Setup: Accounts Receivable Setup: Accounts Receivable
Accounts Receivable Setup is divided into four sections; Default General Ledger Accounts, Miscellaneous, Due & Discount terms information, and specification of Aging periods used by the Aged Receivables Report.
This screen can be accessed by selecting Setup > Accounting Options > Accounts Receivable. It can also be accessed by right-clicking the AR menu icon.
Order Checks & Forms Online (button)
Press the Order Checks & Forms Online button to be directed to the check and form ordering website.
Press the General Ledger Accounts tab and the following screen comes into view.
This screen is used to assign the accounts to which transactions are automatically posted, known as the 'default' accounts or 'control' accounts. Once this setup is completed, it will not be necessary to change assignments. Most of the General Ledger Accounts are se lf- explanatory. To select or change an account, click on the lookup button and the General Ledger Accounts will come into view. Then, select the correct account.
This is for billed receivables, not subject to retention.
This is used strictly in a contracting environment. It is normal for an owner to withhold a certain percentage from the Subcontractor until completion of the job. This is known as retention or retainage. When Progress Billings are entered into the system (or by request), a certain amount may be retained, or subject to retention. A Contractor does not expect to receive it until the job is completed. This amount is specified and the system will debit the Retention Receivable Account with this amount and the Accounts Receivable Account with the difference between the total billing amount and the Retention. When the retention is actually received, the Receipts Entry Program will credit the account with the appropriate amount. To change the Retention Receivable account, click on the lookup button and the General Ledger Accounts will come into view and from there the correct account can be selected.
Indicate the account which should be debited when cash receipts are entered into the system.
Enter the income account for revenue derived from non job sources.
Enter the income account for revenue attributed to jobs. In the Job Entry, as the Job Header information is entered a control account is asked for. If no account is specified, the system will use this Job Income account as a default.
When a job has been closed, any income amounts from that job are posted to this account.
This account will hold job income from prior years. It is a contra account used to offset the Job Income account.
When a billing includes a charge for freight, this is the account to which it will be credited.
When there is income that does not fit into other categories, it will go here.
When a discount is offered and it is taken, this is where the 'cost' or lost income is tracked.
When a billing includes Sales Tax, this is the account where it will be tracked.
When a finance charge invoice is posted, this account will receive the debit transaction.
When an AR Invoice is written off, this account will be Debited with the write-off amount.
When a Credit Card Fee is added to a receipt, the Credit Card Fee amount will be Debited to Cash and Credited to this account. It is usually located in the Liabilities section of the financial statement.
Press the Miscellaneous Settings tab and the following screen comes into view.
Invoice Entry Settings (group)
Auto Assign Invoice Number during Invoice Entry (check box)
Select this option to have the system automatically assign Invoice Numbers as Invoices are created.
Next Available Invoice Number
This field displays the next Invoice number that will be assigned. The user can manually enter an invoice number here for the next assignment.
Ask Sales Level on Invoices (check box)
Each customer may have an assigned sales price level on his customer record set up during Customer Entry. There is an inventory item price file which has a price list containing pricing information. For example: good customers may receive level 3 pricing, while a special contract with a large customer may justify an even better price level (say level 9). Generally, once this is set up for each customer, no changes will be required; however, a particular order may justify different pricing. If custom pricing is to be allowed, answer ‘Yes’ to this question.
Warn for Prepaid Invoices during Invoice Entry (check box)
Checking this box will cause a reminder window to pop up when an invoice is entered and marked as having been been prepaid.
Warn of Duplicate Invoice Numbers (check box)
Checking this box will cause a warning window to be displayed if an invoice is entered with an invoice number that has already been used by the system.
Enter Multiple Income Accounts on T&M Invoice (check box)
If this box is checked, the user will be allowed to enter a different income account for each line item entered.
Minimum Amount on Finance Charge Billings
When the system creates a finance charge billing for a customer, it finds the customer balance and multiplies it by 1/12 of the customer's annual finance charge rate. It then creates an invoice for that amount, even if that amount is miniscule.
If a dollar amount is placed in this field, the system will still create the invoice line item, but if the calculated finance charge is less than this setting, the dollar amount entered here will be used instead. For example, if the finance charge billing calculation is about to create an invoice for $1.67, but this minimum amount setting has been set to $5.00, the finance charge billing will be created for $5.00 instead of $1.67.
Warn of Missing Job ID on AR Invoices (check box)
When this box is checked, if the operator tries to save a trade invoice on which no Job ID has been entered, the program will warn the user.
