SyteLine: Using Accounts Receivable Training Workbook

Transcription

1 SyteLine: Using Accounts Receivable Training Workbook SyteLine May 14, 2014 Course code: 01_ _IEN0010_SYT

2 Legal notice Copyright 2014 Infor. All rights reserved. Important Notices The material contained in this publication (including any supplementary information) constitutes and contains confidential and proprietary information of Infor. By gaining access to the attached, you acknowledge and agree that the material (including any modification, translation or adaptation of the material) and all copyright, trade secrets and all other right, title and interest therein, are the sole property of Infor and that you shall not gain right, title or interest in the material (including any modification, translation or adaptation of the material) by virtue of your review thereof other than the non-exclusive right to use the material solely in connection with and the furtherance of your license and use of software made available to your company from Infor pursuant to a separate agreement, the terms of which separate agreement shall govern your use of this material and all supplemental related materials ("Purpose"). In addition, by accessing the enclosed material, you acknowledge and agree that you are required to maintain such material in strict confidence and that your use of such material is limited to the Purpose described above. Although Infor has taken due care to ensure that the material included in this publication is accurate and complete, Infor cannot warrant that the information contained in this publication is complete, does not contain typographical or other errors, or will meet your specific requirements. As such, Infor does not assume and hereby disclaims all liability, consequential or otherwise, for any loss or damage to any person or entity which is caused by or relates to errors or omissions in this publication (including any supplementary information), whether such errors or omissions result from negligence, accident or any other cause. Without limitation, U.S. export control laws and other applicable export and import laws govern your use of this material and you will neither export or re-export, directly or indirectly, this material nor any related materials or supplemental information in violation of such laws, or use such materials for any purpose prohibited by such laws. Trademark Acknowledgements The word and design marks set forth herein are trademarks and/or registered trademarks of Infor and/or related affiliates and subsidiaries. All rights reserved. All other company, product, trade or service names referenced may be registered trademarks or trademarks of their respective owners.

3 Table of contents About this workbook... iii Course overview... iv Course description and agenda... v SyteLine user interface... viii Lesson 1: Supporting files maintenance... 1 Introduction... 2 A/R-related parameters... 3 Billing terms... 7 Salespersons Bank codes Check your understanding Lesson 2: Accounts receivable account maintenance Introduction Chart of Accounts Accounts receivable (A/R) accounts Distribution accounts End user types How account distribution works Check your understanding Lesson 3: Customer records and customer orders Introduction Creating a basic customer record Setting up multiple ship-to locations Other Customers form tabs Recording customer interactions Customer order shipping Check your understanding Lesson 4: Invoice, debit, and credit memo processing Introduction Generating invoices for customer orders Recording invoices, debits, and credit memos in A/R Distributing invoices Creating a price adjustment invoice Posting invoices, debits, and credit memos Check your understanding Lesson 5: Customer payment processing Introduction Entering customer payments Distributing customer payments Using the A/R Quick Payment Application Posting customer payments Reversing posted payments Check your understanding Lesson 6: Posted transactions Introduction A/R Posted Transactions Summary A/R Posted Transactions Detail Reapplying open credits or payments Running the Accounts Receivable Aging Report Check your understanding Course summary SyteLine: Using Accounts Receivable Training Workbook i

4 Course review Appendix A: Review exercise Comprehensive review exercise Appendix B: Reports and utilities Accounts receivable reports Other accounts receivable reports Accounts receivable utilities Appendix C: Finance charges Overview Finance Charge form A/R Finance Charge Generation form Finance charge posting Appendix D: Customer statements Customer Statements Report Appendix E: Letters of credit Overview Customer Letters of Credit form Appendix F: Alphanumeric invoicing Overview Order Entry Parameters form Invoice Categories form Invoice Debit and Credit Memo Sequences form Customers form Void Unused Invoices form Void Invoice, Credit and Debit Memo Reason Codes form Voided Invoices, Credit and Debit Memos form Appendix G: Consolidated invoicing Consolidated invoice overview Customers form Customer Orders form Customer Order Lines form Consolidated invoice generation overview Consolidated Invoice Generation form Consolidated Invoices Workbench form Consolidated Invoicing form Invoice, Debit and Credit Memos form Appendix H: EFT accounts receivable payment import EFT accounts receivable payment import overview Accounts Receivable Parameters form A/R Customer Bank Account form A/R Payment Import Mappings form A/R Payment Import Field Mappings form A/R Payment Import Conversions form A/R Payment Import form A/R Payment Import Workbench form ii Course introduction

5 About this workbook Welcome to this Infor Education course! We hope you will find this learning experience enjoyable and instructive. This Training Workbook is designed to support the following forms of learning: Classroom instructor-led training Virtual instructor-led training This Training Workbook is not intended for self-study or as a product user guide. Activity data You will be asked to complete some practice exercises during this course. Step-by-step instructions are provided in this guide to assist you with completing the exercises. Where necessary, data columns are included for your reference. Your instructor will provide more information on systems used in class, including server addresses, login IDs and passwords. Reference materials SyteLine reference materials are available from the following locations: SyteLine Help menu Infor Xtreme Symbols used in this workbook Hands-on exercise ( Exercise ) For your reference Instructor demonstration ( Demo ) Your notes Scenario Question Note Answer SyteLine: Using Accounts Receivable iii

6 Course overview Course duration 1 day Learning objectives Upon completion of this course, you will be able to: Audience Describe the process to create customer records and the information that is maintained for customers. Describe the system parameters applicable to accounts receivable processes. Describe how accounts are set up for accounts receivable and how they are used in invoice and payment distributions. Explain how invoices, debit memos and credit memos from both order entry and accounts receivable modules are created and processed. List the steps to add, distribute and post customer payments. Explain how bank deposits are made using the Bank Reconciliation form. Identify the reports that are used to view the status of the various accounts receivable transactions. Customer User Pre-Sales Consultant Business Consultant Technical Consultant Support System requirements SyteLine Training Environment Prerequisite knowledge To optimize your learning experience, Infor recommends that you have the following knowledge prior to attending this course: Knowledge of SyteLine foundational concepts Knowledge of how data is structured and organized in SyteLine Ability to navigate the SyteLine user interface iv Course introduction

7 Course description and agenda This course covers learning the basic accounts receivable tools in SyteLine to perform the tasks of creating customer records and orders, creating, distributing, and posting invoices, credits, and payments, managing customer credit, and posting to bank reconciliations. Also covered is setting up various system parameters that support accounts receivable workflow. This training is for version 9.00 and all previous versions. Pre-requisites: SyteLine User Interface Part 1 Finding and Working with Forms SyteLine User Interface Part 2 Finding and Displaying Records SyteLine User Interface Part 3 Adding, Editing, and Deleting Records SyteLine User Interface Part 4 Additional Record Management Lesson Lesson title Learning objectives Day Course overview Review course expectations. Day 1 Lesson 1 Supporting files maintenance Identify the various system parameters used for accounts receivable (A/R). Explain how billing terms are defined and used. Describe the procedures for maintaining other accounts receivable-related files. Day 1 Lesson 2 Accounts receivable account maintenance Describe how to set up and map the various accounts related to accounts receivable. Describe how you might use end user type records. Explain how account distribution works for accounts receivable. Day 1 Lesson 3 Customer records and customer orders Describe the process for creating a customer record. List the steps to set up multiple ship-to locations for a customer. Explain how interactions with a customer are recorded. List the steps for shipping customer orders. Day 1 Lesson 4 Invoice, debit, and credit memo processing Determine the customer orders requiring invoicing. Describe the process to generate an invoice for customer orders. Identify the steps to record invoices in A/R. List the steps to perform invoice distribution manually. List the reasons for using a price adjustments invoice. Describe the invoice posting process. Day 1 SyteLine: Using Accounts Receivable v

8 Lesson Lesson title Learning objectives Day Lesson 5 Customer payment processing Describe the process for entering a customer payment. List the steps to perform payment distribution manually. Explain the uses of the A/R Quick Payment Application. Describe the payment posting process. Day 1 Lesson 6 Posted transactions Explain the use of the A/R Posted Transactions (Summary/Detail) forms. Describe the process to reapply open payments or credits. Day 1 Course summary Debrief course. Day 1 vi Course introduction

9 Appendices There are appendices at the end of this Training Workbook that you may find useful. They contain information that is not part of the instructional content of this course but provide additional related reference information. Appendix Appendix title Content description Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Review exercise Reports and utilities Finance charges Customer statements Letters of credit Alphanumeric invoicing Consolidated invoicing EFT accounts receivable payment import Comprehensive exercise for reinforcement of understanding the processing logic of the SyteLine accounts receivable module. Lists the various accounts receivable reports with a description of each report s output. The reports that are introduced in this course are also included. Lists the various accounts receivable utilities with a description of each utility s purpose. Provides instructions for setting up generation and posting of finance charges on past due customer accounts. Contains information on the use of customer statements. Provides instructions on the use of letters of credit (LCR) for customer order entry and accounts receivable processing. Provides instructions on how to set up the efficient alphanumeric numbering sequences to use for invoices, debit memos, and credit memos. Provides instructions on how to use consolidated invoices that cover multiple orders shipped to a customer over a period of time. Provides instructions on the use of the EFT Accounts Receivable Payment Import process which provides the ability to receive and process electronic accounts receivable payment files from a bank or lock box to apply to accounts receivable invoices. SyteLine: Using Accounts Receivable vii

10 SyteLine user interface SyteLine standard user interface elements include the top navigation pane menus and the main toolbar. SyteLine navigation pane menus and main toolbar Navigation pane menus You can browse all available folders through the navigation pane menus and submenus. Hovering your mouse over each of the navigation pane menus allows you to explore the submenus contained beneath. Navigation pane menus and submenus You can pin submenus to the navigation pane. For example, if you know that you will be using the Customer Service submenus frequently, you can display the menus at the top level, by pinning them to the navigation pane. Main toolbar The main toolbar contains icons that allow you to quickly complete commonly used tasks in SyteLine, such as saving data or closing a form. You can position your mouse pointer over an icon on the toolbar to reveal its description and functionality. Keyboard shortcuts Some navigation pane submenus display available keyboard shortcuts that can be used to save multiple steps when completing certain tasks. Keyboard shortcuts viii Course introduction

11 The following table displays the available shortcut keys and their actions. Shortcut keys Action Navigating Forms Ctrl + F4 Ctrl + O Ctrl + W Ctrl + Tab Close current form. Open Select Form. Open workspaces. Switch view to next open form. Navigating records Ctrl + Home Tab Shift + Tab F8 F7 Ctrl + F8 Move to first editable field of form. Move to the next field. Move to the previous field. Move to the next record. Move to the previous record. Switch the next collection on the form to become the current collection in a form that contains multiple collections. Ctrl + 1 Ctrl + 2 Hide/Show 1st Splitter Pane. Toggles the first splitter pane between being hidden from view and being shown. If the form contains a vertical splitter bar, the first splitter pane is the left pane. For a form that is split horizontally, the top pane is the first splitter pane. Alternatively, select System > View > Hide/Show 1st Splitter Pane. Hide/Show 2nd Splitter Pane. Toggles the second splitter pane between being hidden from view and being shown. On a form with a vertical splitter bar, the second splitter pane is the right pane. For a form that is split horizontally, the bottom pane is the second splitter pane. Alternatively, select System > View > Hide/Show 2nd Splitter Pane. Editing records F2 Ctrl + N Ctrl + A Ctrl + C Activate the drop-down list with an implied asterisk (i.e., wildcard) after the entered text in the field to then populate the list with data entries that begin with the entered text. Add new record. Alternatively, select System > Actions > New. Note: The Actions menu is only available when a form is open. Add value for current field. Alternatively, select System > Edit > Add. Copy SyteLine: Using Accounts Receivable ix

12 Shortcut keys Action Editing records, continued Ctrl + X Ctrl + V Ctrl + Z Ctrl + D Ctrl + F Cut Paste Undo. Alternatively, select System > Edit > Undo. Delete record. Alternatively, select System > Actions > Delete. Note: The Actions menu is only available when a form is open. Find value for current field. Alternatively, select System > Edit > Find Value for Current Field. Note: This is only accessible for certain field types, such as some drop-down lists. Ctrl + L Display details for current field drill down. Alternatively, select System > Edit > Details for Current Field. Note: This only works for certain field types, such as some drop-down lists. Ctrl + S Save changes. Alternatively, select System > Actions > Save. Note: The Actions menu is only available when a form is open. Filtering records F3 F4 F5 In Filter In Place mode, cancel the filter in place and return to the collection previously displayed. Alternatively, select System > Actions > Filter > Cancel in Place. In Refresh/Run mode, begin filter in place (i.e., clear the collection and go back to Filter In Place mode). Alternatively, select System > Actions > Filter > Begin in Place. In Filter In Place mode, execute in place (i.e., run the filter). Alternatively, select System > Actions > Filter > Execute in Place. In Refresh/Run mode, refresh the current collection. Alternatively, select System > Actions > Refresh. In Filter In Place mode, clear the filter in place. Alternatively, select System > Actions > Filter > Clear in Place. Ctrl + F5 In Refresh/Run mode, refresh the current record. Alternatively, select System > Actions > Refresh current. Ctrl + F2 In Refresh/Run mode, repeat Find Value in Collection. Alternatively, select System > Edit > Repeat Find. Ctrl + Q In Refresh/Run or New mode, open associated query form to specify filter criteria. Alternatively, select System > Actions > Filter > By Query. x Course introduction

13 Other F1 Ctrl + E Ctrl + P Open field level help topic. Toggle design mode on and off. Alternatively, select System > Edit > Design Mode. Print Field types The following tables display the field types available in SyteLine with a brief description: Field type Description Required, system-generated, and read-only fields Standard GUI fields Any field that is required will have a red star A system-generated field will have a green star A field with no border around the data is read-only Check box indicating Yes or No Radio button to select one option from multiple choices Drop-down list to select one option from multiple choices Forms and reports Basic SyteLine elements include forms and reports. Forms provide an organized view to the data stored in the database. Just about everything you do in SyteLine uses a form element. You use different types of forms depending on whether you need to add new information, modify existing information, or view the details of a specific record. Forms are made up of records that contain multiple fields of data. Records consist of a group of related pieces of information. Fields are the basic elements that display the related data pieces and are grouped together to make up a record. When a form displays multiple records, it is referred to as a collection. A collection displays multiple records that have some commonality. Reports are used to organize and present filtered collections of related data. SyteLine: Using Accounts Receivable xi

