functionality licensed for your system. The Intrastat function is typically only used by our European customers.
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Workshop - Add a Miscellaneous Charge Record
Workshop - Add a Miscellaneous Charge Record

An internal analysis of costs finds that the cost of pallets has increased substantially. A decision has been made to initially charge customers for pallets when product is shipped, and refund the amount when they return them. Complete the steps below to add a miscellaneous charge. 1.
Navigate to the Miscellaneous Charge program using the following path

Menu Path - Financial Management / Accounts Receivable / Set Up / Miscellaneous Charge
2.
Create a new Miscellaneous Charge record

2.1. 2.2. 2.3. 2.4. 2.5. Enter PALL in the Code field. Click the Yes button when prompted to create a new record. Enter Pallet Charge in the code's Description field. Enter 10.00 in the Amount field. Checkmark the Shipping Access option This check box allows the shipment entry person the ability to add this charge at the shipment level. 2.6. 2.7. Select Every in the Frequency field. Type account number 00-9040-00 into the Income Account field.
3.
Save the new miscellaneous charge and exit the program.
Application Setup
Aging Report Format

Menu Path - Financial Management / Accounts Receivable / Setup / Aging Report Formats
The Aging Report Formats Maintenance program is shared by the AR and AP modules. Each module is able to have multiple formats defined. When Aging reports are generated, the format defined in the Company Maintenance program for each module defaults in respectively. If you need to view the report using an alternate format, you can change the aging report format prior to generation on the report's filter summary. You can define up to six buckets (columns) on an aging report. The first column always represents "future" invoices, and the second column represents "current" invoices; no days are associated with these columns. Each column after that includes the number of days mentioned on its heading (Example: Future, Current, 30, 60, 90, 120). When an aging report is run by due date, the Future column contains posted invoices that are not due as of the reports Aged As of Date ( A.K.A. Scheduled Payments). When the report is run by invoice date, no entries appear in the Future column unless any have been posted with an invoice dated after the report's Aged As of Date. At least one default Aging Report Format must be defined for both the Accounts Receivable module and the Accounts Payable module.
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Customer
Customer
Menu Path - Financial Management / Accounts Receivable / Setup / Customer
The information you define in the Customer Maintenance program is used as default information for operations such as quotes, orders, customer shipments and invoices. Listed below are four sheets located in the Customer Maintenance program, critical to understand:
Customer Detail Billing

Detail Bill To Parent/Child Credit Alternates
Contacts Detail Ship To Detail

Other sheets include Attributes, Manifest Info and Documents. If interested in learning about these topics, see the Online Help application where they are fully defined.
Application Setup
Customer Detail Sheet

The data added to the Customer Maintenance program's Customer Detail sheet is used to enter all the primary information about the customer. You will create a customer identifier on this sheet, as well as enter the customers main address. There are other options you define here as well, such as the customers language and the customers main salesperson. Most fields and options in this maintenance program are easy to understand, but included below are a few items that are very important.
Detail Fields
Type A newly-created customer record has a default type of Prospect if the CRM module is not enabled. When a sales order is created for the new customer, the type is automatically updated to Customer. If the CRM module is installed, then the default type for a new customer is a Suspect. If a record is shown as a Suspect, this indicates that it is for a potential customer that has not yet been contacted by your sales team. Statements This check box indicates that AR statements should be generated for this customer. Only customers that have this option selected are displayed in the AR module's Customer Statements report program. Customer statements can be printed at any time using any date range. If any activity occurs during a statement period, one will be printed; even if the net activity results in a zero balance. Territory The sales area where this customer is located. This field indicates which salesperson is responsible for transactions with this customer. If the Customer Relations Management module is installed, this is a mandatory field. Click the Get Territory button to automatically assign a territory to this customer. The program locates the territory that contains this customers address. If you wish to select the territory manually, click the Territory Locked check box. The Territory field activates; select a new territory from this list. If the Customer Relations Management module is not installed, this field is not mandatory, and the Get Territory button as well as the Territory Locked check box are both unavailable. For reference, a territory can be selected manually in the Territory field.
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Customer Billing Sheet

The Customer Billing sheet, located in the Customer Maintenance program is made up of several different sheets that together define the billing and bill to information, the parent/child relationships, the price lists, and the credit information for the selected customer.
Billing Detail Sheet

The Billing Detail sheet is used to enter billing information for the selected customer. This sheet allows you to define the selected customer's AR account, currency, tax options, billing terms, shipping terms, and other default transaction information. These default settings are used on all Sales Orders and AR invoices unless otherwise specified. Below are some fields and options that should be given special consideration. A/R Account An A/R Account record can be assigned to a specific customer; if no record is identified here, the account defaults from the A/R Account Maintenance program or from the Company Configuration. Tax Region A geographical area, within which related tax codes are grouped together. Specific tax codes can be linked to one or more tax regions. Tax regions are used during invoice entry and also appear on various reports. Tax ID The sales tax ID number for this customer. Tax Exempt This is a user-defined reason why sales to this customer are not subject to sales tax. The value entered displays on the Tax Exempt field on AR invoices for this customer. If any value is entered into this field, all invoice line items created for this customer are considered tax exempt. Terms Terms define how customers pay their invoices by establishing discounts, number of payments, pay frequency, and so on. This is a required field and the value entered defaults onto all sales orders for this customer. This value may be overridden on orders if you choose to do so. Billing Day The precise day of the week or month on which this customer is billed. If a company ships product every day, but only invoices customers one day out of the week or out of the month, select the specific day they are invoiced. Within the AR Invoice Entry program, this day is used by the Get Shipments program as the day that determines which shipments should pull in to be invoiced. The default is All Days. This setting means that when running the Get Shipments function in AR Invoice Entry, all of this customer's packing slips are pulled; it does not filter these shipments by date.
Application Setup
Billing Day Options These two options define how often this customer is sent invoices:
Weekly: The default option. If this option is selected, this customer can be billed every week. Monthly: If this option is selected, this customer can be billed only once a month.
Example: Using a combination of flags, the frequency of this customer's billing schedule is defined.
Flag Combination Result Weekly - All Days Monthly - 15 Weekly- Monday Invoicing can occur any day of the week Invoicing can occur once a month on the 15th day Invoicing can occur once a week, but only on Monday
Consolidate Sales Orders If the Consolidate Sales Orders check box is enabled, all un-invoiced packing slips generated for any Sales Order are combined into a single invoice during the Get Shipments function in the Invoice Entry program. Combine Packing Slips If this check box is enabled, all un-invoiced packing slips generated for a single Sales Order are combined into one invoice during the Get Shipments function in the Invoice Entry program.
Billing Bill To Sheet

Use this sheet to enter a bill-to address for this customer. Either the main customer address may be used or a different billing address can be entered. If the bill-to address is in another country or requires a new address format for any other reason, modify the format by using the Address Format sheet located next to the Bill To sheet. Only one bill-to address is allowed for each customer in version 8.00.
Billing Parent/Child Sheet

Use this sheet to define company relationships if business is done with customers that are subsidiaries of larger companies. The main company is called the parent; the subsidiary companies are called children. Here, the two companies are linked together. Setting up customers in this way causes each child customer's aged receivables and credit information to be combined with the parent companys information. To set up a parent/child relationship, both companies must have individual customer records. Child customers may be located in different countries and also use different currencies from the parent customer. Example:
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Pontiac is a child company within the General Motors Corporation. In order to link the two together, you would have to open Pontiac's customer record and select General Motors as the parent company on the Parent/Child sheet. A parent company cannot be designated as a child company, nor can a child be designated as a parent. If a parent company is selected, the Add Child and Remove Child buttons are disabled. If a child company is selected, the parent's Cust ID button is disabled.
Billing Credit Sheet

Credit parameters are defined on the Credit sheet. New customers are automatically placed on credit hold. It is necessary to disable the Credit Hold check box on the Credit Detail sheet to open transactions with this customer. In addition to credit parameter definition, various system-calculated credit amounts are displayed for your convenience. Credit Limit A credit limit of zero is perceived as unlimited credit, not $0. If a credit limit of zero is required, enter 1.00, as credit limits are entered in whole dollar amounts. Calculation of open amounts for comparison to credit limits can include or exclude open sales orders. When a credit limit is changed, the current open balance, which consists of open invoices, open orders, is reviewed, and the customer may be placed on credit hold. The user will also be prompted to place all open orders on hold. Review Date The review date can be used to create a Crystal Report or Business Activity Query as a reminder to review the selected customer's credit parameters on a regular basis.
Billing Alternates Sheet

Every customer record has at least one bill-to address which may be the main customer address or a different one as discussed above. There are times when the bill-to address may not simply be a different billing address but an entirely different customer/entity than the customer ordering and receiving the goods. This happens, for example, when a customer has works with a leasing company or a head office. Only a valid customer created in Customer Maintenance can be defined as an Alternate Bill-To Customer. The Allow As Alternate Bill To option on the Billing Detail sheet must be enabled if this customer is permitted to be used as an Alternate Bill-To. An alternate bill-to that is designated as the Default Bill To automatically defaults into sales orders and AR invoice headers when the customer Sold-To code is entered. This default can be overridden by selecting a different Alternate Bill-To Customer. If the Invoice Address option is enabled, the address from the alternate customer prints as the invoice address. If the option is not enabled, invoices are sent to the bill-to-address on the sold-to customer, but the AR account for the alternate bill-to is updated by the posting. If alternate bill-to's have not been set up for the customer, the billing information on the sold-to customer is used.
Application Setup
Credit checking for a sales order is based on the bill-to customer. Example: Sold-To customer, Addison is on credit hold, but the Alternate Bill-To customer, Dalton that is selected on the order, has not exceeded their credit limit. Because Daltan is the paying customer, and they are of good credit standing, the order is not placed on credit hold.
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Customer Ship To and Contact Sheets
Customer Ship To and Contact Sheets

