Accounts Receivable Parameters
Accounts Receivable Parameters
The Accounts Receivable (A/R) parameters control the defaults for how the module processes customer payments, finance charges, statement printing, etc. Please contact your CPA or accountant if the GL account settings are not clear.
Tab 1 General Information
Open Item A/R - This box when checked will format the customer's accounts receivable statement to print in detail all invoices, payments, adjustments and finance charges that have a balance each month until the balance is fully applied and has a zero balance. If un-checked the accounts receivable statement will print in detail all invoices, payments, adjustments and finance charges that have a balance one time. Then the subsequent statements will print a summary total as Balance Forward for any balances left from the previous statement.
Default Receipts Pay Type - This field contains the pay type that populates cash receipts when a new batch is started.
Statement Message - This field contains the free form statement message that prints at the bottom of the customer statement.
Finance Charge Rate - This field contains the percentage rate to charge on past due invoices.
Finance Flat Charge - This field contains the flat rate to charge on past due invoices.
Maximum Finance Charge - This field contains the maximum charge allowed to be charged.
Minimum Customer Balance - This field contains the minimum total account balance to charge.
Finance Surcharge - This box when checked will allow a finance charge to be applied to previous finance charges that have not been paid. Note check your state usury rules to confirm that it is allowed.
Finance Tax schema - This field contains the sales tax schema to apply taxes to finance charges if required by your taxing authority.
Auto Post To G/L - This box when checked will turn on automatic posting to the general ledger when A/R entries are posted. This option bypasses the subsidiary ledger posting routine. It is not recommended to auto post AR entries when Bank Reconciliation is utilized in the General Ledger.
Summarize Entries - This box when checked will post accounting entries to the G/L in summary mode. The suggested default is to post in detail for easy reconciliation of entries. Therefore it is recommended that the box should not be checked.
Receivables Account - This field contains the default G/L 1001100 accounts receivable account. This account is used through out the application when posting accounts receivable transactions. Certain modules and processes will allow the clerk to override the A/R G/L account as needed.
Cash In Bank Account - This field contains the default G/L 1001000 cash operating account. This account is used as the default in cash receipts entry.
Finance Charge Account - This field contains the default G/L 1009030 finance charge account. it is used by the generate finance charges routine for posting to the G/L
Sales Discount Account - This field contains the default G/L 1005090 sales discount account. It is used in cash receipts when terms discount is given on an invoice.
Sales Account - This field contains the default G/L 1004000 miscellaneous sales account. It is used in miscellaneous charges as the default entry if no other sales account is entered.
Tab 2 Printing/Importing/Defaults
Invoice Print Program - This field contains the invoice form id that will be utilized for printing miscellaneous invoices in accounts receivable.
Statement Print Program - This field contains the statement form id that will be utilized for printing or emailing customer statements in accounts receivable.
Logo Location - This field contains the network path to the statement address logo when utilizing the Statement.Logo form above.
Sales Tax Report - This field will contain the custom sales tax if required. The default universal sales tax report is generated in accounts receivable journals.
Print Receipt Program - This field contains the default receipt form id that will be utilized for printing receipts in cash receipts entry.
Credit Limit - This field contains the default credit limit to be assigned to all new customers when a new customer file record is created in file maintenance. The default should be 0.00 if credit is not allowed for new customers.
Payment Terms - This field contains the default payment terms to be assigned to all new customers when a new customer file record is created in file maintenance. If a payment term is not entered then one must be defined on the customer record to give terms on invoices.
Category Code - This field contains the default customer category code that is assigned to all new customers when a new customer file record is created in file maintenance. Category codes are not required.
Maintain AR Statement Message
- Starting from the menu select, System Administration, Configuration, Accounts Receivable.
- The form will open on tab 1 General Information.
- Locate the statement message field and enter the appropriate message to print at the bottom of the statements. There is a limit of 270 characters for the message.
- Save and close the form to apply the changes.
- Print statements as normal.
Maintain AR Finance Charge Rates
- Starting from the menu select, System Administration, Configuration, Accounts Receivable.
- The form will open on tab 1 General Information.
- Locate the finance charges section in the top right of the screen.
- Maintain the percentage rate, flat charge rate, and other fields as needed.
- Save and close the form.
- Process finance charges as normal.
Maintain Dunning Letters Parameters
- Starting from the menu select, System Administration, Configuration, Accounts Receivable.
- The form will open on tab 1 General Information.
- Click on tab 3 Dunning Letter Parameters, then setup the parameters grid as below,
- In the starting age column on the first line of the grid enter the beginning age of the letter.
- In the ending age column on the first line of the grid enter the ending age of the letter.
- In the notice name column enter the path to the location of the letter. Note if multiple workstations generate dunning letters this path should be to a shared network folder.
- Enter a description of the letter in the notice description field.
- Repeat for each additional age range and dunning letter making sure.
- Save and close the form.
- Process the dunning letters as normal.