From the Accounts Receivable screen, select the Maintenance menu and then Accounts Receivable System File.
Complete the Posting Type section as follows:
In the Post to General Ledger field, enter the method (Accrual Basis, Cash Basis, or None) for posting entries from the Accounts Receivable module to the General Ledger module, or click the down-arrow button to select the correct one. To operate the Accounts Receivable module on an accrual basis, enter Accrual Basis. To operate the Accounts Receivable module on a cash basis, enter Cash Basis. To not post any entries to the General Ledger module, enter None.
Note: When initially setting up the Accounts Receivable module, the Post to General Ledger field is enabled, but later the field is disabled. To change the method entered in the Post to General Ledger field if the field is disabled, contact Customer Support.
If Accrual Basis is specified in the Post to General Ledger field, the Invoice Transactions field is enabled. In the Invoice Transactions field, specify whether to have the system post detailed or summarized entries to General Ledger when posting invoices. To post separate entries for each invoice detail line to the accounts receivable accounts and the revenue accounts, enter Detail Receivable and Revenue. To post separate entries for each invoice detail line to the accounts receivable accounts, and post one entry per date per revenue account, enter Detail Receivable/Summarize Revenue. To post one entry per date per account (per accounts receivable account or revenue account), enter Summarize Receivable and Revenue. To post one entry per date per accounts receivable account, and post separate entries for each invoice detail line to the revenue accounts, enter Summarize Receivable/Detail Revenue.
If Accrual Basis or Cash Basis is specified in the Post to General Ledger field, the Payment Transactions field is enabled. In the Payment Transactions field, specify whether to have the system post detailed or summarized entries to General Ledger when posting payments. To post separate entries for each payment detail line to the cash accounts and the accounts receivable accounts (if operating on an accrual basis) or the revenue accounts (if operating on a cash basis), enter Detail Cash and Receivable/Revenue. To post separate entries for each payment detail line to the cash accounts, and post one entry per date per accounts receivable account (if operating on an accrual basis) or per revenue account (if operating on a cash basis), enter Detail Cash/Summarize Receivable/Revenue. To post one entry per date per account (per cash account and accounts receivable account (if operating on an accrual basis) or revenue account (if operating on a cash basis)), enter Summarize Cash and Receivable/Revenue. To post one entry per date per cash account, and post separate entries for each payment detail line to the accounts receivable accounts (if operating on an accrual basis) or revenue accounts (if operating on a cash basis), enter Summarize Cash and Detail Receivable/Revenue.
Select the Automatically Calculate Totals on Data Entry field to have the system automatically add up all the detail line items when entering (saving) invoices, payments, or prepaid invoices in Accounts Receivable, and display the total in the Invoice or Payment Amount field located in the header. A checkmark will appear in the box if the field is selected.
To use a generic description for all payments, such as "Thank you for the payment.", enter the description in the Default Payment Detail Description field. The description can be up to 40 characters long. When entering a payment, the default description can be used, or a new description entered, if desired.
In the Default Payment Receipt Report field, enter the name of the report to print when clicking the To Screen & Save button from within the Payments option (or Prepaid Invoices option, if applicable) in Accounts Receivable, or click the down-arrow button to select the correct one.
Note: Only the reports that appear under the Reports menu in the Payments option within Accounts Receivable that have a report parameter (and parameter type) for Payment Number are able to be entered into this field.
Enter the method (Month of Due Date or Processing Month) by which to determine the age of the outstanding balances (amounts due) for the customers in the Aging Method field, or click the down-arrow button to select the correct one. To use the month of the due date on the invoices to determine the age of the outstanding balances, enter Month of Due Date. To use the processing month in which the invoices were posted to determine the age of the outstanding balances, enter Processing Month.
Tip: The ages of the outstanding balances tracked for the customers in Accounts Receivable are: Current, 31-60 Days, 61-90 Days, 91-120 Days, and 121+ Days.
If late charges will be calculated on past due customer balances, complete the Late Charges section.
To be able to calculate late charges on the outstanding balances for applicable departments using the Process Late Charges option, select the Enable Late Charges field. A checkmark will appear in the box if the field is selected.
Tip: After completing the Late Charges section here in the Accounts Receivable System File, be sure to define the applicable departments in the Department File to calculate late charges by selecting the Assess Late Charges field and completing the Late Charge Revenue Account field (only if operating on an accrual basis).
Note: If late charges will no longer be calculated and the Enable Late Charges field is unselected (the checkmark was removed), a prompt will appear stating the late charge information will also be removed for departments; click OK. Then upon saving the changes made in the Accounts Receivable System File, the system will automatically unselect the Assess Late Charges field for the departments, remove the account number from the Late Charge Revenue Account field for the departments (applicable if operating on accrual basis), and inactivate the invoice transactions for late charges for departments.
Enter the range of days (31-60, 61-90, 91-120, and 121+) to use as the starting point for calculating late charges when completing the Process Late Charges option in the Starting Point Days field, or click the down-arrow button to select the correct one. To start calculating late charges when the outstanding balances are aged at 31-60 days, enter 31-60; aged at 61-90 days, enter 61-90; aged at 91-120 days, enter 91-120; or aged at 121 or more days, enter 121+. This field is only enabled if the Enable Late Charges field is selected.
Enter the annual percentage rate to use to calculate late charges in the Annual Percentage field. For example, if the annual percentage rate is 2.75%, enter 2.75 in this field. The percentage must be greater than 0, and can be up to 12 characters long (including the decimal point and comma(s) if applicable) and will be rounded to 4 decimal places by the system if capable. This field is only enabled if the Enable Late Charges field is selected.
If there is a minimum fee for late charges, enter that amount in the Minimum Amount field. For example, if the minimum late charge fee is $1.00, enter 1 in this field; then if a customer’s late charge calculates to $0.55, the late charge assessed will actually be $1.00, which is the minimum amount. The amount can be up to 14 characters long (including the decimal point and comma(s) if applicable) and will be rounded to 2 decimal places by the system if capable. This field is only enabled if the Enable Late Charges field is selected.
Click the Save button.