Charge T&M Billing Line Items to Specific Cost Codes (check box)
This option enables the billing of individual invoice line items (Time and Materials) to specific cost codes. Checking this box will affect the options available in Accounts Receivable Trade Invoice. For more information, go to Add or Change a Line Item Detail.
Contract and % Billed Columns on Draw Invoices (check box)
When a Trade Invoice is created from the Contractor Draw procedure, that trade invoice will have one line item for each Scheduled Value on the draw. When this invoice is printed out or viewed in Trade Invoice Entry, the normal column headings such as Item ID, Description, Quantity, Unit Price, and Amount may not be representative of the true nature of the invoice. If this box is checked, the system will display the line items on the screen and print them on the invoice with more appropriate column headings including Contract Amount, Prior Percent Billed, Current Percent Billed, Total Percent Billed, and Amount. The images below show the same invoice as it is displayed in the Trade Invoice entry window with and without this box checked.
Box Unchecked
Box Checked
Invoice Posting Settings (group)
Post Invoice Line Items in Summary (check box)
By checking this box, line items of invoices will be included in the Summary Report format.
Tax Settings (group)
GST Settings / Rate
This button and entry field refer to the 'Goods and Service Tax' structure used in Canada. If this is a Canadian company, use the GST abbreviation and 'Goods and Service Tax' description that are set by default. If this is a company in a different country with a different name for the tax, press this button and change the description and name of the tax to something appropriate. For example, the description could be 'Value Added Tax' with an abbreviation of 'VAT'.
In the rate field, enter the current tax rate. This tax rate will be used in building Sales Tax Codes.
Default Sales Tax Rate
This is the state sales tax rate that will be automatically assigned to ALL taxable sales to this customer. Note that it is expressed as a two-decimal percentage, so that 6.6% is entered as 6.60, etc. If sales are made into more than one state, at more than one tax rate, DO NOT PUT A NUMBER IN THIS FIELD! Instead, click on the Sales Tax Codes button, and set up tax tables there. Then, assign the taxing authority to which this customer will typically be subject. When invoices are entered that are in different states, the assignment may be changed in the invoice entry process.
Press this button and the following screen comes into view.
From here Sales Tax Codes for States and localities may be set up:
To select or change a Tax Rate for a State or Local taxing entity, click on the lookup button and the following will come into view:
"T"axable Flag on Printed Invoice Line Items (check box)
When this option is checked, all line items designated as "Taxable" on a trade invoice will be printed with the letter "T" next to the line item amount on the printed invoice.
When Changes are made to Customer record (group)
Whenever information is changed in a customer record, the program can automatically attach a note to the customer file documenting the change that was made. Select one of the options regarding the creation of this note.
Aging Periods (In Number of Days From Due Date (group)
These fields allow some flexibility on the Aged Receivables Report. The Past Due periods to appear on aged receivables may be specified. For example: receivables may fall within one month periods. In this case, any invoices that are one month overdue, two months overdue, three months overdue, etc., would be entered with the default values of 30, 60, 90,120 and 150. Thus receivables are aged in one month increments.
Press the Invoices & Statements tab and the following screen comes into view.
Invoice Format
This is the format of the invoice used. For more details on the different formats available, see Setup Invoice Formats. Note: the list of Invoice Formats reference specific forms that are available from various mail order printers. Note: Select either Blank Page or 13006PF if the invoice is to be printed on a blank piece of paper, not a preformatted invoice from a printing company. Custom refers to a unique invoice format that a customer has paid the developer to create specifically for that customer.
Press the Logo Setup button and the following screen will come into view.
Use Same Logo for All Forms (checkbox)
If this box is checked, the setup completed on this window will affect ALL printed forms. This eliminates the need for adding a logo to each different form type. If the box is not checked, the setup completed on this window will only affect the current form.
No Logo or Company Information
No Logo or company information will be printed.
Company Information Only
Only company information will be printed.
Logo and Company Information
Logo and Company Information prints a logo and a text company name and address.
Logo Only
Logo Only is to be used when the logo contains the company address also.
Logo File Name
Enter the location of the logo bitmap or press the lookup button and select the location.
FormMaker Trade Invoice/Progress Billing Filename
If FormMaker is selected as the invoice format, use these entry fields and/or lookup buttons to specify the report files (*.rpt) which contains the report formats created in FormMaker for printing accounts receivable trade invoices and progress billings.