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15 Lesson 1: Supporting files maintenance Estimated time 1 hour Learning objectives After completing this lesson, you will be able to: Identify the various system parameters used for accounts receivable (A/R). Explain how billing terms are defined and used. Describe the procedures for maintaining other accounts receivable-related files. Topics Introduction A/R-related parameters o General parameters o General accounts receivable parameters o Order entry parameters Billing terms o Methods for defining due dates o Using due days method o Using prox due day method o Using multiple due dates method o Using advanced terms method Salespersons Bank codes SyteLine: Using Accounts Receivable 1

16 Introduction Various parameters, settings, and entities applicable to customer order and accounts receivable (A/R) processing are established in several different files. Most of these things are set up after SyteLine installation but before the accounts receivable module is activated. In this lesson you will learn about the A/R-related files that are used to create and maintain these settings and parameters. These files include the following: General Parameters form Accounts Receivable Parameters form Order Entry Parameters form Billing Terms form Salespersons form Bank Codes form 2 Lesson 1: Supporting files maintenance

17 A/R-related parameters There are various places in SyteLine where parameters applicable to accounts receivable processes are defined. These parameters are defined on the following forms: General Parameters Accounts Receivable Parameters Order Entry Parameters General parameters The General Parameters form is used to set parameters that are used throughout the system. A few of these parameters are related to accounts receivable processes. To set/modify general parameters: 1. Open the Master Explorer > Modules > Codes > Parameters > General Parameters form. 2. Type the address information for the company in the Address fields. 3. Select the General tab. 4. Fields of interest for accounts receivable: Capitalize State Abbreviations check box select to have the system always capitalize the state abbreviation part of the address. Print Company Name on Forms check box select to have the system print the name and address of the company as it appears on the Address tab on various SyteLine forms. These forms include Customer Statements, Credit Memos, Order Invoicing, Credit Memos, Estimate Response Form, Order Verification, Packing Slip, Purchase Order, Quarterly by Tax Code, Reprint Packing Slip, Year End Summary, W-2s Magnetic Media, and W-2 Reporting On Tape Format forms. 5. Save the record. SyteLine: Using Accounts Receivable 3

18 General accounts receivable parameters Use the Accounts Receivable Parameters form to enter the default parameter values that the system applies throughout accounts receivable. 1. Open the Master Explorer > Modules > Codes > Parameters > Accounts Receivable Parameters form. 2. Enter information or select options on the General tab as needed. Refer to the field descriptions in the table below. 3. Select the Aging Report tab. 4. Select Invoice Date or Due Date from the Aging Basis drop-down list to indicate the date to be used as a basis for the aging periods. 5. Type the maximum age in days for an invoice for each of the five aging periods. The number entered indicates the lower limit for each entry. Use negative numbers to indicate future due dates and positive numbers to indicate past due dates. Enter the numbers in ascending order. The first <= field is usually a negative number, indicating items due in the future. Either Invoice Date or Due Date used as basis for defining aging periods Five aging periods: number indicates lower limit in days for each aging period Accounts Receivable Parameters form, Aging Report tab 6. Type the title for each of the aging periods as you want them to display on the aging report. 7. Save the record. 4 Lesson 1: Supporting files maintenance

19 Accounts Receivable Parameters form General tab fields: Field Description Notes Customer Prefix The Customer Prefix is used for alphanumeric numbering of the Customer Master. The prefix is automatically added to the beginning of default values. EXAMPLE: A user has the prefix set to a value of "CD." The default customer numbers will be CD00001, CD00002, and CD Multi-Site Group Finance Charges Returned Check Fee Type Returned Check Fee Value Generate Debit Memo for Invoice Generate Payment Adjustment for Returned Check Select the identifier for a group of sites to be searched for invoices when distributing an A/R payment. If making use of the Finance Charge functions, then complete the following: Annual Rate type the annual percentage rate for finance charges Minimum Charge type the minimum amount of finance charges to be applied to delinquent accounts Charge Minimum select to apply a minimum charge for delinquent accounts Compound Charges select if finance charges are to be compounded Select Percentage or Amount to indicate how fees for returned checks will be applied. Enter the value of the fee to be charged on returned checks, either a percentage or an amount depending on the selection made in the Return Check Fee Type field. Select this radio button to generate debit memos for each invoice the returned check was applied to, in order to restore the outstanding balance. Select this radio button to have the Returned Check Utility generate a negative payment adjustment for the amount of the returned check, in order to restore the outstanding balance. If the user overrides the default value, the prefix will not be applied. If you do not apply finance charges to customer orders, these fields do not need to be completed. On the Bank Reconciliations form, the fee type entered on the Accounts Receivable Parameters displays by default, but can be overwritten. SyteLine: Using Accounts Receivable 5

20 Order entry parameters Default values for some customer order fields can be set in advance. To set default values for customer order entry: 1. Open the Master Explorer > Modules > Codes > Parameters > Order Entry Parameters form. 2. Use the Order Entry Parameters form to set up the following: Invoice length Customer order prefix Standard due period Pick list date tracking Compress distribution journal Default text for printing on invoices 3. Save the record. A few of the order entry parameters are described below. Order Prefix Specify the default prefix to be used for customer order numbers in SyteLine. A prefix can consist of numeric and non-numeric (letters and symbols) characters. However, the prefix should end with an alphabetic character to ensure that the system increments order numbers correctly. When you reach the 10-character limit, the system displays a warning message and you will need to start a new prefix sequence. As an example, when you reach CO , you need to begin a new customer order prefix. Invoice Length Enter the length of all invoice numbers in the system (maximum length: 12 characters). This should be one of the very first tasks you perform when setting up your system. Until the invoice length is set, you cannot run any of the invoice processing forms. Once the record is saved, it cannot be updated. Std Due Period Enter the number of days to add to the order date to determine a due date. When you create an estimate line item or customer order line item, SyteLine first checks the Customer Contracts form, if one exists, to obtain the standard due period. If that field contains a question mark, SyteLine checks the Items form Planning tab for the standard due period. If that field contains a question mark, SyteLine sets the due date for this item to the order date (taken from the header record) plus whatever value you enter into this field. Track Pick List Date If the Track Pick List Date check box is selected, then the system will keep track of pick list dates at the item level. If the check box is cleared, the user will not see the pick list date and the system will not maintain pick list dates on the item level display. Allow Customer Order on Multiple Batches Select this field to allow the same customer order number to be on more than one batch order shipment. 6 Lesson 1: Supporting files maintenance

21 Billing terms Use the Billing Terms form to identify and maintain billing terms to be applied to customers. The billing terms code displays on the Customers and Vendors forms. You can set default billing terms for each customer or vendor. The billing terms determine the following: Due Days - the number of days after the invoice date that the invoice is to be paid by the customer or vendor Discount Days - the number of days after the invoice date that a customer or vendor has to pay in order to receive a discount Discount Percent - the percentage of the discount the customer or vendor is to receive Methods for defining due dates You can use these methods for calculating the invoice due date: Due days Proximo (Prox) due day Multiple due dates (using due days or prox due days) Advanced terms (using a combination of due days and prox due days) Unless you are using advanced terms, you cannot use the Due Days and Prox Due Day fields at the same time. If you are not using advanced terms and the values in the Due Days and Prox Due Day fields are greater than zero, SyteLine will ignore due days. To add new billing terms: 1. Open the Master Explorer > Modules > Codes > Billing Terms form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Type a billing terms code in the Code field. 5. Type a description for the billing terms in the field to the right of the Code field. 6. Enter information in the appropriate fields to define invoice due dates, discount days, and discount percent. 7. Use the field descriptions in the tables below and the descriptions for the different methods for defining the due date to help you complete the form. 8. Save the record. SyteLine: Using Accounts Receivable 7

22 The following table displays the fields used to determine due days on the Billing Terms form and provides a brief description of each: Field Description Notes Code Description Due Days Prox Due Day Prox Months Forward Cutoff Day Holiday Offset Method Type the billing terms code for this record to determine how discount dates and due dates are determined during invoice processing. Type the description of the terms code. This may be any description which helps you to identify the terms code. Type the number of days until an invoice for this customer or vendor becomes due. Due date = invoice date + due days Type the day of the month following the invoice date, on which the invoice becomes due. If the Advanced Terms check box is cleared, options are Leave the Due Days field blank if the Prox Day is to be used. Note: Prox refers to Proximo, which means occurring in the next month. Specify the number of months between the invoice cutoff date and the invoice payment due date. This field is only used with advanced terms. Use the field to adjust the invoice payment due date in the event the date falls on a holiday. Possible selections are: No Offset - no adjustment to the invoice due date Bring Forward - adjusts the invoice date to the first non-holiday date before the holiday Postpone - adjusts the invoice date to a to the first non-holiday date after the holiday You can use any combination of letters or numbers for the code. For example, you may enter the letter A or the number 30 for a terms code. Example: the code Net 30 indicates that payment is due 30 days after receipt of the invoice. Example: If your terms are 2/10 Net 30, the Due Days field is 30. Example: if an invoice has a date of 2/15 and the Prox Due Day is set to 20, the due date for that invoice will be 3/20. Entering 99 instructs the system to set the due date to the last day of the month in which the calculated date falls. If the value in the Prox Due Day is greater than the number of days in the next month, the last day of the next month will be used. For example, if an invoice has a date of 1/15 and the Prox Due Day is set to 30, the due date for that invoice will be 2/28. Numeric values of are accepted. The holiday offset is only used when determining the due date. The discount date is calculated without regard for the holiday offset method. 8 Lesson 1: Supporting files maintenance

23 Determining discount days The following methods can be used to set discounts: Discount days Prox discount days Note: You cannot use discounts when you use multiple due dates. The following table displays the fields used to determine discount days on the Billing Terms form and provides a brief description of each: Field Discount Days Prox Discount Day Prox Discount Months Forward Discount Percent Description The number of days to take advantage of an early payment. If the payment is within the number of days specified, the percentage of discount can be taken. Discount date = the invoice date + the discount days. If the invoice date is less than the prox discount day, the discount date will be set to the prox discount day of the current month. If the invoice date is less than the prox discount day, the discount date will be set to the prox discount day of the next month. For example: If the invoice date is 10/25 and the Prox Discount Day is set to 20, then the discount date will be 11/20. If the invoice date is 10/10 and the Prox Discount Day is set to 20, then the discount date will be 10/20. Note: If the values in the Discount Days and Prox Discount Day fields are both greater than zero, SyteLine will ignore the Prox Discount Day. The number of months to add to the Prox Discount Day. For example: If the invoice date is 10/25, the Prox Discount day is set to 20, and the Prox Discount Months Forward is set to 1, the discount date will be 12/20. If the invoice date is 10/10 and the Prox Discount day = 20 and Prox Discount Months Forward = 1, then the discount date will be 11/20. The percentage of the sales amount of an invoice that is deducted from the amount owed if payment is made on or before the discount date. For example, to allow a 2% discount for payments made on or before the discount date, enter a 2 in this field. You cannot use discounts and multiple due dates. When you select the Use Multiple Due Dates check box, all discount fields will be set to zero and deactivated. SyteLine: Using Accounts Receivable 9

24 The following table displays examples of discount dates. Invoice Date Discount Days Prox Discount Day Prox Disc Months Fwd. Discount Date 10/25/ /4/ /25/ /27/ /25/ /10/ /25/ /27/2014 Add Discount Days to invoice date Invoice date is < the Prox Discount day Invoice date is > the Prox Discount Day Prox Discount Months Forward is 1 Using multiple due dates Select the Use Multiple Due Dates check box to activate the use of multiple due dates for a billing terms code. You cannot use discounts and multiple due dates. When you select Use Multiple Due Dates, all discount fields will be set to 0 and deactivated. When using multiple due dates, you must enter the number of days to offset the invoice date from the previous sequence in the Due Days Offset column. The offset day in the first sequence is always equal to zero. If the value in the Due Days field is greater than zero, the due date of the first sequence will equal the invoice date plus due days. The due dates of the subsequent sequences are the invoice date plus due days plus the cumulative offset days. If the value in the Prox Due Day field is greater than zero, the due date of the first sequence will be the Prox due date for the invoice date. The due dates of the subsequent sequences are the prox due date for the date of the invoice date plus the cumulative offsets. For the designated sequence, you must also enter the percentage of the order total that you want to bill in the Percent column. The total percentage for the multiple due date billing terms must equal 100 percent. Viewing multiple due dates You can view the list of due dates for an invoice by clicking Multiple Due Dates on the following forms: Invoices, Debit and Credit Memos A/R Posted Transaction Detail A/R Quick Payment Application 10 Lesson 1: Supporting files maintenance

25 The following table displays examples of using multiple due dates when the invoice date is 5/5 and the Due Days field is set to 30. Sequence Due Days Offset Final Due Date /5 (5/5 plus 30 days) /5 (5/5 plus 60 days) /3 (5/5 plus 90 days) /1 (5/5 plus 120 days) The following table displays examples of using multiple due dates when the invoice date is 5/5 and the Prox Days field is set to 15. Sequence Due Days Offset Final Due Date /15 (Prox Due Date for 5/5, i.e. 5/5 plus 0 days) /15 (Prox Due Date for 6/4, i.e. 5/5 plus 30 days) /15 (Prox Due Date for 7/4, i.e. 5/5 plus 60 days) /15 (Prox Due Date for 8/1, i.e. 5/5 plus 90 days) Using advanced terms The following table displays the fields used with advanced terms. Field Advanced Terms Description Select this check box to enable the advanced terms calculation. If this check box is cleared, the Prox Code field will be disabled. You can use advanced terms with due days, prox due day, or multiple due dates. Prox Due Day When you select the Advanced Terms check box, your options are 0-30 or 99. Entering 99 instructs SyteLine to set the due date to the last day of the month. Cutoff Day Used with Prox Codes 1 and 3. Prox Code SyteLine uses the invoice date and then calculates a due date using the algorithm for the code entered. You can enter 0, 1, 2, or 3. The algorithm is as follows: 1. Start with the invoice date. 2. Add Prox Months Forward to the invoice date. 3. Adjust the date of step 2 based on the Prox Code. a. Prox Code = 0 Add Due Days to the result of step 2 b. Prox Code = 1 If the day of the month from step 2 >= the Cutoff Day, adjust the date to first day of next month Add Due Days SyteLine: Using Accounts Receivable 11

