A/R Flow Of Events
Accounts Receivable processing can be divided into four main activities:
1) maintaining the Master files
2) printing monthly reports and statements
3) month-end processing.
4) year-end processing.
Please note that the Flow of Events described below is a guideline of options to follow for Accounts Receivable processing. Also, as you are using an option for the first time, please read the entire Option Description for detailed instructions on using that option.
Maintaining Master Files:
As new Customers, Tax Codes, Terms Codes, Ship Via Codes, and sales personnel are encountered, add new records to the appropriate MASTER file through the appropriate Maintenance option on the A/R Master File Maintenance Menu. Whenever changes are made to a MASTER file, it is a good practice to reprint the master file report to have a current hardcopy on hand.
Printing Monthly Reports and Statements:
All reports in the Accounts Receivable system may be run at any point in time. However, we suggest reviewing reports each time invoices and/or cash receipts are entered. If this is not feasible, hardcopies of these reports should be printed, verified and filed at least once a month, after calculating finance charges and prior to month-end processing.
Customer Statements - to recap the detail charges and payments for each customer and indicate the current balance due
Open Invoice Report - to review, in summary form, all Charges, Adjustments and Payments for each invoice
Open Item Report - to review, in detail form, all Charges, Adjustments and Payments for each invoice
Open Invoice Aging (Past) Report, Open Invoice Aging (Future) Report - to age open invoices according to date
A/R General Ledger Report, - to review the detail invoice and payment activity processed throughout the month and verify entries that will be posted to the G/L TEMPORARY file
Month - End Processing
To insure the integrity of the data in your Accounts Receivable files, the following steps should be completed before entering any new invoices for the next month!
1) After all invoices and cash receipts have been entered, use the Finance Charge Calculation option on the A/R Processing Menu to post finance charges to all applicable customers.
2) Print and verify all reports, see the Printing Monthly Reports and Statements section above.
3) Use the A/R To G/L Posting option on the A/R Zeroing Menu to post Accounts Receivable entries to the G/L TEMPORARY file.
4) Backup data (see the procedures provided with your backup device).
5) Complete the A/R General Ledger Zeroing option on the A/R Zeroing Menu to remove the current month's detail from the G/L POSTING file. Note this zeroing is optional if you wish to retain your A/R General Ledger detail on your hard disk. Please refer to this option description for further details.
6) Use the A/R MTD Zeroing option on the A/R Zeroing Menu to clear the Customers’ MTD Charges field in the CUSTOMER file.
7) Use the A/R Paid Invoice Reorganization option on the A/R Zeroing Menu to remove paid-in-full invoices from the A/R INVOICE TRANSACTION file.
To insure the integrity of the data in your Accounts Receivable files, the following steps should be completed before any new invoices are entered for the new fiscal year! Also, we cannot stress enough the importance of making a good backup copy of your data before entering any new information for the new year.
1) Complete all A/R processing as outlined in the Month-End Processing guidelines. DO NOT enter any new information for the next year.
2) Print a hardcopy of any reports you consider necessary to file.
3) Backup data (see the procedures provided with your backup device).
4) Complete the A/R YTD Zeroing option on the A/R Zeroing Menu.
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