A/R Implementation Guidelines
Before you may begin regular processing with the Accounts Receivable system, some initial steps must be followed to build your Master files, and set up specific values (that determine how some processing and updating of files will take place) in the A/R CONTROL file. Additionally, invoices for the amount of each customer's current balance due must be entered (through the Billing and Inventory module).
Also note that if you intend to integrate Accounts Receivable information to the General Ledger module, you should implement the General Ledger before Accounts Receivable.
A) Defining values in the A/R CONTROL file
Use the A/R Control File Maintenance option on the A/R Master File Maintenance Menu to set up the Aging Days, Finance Charge product, and G/L account numbers for the Cash account and A/R account. Also indicate the manner in which you wish posting to the General Ledger module to take place.
B) Building the A/R Master Files
Before you may begin processing invoices, you must create your A/R MASTER files.
1) Tax Codes may be defined for all the different tax rates you may need for your customers.
Use the A/R Tax Code Maintenance option on the A/R Master File Maintenance Menu to setup Tax Codes in the TAX CODE file.
Preparation: Before beginning, compile a list of the different tax rates for which you must collect tax. Include the General Ledger account number where this tax accumulates (if integrating to the General Ledger module). Assign each Tax Code a code (up to 3 characters in length).
You may use the A/R Tax Code Report option on the A/R Master File Reports Menu to print a hardcopy of all your Tax Codes. You may then distribute copies to all staff who will be operating the Accounts Receivable system.
2) Terms Codes may be defined for your payment terms.
Use the A/R Terms Code Maintenance option on the A/R Master File Maintenance Menu to set up Terms Codes in the TERMS CODE file.
Preparation: Before beginning, compile a list of the different payment terms which you place on your invoices. Include days until due, discount days, and discount percentage (if any). Assign each Terms Code a code (up to 2 characters in length).
You may use the A/R Terms Code Report option on the A/R Master File Reports Menu to print a hardcopy of all your Terms Codes. You may then distribute copies to all staff who will be operating the Accounts Receivable system.
3) Ship Via Codes may be defined for the methods of shipping your products to your customers.
Use the A/R Ship Via Maintenance option on the A/R Master File Maintenance Menu to set Ship Via Codes in the SHIP VIA file.
Preparation: Before beginning, compile a list of carriers and methods you use to ship your products to your customers. Assign each a code (up to 3 characters in length).
You may use the A/R Ship Via Report option on the A/R Master File Reports Menu to print a hardcopy of all your Ship Via Codes. You may then distribute copies to all staff who will be operating the Accounts Receivable system.
4) Salesman Codes may be defined for all sales personnel. At least one Salesman MUST be setup (If you do not wish to use Salesman Codes, establish one under your company name).
Use the A/R Salesman Maintenance option on the A/R Master File Maintenance Menu to set Salesman Codes in the SALESMAN file.
Preparation: Before beginning, compile a list of your sales personnel. Assign each a code (up to 4 characters in length). You may wish to use their initials to make this task easier.
You may use the A/R Salesman Report option on the A/R Master File Reports Menu to print a hardcopy of all your Salesman Codes. You may then distribute copies to all staff who will be operating the Accounts Receivable system.
5) Enter all the customers that are currently active or that will be active in the near future.
Use the A/R Customer Maintenance option on the A/R Master File Maintenance Menu to set up Customers in the CUSTOMER file.
Preparation: Compile a list of companies or individuals that frequently have A/R activity. Include the address and telephone number, on the list and note if the customer is a Balance Forward or Open Item customer. Assign each customer a number (or let the system assign a number for you).
You may use the A/R Customer Report option on the A/R Master File Reports Menu to print a hardcopy of all your customers. You may then distribute copies to all staff who will be operating the Accounts Receivable system.
C) Entering Invoices for Customers' Current Balance Due
To update the Balance Due for each customer in the A/R CUSTOMER and OPEN INVOICE TRANSACTION files, you must enter an invoice for the total amount the customer currently owes. (If you wish, you may enter all the invoices which make up the customer's current balance due; although this may take a lot of time for those with a great deal of activity.)
1) See the B/I Implementation Guidelines section for more information on using the Temporary Invoice options on the B/I Processing Menu to enter invoices for each customer's current balance due.
Preparation: Gather all the balance due amounts from the most current customer statement. Note on each document, the Customer Number.
2) Use the Open Item Report, Open Invoice Report, Open Invoice Aging (Past) Report, Open Invoice Aging (Future) Report, or Customer Statements options to verify all the invoices that were posted. These reports should now include all your current receivables.
At this point, you are ready to process in the Accounts Receivable system. Establish your own time frame for procedures to follow based on the volume of invoice activity in your office. The Flow Of Events, provides a general outline for the necessary processing procedures.