26 Field Description c. Prox Code = 2 Adjust the date from step 2 to the end of the month. Add Due Days d. Prox Code = 3 If the day of the month from step 2 >= the Cutoff Day, adjust the date to the first day of next month Adjust the date to the end of the month Add Due Days 4. Using Prox Due Day, calculate the Prox due date for the result of step Adjust the Prox due date for the Holiday Offset Method. Advanced Terms Examples The following table displays examples of using advanced terms. Invoice Date Prox Code Due Days Prox Due Day Prox Months Fwd. Cutoff Day Holiday Offset Method Due Date 10/25/ No Offset 11/24/ /25/ No Offset 12/1/2014 Add Due Days to invoice date Invoice day >= Cutoff, Due Date is Start of Next Month plus Due Days 10/25/ No Offset 11/30/ /25/ No Offset 12/30/ /25/ Bring Fwd. 11/5/ /25/ Bring Fwd. 11/5/2014 Due Date is End of Invoice Month plus Due Days Invoice Date >= Cutoff, Due Date is End of Next Month plus Due Days Invoice day falls on or after Cutoff Day, move to next month. Invoice day falls on or after Cutoff Day, move to next month 12 Lesson 1: Supporting files maintenance

27 Invoice Date Prox Code Due Days Prox Due Day Prox Months Fwd. Cutoff Day Holiday Offset Method Due Date 10/25/ Bring Fwd. 11/5/2014 Invoice day falls on or after Cutoff Day, move to next month 10/25/ Bring Fwd. 12/5/ /25/ Bring Fwd. 11/23/2014 Invoice Day falls on or after Cutoff Day, move to next month, and then push to end of next month before adjusting to Prox Due Day. Holiday falls on 11/24/2014, Holiday Offset Method is Bring Forward 10/25/ Postpone 11/25/2014 Holiday falls on 11/24/2014, Holiday Offset Method is Postpone 10/25/ No Offset 11/24/2014 Holiday falls on 11/24/2014, Holiday Offset Method is No Offset 10/25/ No Offset 11/24/2014 Holiday falls on 11/24/2014, Holiday Offset Method is No Offset 10/25/ No Offset 12/5/2014 Prox Month Forward is 1 10/25/ No Offset 12/5/2014 Prox Month Forward is 1. 10/25/ No Offset 12/5/2014 Prox Month Forward is 1. SyteLine: Using Accounts Receivable 13

28 Invoice Date Prox Code Due Days Prox Due Day Prox Months Fwd. Cutoff Day Holiday Offset Method Due Date 10/25/ No Offset 1/5/2012 Prox Month Forward is 1. Cash Only field The Cash Only check box must be selected when a value greater than zero has been entered in the Cash Rounding Factor field on the Tax Parameters form. Select this check box for cash sale only billing terms. When selected, the final invoice will be rounded up or down to the nearest cash rounding factor amount. The special rounding calculation is only performed as regular, credit memo, or adjustment invoices are printed and posted. This rounding is not made anywhere else in the system. It does not apply to progressive billing Invoices, nor is it completed when computing the order total price or the to be invoiced report. Note: By default, this check box is not selected. 14 Lesson 1: Supporting files maintenance

29 Demo: Create a billing term Your instructor will demonstrate how to define a new billing term. Exercise 1.1: Create a billing term In this exercise, you will define a new billing term. Progressive Cycles, Inc.'s Credit Department has created a new credit policy. All new customers will be automatically granted billing terms of 2% 5 net 15 days. This billing term will be in effect until the credit application has been reviewed. Create the billing term in the Billing Terms form. Use NC as the code for these terms. Exercise steps 1. Open the Master Explorer > Modules > Codes > Billing Terms form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Type NC in the Code field. 5. Type 2/5 Net 15 in the field to the right of the Code field. 6. Type 15 in the Due Days field. 7. Type 5 in the Discount Days field. 8. Type 2 in the Discount Percent field. 9. Save the record. SyteLine: Using Accounts Receivable 15

30 Salespersons Use the Salespersons form to maintain the list of valid salespersons who can be entered for customer orders. Sales commissions are based on the salesperson and the product sold. A parameter can be set on the Order Entry Parameters form that makes commissions due upon the order payment received in accounts receivable, or at the time the invoice is printed. To add a new salesperson: 1. Open the Master Explorer > Modules > Customers> Salesperson > Salespersons form. 2. Select System > Actions > New. 3. Type a three-letter identifier for the salesperson in the Salesperson field. 4. Select a classification code from the Classification drop-down list. The codes are defined on the Salesperson Classifications form. They might represent something such as sales regions, or sales teams. 5. Select a sales manager from the Sales Manager drop-down list. Note: This field identifies another salesperson that should receive commission based on the sales of the salesperson. 6. If the salesperson is not an employee, select the Outside check box. Note: If the salespersons are outside the company, they will be paid through accounts payable. If they are employees, they will be paid through payroll. 7. Select the Portal Reseller check box to indicate that the salesperson can be a portal reseller. 8. Select a reference number from the Ref Num drop-down list. The reference number will be the: Employee number of the salesperson if the person is an employee. Customer number of the customer that the salesperson is associated with if the Outside check box is selected, indicating the salesperson is not an employee. 9. Select the SyteLine user name from the User Name drop-down list if the salesperson has a SyteLine system user account. 10. Select the deduction and earning code from the D/E Code drop-down list. 11. This code is from the Payroll module and is used for reporting commission earnings when the salesperson is an employee (Outside check box cleared). This field is required if commission payment is to be made through the Payroll module. 12. If known, type the sales period-to-date and sales year-to-date amounts for the salesperson. These fields are automatically updated when an invoice is generated for a customer order containing this salesperson's code. 13. Save the record. 16 Lesson 1: Supporting files maintenance

31 Bank codes Bank codes are defined for each bank your company does business with. Each bank code requires a general ledger account number. Several bank codes may use the same general ledger cash account. Each customer is required to reference a bank code. The bank code determines which cash account will be debited when a customer payment is posted. When A/R payments are posted the system now generates an A/R deposit record to this form. Returned checks are now entered as a negative A/R amount in this form. To add a new bank code: 1. Open the Master Explorer > Modules > Finance > General Ledger > Bank Reconciliations form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Type a three-letter identifier for the bank in the Bank Code field. 5. Type the name of the bank in the Bank Name field. 6. Type the bank account number to be associated with the bank code in the Bank Account field. 7. Select the number of the general ledger cash account that is to be used by the bank code from the Cash Account drop-down list. 8. Select the unit code to be associated with the cash account from the drop-down list in the field to the right of the Cash Account field. 9. Select the currency that is used for this account from the Currency drop-down list. 10. Type the Business Identifier Code (BIC) and the International Bank Account Number (IBAN) if known. These are used internationally to identify accounts at financial institutions. 11. Save the record. 12. Click Bank Addresses to display the Bank Addresses form. 13. Type in address information for the bank in the appropriate fields at the top part of the form. 14. Type the routing number of the bank in the Bank Number field. 15. Type the branch code of the bank associated with the bank code. 16. Type in contact information for the bank in the appropriate fields. 17. If applicable, select the number of the general ledger account to be used for the draft discounted account and draft remitted account. 18. Save the record. 19. Close the Bank Addresses form. SyteLine: Using Accounts Receivable 17

32 Demo: A/R-related parameters and files Your instructor will demonstrate how to access the various accounts receivable-related parameters and settings forms in order to extract specific information. Exercise 1.2: A/R-related parameters and files In this exercise, you will access various accounts receivable-related parameters and settings forms and extract the information as specified below. 1. What is the Customer Prefix? 2. What is the Aging Basis for the Aging Report aging periods? 3. What is the default Std Due Period? 4. What is the Invoice Length? 5. What is the name of the salesperson with the JAR identifier? 6. Is JAR an employee or an outside salesperson? 7. What is the name of the bank with the BK1 bank code? 8. What is the account number of the bank with the BK1 bank code? 18 Lesson 1: Supporting files maintenance

33 Check your understanding How does SyteLine calculate the default Due Date for a customer order? What is the maximum length of invoice numbers that can be specified on the Order Entry Parameters form? a) 8 b) 10 c) 12 d) 15 SyteLine: Using Accounts Receivable 19

34 Which form is used to set up the printing of the company name and address on various SyteLine forms? a) General Parameters b) Accounts Receivable Parameters c) Order Entry Parameters d) Inventory Parameters A billing term for a customer is set up as follows: Prox Due Day: 15 Prox Discount Day: 8 Prox Months Forward: 0 Prox Discount Months Forward: 0 Holiday Offset: None If an invoice date for that customer is 7/16/2013: What is the due date for payment of the invoice? What is the discount date? 20 Lesson 1: Supporting files maintenance

35 Lesson 2: Accounts receivable account maintenance Estimated time 40 minutes Learning objectives After completing this lesson, you will be able to: Topics Describe how to set up and map the various accounts related to accounts receivable. Describe how you might use end user type records. Explain how account distribution works for accounts receivable. Introduction Chart of Accounts Accounts receivable (A/R) accounts o Examples Distribution accounts End user types How account distribution works SyteLine: Using Accounts Receivable 21

36 Introduction Account numbers are used by an Accounts Receivable department to track transactions that are used to generate invoices, maintain customer accounts, apply adjustments, maintain receipt logs, create deposit tickets, record payments and produce reports, etc. The Chart of Accounts in SyteLine must contain all accounts receivable-related account numbers before transaction distribution and posting can occur. Once the account numbers are established, distributions of transaction amounts can be set up based on the accounting needs of the business. For example, account numbers for sales, invoicing and customer payments for all customers who are retailers might be set up differently than they are for customers who are wholesalers. Or account numbers might be set up differently for sales of items that have specific product codes. In this lesson, you will learn how to set up distribution accounts for: Default accounts receivable distributions End user type distributions Product code distributions Instruction is also provided on how the system retrieves the correct distribution account numbers at the time of distribution or posting. 22 Lesson 2: Accounts receivable account maintenance

37 Chart of Accounts Account numbers are needed for all invoices, credits and debit memos, payments and finance charges in accounts receivable. This form must contain all accounts receivable-related account numbers before transaction distribution and posting can occur. Follow these steps to create an account: 1. Select Master Explorer > Modules > Finance > General Ledger > Chart of Accounts form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Type the account number in the Account Number field. 5. Type a description of the account for reference. This field is located to the right of the Account Number field. 6. Select the account type from the Account Type drop-down list. Account types include: Assets Liabilities Owner's Equity Expense Revenue Statistical Allocation Note: If you select Allocation, you must also enter an allocation for it on the Chart of Accounts Allocations form. 7. Select the date you want the account to become active in the Effective Date field. You may use the Calendar icon. 8. Select the date you want the account to become obsolete in the Obsolete Date field. You may use the Calendar icon. This is used only if you no longer want to use the account after a particular date. 9. Click the Control Account check box if the account is a control account. 10. Select an option from the Unit Codes 1-4 drop-down lists. Unit code 1 is typically a manufacturing department or an expense department. Unit code 2 is typically a product line or a sales category because it links items to GL accounts. Unit codes 3 and 4 are optional, and can be linked to customers, vendors or other objects. Options for the Unit Codes fields are: No Access Accessible Required 11. Click Buying or Selling in the Exchange Rate Type field if the financial entity reports to another financial entity. 12. Select the number of the account to which this account reports in the Reports to Acct field. 13. Select the currency translation method in the Currency Translation Method field. 14. Save the record. SyteLine: Using Accounts Receivable 23

38 Example Accounts Receivable account number in the Chart of Accounts form 24 Lesson 2: Accounts receivable account maintenance

39 Accounts receivable (A/R) accounts The Accounts Receivable Parameters Accounts, Accounts In Process, and Misc Accounts tabs specify the default accounts to be used for system-generated invoice distributions. Accounts must exist in the chart of accounts before they can be assigned for invoice distribution. To assign accounts receivable accounts for invoice distribution: 1. Open the Master Explorer > Modules > Codes > Parameters > Accounts Receivable Parameters form. 2. Select the Accounts tab. 3. Select the default accounts and unit codes to be used for invoice distributions for the following: Accounts Receivable Sales The sales account here is only used for manual invoices entered in Accounts Receivable, not invoices generated from customer orders. Sales Discount Misc Charges Freight Surcharge Draft Receivable Sales Non Inventory - used when invoicing for items not in the inventory 4. Save the record. 5. Select the Accounts In Process tab. 6. Select the default in-process accounts and unit codes to be used for invoice distributions for the following: Accounts Receivable In Process Sales In Process Sales Discount In Process Surcharge In Process Sales Non Inventory In Process - used when invoicing for items not in the inventory 7. Save the record. 8. Select the Misc Accounts tab. SyteLine: Using Accounts Receivable 25

40 9. Select the default miscellaneous accounts and unit codes to be used for invoice distributions for the following: Finance Charges Deposit Allowance Early Pay Discount Progressive Billing Project Billing Deferred Revenue Acct 10. Save the record. Accounts tab of the Accounts Receivable Parameters form Examples Example 1 Here is an example of a system-generated invoice for $250. Based on account assignments in the Accounts Receivable Parameters form (see image above), default distributions would be as follows: Invoice Item Amount Account Account Description Sales $ Sales Miscellaneous Charges $ Miscellaneous Revenue Freight $ Freight Revenue Invoice Total $ Accounts Receivable 26 Lesson 2: Accounts receivable account maintenance

41 Example 2 If you are using the customer shipment approval functionality, in-process accounts are used for distribution when an invoice is generated, prior to approval. Here is an example of a systemgenerated invoice for $250 prior to shipment approval. Based on account assignments in the Accounts Receivable Parameters form (Accounts In Process tab), default distributions would be as follows: Invoice Item Amount Account Account Description When the invoice is created: Sales $ Sales In Process Invoice Total $ Accounts Receivable in Process After shipment is approved and invoice is posted: Sales $ Sales Invoice Total $ Accounts Receivable SyteLine: Using Accounts Receivable 27