Companies often have customers that purchases their products from more than one location. These additional locations are entered on the Ship To Detail sheet. On this sheet, the ship to locations address, tax information, language, and shipping method are defined. Each customer can have multiple ship to locations. Only one location can be marked as the Primary Ship To, however one does not have to marked as such. If no ship to is distinguished as the primary, then the customer's main address defaults onto orders and invoices as the ship to address. This can be overridden if you so choose. Ship to contacts can also be defined for each location. The Contacts Detail sheet is used to define multiple contacts for the customers main location and the customers ship to locations. You can add as many contacts as you need for each location. When entering contacts for a ship to location, be advised that the contacts entered are linked directly to this particular ship to location; not to the customer's main address or any of the other alternate ship to locations. Each contact entered on a customer has the option of being marked either as the Primary Contact for Billing, Purchasing, Shipping, or none of the above.
Primary Contact Billing

When selected, this check box indicates that this contact is the customers main billing contact. When an AR invoice is created for this customer, this contacts name automatically appears on the invoice.
Primary Contact Purchasing

When selected, this check box indicates that this contact is the customers main purchasing contact. When a quote or sales order is created for this customer, this contacts name automatically appears on the order or quote.
Primary Contact Shipping

When selected, this check box indicates that this contact is the customers main shipping contact. When a packing slip is created for this customer, this contacts name will automatically appear on the slip. If this contact works at a Ship To location, you can only select the Primary Contact Shipping check box. Any contact can be selected as the primary contact for multiple purposes, but only one contact can be selected as the Primary contact for each purpose. When you select an individual to be the main contact for a purpose, the previous primary contact is no longer selected for this role. Example: Jane Smith is the primary contact for both Purchasing and Billing. You set up a new contact named John Jones and select the Primary Contact Billing check box on his contact record. Jane Smith is no longer marked as the primary Billing contact, but she is still marked the primary Purchasing contact. John Jones now appears by default on any AR invoices sent to this customer. Jane Smith still appears by default on sales orders and quotes to this customer.
Application Setup
Workshop - Enter a New Customer Record

Your company's sales department was successful in attracting the business of an important customer they were pursuing. Your company's business procedures indicate that the Accounts Receivable department, which you are the head of, is responsible for initially creating a customer record once its credit application has been approved. Additional information is later added by the sales department. Complete the steps below to enter the new customer record. 1.
Navigate to the Customer program using the following path

2.
Add a new Customer

2.1. 2.2. 2.3. 2.4. 2.5. Click the New icon and select New Customer. Enter XXX (where XXX are your initials) in the Customer field. Enter XXX, Inc. (where XXX are your initials) in the Name field. Select Customer in the Type field. Enter the following information for the customer's address
172 Washington St. Haverhill, MA 01832 USA
3.
If the CRM module is installed, enter the customer's territory information

3.1. Click the Get Territory check box Because the customer's State is Massachusetts (MA), the previously entered territory US East populates the Territory field. This is because the US East sales territory was defined in the Sales Territory Maintenance program with MA as one of its boundaries.
4.
Enter your customer's billing detail

4.1. 4.2. 4.3. 4.4. Select the Billing sheet. Display the Detail sheet. Select 12 Mo. Pymt sched in the Terms field. Accept the default values for billing frequency information.
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Workshop - Enter a New Customer Record
5.
Enter the customer's bill-to information

5.1. 5.2. 5.3. Select the Bill To sheet. Enter Anita Rays in the Name field. Enter the following information for the customer's bill-to address
124 Minnesota Drive Topeka, KS 66614 USA
6.
Enter the customer's credit detail information

6.1. 6.2. 6.3. 6.4. 6.5. Select the Credit sheet. Display the Credit Detail sheet. Enter 100 in the Credit Limit field. Uncheck the Credit Hold check box. Click the Save icon.
7.
Enter the customer's contact detail information

7.1. 7.2. 7.3. 7.4. 7.5. 7.6. Select the Contacts sheet. Display the Detail sheet. Click the New icon and select New Contact. Enter Anita Rays in the Name field. Enter Controller in the Title field. Select the Billing flag as the primary contact.
8.
Click the Save icon and exit the Customer Maintenance program.
Application Setup
Finance/Late Charge
Menu Path - Financial Management / Accounts Receivable / Setup / Finance/Late Charge
Establish finance charge codes to assign to customer records within the Finance/Late Charge Maintenance program. The way it works is as follows: You create a finance charge code and assign it to a customer record. That customer is a number of days late on an invoice payment. Per the agreement made with that customer when the finance charge was assigned to their record, you have the ability to charge them based on the conditions of the charge. You define these conditions within the Finance/Late Charge Maintenance program prior to assigning the charge to any customer records. There are several detail fields which exist in the Finance/Late Charge Maintenance program that help to define each finance charge code. The following information outlines the Finance/Late Charge Maintenance program's key definition fields:
Charge ID
The ID for the charge code record. To update an existing charge code, click the Charge ID button.
Description
A detailed description of the charge code.
Finance Charge Percent

The periodic or monthly finance charge percentage.
Minimum Charge Amount

The minimum amount allowed for a finance charge. If the finance charge on an overdue invoice does not rise to this amount, then the minimum amount is charged instead. An entry of zero means no minimum.
Maximum Charge Amount

The maximum amount allowed for a finance charge. If the finance charge on an overdue invoice is greater than this amount, then this maximum amount is charged instead. An entry of zero means no maximum.
Payment Process Days

The usual number of days needed to process Cash Receipts. Invoices that are past due, but within this number of days past, will not have a finance charge applied to them.
Part
The part number to be used as the default part number on the Finance Charge invoice line. It is common for this Part, set up in the Part Maintenance program, to be named Finance Charge.
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Finance/Late Charge
(Part) Description
The description of the part as defined in the Part Maintenance program.
Terms
The default terms code used by the Finance Charge invoice.
Include Deposit/Adv Billing

Select this check box if Advance or Deposit invoices should be subject to finance charges through this code.
Include Finance/Late
Select this check box if Finance Charge invoices themselves should be subject to finance charges through this code.
Include Credit Memos

Select this check box if credit memos should be subject to finance charges through this code.
Application Setup
Develop a Finance Charge Code and Assign it to a Customer Record

The customer you created in a prior workshop needs to have a late fee linked to their record as their credit report indicates a history of late payments. Following the steps below, develop a finance charge code and assign it to your company's new customer record. 1.
Navigate to the Finance/Late Charge Maintenance program using the following path
Menu Path - Financial Management / Accounts Receivable / Setup / Finance/Late Charge
2.
Develop a Finance Charge Code

2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. Click the New Icon. Enter Late Fee in the Charge ID field. Type Poor Payment History in the Description field. Record 15.00 into the Finance Charge Percent field. Enter 10.00 in the Minimum Charge Amount field. Leave the Maximum Charge Amount at 0.00. Add 7 to the Payment Process Days field.
3.
Enter a Part to be used when invoicing Late Fees

3.1. Right click in thePart field and select Open With After selecting Open With... Choose Part Entry. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. Click the New icon and select New Part. Type Late Fee into the Part field. Enter Late Fee/Finance Charge in the Description field. Select Manufactured in the Type filed. Clear the Quantity Bearing check box on this newley created part. Click the Save icon and exit the Part Maintenance program.
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Develop a Finance Charge Code and Assign it to a Customer Record
4.
Continue Developing the new Finance Charge Code

4.1. Type Late Fee in the Part field Late Fee/Finance Charge should default into the Description field. 4.2. 4.3. Enable the Include Finance/Late check box. Click the Save icon and exit the Finance/Late Charge Maintenance program.
5.
Assign the Late Fee Finance Charge Code to a Customer

5.1. Navigate to the Customer Maintenance program using the following path
5.2.
Enter XXX (where XXX are your initials) in the Customer field The customer record created in a prior workshop should pull up.
5.3. 5.4.
Click on the Billing Detail Sheet. In the Finance/Late Charge field located on the bottom left side of the window, select Poor Payment History. Click Save and exit the Customer Maintenance program.
5.5.
Application Setup
Accounts Receivable Sales Tax

There are three maintenance programs that accessible by both the AR and the AP modules, pertaining to what drives the calculation of taxes throughout the invoice entry process. These maintenance programs include:
Sales Tax Category Sales Tax Tax Regions

Each of the above programs contain records that have no relationship to anything but each other, as well as no ability to calculate and report sales tax on their own. These all must be linked to other maintenance program records, such as Customer Maintenance and Part Maintenance to drive the calculation of taxes during invoice entry.
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Sales Tax Category
Sales Tax Category

Menu Path - Financial Management / Accounts Receivable / Setup / Sales Tax Category
Sales tax categories are used to divide products, services, and charges into taxable groups. Whether or not a category is taxable depends on where the sale occurs or how an item is used. Example: There is a sales tax category called Services which is linked to a Miscellaneous Charge record. This category is taxable in California, but not in Minnesota. Sales tax categories are displayed on Sales Orders and Invoice lines. Each line can be linked to a different category. Default tax categories can be assigned to each part as well. Categories can also be used to identify tax-exempt items in specific localities. Once a category is used on an order or invoice, it cannot be deleted.
Category ID
The unique identifier for a sales tax category. Use a meaningful ID such as the first portion of the description. Some reports have limited space, so the user may only see the identifier and not the full description. Examples: SERV or PROD
Description
This field further defines the tax category. Examples: Service or Product
Defined in the following Maintenance Programs Sales Tax Maintenance Part Maintenance Miscellaneous Charge Maintenance (AP and AR) Sales Order Line Item Invoice Line Item
Application Setup
Sales Tax
Menu Path - Financial Management / Accounts Receivable / Setup / Sales Tax
Sales tax codes are used to define specific tax rates based on the taxing authority of the location. These taxes are then multiplied against taxable line items on AR and AP invoices to determine sales tax amounts. On each invoice, these sales tax amounts are then added together to calculate the final sales tax amount. The user can also exempt sales tax categories from specific sales taxes. Sales tax categories are used to divide taxes into groups that apply to different products. On the Exempt sheet of this program, it is possible to select which categories do not have this sales tax calculated against their order amounts. Sales tax codes are then assigned to individual tax regions. Tax regions define geographic areas, and sales tax codes linked to them identify all the individual sales taxes collected within an area. This program cannot be used to establish a "default" AR sales tax. The default sales tax region is assigned on a country basis in the Country maintenance program.
Tax ID
A user-defined, unique code that identifies the sales tax. Use a meaningful ID such as an abbreviation or the first portion of the description. On certain reports where space is limited, the user may see the ID rather than the full description. It can be up to four characters in length.
Description
The concise description of the sales tax; it can be up to 15 characters in length. Examples: Minnesota State, City of Minneapolis, Minnesota
Percent
The sales tax percentage. This percentage is multiplied against taxable line items to calculate sales tax amounts.
Parent Jurisdiction
A parent jurisdiction is a primary tax code that includes this current tax code. This is an optional field used for tax reporting. All taxes grouped under the parent jurisdiction are considered subsidiary taxes. Example: In Minnesota, a user reports all city-taxable and state-taxable items to the state. To set this up on the City of Minneapolis tax code, select the Minnesota state tax code as the parent jurisdiction.
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Sales Tax
Manual Tax Calculation

