Accounts Receivable Accounts Receivable
The Accounts Receivable system performs the following functions:
•Maintains a file on each customer which includes their name, address, phone number, and payment policy.
•Provides a system of entering Trade and Progress Billing Invoices.
•Provides a system of entering Adjustments and Discount changes during the cash receipts process.
•Automatically posts all receivable amounts to appropriate General Ledger, Job Costing, and/or Equipment Costing accounts.
•Maintains histories of all payments and invoices for each customer.
Accounts Receivable Overview
The Accounts Receivable module performs the functions needed to process customer invoices and progress billings and to maintain other Accounts Receivable information. The system is very effective in tracking customers, generating invoices and billings, reconciling receipts, and maintaining control over current and past-due receivables. This module is completely integrated and interactive with the rest of the accounting system.
A repeating journal management system allows repeating (monthly) transactions to be posted with little effort. Customer entry may be done during any billing process or through the special customer entry option.
The customer database is entered and stored in the Customer File. This information may be entered through customer entry or during invoice entry. Information for each customer includes the name, address, phone number, type of billing, payment terms, discount terms, tax rate and other information. Pertinent customer information is displayed automatically as each invoice is entered.
There are two methods available to handle Customer accounts:
1. Open Invoice Billing
Receipts will be reconciled to individual invoices.
2. Balance Forward Billing.
Receipts are appended to the account to keep a running balance. Internally, the accounting system will reconcile invoices with receipts.
The Accounts Receivable system handles five types of invoices: Trade Invoices, Progress Billings, Finance Charge Billings, Automatic Job Billings,and Contractor� Draws.
1.Trade Invoices
Invoices for items and services sold independently of any job. Trade invoices are invoices that are not connected with budgeted jobs in the Job Costing module. They are also for work that is paid on a Time and Materials basis. Trade invoices are entered through Trade Invoice entry.
2.Progress Billings
Invoices or periodic billings sent out to the contract holders of a job, based on the job’s contract price. The billing amount is determined by the percentage of the job that has been completed. Progress Billings are entered through Progress Billing Entry.
3.Finance Charge Billings
These billings may be generated for any customer with an outstanding balance and a finance charge percent. The finance charge is calculated by the system and a line item detail will be added to the trade invoice in the Invoice File. Finance Charge Billings are entered through AR Invoices: Trade Invoices.
4. Automatic Job Billings
Sometimes known as Cost Plus Billings, Job Billings are invoices generated using costs found in the Transaction File. A series of Billing Phases is defined, each designed to track the costs posted to a group of budgeted cost codes. At billing time, the accounting system scans the transaction file and calculates a billing based on costs incurred in each of the billing phases.
5. Contractor’s Draw
The accounting system has the capability of generating Contractor’s Draw Request forms and automatically generating a Progress Billing to match the bottom line billing amount of the draw request. This means that once a schedule of values has been entered into the system, billing the customer for work done involves merely updating current completion percentages on each scheduled value, submitting the draw request for owner approval, and instructing the system to bill the customer.
Invoices may be generated at any time before posting. When invoices are posted, they become permanent additions to the Accounts Receivable Invoice File.
As payments are received, they must be entered into the system. For Open Invoice customers, receipts may be applied to the particular invoices they are paying. For Balance Forward customers, payments are credited to the customer’s account without reconciling to a particular invoice.
The Accounts Receivable Invoice File contains information on all invoices, progress billings and receipts after they have been posted. Statements are printed from the Invoice File. The Aging and History Reports are generated from information contained in this file. This file will continue to grow in size indefinitely as more information is added. The Invoice File should be purged occasionally to avoid problems. Purging the Invoice File removes all reconciled invoices and receipts from the file that are older than a specified date. Records will not be purged until they have appeared on a statement, unless specified otherwise.
Aging & History Reports
Customer Listings
Customer Statements
Job Status Reports
Customer Lists
Receipt Proof Listing
Invoice Proof Listing