42 Distribution accounts Distribution accounts are sets of accounts grouped by warehouse and product code. The Distribution Accounts (Sales/Costs of goods sold (COGS)) form determines which sales and sales discount accounts will be used when invoicing from a customer order. Product codes are used to group similar types of items together. Therefore, each product code can have different sales and sales discount accounts. To define the distribution accounts (Sales/COGS) for a product code: 1. Open the Master Explorer > Modules > Material > Inventory > Files > Product Codes form. 2. Turn off the Filter In Place mode. 3. Select the product code for which you are defining distribution accounts from the list on the left side of the form. 4. Click Distribution Accounts. The linked Distribution Accounts form displays. 5. Select the Sales tab. 6. Select the account numbers and unit codes to associate with the product code for the following: Sales - this account appears as the default sales account on the Invoices, Debits, and Credit Memos G/L Distribution form Sales Discount Surcharge 7. Select the Sales In Process tab. The in-process account numbers are used if you are using the customer shipment approval functionality. 8. Select the in-process account numbers and unit codes to associate with the product code for the following: Sales In Process Sales Discount In Process Surcharge In Process 9. Select the COGS tab. 10. Select the cost of goods sold account numbers and unit codes to associate with the product code for the following: COGS Matl material COGS Labor COGS Fovhd fixed overhead COGS Vovhd variable overhead COGS Outside 11. Select the COGS In Process tab. The in-process account numbers are used if you are using the customer shipment approval functionality. 28 Lesson 2: Accounts receivable account maintenance

43 12. Select the cost of goods sold in-process account numbers and unit codes to associate with the product code for the following: COGS In Process Matl material COGS In Process Labor COGS In Process Fovhd fixed overhead COGS In Process Vovhd variable overhead COGS In Process Outside 13. Save the record. 14. Close the Distribution Accounts form. SyteLine: Using Accounts Receivable 29

44 End user types End user types are classifications of customers and are used to specify shipping and invoicing account distributions for sales, sales discounts, accounts receivable, and costs of goods sold (COGS) accounts. These invoice distributions will flow to the general ledger and allow you to report sales by customer. End user types are defined on the End User Types form and can be associated with a customer on the customer record or customer order. To define a new end user type: 1. Open the Master Explorer > Modules > Customers > General > Files > End User Types form. 2. Select System > Actions > New. 3. Type a code identifier for the new end user type in the End User Type field. 4. Type a description for the new end user type in the field to the right of the End User Type field. 5. Select the General tab. 6. Select the account numbers and unit codes to associate with the end user type for the following: Accounts Receivable Draft Receivable Sales Sales Discount Surcharge Sales Non Inventory - used when invoicing for items not in the inventory 7. Select the General In Process tab. The in-process account numbers are used if you are using the customer shipment approval functionality. 8. Select the in-process account numbers and unit codes to associate with the end user type for the following: Accounts Receivable In Process Sales In Process Sales Discount In Process Surcharge In Process Sales Non Inventory In Process - used when invoicing for items not in the inventory 9. Select the Cost of Goods Sold tab. 10. Select the cost of goods sold account numbers and unit codes to associate with the end user type for the following: COGS Matl material COGS Labor COGS Fovhd fixed overhead COGS Vovhd variable overhead COGS Outside 11. Select the COGS In Process tab. The in-process account numbers are used if you are using the customer shipment approval functionality. 30 Lesson 2: Accounts receivable account maintenance

45 12. Select the cost of goods sold in-process account numbers and unit codes to associate with the end user type for the following: COGS In Process Matl material COGS In Process Labor COGS In Process Fovhd fixed overhead COGS In Process Vovhd variable overhead COGS In Process Outside 13. Save the record. Demo: End user type invoice distribution accounts Your instructor will demonstrate how to find end user type invoice distribution accounts. Exercise 2.1: End user type invoice distribution accounts In this exercise, you will find the invoice distribution accounts for specified end user types. Perform the following tasks: 1. Find the sales account number that will be used during invoice distribution of an invoice for a customer that has been assigned the Retailer end user type. 2. Find the sales discount account number that will be used during invoice distribution of an invoice for a customer that has been assigned the Distributor end user type. Exercise steps 1. Open the Master Explorer > Modules > Customers > General > Files > End User Types form. 2. Select the RETAIL end user type from the grid on the left side of the form. 3. Read the account number specified for the Sales account. Note: Remember to include the unit code as part of the account number. 4. Select the DSTRB end user type from the grid on the left side of the form. 5. Read the account number specified for the Sales Discount account. Note: Remember to include the unit code as part of the account number. SyteLine: Using Accounts Receivable 31

46 How account distribution works When customer order invoices are posted, SyteLine will check three different locations for sales and cost of goods sold general ledger accounts. In order, those locations are: 1. End User Type records 2. Item Distribution accounts 3. Accounts Receivable Parameters Invoicing Accounts Distribution End User Type Distribution Accounts System Defaults Customer Record Product Code Accounts Receivable Parameters. Order that system retrieves account information for invoice distributions During shipping transactions and invoice posting, if an End User Type is specified on the customer order or customer record, the system first determines whether valid accounts are available from the End User Types form. The system creates invoice distributions with any valid general ledger accounts found there. If valid accounts are not found or if an End User Type has not been specified for the customer, the system then checks if the invoiced items have an assigned product code. The product code Distribution Accounts form is then checked for valid accounts and uses those accounts for distribution. Finally, if valid accounts are not found or if the invoiced items do not have a product code specified, the system uses the system default account numbers as specified in the Accounts Receivable Parameters form. 32 Lesson 2: Accounts receivable account maintenance

47 The system uses this process to retrieve the account numbers that display as the default values on distribution forms prior to posting. The user can override any of the distribution account numbers by manually selecting a different account. Additionally, the user has the option of using the End User Type to collect sales information by customer type, as well as utilizing a unit code to track product code information at the same time. Example Let s take a look at an example of how the system determines which account numbers to use when performing invoice distributions. The table below contains sample distribution account numbers for one end user type (Retail), one product code (FG-100), and accounts receivable parameters. End User Type: Retail Product Code: FG-100 Accounts Receivable Parameters General Tab Distribution Accounts, Sales Accounts & Misc Accounts Accounts Receivable: Draft Receivable: Sales: Sales Discount: Surcharge: Sales: Sales Discount: Surcharge: Accounts Receivable: Sales: Sales Discount: Misc Charges: Freight: Surcharge: Finance Charges: Deposit: Allowance: Early Pay Discount: Consider an invoice that was generated upon shipping of a customer order with this information: Order amount: $ 2, Freight charges: $ Total invoice amount: $ 2, Customer end user type: no end user type specified Product code for ordered items: FG-100 SyteLine: Using Accounts Receivable 33

48 The table below shows the journal entries that were made as a result of the invoice distributions from the customer order above. Journal entries Account Debit Credit Account Unit 1 Account Unit , , Account Unit 3 Account Unit 4 The first entry came from the product code sales distribution account because there was no end user type specified for this customer. Notice the 0001 unit code for that entry. That tells you that the account number came from the product code sales distribution account. If the customer had the Retail end user type specified, the unit code would have been 3000 as designated for that end user type. If the account entry did not have a unit code, that would tell you that the account number came from the Accounts Receivable Parameters form. The account numbers for the second and third journal entries both came from the Accounts Receivable Parameters form. There are not account number entries for freight charges in the end user type or product code distribution accounts, and because there is no end user type specified for the customer, the accounts receivable account number came from the Accounts Receivable Parameters form. 34 Lesson 2: Accounts receivable account maintenance

49 Check your understanding Which forms does SyteLine check to retrieve account numbers for distribution of systemgenerated invoices? Select all that apply. a) Accounts Receivable Parameters form b) Chart of Accounts form c) Distribution Accounts form for product code of invoiced items d) End User Types form for end user type of the invoiced customer Use the account numbers table and customer order information below to determine which accounts will be used for invoice distribution. 1. Account number used for Sales =? 2. Account number used for Freight charges =? 3. Account number used for Miscellaneous charges =? 4. Account number used for Accounts Receivable =? End User Type: Retail Product Code: FG-100 Accounts Receivable Parameters General Tab Distribution Accounts, Sales Accounts & Misc Accounts Accounts Receivable: Sales: Sales Discount: Sales: Sales Discount: Accounts Receivable: Sales: Sales Discount: Misc Charges: Freight: Finance Charges: Deposit: Allowance: Early Pay Discount: Customer order information: Order amount: $ 6, Freight charges: $ Miscellaneous charges: $ Total invoice amount: $ 6, Customer end user type: Retail Product code for ordered items: FG-100 SyteLine: Using Accounts Receivable 35

50 Lesson 3: Customer records and customer orders Estimated time 1 hour 20 minutes Learning objectives After completing this lesson, you will be able to: Describe the process for creating a customer record. List the steps to set up multiple ship-to locations for a customer. Explain how interactions with a customer are recorded. List the steps for shipping customer orders. Topics Introduction Creating a basic customer record Setting up multiple ship-to locations Other Customers form tabs Recording customer interactions o Interaction topics Customer order shipping 36 Lesson 3: Customer records and customer orders

51 Introduction You must enter a customer record for each of your customers. This record maintains detailed information for the customer and is used throughout the system. The Customers form accesses all the relevant information for storing basic customer data, tracking what customers buy from your company and what they owe you. In this lesson, you will learn how to add or edit customer shipping locations. You will also learn about other various types of information contained in the tabs on the customer record and will create a full customer record that contains credit information, contact information for ordering and shipping, shipping information, and corporate customer information. Finally you will learn how to ship customer orders. SyteLine: Using Accounts Receivable 37

52 Creating a basic customer record The Customers form stores all the relevant information for basic customer data, tracking what customers buy from the company, and what customers owe. It also shows how much a customer has purchased from the company during the current year and the previous year. You must set up a customer record for each customer. This record maintains detailed information for the customer, and this information is accessed throughout the system. You can indicate whether this record shows up in drop-down list fields. You can set up a customer record so that a customer can have one billing address and multiple shipping locations. To create a new customer record: 1. Open the Master Explorer > Modules > Customer > General > Customers form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. In the Customer field, do one of the following: To define your own customer identifier, enter the alphanumeric character string to use. To allow the system to generate the customer identifier, using the Customer Prefix defined on the Accounts Receivable Parameters form, leave the field blank. The green checkmark symbol that appears in the top-right corner of the form indicates that this customer is not on credit hold. If you were to put this customer on credit hold, a red exclamation point symbol will appear in this position on the form. 5. Type the customer's billing address information in the address fields. 6. To further define the customer's billing information such as the customer's language, currency code, and bank information on the form, enter the appropriate data in the fields. Refer to the header fields table below for descriptions of the various fields. 7. To save the initial record, select System > Actions > Save. 38 Lesson 3: Customer records and customer orders

53 Customers form - Header fields Field Description Notes Customer (Customer Name) Address (1-4) City Prov/St Postal/ZIP County Country EU Code Corporate Cust (Corporate Customer Description) Language Unique alphanumeric customer identifier Name of the customer Billing address of the customer City of the customer Province/State of the customer Postal code of the customer County of the customer Country of the customer European Union code of the customer Customer number of the parent company, if customer is a subordinate company Name corresponding to the number entered in the Corporate Customer field Language code of the customer If you do not specify a number here, the system assigns the next unique customer number available when you save the record. EU codes are defined in the Countries form. The customer to be the designated corporate customer is selected on the Corporate Customer tab. Currency Currency code used by the customer Bank Code Bank code for the customer The bank code refers to the default bank account in which the customer's checks are deposited. Customer Bank Type Bank where customer payments will be deposited Customer type from types set up on the Customer Types form. Examples: the customer type can be used to specify discounts or to filter on certain customers when printing Sales Analysis reports. You may want to set up different types to determine if a customer is active or inactive. The Type field can be used to determine the territory the customer is in and to print Sales Analysis reports by territory. SyteLine: Using Accounts Receivable 39

54 Setting up multiple ship-to locations You can set up a customer record so that a customer can have one billing address and multiple shipping locations. Up to 9999 different addresses can be entered for this customer to define secondary addresses for shipping purposes. To add shipping locations for a customer: 1. On the Customers form, select the Ship To tab. 2. Click the Ship Tos button located at the bottom of the tab. The Customer Ship Tos form opens. 3. Select System > Actions > New. 4. In the Ship To field, enter a number or leave the field blank to accept the next available sequential number. This number is used on the Customer Order Lines form when you are specifying a drop-ship-to location. 5. On the Address tab, enter the shipping address information for the new ship-to location. 6. Select the Codes tab. This tab will also hold the default data for the customer warehouse, ship via codes, salesperson, and tax codes. Enter or select appropriate information in the fields. For more information, see the field descriptions in the table below. 7. Select the Sales Contacts tab. This tab will contain the customer sales contact information for this ship-to location. Enter or select appropriate information in the fields. 8. Select the DIFOT tab. DIFOT means Deliver in Full and On Time. This tab will contain the tolerances for the DIFOT standard for deliveries of over/under quantities and early/late shipment dates. Enter or select appropriate information in the fields. More information on DIFOT can be found in the SyteLine Help files. 9. Select System > Actions > Save to save the ship-to location. 10. After you are finished adding ship-to locations, to return to the Customers form, close the form. 11. On the Customers form, select the default ship to number to define an address as the default ship to address. 12. If needed, select a Ship Method Group from the drop-down list. 13. Save the record. 40 Lesson 3: Customer records and customer orders

55 Customer Ship Tos form Codes tab fields Field Description Notes Ship Site Whse Ship Via (Ship Via Description) Ship Early Ship Partial Show in Drop- Down Lists Salesperson Language Currency The ship site indicates the site that normally ships goods to the customer. Enter the warehouse from which the customer order is to be shipped. This is an optional field. Enter or select the ship via code used by this customer. Displays the description of the selected Ship Via code. Select the check box to indicate early shipments are acceptable. Clearing the check box indicates early shipments are not permitted. Select the check box to indicate partial shipments are acceptable. Clearing the check box indicates partial shipments are not permitted. Selecting the Show in Drop-Down Lists check box indicates that the customer's ship-to address is available for selection on the customer Ship To fields. Enter the code that represents the salesperson that is responsible for this customer. If this Ship To Customer uses a foreign language, select the code for that language. The currency code and description for the current customer displays. On customer orders the ship site defaults from the Customers form; however, you can overwrite the ship site. If selected, this warehouse becomes the default warehouse on customer orders. The ship via code is used to identify the preferred shipping method of this customer. When performing shipping transactions, the customer's default records for Ship Early and Ship Partial will display. However, these are only visual aids for the user. The only time a Ship Early/Partial = No will prevent shipping transactions is if the Order Pick List is generated and Post Material Issues is set to Yes. The shipping transactions will not be created. After clearing this check box and designating the ship-to address as not available, the address' sequence number will not display in the ship-to field drop-down lists on other forms. However, a valid address sequence number can be manually entered. If salespersons are not being used, leave this field blank. The system uses this code to determine what language to print customer invoices and reports. SyteLine: Using Accounts Receivable 41