This check box indicates that this sales tax will always be manually calculated and entered. This option is necessary for tax localities that have unusual requirements the system cannot handle. This will be the default setting for this sales tax during AR invoice entry. If required, it can be overridden with a different tax code.
Round Down Tax

This check box indicates that the tax amount will always be rounded down. If this checkbox not enabled, the tax is mathematically rounded either up or down.
Payment Discount Reduces Tax

Indicates that this tax will be calculated after discounts are subtracted from the final invoice amount. If it is desired to have the total tax calculated before any discounts are taken, do not enable this check box.
EC Acquisition
If enabled, two offsetting tax entries are made - an Accounts Payable GL Account record is created for the positive value while an Accounts Receivable GL account record is created for the negative value.
Advanced Billing
When enabled, this check box indicates that it is desired to have this tax charged on an advance billing line. When invoicing the balance later, only the balance amount is taxable. The tax on the final bill is based on the total taxable amount, so taxes on advance bills are not included in the final tax calculation. When the final invoice is entered, the advance bill amount is deducted from the total taxable amount.
Terms Discount Reduces Tax

If a country subtracts a discount from the total cost before it calculates the sales tax, enable this checkbox.
AR Tax Accrual
The GL account number credited by the sales tax amount calculated during AR invoice entry.
AP Tax Accrual
The GL account number debited by the sales tax amount calculated during AP invoice entry.
Exempt Sheet
Use this sheet to select sales tax categories that do not pay taxes on the current sales tax code. Sales tax categories divide taxes into groups that apply to different products and miscellaneous charges. They are defined in the Sales Tax Category master file. Category ID Enter the sales tax category(s) for products, services, or charges that should not have taxes calculated for them. Example:
Application Setup
Your company has a sales tax category called Services. This category is taxable in California but not in Minnesota. For the Minnesota tax code, select Services in the Exempt sheet. Reportable When enabled, this check box indicates that this category is to be reported as a gross receipt. Sales made within this category are still exempt from this tax, but they will appear on the Sales Tax report.
Defined in the following Maintenance Program Tax Region
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Tax Regions
Tax Regions
Menu Path - Financial Management / Accounts Receivable / Setup / Tax Regions
Tax regions allow the user to link specific sales tax codes to one or more regions. Regions are then linked to customers and suppliers to define/group all the applicable taxes. During invoice entry, the region linked to the customer or supplier drives the taxes calculated for each invoice line.
Tax Region
The code that uniquely identifies the tax region. Use up to four characters. Examples: 0001 or MN
Description
A further description of the tax region displays in tax region lists and reports. Examples: Tax Region 0001-0001 or Minnesota
In EC
Enable this check box to indicate that this tax region is part of the European Community (EC). This field is used for value added tax (VAT) reporting. Enabling this checkbox allows the user to report on total amounts such as sales in the EC, sales outside of the EC, purchases in the EC, and purchases outside of the EC.
Sales Tax
Available This section displays all sales tax codes defined in the Sales Tax master file. Use the right arrow in the middle of this section to move a tax code to the selected section. Selected This section holds all the sales tax codes that apply to this region.
Defined in the following Maintenance Programs Customer Supplier
Application Setup
Link Tax Regions and Categories

The following describes where Tax Regions and Sales Tax Categories link to other maintenance programs to ultimately determine the sales tax calculation for accounts receivable transactions:
Customer
Tax Region A tax region can be selected on both the Billing and Ship To sheets of each record in the Customer Maintenance program. Tax Exempt Instead of selecting a tax region, a reason code for a customer's exemption status can be entered in the Tax Exempt field. Any user-defined value entered in this field displays on AR invoices (Tax Exempt field on each invoice line). If sales to this customer are not tax exempt, this field must be left blank.
Part
Tax Category A tax category can be selected on an individual Part record to define its taxability. The category that is defined on the Part record is defaulted on sales order line items, as well as invoice line items, but can be changed if needed.
Sales Order Line Item

Tax Category A tax category defaults from the line item's Part record, and can be changed if required. Any exemption code entered on the customer's Billing or Ship To sheets carry forward to the Sales Order Release sheet.
Miscellaneous Charges
Tax Category A tax category can be selected on Miscellaneous Charge records. If one is not selected on this record, the miscellaneous charge takes on the tax category of the sales order or invoice line it is attached to.
Invoice Entry
The customer record carries the tax region to the invoice, at which time, taxes are calculated. Tax codes can be added or changed at invoice level if needed. The sales tax category is carried from the Sales Order line item, as is the exemption status. Miscellaneous charges carried from the Sales Order or added to the invoice, also carry the related sales tax category.
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Link Tax Regions and Categories
Example Customer A is located in the Minnesota Tax Region. The Sales Tax Codes included in the Minnesota Tax Region are: MN State, Local, GST and Union. Customer A orders one Part (AA) that has a Tax Category on its record that is Exempt from all taxes. The second line of the order is for another Part (BB) that has a Tax Category of Services on its record. The Services Tax Category is Exempt from Union Tax, but is subject to all the other taxes in the Minnesota
Tax Region. Taking all that information into consideration, I can determine that if nothing is changed along the way, when Customer A is invoiced for this order, he will be taxed on Part BB, but NOT Part AA, and Union Tax will be completely excluded.
Application Setup
Delegate a Tax Region to a Customer

Existing Customer Hall Manufacturing needs to have the Minnesota Tax Region assigned to it as the company just recently changed locations to Edina, MN. Following the steps below, delegate the Minnesota tax region to Customer Hall Manufacturing (HALL). 1.
Navigate to the Customer Maintenance program using the following path

1.1. 1.2.
Type Hall in the Customer field Press Tab After pressing the tab key, Hall Manufacturing's details will populate the Customer Detail Sheet.
1.3. 1.4. 2.
Click on the Billing Detail Sheet. In the Tax Region field located on the upper right side of the window, select Minnesota.
Click Save and exit the Customer Maintenance program.
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AR Processes
This section of the course covers the Accounts Receivable Invoice Entry and Cash Receipt Entry processes as well as many relevant reports and trackers.
AR Processes
Invoice Entry Process

Menu Path - Financial Management / Accounts Receivable / General Operations / Invoice Entry
The Invoice Entry program is used to bill customers for products and services sold by a company. Revenue and the corresponding AR values for shipped products do not update the general ledger until an invoice is created and posted. A group methodology is used to collect invoices and post them as a group to the GL in the same fiscal period. Until a group is posted, the GL is not updated. The actual group ID is immaterial and can be used again as soon as the original has posted. Invoices can be transferred between groups. The Transfer function, located in the Invoice Entry program's Action menu, can be used to set aside problem invoices for later processing and then to transfer them back to any un-posted group once the issue has been resolved. It is important to note that in all types of invoices, pre-defined records from the Miscellaneous Charge or Sales Tax maintenance programs can be added at the invoice entry level. In order to be added, these records require a line item be created first. Usually, invoice line items are selected from an existing Part record, however, if a user needs to create an invoice which includes only selections from the Miscellaneous Charge or Sales Tax file, a line can be created with a generic description, a quantity of one, and a line item value of $0. The AR Invoice Types available for creation are:
Advanced Billing Invoice Deposit Billing Invoice Shipment Invoice Credit Memo Miscellaneous Invoice
As these invoice types are discussed in this section of the course, take note of the individual characteristics that differentiate them from one another. Example: The choice of whether to create an advance billing or deposit billing invoice comes down to how the prepaid amount needs to be consumed.
An Advance Billing links prepaid amounts to a specific order line and release. As shipments occur to
the specified line/release, the prepaid amounts are consumed.
A Deposit Billing only requires a link to a sales order. A shipment of ANY line/release consumes the
prepaid amount from the first shipment after the deposit is posted. The reports and trackers that are utilized throughout the invoicing process are illustrated in this portion of the course.
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Invoice Entry Process
If you have the third party software, Tax Connect installed, it must be disabled in the Company Tax Interface Module Configuration, or turned off in the Tax Reconciliation program in order to complete the upcoming workshops.
AR Processes
Advance Billing Invoices

Advance Billing Invoices are customer invoices created prior to shipping products or services. This type of invoice must be linked to a sales order, an order line, and an order release. It is possible to choose whether the advance billing amount should credit the Deferred Revenue General Ledger Account that is defined in the Company Configuration, or the ordered parts Sales (Revenue) account. Advance Billing Invoices must be created prior to creating a packing slip for the related sales order line and release; however, a cash receipt for this invoice is not required prior to the shipping and invoicing of the related product or service. The total amount of the Advance Billing Invoice is deducted from the Shipment Invoice, even if the customer has yet to pay the invoice. The logic behind the flow of this process is that as follows: The Advance Billing Invoice remains on the Aging Report until it is paid, so even if the total of that advance is deducted from the customer's Shipment Invoice before it has been paid, the Advance Invoice still remains as an outstanding invoice against the customer, for the total amount.
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Workshop - Create Advance Billing Invoices for an Existing Sales Order
Workshop - Create Advance Billing Invoices for an Existing Sales Order

This workshop asks you to create two advance billing invoices for existing Sales Order, 230. On one invoice the deferred revenue flag is enabled and on the second, it is not. When the group is posted, the results of both methods can be reviewed. Complete the steps below to create advance billing invoices for an existing Sales Order. 1.
Navigate to the Invoice Entry program using the following path

