MV Software Knowledge Bas…  Modules»Accounts Receivable»Task 05 - Changing Advance Col…
  
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Last modified on 9/16/2015 12:04 PM by User.

Tags:
Changing, Advance, Collection, Payment

Task 05 - Changing Advance Collections to Payments

This option can perform 3 tasks.

1) Change advance collections to payments.

When a payment is posted and applied to a document # that doesn't exist on the customer's account, the payment is coded as a type A/8 (advance collection).

  • Advance collections do not clear away. They stay on the customer's account forever.

This option scans through the A/R open items file, then:

  • When the system finds an advance payment, it checks to see if the document that it is applied to is on the customer's account.
  • If the document is on the customer's account, then the system changes the type to a 2/P (payment).
  • The next time paid invoices are cleared from A/R, the open the document and payment should clear away. 

2) Optionally apply deposits/payments, using the order # stored in each transaction in the A/R open.

This option step will make this routine run considerably longer, but it can save a tremendous amount of time by eliminating having to apply these by hand.

Scenario: A customer makes a deposit, but you do not know at the time the deposit is made what the invoice # is going to be.

  • If using order entry, the order # will come from order entry automatically.
  • When entering a deposit into:
    • Cash Receipts Entry & Editing: Task #2
    • Line #16: enter the order # (All deposits for this order should have the same order #.)
  • When you are entering the invoice into:
    • Sales Entry and Editing: Task #1:
    • Line #18: enter the same order #
  • The A/R Open Items report has payment(s) and an invoice all with the same order # on them. The payments are not applied to anything. 

3) This task scans through the A/R open items file looking for unapplied payments.

  • The system looks for, and if it finds, an unapplied payment, it then looks for an invoice or debit memo with the same order #.
  • When the system finds the invoice or debit memo with the same order #, it applies the payment to that document #.
  • The next time you clear paid invoices from the A/R open items file, the invoice and payments should clear away.