56 Field Description Notes Export Type Tax Code 1, 2 (and Description) Fed ID Select the export type to associate with the customer. Options include: Direct - The company sells the product directly to a foreign customer. Indirect - Tax-free imported materials can be shipped to this customer to be included in a final assembly that is being exported back to the original country. Non-Export - The company sells to a local customer and in return issues an Export Certificate that states that the company will use this product as a raw material or assembly and will sell the finished good to a foreign customer. These fields display the user-defined tax codes entered on the Tax Systems form. Enter the federal identification number for the ship to customer. This field is enabled when the Track Tax Free Imported Materials check box is selected on the Inventory Parameters form. The values for this field are defined on the Tax Systems form. Branch ID Enter the branch ID (if any). This field is activated only when the Activate EU Reporting check box is selected on the General Parameters form. Customer Ship Tos form DIFOT tab DIFOT is described in detail in the SyteLine Customer Service/Order Entry course. 42 Lesson 3: Customer records and customer orders

57 Other Customers form tabs The remaining tabs on the Customers form contain a variety of information about the customer. The other tabs on the Customers form are: Credit tab Contacts tab Codes tab Payment History tab Corporate Customer tab Taxes tab EU VAT tab Revision/Pay tab CRM tab Interactions tab Descriptions of the type of information contained in these tabs are provided below. Not every field on every tab will be described in this lesson. The fields and tabs that are most commonly used will be addressed. For more information on any of the fields, place your cursor over the field, right-click and select Help from the drop-down list. Select a tab on the Customers form to view or update information as needed. Remember to save the record after making any changes. SyteLine: Using Accounts Receivable 43

58 Credit tab The Customers form - Credit tab stores all relative credit information pertaining to the customer to include sales and payment information. On this tab you can define the amount of credit extended to the customer. When you add a new customer order, if that order total exceeds this credit limit, the system displays a warning message (which you can override). You can also put the customer on credit hold, which blocks any shipping transactions for this customer. Customers form Credit tab fields (partial) Field Description Notes Credit Limit Order Credit Limit Credit Hold Reason The amount of credit extended to the customer. The amount of credit extended to the customer per order. The order credit limit must be less than, or equal to, the total credit available for the selected customer. Select this check box to place the current customer on credit hold. When a customer is placed on credit hold, no shipments can be made to that customer. Clear this check box to remove the credit hold for a customer. If you place a customer on credit hold, you must select a reason from the Reason drop-down list. When adding a new customer order, if an order is placed that will exceed the amount of available credit, the system displays an informational message warning the user of the exceeded credit limit. The message can be overridden. If you enter an amount that is greater than the total available credit for the customer, an error displays and the record is not saved. Whenever a customer record is open throughout the system, if a customer is on credit hold, a large red exclamation point displays. If a customer is not on credit hold, a large green checkmark displays. See the image below. Indicates customer is on credit hold Icon next to customer name indicates credit hold status Indicates customer is not on credit hold 44 Lesson 3: Customer records and customer orders

59 Individual orders can also be placed on hold based on the order credit hold criteria specified. More information on this can be found in Appendix B. Contacts tab Specify the names and contact information for order and billing communications with this customer. The Order Contact field is used on order verification documents. The Billing Contact field is used on accounts receivable documents such as customer statements. You can also enter a URL address for a customer or vendor website. SyteLine: Using Accounts Receivable 45

60 Codes tab This tab includes information about invoicing, pricing, and expense account options. For more information, see the field descriptions below. Customers form Codes tab fields (partial) Field Description Notes Print Packing Slip on Invoice One Invoice per Packing Slip Include Tax in Price Show in Drop- Down Lists Shipment Approval Required Price Code and (Description) End User Type and (Description) The value for this check box is taken from the Order Entry Parameters form. Select this check box if you want to print packing slips on invoices for this customer, otherwise clear this check box. Select this check box if you want the system to only include one packing slip number on an invoice. Select this check box if you want the customer order to include tax in the price of the items. Select the Show in Drop-Down Lists check box to indicate that the customer is available for selection on customerrelated fields. Select this check box to indicate that order shipments for this customer require approval and posting procedures before they can be invoiced. A price code is set up on the Customer/Item Cross Reference that this customer will utilize as a default. The price code can be overridden at the Order Maintenance line item level. Using this field in conjunction with the End User Types form allows the user to alter the categories in which sales and cost of goods sold will be recorded. This field is enabled when you select the Print Packing Slip On Invoice check box. 46 Lesson 3: Customer records and customer orders

61 Payment History tab The Payment History tab displays information regarding the sales and payment history of the customer. Many of the fields are display-only but you can manually update the fields on the left-hand side of the form. Enter the initial amounts for the sales and payment history for this customer. You only need to do this when you initially set up the customer. The system maintains most of the fields through normal day-to-day transactions such as invoice and payment posting. The Balance Outstanding and Days Outstanding fields are updated by running the Accounts Receivable Monthly Balance utility, a utility that should be run as part of the month-end procedures. SyteLine: Using Accounts Receivable 47

62 Corporate Customer tab This tab allows you to create relationships between one customer, called the corporate customer, and one or more other customers, called subordinate customers. In the Corporate Cust field, if you select this current customer's customer number, you are specifying this customer as the "corporate customer." If you select another customer number in this field, you are specifying this current customer as the "subordinate customer" (that is, subordinate to the customer you specify in the Corporate Cust field). Only the customer that you specify as the "corporate customer" appears on the Bill To tab. This allows you to apply a single payment across multiple subordinate customer invoices. By selecting the Corp. Credit field, you can use the corporate customer's credit values for credit limit processing, or clear this field to use the subordinate customer's credit values. For more information, see the field descriptions below. Customers form Corporate Customer tab fields Field Description Notes Corporate Address Corporate Credit Select this check box if you want the corporate address to print on invoices, debit memos, or credit memos. Select this check box if you want to use corporate credit for credit limit processing. If the field is cleared, the system will use the subordinate customer credit for credit limit processing. Corporate Customer Clear this check box if you do not want to use corporate credit for credit limit processing. This field allows you to enter the number of a corporate customer for the subordinate customer displayed in the Customer field in the header. When you enter a customer number in this field, the system displays the name and address of that customer in the box below. If the Corporate Customer is blank, the current customer record has no corporate customer. If the current customer is neither a corporate customer nor a subordinate customer, this field is blank. 48 Lesson 3: Customer records and customer orders

63 Taxes tab This tab displays the customer s taxes information and federal identification number. Most of the fields on the tab contain default information from the Tax Systems and Tax Codes forms. EU VAT tab The information in this tab is used for customers in the European Union (EU). Refer to field-level help for more information on the use of these fields. Revision/Pay tab The Revision/Pay tab on the Customers form allows you to define revision and pay days for invoice validation and payments. The revision day specifies the day when the invoice is sent to the customers. The pay day specifies the day payment can be collected (after the invoice due date has been reached). CRM tab Customer relationship management (CRM) is a model for managing a company s interactions with current and future customers. The CRM tab allows you to assign a territory to a customer, enter the Standard Industrial Classification (SIC) code, and list the revenue and number of employees. You can also cross-reference sales contacts to the customer. The Sales Contacts grid displays information about sales contacts assigned to the customer. The information on this tab is outside the scope of this course. CRM is covered in detail in the SyteLine CRM course. Interactions tab This tab contains the recorded interactions with the customer. You are able to review information about an interaction by selecting an interaction entry, but you cannot add, modify, or delete interactions on this tab. The information comes from the Customer Interactions form. Information on how to keep records of customer interactions is presented in the next topic. SyteLine: Using Accounts Receivable 49

64 Demo: Full customer record Your instructor will demonstrate how to create a new full customer record. Exercise 3.1: Full customer record In this exercise, you will create a new full customer record. Create a new, full account using the following details: We are pleased to announce that Jay Richards is finalizing the last minute details on a rather impressive sales deal. Within the next week, Jay will be closing an order with Mountain Trail Bikes (MTB), located in Montana. In preparation, we must set up a new customer record for Mountain Trails. Their address information is as follows: Mountain Trail Bikes 18 North Street Whitefish, MT Phone: UPS is the primary method of shipment. Early shipments will be permitted, but not partial shipments. In case of shipping problems, contact Stuart Alden at (406) The statement cycle is monthly, their credit limit is $75,000 with an order credit limit of $5,000, and bank code is BK1. We will offer Mountain Trails our billing terms of 2%. Mike Smith is Jay's main ordering contact. He can be reached at (406) The fax number is (406) Mountain Trails is a subsidiary of Gilmore Two Wheelers. Mountains Trails will be utilized and invoices will be mailed to the parent company. Bill To is Mountain Trail Bikes Corporate Customer is Gilmore Two Wheelers Corporate Address is Yes Corporate Credit is No 50 Lesson 3: Customer records and customer orders

65 Exercise steps 1. Open the Master Explorer > Modules > Customer > General > Customers form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Allow the system to assign the customer ID number by leaving the Customer field blank. 5. Type Mountain Trail Bikes in the field to the right of the Customer field. 6. Type 18 North Street in the Address (1) field. 7. Type Whitefish in the City field. 8. Select MT from the State drop-down list. 9. Type in the Postal/ZIP field. 10. Select BK1 from the Bank Code drop-down list. 11. Save the record. 12. Click Ship Tos located at the bottom of the tab. The Customer Ship Tos form opens. 13. Type Stuart Alden in the Contact field. 14. Type (406) in the Phone field. 15. Select the Codes tab. 16. Select UPS from the Ship Via drop-down list. 17. Clear the Ship Partial check box. 18. Select the Ship Early check box. 19. Select Jay Richards from the Salesperson drop-down list. 20. Save the record. 21. Close the Customer Ship Tos form to return to the Customers form. 22. Select the Credit tab. 23. Type in the Credit Limit field. 24. Type 5000 in the Order Credit Limit field. 25. Select Monthly from the Statement Cycle drop-down list. 26. Select 2% from the Terms drop-down list. 27. Save the record. 28. Select the Contacts tab. 29. Type Mike Smith in the Order Contact field 30. Type (406) in the Phone field. 31. Type (406) in the Fax field. 32. Save the record. 33. Select the Corporate Customer tab. SyteLine: Using Accounts Receivable 51

66 34. Select the Corporate Address check box. 35. Select Gilmore Two Wheelers from the Corporate Cust. drop-down list. 36. Save the record. 52 Lesson 3: Customer records and customer orders

67 Recording customer interactions Use the Customer Interactions form to record and track all communication between you and your customers, including date, time, and contact information. You also can use this form to reply directly to incoming messages from the Customer Portal. Example: A customer was contacted regarding payment. The customer explained that the check was in the mail. This information could be entered in the Customer Interaction form along with a follow-up date. To log a new customer interaction: 1. Open the Master Explorer > Modules > Customer > General > Customers form. 2. Turn off the Filter In Place mode. 3. Open the desired customer record. 4. Click Interactions. The Customer Interactions form opens. 5. Select System > Actions > New. 6. Type a unique number in the Interaction field or leave it blank to allow the system to assign the interaction number. 7. Select a topic for the interaction from the drop-down list. See the next topic in this lesson to learn about interaction topics. 8. The Interaction Date field contains the system date and time by default, but you can change it as necessary. 9. In the Follow-Up Date field, specify the date by which to follow up with the contact person. 10. In the Interactions grid on the Conversations tab, do the following: a. If this interaction is for internal use only, select the Internal check box. The note will not be communicated to the customer. b. If you are logging information received from the customer by phone or other means, and you want the customer to get an notification that this information has been recorded, select the Incoming check box. For a customer to receive notifications, they must be subscribed to alert notifications or have a SyteLine customer portal established. c. Enter your name in the Entry Name field or accept the default of the current user. The name entered is used as a sort option on reports. 11. Select the type of interaction from the Type drop-down list. 12. Select the Alert Subscribers check box if subscribers should be notified of the interaction. SyteLine: Using Accounts Receivable 53

68 For a customer to receive interaction notifications, they must be subscribed to alert notifications or have a SyteLine customer portal established. 13. Type relevant information in the notes box. 14. On the General tab, you can review default information about the selected customer and change the contact name and phone number as necessary for the current interaction record. You also can enter sales contact, salesperson, and reference information as appropriate for this record. 15. Save the record. If you set up a Customer Portal and have not specified Internal for this record, it is published to the Customer Portal for the customer to review. The customer may also receive an notification with the information. 16. If you selected as the interaction type, then enter the information in the fields at the bottom of the Conversations tab: a. Type an address in the To field or select an address from the drop-down list to the right of the To field and click Add address. b. If desired, type an address in the Cc field or select an address from the dropdown list to the right of the Cc field and click Add Address. c. Type a subject in the Subject field. d. Type the text of the in the Message field. e. To include the text from the interaction notes field, select the Include Interaction Text check box. f. To attach a file to the , select the Send Attachments check box. Additionally select the Send Internal Attachments if the attachment is an internal document. g. Save the record. h. Click Send Lesson 3: Customer records and customer orders

69 Interaction topics The Interaction Topics form controls what is available in the Topic field on the Customer Interactions and other interaction forms. To add an interaction topic: 1. Open the Master Explorer > Codes > Interaction Topics form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select Customer from the Interaction Type drop-down list. 5. Type a unique Topic ID in the Topic field. 6. Type a description for the new topic in the field to the right of the Topic field. 7. Save the record. SyteLine: Using Accounts Receivable 55