2.
Create a new group

2.1. 2.2. Click the New icon, and select New Group. Enter XXX (where XXX are your initials) in the Group field.
3.
Add a new Advance Billing Invoice

3.1. 3.2. Click the New icon and select New Advance Billing. Enter 230 in the Sales Order field. Note that the Deferred Revenue check box is enabled on the invoice header.
4.
Add a line to the invoice

4.1. 4.2. Click the New icon, and select New Line. Enter the following information in the indicated fields
SO Line Rel Extended Price 1 1 130.00
4.3. 5.
Click the Save icon.
Add another line

5.1. Enter the following information in the indicated fields
SO Line 2
AR Processes
Rel Extended Price
1 135.00
6.
Create another Advance Billing Invoice

6.1. 6.2. 6.3. Click the New icon and select New Advance Billing. Enter 230 in the Sales Order field. Disable the Deferred Revenue flag located on the lower right side of the Header sheet.
7.
Add a line to the invoice

7.1. 7.2. Click the New icon and select New Line. Enter the following information in the provided fields
SO Line Rel Extended Price 1 2 140.00
7.3. 8.
Print Preview the group's Edit List

8.1. 8.2. 8.3. Select Group from the Actions menu followed by the Edit List option. Accept all default values provided. Preview the details and GL recap for this group and then close the report.
9.
Remain in the Invoice Entry program for the next workshop.
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Deposit Invoices
Deposit Invoices
A Deposit Billing Invoice is a customer down-payment or pre-payment that must be linked to an order, but not to a specific order line or release. The Prepayment account defined in the Company Maintenance program offsets the Receivables account in this type of transaction. Sales order deposits can also be created directly in the Cash Receipt Entry program. The difference between creating a deposit invoice and creating a deposit through cash receipts is mainly that a physical invoice can be printed if a deposit invoice is created. Also, if you do not choose to create a deposit invoice, the Receivables account is never affected by the deposit amount. Only when a deposit invoice is posted is the Receivables account debited. Once the invoice payment is posted, the Receivables account is credited.
AR Processes
Workshop - Enter a Deposit Invoice

In the previous workshop, you billed the customer in advance of your company shipping the goods. That payment has been received, however, an additional check was sent and should be entered as a Deposit Invoice against the same sales order. Complete the steps below to enter a Deposit Invoice. 1.
If closed, navigate to the Invoice Entry program using the following path
2.
Enter a Deposit Invoice

2.1. 2.2. 2.3. Click the New icon and select New Deposit Billing. Enter 230 in the Sales Order field. Click the Save icon.
3.
Enter the Deposit information

3.1. 3.2. 3.3. Click the Line sheet. Click the Deposit sheet and enter 100.00 into the Deposit Amount field. Click the Save icon.
4.
Print Preview the Edit List

4.1. Select Group from the Actions menu followed by the Edit List option Accept all default values provided. 4.2. Preview the details and GL recap for this group and then close the report.
5.
Post the Invoices in the group

5.1. 5.2. 5.3. Select Group from the Actions menu followed by the Post option. Click the Submit icon. Close the AR Invoice Post Process window.
6.
Exit the Invoice Entry program.
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Advance Billing/Deposit Balance Report
Advance Billing/Deposit Balance Report

Menu Path - Financial Management / Accounts Receivable / Reports / Advance Billing/Deposit Balance
The Advance Billing/Deposit Balance Report allows the viewing of the total outstanding balance for all advance and deposit invoices/payments made against sales orders for all or one select customer. This report can display deposit totals, advanced billing totals, or both. The total on this report should balance to the combined totals of the Deferred Revenue and Prepayment accounts on the GL, assuming Deferred Revenue is always selected. The Advance Billing/Deposit Balance Report displays the balance of the deposit(s) or advance billing(s) made for each specific Sales Order. The balance amount is the total deposit and/or advance amount, minus the value of any invoiced order line amounts. The report's total value can never be less than zero.
AR Processes
Workshop - View the Balance of Deposits and Advance Billings Made on Sales Orders
Now that both an advance billing and deposit invoice have been posted against Sales Order 230, the Advance Billing/Deposit Balance report can be run to verify that the order maintains both amounts. Complete the steps below to view the balance of deposits and advance billings made to Sales Order 230. 1.
Navigate to the Advance Billing/Deposit Balance program using the following path
Menu Path - Financial Management / Accounts Receivable / Reports / Advance Billing/Deposit Balance
2. 3.
Accept all default values. Preview the report.

3.1. Note the values recorded against Sales Order 230.
4.
Close the Advance Billing/Deposit Balance Report dialog box.
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Order Tracker
Order Tracker
Menu Path - Financial Management / Accounts Receivable / General Operations / Order Tracker
The Order Tracker displays read-only information about open or closed sales orders, including shipment activity, invoice activity, header and line item information, as well as sales order advances and deposit balances. The Order Tracker is a display-only version of the Order Entry program, yet it contains supplemental sheets used for tracking purposes. Records cannot be added or updated in any tracker in the software.
AR Processes
Workshop - Use the Order Tracker

Review current information about Sales Order 230, which was created in a previous workshop. Complete the steps below to use the Order Tracker. 1.
Navigate to the Order Tracker program using the following path

Menu Path - Financial Management / Accounts Receivable / General Operations / Order Tracker
2.
Enter the Sales Order Number

2.1. Enter 230 in the Sales Order field.
3.
Select the Header sheet

Note the following information for order 230 on the inside cover of the student manual:
Terms: Salesperson(s): Miscellaneous charges:

4.
Select the Invoices sheet

Note the invoice numbers in the inside cover of the manual.
5.
Select the Lines sheet

Use the Tree view to navigate through each line detail. Note any lines with miscellaneous charges on the inside cover of the manual. 5.1. Click into the Invoice Details sheet to review the information
6.
Exit the Order Tracker program.
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Shipment Invoices
Shipment Invoices
Invoices for products or services shipped via Customer Shipment Entry, are generated automatically by a command located in the Invoice Entry Program's Actions menu. This command is called, Get Shipments. The Get Shipments function is used to generate invoices for packing slips with a status of shipped. It is important to note that pack slips that are not flagged as shipped, can never have an invoice generated through Get Shipments for them. As noted above, the shipped status of a customer packing slip plays an important role in determining whether or not an invoice can be automatically created. Other factors that impact a shipment's ability to have an invoice generated via Get Shipments include:
Shipment Date vs. Invoice Group Date Billing Day settings on a Customer's individual maintenance program setup. The Company Configuration setting for the "Save Shipments for Invoicing" option.
AR Processes
Workshop - Ship a Customer's Order

Ordinarily, accounting personnel are not responsible for shipping customer's orders, however, the shipping clerk is on vacation and you have been asked to step in. Complete the steps below to ship the customer's order. 1.
Navigate to the Customer Shipment Entry program using the following path
Menu Path - Material Management / Shipping/Receiving / General Operations / Customer Shipment Entry
2.
Enter a new Customer Shipment

2.1. 2.2. Click the New icon and select New Pack. Enter 230 in the Order Number field.
3.
Add line items

3.1. 3.2. 3.3. Click the New icon and select New Line Type 230 in the Order Number field. Enter 1 in both the Line and the Rel fields. Observe how the Complete check box turns red because you are shipping the only item on this line.
4.
Add a miscellaneous charge

4.1. 4.2. 4.3. 4.4. Click the New icon and select New Misc Charge. Select Pallet Charge from the Code field. Enter 150.00 in the Amount field. Click the Save icon Note the Pack ID in your workbook.
5.
Minimize the Customer Shipment program.
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Workshop - Invoice a Shipment

A customer shipment was created and now it is your job to invoice that shipment. Complete the steps below to create a shipment invoice. Note the consumption of the advance and deposit invoices that you posted in a previous workshop on this shipment invoice's line and header records. 1.
Navigate to the Invoice Entry program using the following path

2.
Create a new group

2.1. 2.2. Click the New icon and select New Group. Enter XXX (where XXX are your initials) in the Group field. Accept the defaults provided in the remaining Group Information fields. 2.3. Click the Save icon.
3.
Generate Shipment Invoices

3.1. 3.2. From the Actionsmenu, select Get Shipments. Click the View All Packing Slips button in the Get Shipments window Verify that the packing slip created in the last workshop does not display in the Pack Slip Browse window. 3.3. 3.4. Select the Pending option. Click the Order Number column header to sort the grid view by order number Verify that the packing slip created in the last workshop displays. 3.5. 3.6. Exit the Pack Slip Browse window. Exit the Get Shipments window The reason the the Pack Slip shows as Pending is because it was never marked as Shipped in the previous workshop. Go back to the Customer Shipment Entry program. The following steps guide you through the rest of the workshop.
4.
Flag the shipment as Shipped

4.1. Maximize the Customer Shipment Entry program.
AR Processes
4.2. 4.3. 4.4. 5.
Enable the Shipped check box. Click the Save icon. Exit the Customer Shipment Entry program.
Generate Shipment Invoices

5.1. 5.2. 5.3. Maximize the Invoice Entry program. From the Actions menu, select Get Shipments. Click the View All Packing Slips button in the Get Shipments window Verify that the packing slip created in the last workshop displays. 5.4. 5.5. 5.6. Click the OK button to exit the Pack Slip Browse window. Click the OK button in the Get Shipments window to generate the invoices. Click Yes when prompted to confirm invoice creation.
6.
Review line information

6.1. Select the Line Detail sheet Note the reduction in price due to the consumption of the advance billing amount.
7.
Review Miscellaneous Charge information

7.1. Select the Line Misc Charge sheet Note that both Miscellaneous Charges for this order appear on this line:
Rush Charge (Added to Order Header) Pallet Charge (Added to Shipment Header)
8.
Print Preview the edit list

8.1. 8.2. Select Group from the Actions menu followed by the Edit List option. Preview the details and GL recap for this group and then close the window.
9.
Post the invoice

