- EVERYTHING that is posted from Task #1 Sales Entry and Editing, Task #2: Cash Receipts Entry and Task #4: Finance Charge Entry and Editing is posted to this file.
- The customer aged trial balance reports (with detail) pulls the information from this file.
- Customer statements (Task 12) pull the information from this file
- System Management (Task 32), Display Total Value of A/R Open (Subtask 1) pulls its information from this file.
- Customer Inquiry (Task 27), the second screen detail, pulls the detail information from this file.
- This report should balance with the general ledger Accounts Receivable Trade account.
The transactions: sales, cash, finance charges, etc… stay in this file until the end of the month. After month end reports are balanced, go into System Management (Task 32) and run Clear Paid Invoices from A/R Open (Sub-task 4).
- When this sub-task Clear Paid Invoices from A/R Open is run and the customer has only “open items” on their account, the following happens:
An Example of what is on a customer's account and what will happen after the program is run:
Invoice #101 for $100.00
Payment for $100.00 applied to invoice #101
Invoice #102 for $150.00
Payment for $99.99 applied to invoice #102
Invoice #103 for $75.00
Credit Memo #452 for $75.00 applied to nothing
What will happen after task Clear Paid Invoices from A/R Open is processed -
1. Invoice #101 and the payment that is applied to it will be cleared away and transfer to the Cleared A/R History (Task 24).
2. Invoice #102 for $150.00 and the payment for $99.99 applied to it will stay there until another payment is received and applied or a credit memo for $50.01 is applied to it.
3. Invoice #103 for $75.00 will stay there until credit memo #452 for $75.00 is applied to it.
In order for anything (invoice or credit memo) to be cleared and transferred to the Cleared A/R History (Task24), it must be applied correctly, and must equal zero.
For a Balance Forward Statement customer, the following happens:
- Invoices, Debit Memos and Finance Charges are not applied to anything.
- Payments and Credit Memos are automatically applied to the oldest documents.
Invoice #101 dated 05/01/xx for $100.00
Invoice #102 dated 10/01/xx for $ 75.00
Payment received on 07/01/xx for $75.00
Credit Memo #123 created on 10/30/xx for $100.00
After clearing paid invoices (AR Module, System Management Functions - Task 32; Clear Paid Invoices from AR Open - Sub-task 4) this customer would have nothing in the A/R Open (Task 18) because the computer automatically applies to the oldest invoices and creates a debit or credit memo for the difference. Everything would be transferred into Cleared A/R History (Task 24).
Invoice # 105 dated 05/01/xx for $100.00
Payment received on 05/02/xx for - $99.99
After clearing paid invoices from A/R open this customer would have a computer-generated debit memo for $.01 on his account. The invoice and payment would be cleared away and transferred into Cleared A/R History (Task 24).
Invoice #101 05/01/9xx for $45.00
Payment 05/02/xx for -50.00
After clearing paid invoices from A/R open this account would have a computer-generated credit memo for $-5.00. The invoice and payment would be cleared away and transferred into Cleared A/R History (Task 24).
NOTE: Invoices, Debit Memos and Finance Charges are automatically applied to themselves.
NOTE: Payments and Credit Memos can be applied to zero, or to Invoices, Debit Memos and Finance Charges.