70 Customer order shipping After customer orders have been created and order lines/releases have been added to the orders, the next step is to fulfill the order by shipping the ordered items. Shipping an order includes generating a pick list so that ordered items can be located and picked from inventory, creating a packing slip for either shipping or pre-shipping, packaging the ordered items for shipment, and processing the shipping transaction. 56 Lesson 3: Customer records and customer orders

71 Generating a customer order pick list Before a customer order can be shipped, it must be picked from inventory. An order pick list helps users identify the items, quantities, and stock locations of the items to be shipped. Generate Order Pick List form To generate a customer order pick list: 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Generate Order Pick List form. 2. Select the various print options for the pick list. 3. Select the Starting and Ending Order numbers to include on the pick list. 4. Optionally, select the Starting and Ending Due Dates to include on the pick list. 5. Optionally, select the Starting and Ending Warehouses to include on the pick list. 6. Optionally, select the Starting and Ending Customers to include on the pick list. 7. Optionally, select the Starting and Ending Ship To locations to include on the pick list. 8. Select the Post Material Issues check box to automatically perform the material transactions for all items on the order, at the time the pick list is printed. Clear the check box if the material transactions are to be performed manually. 9. Select the Reprint Pick List Items fields as needed: All - all items will be reprinted on the pick list and the annotation *REPRINT* will appear next to the item. This indicates that it has been printed on a previous pick list. None - no previously printed items will be reprinted on the pick list. 10. Click Process to complete the activity. SyteLine: Using Accounts Receivable 57

72 Generating packing slips The packing slip is a shipping document that itemizes in detail, the contents of a particular package for shipment to a customer. The detail includes a description of items and the quantity being shipped. The user has the option of updating any of the selection criteria and can print packing slips by customer order numbers and line/release numbers, by customer numbers or by order and due dates. A separate packing slip is printed for each drop ship or ship to customer on each customer order. The order packing slip can be printed for shipping or pre-shipping. If you print a pre-shipping packing slip, then you will be unable to print a ship packing slip. The packing slip prints only line/release items which have been shipped via a shipment transaction. The system keeps track of how many items are packed for each line/release item. The packing slip only includes line/releases that have more items shipped than packed, and prints the difference for each as the Qty To Pack. To print a packing slip: 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Packing Slip form. 2. Select the various print options for the packing slip. 3. Select the Starting and Ending Order numbers to include on the packing slip. 4. Optionally, select the Starting and Ending Line/Release numbers to include on the packing slip. 5. Optionally, select the Starting and Ending Customers to include on the packing slip. 6. Optionally, select the Starting and Ending Order Dates to include on the packing slip. 7. Optionally, select the Starting and Ending Due Dates to include on the packing slip. 8. Select the Pre Ship or Ship radio button under Report Type. Either the Pre Ship Packing Selection form or Ship Packing Selection form displays. 9. Click Process. 10. Review the packing slip output. 11. Update fields on the Pre Ship Packing Selection form or Shipment Packing Selection form as necessary. These fields include: Weight # Packages Ship Via Qty To Pack 12. If the packing slip output is correct, click Print. You cannot run a pre-ship packing slip if the Print Packing Slip on Invoice parameter is selected on the Order Entry Parameters form. 58 Lesson 3: Customer records and customer orders

73 Shipping a customer order The Order Shipping form allows you to enter shipping transactions and track shipped items by ship date. Before generating a regular invoice for an item or an order, you must ship that item or order. Once you ship an item, it will appear on the To Be Invoiced report. If the Credit Hold check box is selected on either the Customer Orders or the Customers form, the system does not let you ship customer orders. The Order Shipping form is divided into three sections: 1. The top portion of the form is referred to as the filter, displaying order and customer numbers, whether partial or early shipments are permissible, and the status of the order. The order dropdown list contains only the orders that meet your line status criteria, either ordered or filled. For example if the line status is showing the default of ordered then the order drop down will only show orders that have a line item status of ordered. 2. The middle section lists the customer order line items, stock locations, and if applicable, lot numbers. The quantity available for shipping is displayed. Several buttons can be utilized to add, update, or delete line item information. 3. The bottom section displays specific detailed information regarding each line item; such as, item description, reference, delivery order, delivery order line and quantities available. There are also tabs for Serial Numbers, Customer Credit Return, and Pieces. SyteLine: Using Accounts Receivable 59

74 To manually ship a customer order: 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Order Shipping form. 2. Select the order you want to ship from the Order drop-down list. 3. You can either: Accept the defaults and ship the entire order as it appears on the form by clicking Select All. or Click the Select check box on one or more particular lines in the order and ship only that line. Note: The Ship Partial check box indicates whether this customer accepts partial shipments or not. This flag is informational only. It does not restrict shipment. 4. As necessary, you can also change the following information for each order line: CR Return - select this check box to create a credit return if the item has been invoiced and you received a quantity back from the customer. If the item has not been invoiced, you can ship a negative quantity to initiate the return. Location Lot Quantity U/M 5. After the information has been updated, you can then either ship the entire order or ship an individual line. Note: The Ship Early check box indicates whether this customer accepts early shipments or not. This flag is informational only. It does not restrict shipment. 6. Click Process. After you have successfully shipped an order line, the Ship Status changes from Ordered to Filled. Once all of the order lines on an order have been shipped, the order s Ship Status changes from Ordered to Filled. 7. If you have not printed a pre-shipping packing list, you can print a packing slip for the order. See the previous topic for instructions. Freight charges can be applied to an order from the Order Shipping form through System > Actions > Edit Freight Charges. Also, freight and other miscellaneous charges can be added to an order using the Customer Orders form, Amounts tab. 60 Lesson 3: Customer records and customer orders

75 Shipping approvals If approvals are required for shipment of the customer order, the in process accounts must be set up first on the following forms: Account Receivable Parameters Distribution Accounts End User Types Item Stockroom Locations Tax Codes The Shipped Not Approved Report shows orders where shipment approval is required and orders where the shipped amount does not match the approved amount. Use the Order Shipments form for orders that require shipment approval. Qty to Approve Type the quantity of the order to approve. Approval Log This button opens the Order Shipments Approval Log. The Approval Log form displays all shipments for the customer order line viewed there. SyteLine: Using Accounts Receivable 61

76 Demo: Regular customer orders Your instructor will demonstrate how to access customer order information. Exercise 3.2: Regular customer orders In this exercise, you will access and extract specific customer order information. Access the SyteLine system to open the customer record for customer 3 and find the information to answer the following questions: 1. How many Ship To locations are there for this customer? 2. What is this customer s end user type? 3. How many customer orders are listed for this customer? Access the SyteLine system to open customer order 153 and find the information to answer the following questions: 4. What is the ship to location for this order? 5. How many order lines are there in this order? 6. How many of the order lines have been shipped? 7. What is the item number and quantity ordered on order line 2? Exercise steps 1. Open the Master Explorer > Modules > Customer > General > Customers form. 2. Turn off the Filter In Place mode. 3. Select Customer 3 from the customer list in the left panel to open that customer record. 4. Count the number of Ship To locations on the Ship To tab. 5. Select the Codes tab. 6. Read the value of the End User Type field. 7. Click Customer Orders. 8. Count the number of orders for this customer in the grid on the left side of the form. 9. Select customer order 153 in the grid on the left side of the form. 10. Read the Ship To location for this order on the Address tab. 62 Lesson 3: Customer records and customer orders

77 11. Click Lines to open the Customer Order Lines form. 12. Count the number of order lines for this customer order in the grid on the left side of the form. 13. Select each of the order lines in the grid on the left side of the form and count how many of them have the Status field = Filled. 14. Select order line 2 in the grid on the left side of the form. 15. Read the values of the Item and the Qty Ordered fields. 16. Close the Customer Order Lines form. 17. Close the Customer Orders form. SyteLine: Using Accounts Receivable 63

78 Demo: Customer order shipping Your instructor will demonstrate how to manually ship a customer order. Exercise 3.3: Customer order shipping In this exercise, you will manually ship a customer order. Manually ship a customer order using the following details: Ship Customer Order 153, order line 2 Exercise steps 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Order Shipping form. 2. Select 153 from the Order drop-down list. 3. Select the check box under the Select column for order line 2 in the grid. 4. Select Process to complete the transaction. 5. Click OK in the message box informing you that, 1 Shipping Transaction(s) were posted. 64 Lesson 3: Customer records and customer orders

79 Check your understanding What does the symbol to the right of the customer name in the image above signify? How is the symbol removed? When creating a new customer record, how do you allow the system to automatically assign a customer identifier? SyteLine: Using Accounts Receivable 65

80 How do you access the form to add additional shipping locations for a customer? Under which of the following conditions will the system prevent you from shipping customer orders? a) The package carrier drivers are on union strike b) The ship to location for the delivery cannot be verified c) A packing slip for the order was not created d) Either the customer or the customer order has been placed on credit hold 66 Lesson 3: Customer records and customer orders

81 Lesson 4: Invoice, debit, and credit memo processing Estimated time 2 hours Learning objectives After completing this lesson, you will be able to: Determine customer orders requiring invoicing. Describe the process to generate an invoice for customer orders. Identify the steps to record invoices in A/R. List the steps to perform invoice distribution manually. List the reasons for using a price adjustments invoice. Describe the invoice posting process. Topics Introduction Generating invoices for customer orders o To Be Invoiced Report o Adding freight and miscellaneous charges to an order o Order Invoicing/Credit Memo form Recording invoices, debits, and credit memos in A/R o Invoices, Debit and Credit Memos form Distributing invoices o Entering distributions o Distributing invoices automatically o Distributing invoices manually Creating a price adjustment invoice Posting invoices, debits, and credit memos o Generating the Invoice Transaction Report o Invoice posting activity o What happens during posting SyteLine: Using Accounts Receivable 67

82 Introduction Accounts receivable (A/R) is the process you use to invoice customers for services you rendered or goods you provided to them. You also use A/R to process customer payments and track discrepancies. A/R is closely linked to Customer Service, where you enter orders and track customer interaction. In this lesson, we will look at the invoicing side of A/R. You will learn how invoices and credit memos are generated from customer sales and returns of inventoried items, and how to enter invoices, debit memos and credit memos manually. As these transactions are entered into the system, their amounts must be distributed to G/L accounts. You will learn how to initiate automatic distributions as well as how to perform these distributions manually. At times adjustments to amounts on invoices that have already been created may be required. Instructions on creating price adjustment invoices will also be presented in the lesson. After all transaction distributions are completed, posting of invoices, debit memos, and credit memos is performed to create any open items and to update the G/L journal and customer records. Instructions on the posting procedure will conclude this lesson. 68 Lesson 4: Invoice, debit, and credit memo processing

83 Generating invoices for customer orders After the shipping transaction for a customer order has been completed, the order invoice can be produced. Invoicing applies to orders entered through the Customer Orders form. You must enter a ship transaction before invoicing an order. Invoicing involves determining which customer orders have order lines/releases that are shipped but not yet invoiced, adding any necessary non-inventory charges such as freight, processing the invoice, and printing the invoice. To Be Invoiced Report The To Be Invoiced Report lists all orders and their lines/releases for the orders that are ready to be invoiced. The items for the orders listed are shipped but not yet invoiced. This report displays the order line/release number, salesperson, line/release status, and the items on the order that need to be invoiced. The quantities ordered, shipped, invoiced, to invoice and to credit are also displayed. The orders display in order number sequence. For each customer order, the report can show the invoice sequence range that will be selected when each invoice is generated. You must select Show Detail in order to display the starting and ending numbers of the sequence on the third line of data in the report. If no valid invoice sequence exists for that customer, or if more than one valid sequence is found, an error message displays. To generate the To Be Invoiced Report: 1. Open the Master Explorer > Modules > Customer > Order Entry > Reports > To Be Invoiced Report form. 2. Select the various print options for the report. 3. Filter the orders that will be shown on the report by selecting starting and ending ranges of one or more of the following: Customer Order Salesperson Customer Order Date Customer PO Item Customer Item Due Date Last Ship Date 4. Click Preview. 5. When satisfied with report output, click Print. SyteLine: Using Accounts Receivable 69

84 Example To Be Invoiced Report Adding freight and miscellaneous charges to an order The Customer Orders form Amounts tab displays all of the non-inventory charges that have been applied to a particular customer order. Upon invoicing, the system zeroes out the prepaid amount, miscellaneous charges, sales tax, and freight fields on the Amounts tab and adds the values that were in those fields to the amounts in the Accumulated charges fields. This function is performed to ensure that the non-inventory charges will not be duplicated on a second invoice. You may need to check that all necessary non-inventory charges have been applied to the customer order before creating an invoice for that order. 70 Lesson 4: Invoice, debit, and credit memo processing

85 To add non-inventory charges to a customer order: 1. Open the Master Explorer > Modules > Customer > General > Customers form. 2. Turn off the Filter In Place mode. 3. Select a customer record from the customer list in the left panel to open that customer record. 4. Click Customer Orders to open the Customer Orders form. 5. Select the order that you are preparing to invoice from the grid on the left side of the form. 6. Select the Amounts tab. 7. Type numeric values as needed into the Prepaid, Freight, and Misc Charges fields. 8. Save the record. Freight charges can be applied to an order or modified from three places: 1. Customer Orders form, Amounts tab (other non-inventory charges can be added here also) 2. Order Shipping form by selecting System > Actions > Edit Freight Charges 3. Order Shipping form by right-clicking the form and selecting Edit Freight Charges from the pop-up menu SyteLine: Using Accounts Receivable 71

86 Order Invoicing/Credit Memo form The Order Invoicing/Credit Memo form allows the user to select the invoices or credit memos that should be printed. When the Process button is clicked, the system generates the paper copy of the invoice or credit memo, and also sends a copy of the invoice record in the Accounts Receivable Invoicing form for review before posting to the A/R distribution journal. Be sure miscellaneous and freight charges are entered on the Customer Orders form, Amounts tab as described in the previous topic before posting the invoice. To create an invoice for items in a customer order: 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Order Invoicing/Credit Memo form. 2. Select Invoice from the Invoices or Credit Memos drop-down list. Note: To print an invoice, items must have been previously shipped and the order lines must not be on invoice hold. 3. Filter the orders that will be invoiced by selecting starting and ending ranges of one or more of the following: Customer Order Line/Release Last Ship Date Packing Slip 4. Select the various print options for the invoice. 5. To preview the invoice and view the total amount that will be processed: Select System > Actions > View Amounts. 6. When satisfied with the invoice amounts, click Process. 7. Click OK to the notification message, [Print Order Invoicing/Credit Memo] will be performed. 8. Click OK to the notification message, Report Submitted. Upon processing the customer order invoice, the system performs the following functions: Computes the invoice amounts Updates the customer sales and invoicing fields Calculates a commission due amount Posts the invoice to invoice history Creates accounts receivable invoice transactions Prints the invoice 72 Lesson 4: Invoice, debit, and credit memo processing