9.1. 9.2. 9.3. Select Group from the Actions menu followed by the Post option. Click the Submit icon. Close the AR Invoice Post Process window.
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10.
AR Processes
Credit Memos
Credit memos are transactions that reduce, or credit, a customer's Receivable balance. Standard, Deposit Billing, and Advance Billing Credit memos are created and posted in the Invoice Entry program. The Cash Receipts program allows Unapplied or On Account receipt balances to automatically generate credit memos for application. A sales order is not required when creating a credit memo; however, if an order is selected, a corresponding line item and release must also be selected. Alternately, it is possible to enter a valid invoice number which automatically populates the related Sales Order information. Types of credit memos include:
(Standard) Credit Memo

A credit memo created to reduce a customer's receivable balance.
Advance Billing Credit Memo

A credit memo created to reduce an Advance Billing invoice and to remove the advance balance from the sales order line it is attached to. This type of credit memo is order line specific.
Deposit Billing Credit Memo

A credit memo created to reduce a Deposit Billing invoice and to remove the deposit amount from the sales order it is attached to. This Type of credit memo is not order line specific.
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Workshop - Create Credit Memos
Workshop - Create Credit Memos

The pallets you shipped to Boeing on SO 230 in a prior workshop were returned. A credit memo must now be created to credit Boeing's account for the returned pallets. In addition, your company's sales department authorized a credit for customer Addison because of product damage while in transit. Complete the steps below to add these Credit Memos. 1.
2.
Create a new group

2.1. 2.2. 2.3. Click the New icon and select New Group. Enter your last name in the Group field. Accept the defaults provided in the remaining Group Information fields.
3.
Create a credit memo

3.1. 3.2. Click the New icon and select New Credit Memo. Type BOEING in the Sold To (Customer) field.
4.
Add a line to the credit memo

4.1. 4.2. 4.3. Click the New icon and select New Line. Enter Credit in the Part/Rev field. Enter Credit for Returned Pallets in the Description field.
5.
Add a miscellaneous charge to the line

5.1. 5.2. Click the New icon and select New Line Misc Charge. Select Pallet Charge in the Charge field Note that this default amount is positive. Since the invoice type is a credit memo, this amount credits AR. 5.3. Click the Save icon.
6.
Create another Credit Memo

6.1. Click the New icon and select New Credit Memo.
AR Processes
6.2. 7.
Enter 227 in the Sales Order field.
Add a line to the Credit Memo

7.1. 7.2. Click the New icon and select New Line. Enter the following information in the indicated fields
SO Line SO Rel Quantity 1 1 1
7.3. 8.
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Miscellaneous Invoices
Miscellaneous Invoices
Miscellaneous invoices can optionally reference a Sales Order and/or an inventoried line item. If a non-inventoried line item is not being invoiced, the Part and Description fields are typically used to enter the reason for the invoice. In a miscellaneous invoice, the offsetting credit account derives from the product group that is chosen on the invoice line item. This may require the creation of a product group called Misc Income, or else an existing product group must be selected. Although a valid Part record can be selected, corresponding COS amounts are never recorded for Miscellaneous Invoices.
AR Processes
Workshop - Enter a Miscellaneous Invoice

A tenant that is leasing a portion of your company's plant space needs to be invoiced. Use the steps below to create a miscellaneous invoice to bill the tenant using the terms code created in a prior workshop for scheduled payments. You may find that a new Miscellaneous Income Product Group may need to be created. Complete the steps below to enter a miscellaneous invoice. 1.
2.
Create a new Miscellaneous Invoice

2.1. 2.2. 2.3. Click the New icon and select New Miscellaneous Invoice. Click the Customer button to Search. Select XXX, Inc. (where XXX are your initials) and click OK This is the customer you created in a prior workshop. 2.4. Select 12 mo. pymt sched in the Terms field.
3.
Enter line information

3.1. 3.2. Click the New icon and select New Line. Enter the following information in the provided fields
Part/Rev Quantity Unit Price Lease Payment Schedule 1 24,000.00
4.
Create a new product group

4.1. Right-click in the Group field and select Product Group Entry.
5.
Add a new Product Group

5.1. 5.2. 5.3. 5.4. Click the New icon and select New Group in the Product Group Maintenance program. Enter Misc Inc in the Group field. Enter Miscellaneous Income in the Description field. Select the Accounts sheet.
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Workshop - Enter a Miscellaneous Invoice
5.5. 5.6. 6.
Enter account number 00-9040-00 in the Sales field. Click the Save icon and exit the Product Group Maintenance program.
Attach the new product group to the new miscellaneous invoice

6.1. Maximize the Invoice Entry program and select the new product group, Miscellaneous Income, in the Group field.
7.
Review the payment schedule

7.1. Select Invoice Payment Schedule from the Actions menu Scheduled payment due dates and amounts can be manually updated. The Aged Receivables report begins aging as each scheduled payment's due date is reached.
8.
Print Preview all invoices

8.1. 8.2. Select Group Print Invoices from the Actions menu. Preview all invoices in the group and then close the window.
9.
Print Preview the Edit List

9.1. 9.2. Select Group - Edit List from the Actions menu. Click the Print Preview icon.
10.
Post the invoice group

10.1. 10.2. 10.3. Select Group - Post from the Actions menu. Click the Submit icon. Close the AR Invoice Post Process window.
11.
Exit the Invoice Entry program.
AR Processes
Aged Receivables Report

Menu Path - Financial Management / Accounts Receivable / Reports / Aged Receivables
The Aged Receivables report displays open AR invoices, and sorts them into default aging columns, which are defined in the Aging Report Format Maintenance program. The total on this report should reconcile to the ending balance of the Accounts Receivable GL account. An Aged Receivables report can be printed with a fiscal period cut-off or an invoice date cut-off. This is important to note, as it is possible for the total AR balance to differ between the two cut-off options as a result of the following: The transaction date on an invoice group controls the fiscal period in which a group of invoices posts; however, the actual invoice date and fiscal period can be changed on the invoice header. If one field is changed, and the other is not, the result is a mis-match between the date the invoice ages to and the fiscal period it posts to. For an accurate sub-ledger report, print the aged receivables using the fiscal period cut-off, and it should tie out to the GL. In addition, the Aged Receivables Report can be aged by using the invoice date or invoice due date for selected customers and selected AR accounts. The resulting report data can be displayed in detail or summary format and sorted by customer name and then invoice, by AR account, customer name, and invoice, by customer ID and invoice, or by AR account, customer ID, and then invoice. These options make is easier for users to view the report in the way that makes the most sense for their company's practices.
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Workshop - Use the Aged Receivables Report
Workshop - Use the Aged Receivables Report

Complete the steps below to use the Aged Receivables report to display all of your company's open invoices. 1.
Navigate to the Aged Receivables report window using the following path
Menu Path - Financial Management / Accounts Receivable / Reports / Aged Receivables
2.
Select report specifications

2.1. 2.2. Select the last day of the current month in the Aged As Of field. Accept all other default values provided.
3.
Preview the report

3.1. 3.2. Click the Print Preview icon. After reviewing the results, close the report
4.
Select different report specifications

4.1. 4.2. 4.3. 4.4. Enable the Fiscal Period radio button in the Select By section. Enter the Current Fiscal Period and Year in the appropriate fields. Enable the Invoice Date radio button in the Age By section. Accept all other default values provided.
5.
Preview the report

5.1. After reviewing the results, close the report.
6.
Exit the Aged Receivables Report program.
AR Processes
Cash Receipt Process

Menu Path - Financial Management / Accounts Receivable / General Operations / Cash Receipt Entry
The Cash Receipts Entry program, first and foremost is designed to allow you to enter and post cash your company has received. Types of Cash Receipts include transactions entered for customer payments, customer credits, and even miscellaneous cash amounts entered to update your company's bank account. Much like the invoice process, a group methodology is used when processing cash receipts. The difference is that in the Cash Receipt Entry program, payments as opposed to invoices are grouped together to be posted in a batch mode to update the GL. Similar to Invoice Entry groups, the actual group ID is immaterial and can be used over and over, but in this case, the group does define the date of all payments in the group, the accounting period it posts to, and the bank account that is affected. The following Cash Receipt transactions are discussed in this section of the AR course:
Invoice Payments Debit Notes Deposit Payments Miscellaneous Cash Payments
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Invoice Payments
Invoice Payments
An Invoice Payment is a customer cash receipt that is entered with basic check information, and includes detail lines that describe how the check will be used against the customer's outstanding invoices. The following lists key components when entering an invoice payment:
Invoice Selection
If known, an invoice number can be entered on a cash receipt's header, and the corresponding customer numbers will default. Of unknown, a customer number and its invoice(s) can be selected by using the Invoice Selection sheet, where all open invoices are displayed. If multiple invoices are selected, and their sum total is greater than the check amount, then the dollars are applied to the oldest invoice first and then each subsequent oldest invoice until there are no dollars left to apply.
Allocate
Once dollar amounts have been applied to selected invoices, use the Allocation sheet to change the amount of cash applied to specific invoices if needed.
On Account
Once all dollars have been applied to selected invoices, the remaining balance, if one exists, can be placed on the customer's current account by enabling the On Account check box in any of the sheets. On Account amounts update the Unapplied Cash account defined in the Company Maintenance program and are treated the same as credit memos. Credit memos can be applied against open invoices in the Cash Receipt Entry program or applied to open invoices using the Apply Credit Memo program.
AR Processes
Workshop - Apply Cash to Invoices

When today's mail was received, checks from Boeing Aircraft and Addison, Inc. were included. Apply cash receipts to the invoices specified on the check stubs, and put any remaining balance on account as unapplied cash. Complete the steps below to apply cash to invoices. 1.
Navigate to the Cash Receipt Entry program using the following path
2.
Create a new group

2.1. 2.2. 2.3. 2.4. Click the New icon, and select New Group. Enter any name in the Group field. Select American Bank and Trust from the Bank Account field. Accept the default date in the Transaction Date field.
3.
Create a new invoice payment transaction

