About Accounts Receivable
The accounts receivable application lets you monitor and update your customer accounts. Each accounts receivable account represents the amount owed by a customer for purchases (orders) or services. Through the accounts receivable application, you can build and maintain a complete and accurate history for all your customer's accounts receivable activity.
All orders created in Order Entry for your customers are automatically posted to accounts receivable. Automatic posting saves you time, enhances accounting's efficiency, and ensures the information's accuracy by eliminating duplicated effort. Invoices do not need inputting into accounts receivable because they are imported from Order Entry.
Besides automatically posting customer charges, the accounts receivable application calculates and posts accurate charges for past due accounts. This occurs when you age your accounts by printing the A/R Trial Balance Report. This report provides account information for each customer, and provides aged totals for each customer account. Aging determines how old each invoice is, and divides a customer's balance into four subtotals: current, over 30 days old, over 60 days old, and over 90 days old. Again, this process eliminates keystroke errors and the hours spent manually calculating finance charges.
The primary function of accounts receivable is posting customer payments. When you do, you can mark the invoices you want to pay, or you can enter limits and automatically identify those invoices that need to be paid.
Other functions the application supports include correcting a customer's discount amount, changing a purchase order number, and making adjustments. You can easily perform these functions in the Accounts Receivable Posting window. Remember, however, that there should be few manual adjustments and manual postings, because the application is designed to post accounts with correct figures. On those rare occasions when mistakes occur, it may be necessary to make a manual entry because a payment was applied to the wrong invoice number.