87 Demo: Customer order invoicing Your instructor will demonstrate how to generate a customer order invoice. Exercise 4.1: Customer order invoicing In this exercise, you will generate two customer order invoices: one for the order that you shipped in the previous exercise, and one for another customer order that has already been shipped. 1. In the previous lesson you shipped a customer order line item to Moreclay Bicycles which is one of Claymore Bicycles Ship To locations. Generate an invoice for that customer order. 2. Additionally, an order for customer 18, Twinkles Department Store, was previously shipped. You should also generate an invoice for that order. Note: You may first want to review the To Be Invoiced Report to ensure all the information is correct. Exercise steps 1. Open the Master Explorer > Modules > Customer > Order Entry > Reports > To Be Invoiced Report form. 2. Select the Show Detail check box. 3. Click Preview. 4. View report output in the Report Viewer form. 5. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Order Invoicing/Credit Memo form. 6. Select Invoice from the Invoices or Credit Memos drop-down list. 7. Select 153 from the Starting Order Line/Release drop-down list. 8. Select System > Actions > View Amounts. 9. Review the invoice in the Report Viewer form. 10. Close the Report Viewer form. SyteLine: Using Accounts Receivable 73

88 11. Click Process. 12. Click OK in the message box informing you that, [Print Order Invoicing/Credit Memo] will be performed. 13. Click OK in the message box informing you that, Report Submitted. 14. Delete 153 in the Starting and Ending Order Line/Release fields. 15. Select 18 from the Starting Customer drop-down list. 16. Select System > Actions > View Amounts. 17. Review the invoice in the Report Viewer form. 18. Close the Report Viewer form. 19. Click Process. 20. Click OK in the message box informing you that, [Print Order Invoicing/Credit Memo] will be performed. 21. Click OK in the message box informing you that, Report Submitted. 74 Lesson 4: Invoice, debit, and credit memo processing

89 Recording invoices, debits, and credit memos in A/R Invoices, credit and debit memos are manually entered in the Invoices, Debit and Credit Memos form if the accounts receivable transaction is not associated with a customer order or the return of inventory. However, this same form also holds invoices created from customer orders. All invoices, those associated with customer orders and those created manually reside in this form until posted to the accounts receivable distribution journal. Invoices, Debit and Credit Memos form Use this form, which is part of the accounts receivable system, to enter only those invoices, debit memos, and credit memos that do not result from the sale or return of inventory items. To add a new manual invoice or verify/edit existing invoices: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Invoices, Debits, and Credit Memos form. 2. Turn off the Filter In Place mode. 3. For a new manual invoice, select System > Actions > New. 4. For an existing invoice, select a customer from the Customer drop-down list. 5. Complete, edit, or verify fields on the form using the descriptions in the table below as references. 6. Save the record. Invoices, Debit and Credit Memos form field descriptions (partial) Field Description Notes Customer Type Number Type or select the customer number for the invoice/credit/debit. Select the type of transaction: Invoice Credit Memo Debit Memo Type the number of the invoice, credit, or debit memo number. Invoice: the amount the customer owes Credit Memo: decreases the amount the customer owes Debit Memo: increases the amount the customer owes Leave this field blank to allow the system to automatically assign a number. SyteLine: Using Accounts Receivable 75

90 Field Description Notes Apply to Invoice This field activates if debit memo or credit memo is selected in the Type field. Enter/select one of the following: Select the number of the invoice you are applying the transaction against. Type 0 to create an open debit or credit against this customer's account. Type -1 to apply the debit or a credit to a finance charge for the customer. Date Date of the transaction. Defaults to today s date but can be changed. Due Date Posted from Order Terms Amount Calculated automatically based on the terms and the type of transaction. This check box is automatically selected if the invoice was added as part of the posting process from customer order entry. Terms default from the customer record but can be changed. Type the amount of the transaction as a positive value. This check box is not selected if the invoice is added through the Invoices, Debit and Credit Memos form. The amount should be entered in the domestic currency. Freight During the post process, the system adds this amount to or subtracts it from the customer's balance, based on the transaction type. Type the freight amount for this transaction. This amount is not included in the invoice amount or miscellaneous charges. This amount should not reflect any discount earned, miscellaneous charges, sales tax, or freight. Typically, it is posted to a G/L Freight account. 76 Lesson 4: Invoice, debit, and credit memo processing

91 Field Description Notes Misc Charges A/R Account G/L Reference Type the amount of any miscellaneous charges for this transaction. This amount is included in the total invoice amount, but it is not part of the actual sales amount. The number of the accounts receivable account to which the transaction will be or has been posted displays (whichever is applicable). Type a reference for the transaction. This information is posted to the G/L as part of the G/L Journal Transaction. The default values depend on the type of transaction. This amount should include only those charges that are not usually part of the price of the product or service. Miscellaneous charges are usually distributed to a different G/L account than the invoice sales amount. An example of a miscellaneous charge is a rush charge for shipping an item before its scheduled release date. The A/R account defaults from the Accounts Receivable Parameters form, but you can select a different account number, if necessary. Once this transaction is posted to G/L, this reference is the best way to determine the source of this G/L Journal Transaction. The table below shows the possible transaction types, invoice types, and corresponding default G/L Reference values. Transaction Type Apply to Invoice Default G/L Reference Value Invoice ARI (Invoice) Debit Memo 0 ARD Open -1 ARD FIN CHG Other than 0 or -1 ARD (Invoice) Credit Memo 0 ARC Open -1 ARC FIN CHG Other than 0 or -1 ARC (Invoice) SyteLine: Using Accounts Receivable 77

92 Field Description Notes Description Type an additional descriptive reference for the transaction. It is posted with the invoice, debit, or credit record. This field has different default values, depending on the type of transaction: Invoice number "Debit Memo" and number "Credit Memo" and number You can overwrite the default entry with any description that helps identify the type of transaction entered. Tax Code The Tax Code defaults from the customer record but can be changed. 78 Lesson 4: Invoice, debit, and credit memo processing

93 Demo: Manual A/R invoicing Your instructor will demonstrate how to create a manual invoice. Exercise 4.2: Manual A/R invoicing In this exercise, you will create a manual invoice. Progressive Cycles sent out a service person to perform maintenance on a couple of our bicycles that were shipped to our customer H.H. Squash. 1. Create a manual invoice with the following attributes so that we are paid for the service: The type is invoice. Let the invoice number default to the system-assigned number. The Terms Code should be N30 and the Tax Code is NT. The total amount is $ Add a note to the invoice referencing the type of service and description of work performed. 3. Automatically distribute the invoice. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Invoices, Debits, and Credit Memos form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select H.H Squash from the Customer drop-down list. Default values from the customer record will populate some of the fields on this form. 5. Select Invoice from the Type drop-down list. 6. Leave the Number field blank to allow the system to assign the invoice number. 7. Verify that the value in the Terms Code field is N Type 300 into the Amount field. 9. Verify that the value in the Tax Code field is NT. SyteLine: Using Accounts Receivable 79

94 10. Save the record. The system-assigned invoice number and the default account numbers display on the form. 11. Select System > Actions > Notes for Current. 12. Type Note into the Subject field on the Object Notes form. 13. Type Sent a service person to perform maintenance in the Note field. 14. Save the note. 15. Close the Object Notes form. 16. Select System > Actions > Generate Distributions. 17. Click OK in the message box informing you that, [Generate Distributions] will be performed. 18. Click OK in the message box informing you that, [A/R Invoice Distribution] was successful. 80 Lesson 4: Invoice, debit, and credit memo processing

95 Distributing invoices Invoices, debt and credit memos created from customer orders have invoice distributions automatically created when they are printed in the order entry module, but invoices manually added in accounts receivable do not. Therefore, the distributions must be created. Invoices, debit and credit memos must have general ledger invoice distributions created before they can be posted to the A/R Distribution Journal. Creating distributions ensures that both sides (debit and credit) of the accounting entry are created and it gives you the option to update any general ledger accounts before posting. The system posts only balanced entries to the general ledger journals. It posts one side to the A/R account set up for the invoice and the other side from the distributions entered at this form. Therefore, the amount distributed for any transaction must equal the total amount for the invoice. If not, the system detects these errors when it posts the transactions, and cancels the posting. Entering distributions The system creates distributions automatically for invoices or credit memos that were generated from customer order entry. In the Invoices, Debits, and Credit Memos form, invoices that were added as part of the posting process from customer order entry will have the Posted from Order check box automatically selected. To create accounts receivable invoice distributions, you have three options: 1. Manually add the distributions. 2. Use the Generate Distributions activity. This option automatically creates the distributions using the default general ledger accounts from the Accounts Receivable Parameters form and in the tax files. 3. Do not generate distributions, but allow SyteLine to create them upon posting. This is OK if you do not want the option to update any general ledger accounts prior to posting to the A/R Distribution Journal. SyteLine: Using Accounts Receivable 81

96 Distributing invoices automatically 1. On the Invoices, Debit and Credit Memos or Invoices, Debit and Credit Memos G/L Distribution form, select the record for the invoice you want to distribute. 2. Select System > Actions > Generate Distributions. Alternatively, you can click Generate Distribution. Note: The default G/L accounts from the Accounts Receivable Parameters form and the customer's tax code are used. A message displays when the process is complete. Distributing invoices manually Use the A/R Invoice, Debit and Credit Memo G/L Distribution form to manually distribute the amount of a transaction to the correct G/L Chart of Accounts. To distribute invoices manually: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Invoices, Debit and Credit Memos G/L Distribution form. Note: You can also click the Distribution button on the Invoices, Debit and Credit Memos form. 2. Select System > Actions > New. 3. Select the customer for which you are adding a distribution. 4. Select the number of the invoice you are distributing. 5. In the Dist Seq field, accept the default, which is the next available sequence number. This number is used to order the distributions. 6. Select the tax system for the distribution from the Tax System drop-down list; or, for a non-tax distribution, leave this field blank. 7. Type the amount of the distribution in the Dist Amount field. 8. Select the account to which the distribution amount is to be posted from the Account drop-down list. 9. Save the record. 10. To continue adding distributions until the Total Remaining field is 0 (zero), repeat these steps as necessary. 82 Lesson 4: Invoice, debit, and credit memo processing

97 Demo: Invoice processing and distribution Your instructor will demonstrate how to create, process, and distribute an A/R invoice. Exercise 4.3: Invoice processing and distribution In this exercise, you will create, process, and distribute an A/R invoice. 1. Create an invoice for Mountain Trails Bikes in the Invoice, Debit, and Credit Memos form. (Invoices will typically be entered through order entry as a result of a customer order. We are not going to add a customer order today. Instead, we will be adding the invoice directly through this form). The following information is available: Invoice Date: Use today's date Amount: $ Misc. Charges: $ Freight: $ Add the following note to the invoice, so you can view this text in the A/R Posted Transactions Detail form. This note will also print on the invoice. Notes: This is the agreed amount that MTB will pay per their Account Manager, Lucy Sharp. 3. Generate distributions for the invoice according to the default account numbers in the Accounts Receivable Parameters form. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Invoices, Debits, and Credit Memos form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select Mountain Trails Bikes from the Customer drop-down list. Default values from the customer record will populate some of the fields on this form. 5. Select Invoice from the Type drop-down list. SyteLine: Using Accounts Receivable 83

98 6. Allow the system to assign the invoice number by leaving the Number field blank. 7. Type 4000 in the Amount field. 8. Type 3.75 in the Freight field. 9. Type 250 in the Misc Charges field. 10. Save the record. The system-assigned invoice number and the default account numbers display on the form. 11. Select System > Actions > Notes for Current. 12. Type Notes into the Subject field on the Object Notes form. 13. Type This is the agreed amount that MTB will pay per their Account Manager, Lucy Sharp. in the Note field. 14. Save the note. 15. Close the Object Notes form. 16. Click Generate Distribution. 17. Click OK in the message box informing you that, [Generate Distributions] will be performed. 18. Click OK in the message box informing you that, [A/R Invoice Distribution] was successful. 84 Lesson 4: Invoice, debit, and credit memo processing

99 Creating a price adjustment invoice At times you may be required to adjust amounts on invoices that have already been created. Freight charges, miscellaneous charges, unit prices, discounts, or tax rates on an invoice can be adjusted using the price adjustment invoice activity. The price adjustment invoice activity allows you to: Create, print, and post adjustment invoices. Credit or debit miscellaneous charges and freight amounts. Make price changes on un-invoiced quantities by directly updating the unit price and discount amounts on the customer order lines item. Link the order to the original invoice, and enter a reason for the adjustment (if required). Select the invoice to which the debit memo or credit memo will be applied when you generate the price adjustment. To adjust the freight, miscellaneous charges, unit price, discount, or tax rate on an invoice (refer to the table below for more detailed descriptions of form fields): 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Price Adjustment Invoice form. 2. Select the order number of the invoice you want to adjust. The lines for that order display in the grid. 3. Select the order line you want to adjust. 4. Specify the invoice to which this adjustment applies (if applicable). 5. On the form header, make any changes to the Freight or Misc Charges amounts. The Invoice Total field changes accordingly. 6. Use the fields in the tabs to adjust the quantity, discount amount, or price. After you enter a new value and move out of a field, the values in the Old Net, New Net, and Net Adjust fields change to match the adjustments you made. 7. Type the quantity to which the adjustments will be applied. 8. Type the correct unit price and/or discount. 9. If you need to adjust the tax rate, click Adjust Tax to open a form for that purpose. 10. When all the adjustments have been entered, click Print/Post Invoice to display the Print Price Adjustment Invoice form and generate the invoice adjustment. The system will print the adjustment invoice and generate a credit or debit memo that you will find in the Invoices, Debit, and Credit Memos form. SyteLine: Using Accounts Receivable 85