3.1. 3.2. 3.3. 3.4. Click the New icon, and select New Invoice Payment. Enter XXXXXX-1 (where XXXXXX is today's date) in the Check field. Enter 1,500.00 in the Amount field. Search for and select BOEING by clicking the Cust ID button.
4.
Select invoices
4.1. 4.2. 4.3. 4.4. 4.5. Click into the Invoice Selection sheet. Select the lowest invoice number with today's date. Click the Apply with Discount button. Select the next invoice number and the last invoice created today by holding down the CTL key. Click the Apply with Discount button.
5.
Perform allocations
5.1. Click into the Allocate sheet.
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Workshop - Apply Cash to Invoices
5.2.
Reduce the payment amount of the lowest invoice number by $10.00 in the Payment field of the grid view. Select the next invoice number and then select the Detail sheet. Reduce the value by 10.00 in the Amount to A/R field.
5.3. 5.4. 6.
Review the new payment amounts on the Allocate sheet

6.1. 6.2. Enable the On Account check box. Click the Save icon.
7.
Create another invoice payment transaction

7.1. 7.2. 7.3. 7.4. Click the New icon, and select New Invoice Payment. Enter XXXXXX-2 (where XXXXXX is today's date) in the Check field. Enter 20,000.00 in the Amount field. Search for and select ADDISON by clicking the Cust ID button.
8.
Select invoices
8.1. 8.2. 8.3. Select the Invoice Selection sheet. Click the Select All button. Click the Apply without Discount button Dollars are applied from the oldest invoice to the most current invoice until there are no received dollars left to apply. If a remaining balance is left on an invoice, it will be available on the invoice selection sheet the next time you create an invoice payment for the customer. 8.4. 8.5. Click the OK button on the resulting dialog box. Click the Save icon.
9.
Remain in the Cash Receipt Entry program in preparation for the next workshop.
AR Processes
Debit Notes
Debit notes (charge-backs), sent from customers, can be entered as part of the cash receipts process and can have their value applied as part of the settlement process. Debit notes may be related to specific invoices or remain unassigned. They do, however, remain as open receivables until matched to credit memos or subsequently paid. Recording a debit note does NOT admit liability. It creates an open Debit Note (charge-back) which can be collected later or matched by an off-setting credit memo in the future. If you would like to learn more about the Debit Note Process, please sign up for the eLearning course offered specifically on the subject.
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Workshop - Add a Debit Note
Workshop - Add a Debit Note

A company has received a debit note from Addison with their payment. The debit note is for faulty anodizing of parts on their contract order. Record the debit memo to one of their invoices. Complete the steps below to add a debit note. 1.
If closed, navigate to the Cash Receipt Entry program using the following path
2.
Create a new debit note transaction

2.1. 2.2. 2.3. 2.4. Click the New icon and select New Debit Note. Enter DN1 for the debit note reference. Enter 20.00 in the Debit Note Value field. Leave today's date as the Debit Note Due Date.
3.
Apply the Debit Note to an invoice

3.1. Type 10136 in the Invoice field The invoice's Due Date should now populate the Debit Note Due Date field. This can be changed at this point if necessary. You have the option to search for an invoice number if you do not know the invoice number. Also, you do have the choice to apply the debit note On Account by not choosing any invoice at all. 3.2. 3.3. Click the Apply button. Click the Save icon.
4.
Remain in the Cash Receipt Entry program for the next workshop.
AR Processes
Deposit Payments
Deposits entered directly through the Cash Receipt Entry program are treated the same as those created during the invoice entry process:
A Sales Order number is required to post the deposit. The transaction is able to be reviewed on the Advance Billing/Deposit Balance report. The deposit amount stays attached to the order header until it is utilized or a Deposit Billing Credit
Memo is posted to remove it.
Relief to the Prepayment account occurs at the time the related SO ships.
However, as stated earlier in the course, there are some ways in which a cash receipt deposit differs from a Deposit Invoice. Cash Receipt deposit transactions:
Directly debit the Cash account. Never affect the AR account. Are unable to have physical invoices printed to reflect their payments.
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Workshop - Create a Deposit Payment
Workshop - Create a Deposit Payment

A deposit was received from Caterpillar Corporation. Create a deposit payment to link to Caterpillar's SO number 115. 1.
Navigate to the Cash Receipt Entry program using the following path
2.
Find your open Group

2.1. 2.2. Click the Group button to Search. Select the open group you have been working with and click the OK button.
3.
Add a new Deposit Payment

3.1. 3.2. 3.3. 3.4. 3.5. Click the New icon, and select New Deposit Payment. Enter 115 in the Sales Order field. Enter XXXXXX-3 (where XXXXXX is today's date) in the Check field. Enter 15,000.00 in the Amount field. Click the Save icon
4.
Remain in the Cash Receipt Entry program in preparation for the next workshop.
AR Processes
Miscellaneous Cash Payments

Miscellaneous Cash Payments are created when cash is received from sources other than customers. Like the other payment types, these transactions post their debit to the selected Bank Account's Cash account. The credit account is selected by the user at the time of creation.
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Workshop - Enter a Miscellaneous Cash Payment
Workshop - Enter a Miscellaneous Cash Payment

A company has a recycling bin for aluminum cans in the break room. The cans they gather are periodically turned in to the local recycling center, and the cash is deposited in the companys petty cash account. Complete the steps below to enter a miscellaneous cash payment for the can deposit return. 1.
If closed, navigate to the Cash Receipt Entry program using the following path
2.
Find the open group you have been working with

2.1. 2.2. Click the Group button and Search. Select the your open group and click the OK button.
3.
Create a new Miscellaneous Cash Payment

3.1. 3.2. 3.3. 3.4. 3.5. Click the New icon, and select New Misc Payment. Enter Cash in the Check field. Enter 50.00 in the Amount field. Search for and select the account number, 00-9040-00, in the Credit G/L Acct field. Click the Save icon.
4.
Post the cash receipt group

4.1. 4.2. Select Post from the Actions menu. Click the Yes button when asked if you are sure.
5.
Exit the Cash Receipt Entry program.
AR Processes
Related Processes
This section reviews AR-related processes, such as:
Processing Finance Charges Adjusting invoices Applying credit memos to invoices Updating a customer's credit status Processing credit card transactions AR Reconciliation
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Process Finance/Late Charges
Process Finance/Late Charges

Menu Path - Financial Management / Accounts Receivable / General Operations / Process Finance/Late Charges
The Process Finance/Late Charges program is used to calculate appropriate finance charges based on the data entered in the Finance/Late Charge Maintenance program. When this process is submitted, an un-posted AR Invoice Group is created which can then be reviewed and later posted. Once the invoice group is posted, it acts exactly like an AR customer invoice. It does appear on the aging report and the customer is responsible to pay these charges. Example Data Previously Entered into Finance/Late Charge Maintenance Program
Charge ID Charge % Part Minimum Charge Payment Days Terms Late Fee 15 Late Fee 10.00 7 1/10 Net 30
Include Finance/Late Check Box Enabled
Process Finance/Late Charges Often times, right after I process the Cash Receipts for the week, I process my Finance/Late Charges. Before submitting the process, I must enter information into the Process Finance/Late Charge program pertaining to when the process should run, what date it should run as of, and what I would like to the name of the Group of charges to be when they appear in the AR Invoice Entry program:
Schedule Now
As of Date Today's Date Group ID FINCHG
After you enter the information illustrated in the second table, it is time to submit the process. When that has completed, you can bring up the Invoice Entry Program and search for Group ID: FINCHG. If a group exists, it should contain an invoice for each customer that owes finance charges per the terms allocated in the first table.
AR Processes
Invoice Adjustments
Menu Path - Financial Management / Accounts Receivable / General Operations / Adjustment
In the Adjustments program, an open invoice can be adjusted to zero dollars in order to write it off. Once that adjustment has been saved, the invoice is closed and can never be re-opened. However, if any amount is left on the invoice, it can be re-adjusted up, as long as it never exceeds its original invoice amount. Be careful when increasing an invoice amount. Even though the original invoice can be linked to a PO, reconciliation could become difficult. Further considerations regarding adjustments:
The General Ledger account number that will be debited with the adjustment amount is user defined. No group is required to adjust the value of an invoice. No posting action is necessary when adjusting an invoice; the GL is updated immediately after an invoice
is saved.
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Workshop - Adjust an Open Invoice
Workshop - Adjust an Open Invoice

The controller has agreed to write off the balance of invoice 10012 for the bankrupt Snapper Corporation. Complete the steps below to adjust their open invoice. 1.
Navigate to the Adjustment program using the following path

Menu Path - Financial Management / Accounts Receivable / General Operations / Adjustment
2.
Enter the Invoice details

2.1. 2.2. Enter invoice number 10012 in the Invoice field. Enter -19,150.00 in the Adjustment field.
3.
Find the appropriate GL account number

3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Click the GL Account button. Enter Bad in the Where Description Contains field in the GL Account Search window. Click the Search button. Select the Bad Debt Expense account. Click the OK button. Click the Save icon to process the adjustment.
4.
Exit the Adjustment program.
AR Processes
Apply Credit Memo

Menu Path - Financial Management / Accounts Receivable / General Operations / Apply Credit Memo
The Apply Credit Memo program allows users to apply open credit memo balances against one or multiple open invoices. You are only allowed to select invoices that were created for the same customer listed on the selected credit memo. Additional considerations when applying credit memos:
No group is required to apply credit memos to open invoices. The open invoice balance and the GL are updated immediately after the "Apply Credit Memo" action is
selected.
A credit memo's total amount does not have to be applied all at one time or to the same invoice.
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Workshop - Apply a Credit Memo to an Open Invoice
Workshop - Apply a Credit Memo to an Open Invoice

You need to apply a credit memo you created in a previous workshop to an open invoice. Complete the steps below to apply a credit memo to an open invoice. 1.
Navigate to the Apply Credit Memo program using the following path
Menu Path - Financial Management / Accounts Receivable / General Operations / Apply Credit Memo
2.
Select the Credit Memo to apply

2.1. 2.2. Click the Credit Memo button. Select the credit memo that was created as a result of placing unapplied cash amounts "on account" for customer, BOEING, in the Accounts Receivable Invoice Search window. Click the OK button. Click the Save icon.
2.3. 2.4. 3.
Select the invoice the credit memo will be applied to

