21st Century Accounting Tutorials - Checklists

Receivables

Checklist: Setting Up Receivables

Setting up Receivables consists of configuring customer attributes and then adding customers and assigning their attributes.

1. Run Receivables/Configure/Control Accounts to set up at least one set of the control accounts required to post Receivables transactions.

2. Run Receivables/Configure/Payment Terms to set up at least one set of required payment terms.

3. Run Receivables/Configure/Billing Cycles to set up at least one required billing cycle. Even if you bill all customers at the same time, the billing cycle is required as a mechanism for periodic customer processing.

4. If you want the system to calculate sales taxes as you enter customer invoices, run Receivables/Configure/Tax Authorities and Receivables/Configure/Tax Groups to set up at least one sales tax group.

1. If you want to organize customers into categories for reporting, run Receivables/Configure/Categories.

2. If you want the system to display a set of sales distribution accounts when you enter invoices, run Receivables/Configure/Default Prompts to set up at least one set of prompts.

3. If you bill regular periodic charges to customers, run Receivables/Configure/Recurring Charges to set them up.

4. If you plan to assess finance charges on customer accounts, run Receivables/Configure/Finance Charges.

5. Finally, run Receivables/Configure/Customers to add your customers and assign control accounts, payment terms, billing cycles, and, optionally, sales tax groups, categories, default prompts, and recurring charges.

6. To establish customer balances, run Receivables/Configure/ Historical Invoices and Receivables/Configure/Historical Receipts to enter open invoices and, if you wish, paid invoices.

Checklist: Setting up Sales

The Sales module allows you to set up a list of the products and services you sell, for easy entry on customer invoices.

1. Run Sales/Product List to enter items, optional associated sales accounts, default taxable and discount status, and prices.

Checklist: Entering a Sales Invoice

Once you have set up Receivables Customers and the optional Product List, you're ready to start recording the sale of products and services to your customers.

1. If your sales cycle begins with a sales order from a potential customer, run Sales/Sales Orders to record requirements for one-time purchases that are not to be shipped and billed at this time or standing orders for frequent or regular customer purchases.

2. Run Sales/Invoices when a sale is made. You can enter an invoice from scratch or turn a sales order into an invoice.

   Payments entered on invoices

   If the customer makes payment or partial payment at the time of the sale, enter the payment amount on the invoice.

   Credit card payments that you entered on the invoice should be deposited into your bank account later. You can enter the transaction either as a Deposit or as a bank Reconciliation Adjustment. Credit the credit card deposits to the credit card accounts.

   Print the invoice at the time of the sale, if the customer wants a copy.

   When you post the batch, the system also saves the printable invoice. You can print the invoice later from Customer Status or by drilling down on the invoice number in the Invoice Journal Preview.

Checklist: Entering Payments on Customer Accounts

During each billing cycle, you will apply optional finance charges and optional recurring charges, print statements, and age customer accounts. Normally, customers respond to their periodic statements with payments against their accounts.

All cash received into the business in this way is recorded in the Bank Accounts/Deposits window.

1. Run the Bank Accounts/Deposits command and select <new> in the left pane.

2. Enter the ID of the bank account where the receipts will be deposited and the deposit number in the Batch Options window (and accept or edit the batch name, batch period, and deposit date).

3. Select "Customer" for the Receipt type.

4. Enter the amount of the receipt.

5. Enter or select the customer ID.

6. For an open item customer, at Invoice Number, use the drop-down list to see the customer's outstanding invoices. Select the individual invoices that the customer wants to pay with this payment. Select "all" if there are no unpaid invoices. For a balance forward customer, you apply the payment to "all."

7. At Applied amount, enter the amount of the receipt to apply to the invoice(s).

8. Choose Save.

9. Choose Save batch to save all the entries in the batch and choose Post batch when you're ready to commit the deposit to your books.

 

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