Default Memo
Enter any text that is desired to show up at the bottom of all printed invoices. When invoices are added through the AR > Invoices menu option, they will automatically inherit this memo text.
Decimal places for tax percent (spin box)
Indicate how many decimal places should be displayed when entering tax percentages on invoices.
Copies
Indicate how many copies of the invoice should be printed.
Email Options
If invoices are emailed to customers, the system will generate an email and attach a pdf copy of the invoice. In these fields, specify what the subject line and the body message of the email should be. If the word [Company] is included in the subject line, the system will replace it with the name of your company.
Company Address Block and Customer Address Block Phone Numbers
Indicate whether the Phone and/or Fax number will be printed on the invoice. These settings can be made for both the Company Address and the Customer Address.
Statement Format
This is the format of the statement used.
Logo (button)
Use this button to select a logo for the printed statement. See the definition of the logo setup screen above.
FormMaker Statement Filename
If FormMaker is selected as the statement format, use this entry field and/or lookup button to specify the report file (*.rpt) which contains the report format created in FormMaker for printing accounts receivable statements.
Company Address Block and Customer Address Block Phone Numbers
Indicate whether the Phone and/or Fax number will be printed on the statement. These settings can be made for both the Company Address and the Customer Address.
Email Options
If statements are emailed to customers, the system will generate an email and attach a pdf copy of the statement. In these fields, specify what the subject line and the body message of the email should be. If the word [Company] is included in the subject line, the system will replace it with the name of your company.
Press the Customer Defaults tab and the following screen comes into view.
General (group)
New Customer ID Highest Plus One (check box)
When a new customer is entered, the system will supply a Customer ID. Traditionally, this new Customer ID is the number of the highest numbered customer in the file plus one. Many times there will be lower customer id numbers that are unused. If this box is checked, the system will go the traditional route, and assign the higher customer id number. If the box is unchecked, the system will search for the first "Unused" customer number and assign that number to the new customer.
Default Customer Finance Charge Rate
This is the finance charge rate charged to customers when such a charge is applied. This rate can be changed for each customer on the actual billing screen at the time of entry. Note that it is expressed as a two-decimal percentage, so that 21% is entered as 21.00, etc.
Only check one box either Day of Month or Number of Days From Invoice Date. The box checked will affect the Due terms.
Day of Month (radio button)
This indicates that invoices will be due on a certain day of the month. This is used as the default value in Customer Entry. Example: The invoice is due on the 15th of the month. If the Invoice Date is Jan 30, the invoice is due on Feb. 15
Number of Days From Invoice Date (radio button)
Select this option to indicate that the terms involve the Number of Days From Invoice Date before the invoice is due. Example: The invoice is due 30 days from the Invoice Date. If the Invoice Date is Apr. 30, the invoice is Due on May 30.
Due Terms:
Enter a description indicating the type of terms being offered (i.e. Net 10 days, Net 30 days, 10th of Month, 30th of Month, etc.). This is used as the default value in Customer Entry.
Enter a number that indicates how many days before the invoice is due (if Number of Days From Invoice Date box was selected), or on which day of the month the invoice is due (if Day of Month box was selected). This is used as the default value in Customer Entry. Use the arrows or manually enter the number. The field can hold up to 99.
Discount Terms and Rates for New Customers
Check either Day of Month or Number of Days From Invoice Date. The box checked will affect the Discount terms.
Discount Terms
Enter a number that indicates how many days before the discount expires. This description indicates the type of discount terms being offered. This is used as the default value in Customer Entry.
Day of Month (radio button)
As with the Due Terms described above, this check box indicates that discounts will expire on a certain day of the month. This is used as the default value in Customer Entry. For example: The discount expires on the 15th of the month. If the Invoice Date is Feb. 1, the discount expires on Feb. 15. This is used as the default value in Customer Entry.
Number of Days From Invoice Date (radio button)
As with the Due Terms described above, this check box indicates that discounts will expire a certain Number of Days From Invoice Date. This is used as the default value in Customer Entry. Example: The discount expires 10 days from the Invoice Date. If the Invoice Date is Feb. 1, the discount expires on Feb. 10.
Enter a number that indicates how many days before the discount expires (if Number of Days From Invoice Date box was selected), or on which day of the month the discount expires (if Day of Month box was selected). This is used as the default value in Customer Entry. Use the arrows or manually enter the number. The field can hold up to 99.
Discount Percentage
This is the normal rate offered to customers. Enter the percentage.
Force Defaults to Existing Customers (button)
Click this button to apply the Default Rates to all Existing Customers.