3.1. 3.2. 3.3. Click the New icon, and select New Invoice. Click the Invoice button in the Detail sheet. Search for and select the oldest invoice for BOEING, in the Accounts Receivable Invoice Search window. Click the OK button Note the new balance of the invoice in both the Detail and Summary sheets. 3.5. Click the Save icon.
3.4.
4.
Apply the credit memo to the invoice

4.1. Select Apply Credit Memo from the Actions menu.
5.
Exit the Apply Credit Memo program.
AR Processes
Customer Credit Manager

Menu Path - Financial Management / Accounts Receivable / General Operations / Customer Credit Manager
The Customer Credit Manager program is used to quickly display current customer credit information, open sales orders, open invoices, and payment for the purpose of making credit decisions. In the Customer Credit Manager program, customers can be placed on hold manually or a mass update can be executed to check the credit parameters established in each Customer maintenance program. The mass update action reviews the customer's current information, and when appropriate, places them on hold automatically. Customers who are placed on credit hold by the mass update can then be reviewed using the Customer Credit Manager program, and the appropriate action can then be taken. If required, customer credit parameters may also be exported and imported to facilitate annual review.
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Workshop - Use the Customer Credit Manager
Workshop - Use the Customer Credit Manager

Valued customer Northern Machine has earned an unlimited credit status with your company. You decide to change their credit limit to 0, and view the changes by executing the Mass Credit Information Update function. Complete the steps below to use the customer credit manager. 1.
Navigate to the Customer Credit Manager program using the following path
Menu Path - Financial Management / Accounts Receivable / General Operations / Customer Credit Manager
2.
Update the customer's credit status

2.1. 2.2. 2.3. 2.4. Click the Cust ID button. Select On Hold in the Status field of the Credit Manager Search window. Click the Search button. Select Northern Machine and then click the OK button.
3. 4.
Review the resulting data in each of the sheets. Change the credit limit
4.1. 4.2. Select the Credit sheet. Enter 0 (Zero) in the Credit Limit field A zero dollar credit limit represents unlimited credit. 4.3. 4.4. Disable the Credit Hold check box. Save the information.
5.
Perform a Mass Credit Information Update

5.1. Select Mass Credit Information Update from the Actions menu.
6.
Review the customer's credit update results

6.1. 6.2. 6.3. Click the Cust ID button to begin a search. Select On Hold in the Status field of the Credit Manager Search window. Click the Search button
AR Processes
Note that Northern Machine does not appear in the results. 6.4. 6.5. 6.6. 7. Select Not On Hold in the Status field of the Credit Manager Search window. Click the Search button. Select Northern Machine and then click the OK button.
Change the credit limit

7.1. 7.2. 7.3. 7.4. 7.5. Select the Credit sheet. Change the credit limit to 10,000 in the Credit Limit field. Enable the Credit Hold check box. Click the Yes button to accept the "on hold" message prompt. Click the Save icon.
8.
Perform a Mass Credit Information Update

8.1. Select Mass Credit Information Update from the Actions menu.
9.
Search again for customers on hold

9.1. 9.2. 9.3. Click the Cust ID button. Select On Hold in the Status drop-down field of the Credit Manager Search window. Click the Search button Note that Northern Machine is on credit hold again.
10.
Exit the Customer Credit Manager program.
98
Credit Card Processing
Credit Card Processing

Credit Card information can be entered for sales orders and cash receipts and can also be applied to invoices in Cash Receipt Entry as sales are processed. The Apply Credit Memo program is also designed to credit a customer's credit card account as returns are processed. The transactions include the following:
Customer invoice payments Customer credits Miscellaneous cash payments

In version 8.00, the data entered in either location is informational only. In version 8.03, the Credit Card Processing Licence became available for purchase, enabling companies to process credit card information from within their software. If this licence is installed and you would like to know more about the credit card process, there is a course available on the subject, as well as the online help information. If interested in learning more about processing Credit Cards, please note that there is an additional Course specifically for Credit Card Processing.
100 Vantage/Vista Release 8.03.404

This section focuses on the reports and trackers related to the AR process that have not yet been discussed in this course.
Reports
AR Invoice/Credit Memo Forms
These forms are printed in the AR Invoice Entry program during invoice processing. Each form can be printed individually, or an entire group can be printed at the same time. If a new copy of the invoice/credit memo is needed, it can be printed from either the Posted Invoice Update or the Invoice Tracker programs.
Commission Report
The Commission report displays sales commission information for selected salespeople. The report pulls commission records from a specific time period, as you select a From Date and a To Date. If the salesperson is paid commissions based on customer payments, miscellaneous charges and credit memo amounts will be deducted before the final commission amount is calculated.
Customer Statements
Menu Path - Financial Management / Accounts Receivable / Reports / Customer Statements
These forms can be sent to a customer to recap current AR activity. Only customers coded for Statement Print in the Customer maintenance program are selected for printing, when printing "all customers."
G/L Distribution
Menu Path - Financial Management / Accounts Receivable / Reports / G/L Distribution
This report shows the GL effect of the transaction types selected. There is the option of printing a selected or prior period.
Sales Tax Report

The Sales Tax report lists all the tax reportable sales that are within the selected taxing jurisdictions. You can select any date range for the report.
Shipped Not Invoiced

The Shipped Not Invoiced report displays sales orders whose parts were shipped to customers; these customers, however, have not yet received AR Shipment invoices for these shipments. Sales orders that are shipped during a selected date range appear on the report.
Trackers
Trackers
Trackers are available in most modules in the General Operations folder, and many trackers appear in multiple modules. By right-clicking in selected grid cells, the user is presented with an 'Open With option. This option allows quick navigation from one tracker to another related tracker or entry form. The key information is automatically passed from the calling tracker to the tracker being accessed. Access to additional trackers or data entry forms via 'Open With' functionality is determined by a user's security setting. Most available trackers can be seen in the Executive Analysis module in the Trackers folder.
Customer Tracker
Menu Path - Financial Management / Accounts Receivable / General Operations / Customer Tracker
The Customer Tracker can be used to view only information about a customer. Various sheets contain information pertinent to that sheet. Each sheet contains links to drive into additional Trackers. For instance, the Invoice sheet can take the user to the Invoice Tracker. The Invoice sheet also provides the ability to see an online aging report for a selected customer.
Contact Tracker
Menu Path - Financial Management / Accounts Receivable / General Operations / Contact Tracker
The Contact Tracker is a display-only version of consolidated contact-related programs: Customer Maintenance, Sales Order Entry, Quote Entry, among others. This tracker is useful for reviewing activity for a particular contact, all throughout the Manufacturing system. For example, if a contact named "John Smith," is in the system, then his name can be entered at this point. The customer he is affiliated with can be reviewed, along with e-mail information, quotes, orders, jobs, or any other record bearing his name.
Invoice Tracker
Menu Path - Financial Management / Accounts Receivable / General Operations / Invoice Tracker
Use the Invoice Tracker to drill into selected invoices and get information for an invoice. This includes information such as posted status, shipping information, payment activity, schedules, GL transactions, header and line item information, as well as any memos linked to the selected invoice. The Order Tracker can also be accessed from here. The Invoice Tracker is a display-only version of the Invoice Entry program. This tracker contains supplemental sheets not found in the Invoice Entry program. Records cannot be added or updated in any tracker.
Cash Receipts Tracker

Menu Path - Financial Management / Accounts Receivable / General Operations / Cash Receipts Tracker
The Cash Receipts Tracker displays information about cash receipt records in a Dashboard format. This includes information such as the check number, invoice and applied amount, payment type, unapplied amounts, and fiscal year and period. Records can not be edited or added in this tracker.
Workshop - Use the Invoice Tracker to Review Current Information About an Invoice
Workshop - Use the Invoice Tracker to Review Current Information About an Invoice
Your manager has asked you to find specific information regarding the last invoice you created for the customer BOEING. Complete the steps below to use the Invoice Tracker to review information about an invoice. 1.
Navigate to the Invoice Tracker program using the following path

Menu Path - Financial Management / Accounts Receivable / General Operations / Invoice Tracker
2.
Click the Invoice button to initiate a search

2.1. 2.2. 2.3. Type Boeing in the Customer field, located in the Accounts Receivable Invoice Search window. Click the Search button Select the shipment invoice created in a previous workshop and then click the OK button.
3.
Note the following information in the inside cover of the manual Packing slip number Salesperson(s) on the order Miscellaneous charges and their amounts Deposit amount
4. 5.
Review the GL transactions generated by this invoice in the GL Transaction sheet. Exit the Invoice Tracker program.
Workshop - Use the Cash Receipts Tracker

Complete the steps below to use the Cash Receipts Tracker. 1.
Navigate to the Cash Receipts Tracker program using the following path
Menu Path - Financial Management / Accounts Receivable / General Operations / Cash Receipts Tracker
2.
Track selected Cash Receipts

2.1. 2.2. Select the Receipt Header sheet. Click the Refresh All icon, located on the top task bar.
3.
Resize columns on the Receipt Header sheet

Resize the following columns so the data in the columns can be viewed with no extra spacing:
Cust ID Date Check/Ref Cust Amount Type

4.
Drag and Drop columns to different positions on the Receipt Header Sheet
4.1. 4.2. Scroll to the right and locate the Invoice column. Drag and drop the Invoice column to position two. The Cust ID column should be located in position one. 4.3. Drag and drop the Amount and Unapplied Amt columns to positions four and five, respectively You may have to scroll to the right to locate these columns.
5.
Sort the tracker's information into groups

