Create Databases -> Accounts Receivable

Accounts Receivable

The accounts receivable (A/R) application lets you monitor the payments you receive from your customers. An accounts receivable account represents the amount a customer owes you for purchases (orders) or services. Through the accounts receivable application, you can build and maintain complete and accurate history for all of your customers accounts receivable activity.

All customer orders created through order entry automatically post to the accounts receivable application. This automatic posting increases the efficiency and accuracy of your accounting. Because you don't have to enter the invoices in A/R, you eliminate the time you would otherwise spend entering each charge and credit.

If this is your first opportunity to learn about Accounts Receivable, refer to About Accounts Receivable, Understanding the Flow of Accounts Receivable, and Understanding Posting Payments.

You need to make some decisions about converting your existing A/R data. You can create your accounts receivable database in two ways: manually, or by converting existing A/R data.

• Convert an existing database
• Create a database manually.

Converting an Existing Database

Most dealers choose to have their existing A/R database converted so they can use it with eNsite. For the data to be read by eNsite, it's file structure must be changed. If your current database is accurate, it's usually faster and more economical to convert it than to enter it manually. Contact Silver Plus Sales for pricing information and file format specifications.

After you have made arrangements with Silver Plus, use the following steps to convert your A/R database:

1. Run a complete, detailed trial balance of the A/R information. This information is used after the conversion to ensure the accuracy of the conversion.
   
   
2. Send Silver Plus your database in the file format specified.
   
   
3. Silver Plus converts your data and sends it back to you, along with loading instructions.
4. Run a complete trial balance and compare it to the original trial balance you ran before the conversion.
   
   
5. Identify and correct any errors found in the database or conversion program.
6. Before you go live, Silver Plus does a final conversion. This gives you the most current A/R data. It also erases information from practice sessions.
   

Manually Entering Accounts Receivable

You can use one of the following methods to manually enter A/R:

1. Post All Detail: With this method, you must manually post all account activity for your active customers.
   
   
2. Balance Forward: This method uses a lump sum posting to transfer account totals for your active customers. Instead of entering every posting for a particular account, you post a single dollar amount totaling all of that customer's outstanding invoices.
   
   
3. Combination: You could compromise between the two methods discussed above by posting the detail for your most active or sensitive accounts and only posting balance forward amounts for your accounts that are less active.

After you decide which method of posting you want to use, there are several other decisions you must make before beginning the posting:

1. You must decide what order you want to use to enter the accounts. You should enter your active or sensitive accounts first. Entering your A/R database manually is a time-consuming process and active customers should be entered first. The process will need to be completed, however, before customer statements are due.
   
   
2. You should have all information entered before your going live date. However, it is possible to go live without all the information in place. All A/R information needs to be complete however, before the customer statement date.