5.1. 5.2. 5.3. 5.4. Right-click on the gray Receipt Header row, located above the column headers. Select the Show Group By option Drag the Fiscal Year column header over to the indicated Drag a Column Header... spot. By clicking the Fiscal Year button, change the column to Sort by descending years instead of ascending years. (Arrow down instead of up)
Workshop - Use the Cash Receipts Tracker
5.5. 5.6.
Expand the 2007 row by clicking its plus (+) sign. Select a customer, and review their related information on the Receipt Detail sheet located on the bottom half of the screen.
6.
Exit the Cash Receipt Tracker.
Course Conclusion
Congratulations! The Accounts Receivable course is complete. Please take a moment to let Epicor know how to serve you better by completing an evaluation at http://www.keysurvey.com/survey/118864/1bae/ . Feedback provides the guidelines for the future direction of Epicor education. For additional class offerings and registration, check out Epicor Learning.
Appendix
This section includes information on the following:
Processing tips Period end close suggestions AR transaction hierarchy
Appendix
AR Processing Tips
The following tips may prove to be helpful to users when processing invoices and cash receipts:
Verify salesperson(s) and commission rates. Verify the SO line item product group. Verify pricing:
Quote for custom product Price Breaks for standard product
Packing slips should not be created in advance. The shipment date has power! Move any invoice with questions to another batch; do not delay processing of all invoices in a group
while waiting for an answer on a questionable invoice.
Match all paperwork and files. Keep Invoice Edit Lists. Match the Cash Receipts Edit List with the bank deposit. Keep the Cash Receipts Edit List. Unauthorized credit memo. Keep your AR and the customer's AP in-sync. Reports to Run Aged Receivables Advanced Billing/Deposit Balance Invoice Edit List Sales Journal Shipped Not Invoiced Cash Receipts Edit List Cash Receipts Journal Commission Report Customer Statements Suggested Crystal Reports to Run Sales Orders missing Customer Purchase Order Sales Order Lines missing Product Group Packing Slips without Invoices On-time Shipments Invoice Register Packing Slips Not Shipped
Period-End Close Suggestions
Period-End Close Suggestions

Verify All shipments have been recorded as Ready to Invoice.
Any packing slip created but not flagged as Ready to Invoice is a candidate for future reconciliation.
All invoices for shipments have been recorded and posted.

Invoices in an open group are candidates for future reconciliation.
Any miscellaneous invoices have been recorded and posted. All credit memos have been processed. All cash receipts have been recorded. Any adjustments have been recorded. Activities Process customer statements (optional). Reconcile AR account(s). Reconcile the AR Clearing account (optional). Reconcile Suspense accounts. Additional Verify the accuracy of the Scheduled Shipments report. Close any outstanding orders that have been
shipped complete.
Verify the validity of all outstanding receivables. Execute any necessary adjustments/write-offs. Perform an RMA/MRB inspection area walk-through. Run possible Crystal Reports if using product groups to define the GL accounts rather than in the control
accounts.
View Vantage quotes without a product group. View open orders without a product group. View the inventory master listing for manufactured items without product group. View packing slips created without a shipped status.
*A companys housekeeping procedures will include action items unique to their business and operations. These suggestions are a starting point and should be in no way interpreted to be the sole listing of effective procedures for maintaining data integrity in a database.
Appendix
AR Transaction Hierarchy - Inventory Interfaced

Transaction Function Debit Credit
Invoice
Add Miscellaneous Invoice Receivables Account
Sales Account
1. 2.
AR Account (Customer) AR Account (System Config)
1. 2. 3.
Product Group AR Account (Customer) AR Account (System Config)
Discount (%) Line/Header (Misc Inv)
Discount Account
Receivables Account
1. 2. 3.
1. 2.
Sales Tax (Misc Inv and Adv Bill)
Receivables Account
Miscellaneous Charge Income Account
1. 2.

Deferred Revenue Account
Add Advance Billing
Receivables Account
1. Deferred Revenue box enabled credits the Deferred Revenue account as shown. Deferred Revenue box disabled credits the Sales account as shown.
Add Deposit Billing
1. 2. 1. 2. 3.
AR Account (Customer) AR Account (System Config) Product Group AR Account (Customer) AR Account (System Config)
2.
Sales Account
Receivables Account
Prepayment Account
1. 2.
Add Credit Memo
1. 2.
Returns Account
Receivables Account
1. 2. 3.
1. 2.
Discount (%) Line/Header (CM Receivables Account )
Discount Account
1.
1. 2. 3.
2.
Sales Tax (CM and Adv Bill CM)
Sales Tax AR Tax Accrual Account
Appendix
Receivables Account
1. 2.
Miscellaneous Charge (CM, Miscellaneous Charge Income Account Adv Bill CM, and Dep Bill CM)
Receivables Account
1. 2.
Add Advance Billing Credit Deferred Revenue Account Memo
Receivables Account
1. 2.
1. 2.
Deferred Revenue box enabled debits the Deferred Revenue account as shown. Deferred Revenue box disabled debits the Returns account as shown.
Add Deposit Billing Credit Prepayment Account Memo
Receivables Account
1. 2.
1. 2.
Get
Shipment
Receivables Account
Sales Account (Chart and Division Only)
1. 2.
1. 2. 3. 1. 2. 3. 4.
Product Group AR Account (Customer) AR Account (System Config) Sales Category Product Group AR Account (Customer) AR Account (System Config)
Sales Account (Department Only)
Discount (%) Line/Header (Shipment)
Discount Account (Chart and Division Only)
Receivables Account
1. 2. 3. 1. 2. 3. 4.
Product Group AR Account (Customer) AR Account (System Config) Sales Category Product Group AR Account (Customer) AR Account (System Config)
1. 2.
Discount Account (Department Only)
Sales Tax (Shipment)
Receivables Account
1. 2.
Miscellaneous Charge (Shipment)

Receivables Account
1. 2.

Receivables Account
Less Advance Billing (Shipment)
1. 2.
1. 2.
Less Deposit Billing (Shipment) Prepayment Account
Receivables Account
1. 2.
Service Call
1. 2.
Receivables Account
Service Call Sales Account
1. 2.
Discount (%) Line/Header (Service Call)
1. 2.
Service Call Type F/S Service Call Sales (System Conf)
Service Call Discounts
Receivables Account
1. 2.
Sales Tax (Service Call)
1. 2.
Service Call Discounts
Receivables Account
1. 2.
1. 2.
Miscellaneous Charge (Service Receivables Account Call)
1. 2.

Service Contract Sales Account
Service Contract
Receivables Account
1. 2.
Discount (%) Line/Header (Service Contract)
1. 2.
Service Contract F/S Contract Sales (System Conf)
Service Contract Discount
Receivables Account
1. 2.
Service Contract F/S Contract Discount (System Conf)
1. 2.
Sales Tax (Service Contract)
Receivables Account
1. 2.

Miscellaneous Charge (Service Receivables Account Contract)
1. 2.

Receivables Account
RMA Credits/Shipments
Returns Account
1. 2. 3.
RMA Credits/Service Call
1. 2.
Service Call Returns Account
Receivables Account
1. 2.
RMA Credits/Service Contract
1. 2.
Service Contract Returns Account
Receivables Account
1. 2.
1. 2.
Recurring Contract Billing Service Contract Amount Divided by Duration Receivables Account Service Contract Sales Account
1. 2.
1. 2.
Discount (%) Line/Header (Recurring Contract)
Service Contract Discount
Receivables Account
1. 2.
Service Contract F/S Contract Discount (System Conf)
1. 2.
Sales Tax (Recurring Contract) Receivables Account
1. 2.
Miscellaneous Charge (Recurring Contract)

Receivables Account
1. 2.

Milestone Billing
Receivables Account
1. 2.
Cash Receipts Invoice Payment
1. 2.
Bank Account
Receivables Account
1. 2.
Pending Cash Account Cash Account
1.
AR Account assigned to invoice
Terms Discount (set on invoice) Payment Discount
Receivables Account
1.
Deposit Payment
1.
Bank Account
Prepayment Account
1. 2.
Miscellaneous Payment
1. 2.
AR Account (System Config) Option to enter account number
Bank Account
Enter account number
1. 2.
Unapplied Cash

Unapplied Cash Account
Bank Account
1. Unapplied cash transaction will create a credit memo. 2.
1. 2.
Appendix
Apply Credit Credit Memo ("Add Credit Receivables Account Memo Memo")
Receivables Account
1.
1.
Credit Memo ("Unapplied Cash Receipt")
Unapplied Cash Account
Receivables Account
1.
1.
Adjustments Increase or Decrease Open Enter account number Invoice Amount
Receivables Account
1.
Increase or Decrease Open Receivables Account Credit Memo Amount
Enter account number
1.
Transaction may be either a debit or a credit.

AR Clearing Shipment Transaction (Used) Invoicing Transaction
AR Clearing Account
Inventory/Expense Account
1.
AR Account (System Config)

AR Clearing Account
Receivables Account
1. 2.
COS AR Clearing Shipment Transaction (Not Used) Invoicing Transaction COS

Sales
1.
AR Account (System Config)
Inventory/Expense Account Sales
Receivables Account
1. 2.

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Accounts Receivable Student Manual

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Global business solutions for your expanding enterprise.

Accounts Receivable Student Manual iii

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Additional Reports and Trackers

Course Conclusion Appendix 111

Accounts Receivable Student Manual

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Accounts Receivable Course

Accounts Receivable Student Manual

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Recommended Audience Controllers Accounts Receivable Staff

Required Course: Navigation

Required Course: System Flow

Recommended Course: Financial Foundations

Accounts Receivable Student Manual

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Accounts Receivable Student Manual

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Accounts Receivable Student Manual

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Accounts Receivable Student Manual

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Accounts Receivable Student Manual 11

Accounts Receivable Configuration

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Accounts Receivable Student Manual 13

Sales Order Configuration

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Accounts Receivable Student Manual 15

Workshop - Update the Accounts Receivable Module Configuration

Navigate to the Company Maintenance Program using the following path

Update the Accounts Receivable Module's Settings

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Accounts Receivable Student Manual 17

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Accounts Receivable Student Manual 19

AR and Sales/Revenue accounts hierarchy:

Sales, Returns, Sales Discount

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Debit Notes Only

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Three Entry Class codes are currently supported by the software:

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Accounts Receivable Student Manual 23

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Accounts Receivable Student Manual 25

Discount Due Days

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Workshop - Create a Terms Record

Workshop - Create a Terms Record

Navigate to the Terms program using the following path

Save the record, and exit the Terms program.

Accounts Receivable Student Manual 27

My Plant's City Origin Destination Delivery Terms

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Tax Information Fields

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Workshop - Add a Miscellaneous Charge Record

Workshop - Add a Miscellaneous Charge Record

Navigate to the Miscellaneous Charge program using the following path