100 Price Adjustment Invoice form fields Field Description Notes Order Customer Apply to Invoice Line Net Freight Misc. Charges Invoice Total Select the order number to uniquely identify the customer order for which an adjustment invoice is to be produced Displays the customer number from the selected order. Select the invoice to which the debit memo or credit memo will be applied when you generate the price adjustment. If an Apply To Invoice is not specified then any credit or debit memo generated will be open. Displays the sum of all the Net Adjust amounts for the lines adjusted. Type the amount to adjust freight. An unsigned amount indicates to charge more freight to the customer. A negative amount indicates a reduction in prior freight charges. Type the amount to adjust miscellaneous charges. A positive amount indicates an additional amount is to be paid by the customer. A negative amount is a credit due to the customer. A zero posts no changes. Displays the Invoice Total, based on the sum of the Line Net Adjustments, Misc. Charges, Taxes, and Freight. Each time these fields change, the system recalculates and updates this amount. The status of the order must be Ordered, and the order must have at least one line item/release with a quantity of items that are already invoiced with none returned. Only posted invoices will appear in this drop-down list. If you want to apply the adjustment to an invoice that has been generated but not posted, you can either: Post the invoice and then generate the adjustment. Post both the invoice and the adjustment at the same time then update the Apply To Invoice field for the adjustment on the A/R Posted Transactions Detail form. As you enter amounts, the system calculates and displays the new Line Net, Net Adjustment, and Adjustment Invoice Line Net, Taxes and Invoice Total. Any amount may be entered. It is not validated against any old invoices or accumulated charges. A positive number indicates the customer owes you more money and will result in a debit memo (debit to the A/R amount). A negative number means the customer owes you less than originally invoiced and will result in a credit memo (credit to the A/R amount). 86 Lesson 4: Invoice, debit, and credit memo processing

101 Field Description Notes Quantity Adjustments Tab Discounts Adjustments Tab Price Adjustments Tab Additional Info Tab Old Net New Net Type the portion of the total quantity invoiced to which the adjustments will be applied. Type the new discount amount that replaces the old discount amount on the customer order line item. Type the new unit price to replace the old unit price on the customer order line item. Select the Original Invoice from the drop-down list and enter the Reason. The values you enter here will show up on the adjustment invoice that is printed. Displays the line item net price based on the old discount and old unit price extended by the adjustment quantity. Displays the line item net price based on the new discount and new unit price extended by the adjustment quantity. This amount is used to calculate the net adjustment amount for this adjustment invoice. The new price is also used to calculate the net adjustment amount for this adjustment invoice. Both posted and unposted invoices will appear in the Original Invoice drop-down list. The system re-calculates and redisplays this amount when you change the quantity to adjust. The system recalculates and redisplays after completion of each line item update. Net Adjust Net Adjust = Old Net - New Net. A positive amount indicates additional payment is due from the customer. A negative amount means a refund is owed to the customer. SyteLine: Using Accounts Receivable 87

102 Demo: Price adjustment invoice Your instructor will demonstrate how to create a price adjustment invoice. Exercise 4.4: Price adjustment invoice In this exercise, you will create a price adjustment invoice. Customer 18 has informed us that the price used on customer order 147 was incorrect. The unit price should have been $5.50. Create a price adjustment invoice to make this correction. Exercise steps 1. Open the Master Explorer > Modules > Customer > Order Entry > Activities > Price Adjustment Invoice form. 2. Select order 147 from the Order drop-down list. 3. Click the Filter In Place icon in the toolbar. 4. Select the Price Adjustments tab. 5. Type 5.50 in the New Price field. 6. Select the Additional Info tab. 7. Select the [invoice] created for order 147 from the Original Invoice drop-down list. 8. Click Print/Post Invoice. 9. The Print Price Adjustment Invoice (Modal) form displays. 10. Review information and click Process. 11. Click OK in the message box informing you that, Report Submitted. 12. Close the Print Price Adjustment Invoice (Modal) form. 13. Open the Master Explorer > Modules > Finance > Accounts Receivable > Invoices, Debits, and Credit Memos form. You should see the original invoice and a credit memo with the adjustment. You will post both invoices and apply the price adjustment invoice to the original invoice in another exercise. 88 Lesson 4: Invoice, debit, and credit memo processing

103 Posting invoices, debits, and credit memos Generating the Invoice Transaction Report Use the Invoice Transaction Report to list any or all unposted invoice, debit, and credit transactions, sorted by customer invoice number. The report is useful for verifying that distributions and account numbers are valid for all transactions in the batch files. When you post invoices (see next topic), you must first print this report. If any debit memo or credit memo transactions within the report range were applied to an invoice, the invoice numbers print on the report. If the invoice or debit memo has multiple due dates, the due date, percentage, and amounts display on the report. If an invoice has not yet been distributed, the system will automatically distribute the invoice at the time of posting. The first time you run the report, asterisks appear next to the distribution records to indicate that they were just generated. SyteLine: Using Accounts Receivable 89

104 Invoice posting activity Use the Invoice Posting form to post invoices, debit memos, and credit memos to create open items and update the G/L Journal and customer records. Run this posting process after entering and receiving all on-hand transactions and their corresponding distribution records. You can further refine the posting process by selecting a range of customers, invoices, and dates. Before actually posting the transactions, you must first print the Invoice Transaction Report as an audit trail of the posted items. To post invoices, debit memos, and credit memos: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Activities > Invoice Posting form. 2. Select check box options to indicate whether you want to post invoices, debit memos, and/or credit memos. You can select more than one. 3. Select options to specify how you want to sort and display the report data. By default, the system posts transactions for all customers, but you can further refine your posting by selecting ranges of customers, invoices, and dates. 4. To print the report, click Process. Note: You must first print the posting report before you can post transactions. By default, the Print option is automatically selected when you open this form. Note: The invoices, debit memos, and credit memos to be posted will be listed in the grid at the bottom of the form. 5. After reviewing the report, select the Commit radio button. 6. To post the transactions, click Process. 7. When prompted to proceed, click OK. Note: If errors are detected in a transaction, the system displays a message indicating that not all transactions were posted. 8. Click OK on the message box informing you that the invoices were posted. What happens during posting? During posting, the following updates occur: 1. For each invoice or debit transaction posted, the system increases the customer s: Posted balance by the sum of the total transaction amount. Sales YTD and sales PTD values by the amount of the transaction. 2. For each credit transaction posted, the system decreases the customer's posted balance, sales YTD, and sales PTD in the same manner. 3. The customer's Last Invoice Date field is updated with the invoice date for the transactions. 4. New open items are created, one for each transaction that is posted. 5. Entries are created in the General Ledger A/R Distribution (A/R Dist) Journal. 6. For each transaction, one journal record is created for the accounts receivable amount, and one transaction is created for each distribution record entered. 90 Lesson 4: Invoice, debit, and credit memo processing

105 Demo: Invoice posting Your instructor will demonstrate how invoices are posted. Exercise 4.5: Invoice posting In this exercise, you will post invoices. You will now post all of the invoices and credit memos that you have created up to this point. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Activities > Invoice Posting form. 2. Select the Invoice and Credit Memo check boxes. 3. Select the Display Invoice Total check box. 4. Click Process. Note: This prints the Invoice Transaction Report and lists the invoices, debit memos, and credit memos to be posted in the grid at the bottom of the form. 5. Click OK in the message box informing you that, [Invoice Transaction Report] will be printed. 6. Click OK in the message box informing you that, Report Submitted. 7. Review the report and then select the Commit radio button. 8. Click Process to post the transactions. 9. Click OK in the message box informing you that, [Invoice Posting] will be performed. 10. Click OK in the message box informing you that, # A/R Invoice(s) were posted SyteLine: Using Accounts Receivable 91

106 Demo: Credit memo Your instructor will demonstrate how to create and post a credit memo. Exercise 4.6: Credit memo In this exercise, you will create and post a credit memo applied to an invoice you created in a previous exercise in this lesson. The Sales Department has notified you of a credit to be given to Mountain Trail Bikes for the miscellaneous charges and freight that should not have been charged. A credit memo must be issued to them for those charges. 1. Enter the credit memo and apply to the invoice created earlier. 2. Add notes to the credit memo. 3. Post this credit memo. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Invoices, Debits, and Credit Memos form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select Mountain Trails Bikes from the Customer drop-down list. Default values from the customer record will populate some of the fields on this form. 5. Select Credit Memo from the Type drop-down list. 6. Select [invoice number for the manual invoice you created earlier in this lesson] from the Apply to Invoice drop-down list. 7. Leave the Number field blank to allow the system to assign the credit memo number. 8. Type 3.75 in the Freight field. 9. Type 250 in the Misc Charges field. 10. Save the record. The system-assigned credit memo number and the default account numbers display on the form. 92 Lesson 4: Invoice, debit, and credit memo processing

107 11. Select System > Actions > Notes for Current. 12. Type Notes into the Subject field on the Object Notes form. 13. Type Per Sales, freight and misc should not have been charged to customer. in the Note field. 14. Save the note. 15. Close the Object Notes form. 16. Click Invoice Posting. The Invoice Posting form displays with this credit memo number and customer pre-filling those fields. 17. Click Process. 18. Click OK in the message box informing you that, [Invoice Transaction Report] will be printed. 19. Click OK in the message box informing you that, Report Submitted. 20. Select the Commit radio button. 21. Click Process. 22. Click OK in the message box informing you that, [Invoice Posting] will be performed. 23. Click OK in the message box informing you that, 1 A/R Invoice(s) were posted SyteLine: Using Accounts Receivable 93

108 Check your understanding How are you able to preview an invoice from the Order Invoicing/Credit Memo form? a) Invoices cannot be previewed from this form. b) Right-click the form and select View Detail from the pop-up menu. c) Click Preview to view the invoice in a report viewer. d) Select System > Actions > View Amounts. How do you determine which customer orders have shipped but have not yet been invoiced? a) Generate the To Be Invoiced Report. b) Review the Order Shipments form. c) Generate the Approved Not Invoiced Report. d) Review the Approved Shipments grid on the Order Invoicing/Credit Memo form. 94 Lesson 4: Invoice, debit, and credit memo processing

109 Which form should be used to enter an invoice that does not result from the sale of inventory items on a customer order? How are system-generated invoices resulting from customer orders distinguished from manually entered invoices on the Invoices, Debits, and Credit Memos form? SyteLine: Using Accounts Receivable 95

110 What invoice number should be used if you are entering an open debit or credit to be applied against a customer account? a) 0 b) -1 c) 999 d) The number of the most recent invoice for the customer True or false. The system will automatically create distributions for invoices or credit memos that were generated from customer order entry. a) True b) False What happens if you post an invoice that has not yet been distributed? a) An error occurs and the posting process stops. b) Distributions of the invoice will be done automatically by the system and then posted. c) Posting will be performed on all other transactions and you are notified that the invoice was not posted. d) Posting is still performed resulting in journal entry errors. 96 Lesson 4: Invoice, debit, and credit memo processing

111 Lesson 5: Customer payment processing Estimated time 1 hour Learning objectives After completing this lesson, you will be able to: Describe the process for entering a customer payment. List the steps to perform payment distribution manually. Explain the uses of the A/R Quick Payment Application. Describe the payment posting process. Topics Introduction Entering customer payments Distributing customer payments o Distributing customer payments automatically o Distributing customer payments manually Using the A/R Quick Payment Application Posting customer payments o A/R Payment Transaction Report o Payment posting process Reversing posted payments SyteLine: Using Accounts Receivable 97

112 Introduction Processing a customer payment requires three steps: 1. Enter the payment. This includes entering the customer ID, payment type, amount, date, etc. 2. Distribute payment. The distributions determine how a payment is applied to a customer's account and how the payment amount is distributed to the general ledger (G/L). 3. Post the payment to the A/R distribution journal. Up until this step, you can update or delete any payment and distribution that has been entered. In this lesson, you will learn how to enter and distribute customer payments and then how to post those payments to the journal. Overview Customer payments are entered in the A/R Payments form. Payments entered into this form can be updated and deleted until the time they are posted. Before you post payments, you must apply or distribute the payment amount to invoices, finance charges with balance due, non-a/r cash, or an open payment. You can do so manually through the Distributions button on the A/R Payments form, or you can select System > Actions > Generate Distributions to have the system automatically distribute the payment. For credit card payments (which are available only if the Credit Card Interface is used in your system), you cannot change the payment amount and other components in order to ensure that the payment reconciles to the credit card charge. However, it is still possible to apply the payment to multiple invoices. When you are satisfied that the payments were properly entered and correctly distributed, you will post them to the Accounts Receivable Distribution Journal. When you post A/R payments, the system prompts you to print a Payment Transaction Report, which serves as an audit report. When a payment has been posted, you can see its details in the A/R Posted Transactions Detail form. 98 Lesson 5: Customer payment processing

113 Entering customer payments Use the A/R Payments form to process customer payments for invoiced amounts, finance charges, and other amounts your customers owe you. You can enter and post non-customer payments to the general ledger as non-a/r cash. You can also enter post-dated checks on this form if the payment type is Check. Note: You can apply open credits and payments from a customer only to the customer and any of its subordinate customers. You cannot apply a subordinate customer's open credits or payments to another customer that is a subordinate of the same corporate customer. To create a payment, on the A/R Payments form: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payments form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select the customer ID from the Customer drop-down list. 5. Select or type the appropriate information in the following fields (refer to the table below for field descriptions): Type Number Receipt Date Payment Due Date Deposit Date G/L Reference Description Bank Code Payment Amount 6. Save the record. You can then distribute and post the payment. SyteLine: Using Accounts Receivable 99

114 A/R Payments form field descriptions: Field Description Notes Customer Type Number Receipt Date Payment Due Date Select the customer ID of the customer from whom the payment was received. The customer's payment type displays by default, but you can select a different one from these choices: Adjust Check Draft Wire Type the check or draft number of the payment. Enter the date you received the payment, or accept the default, which is today's date. Enter the date the draft is due. If you select the Adjust option, you must also enter the number of the check you are adjusting in the Number field. Then in the Customer Amount field, enter a positive check amount to increase the original check's amount, or enter a negative check amount to decrease the original check amount. This field is available only if the payment type is Draft. Deposit Date Enter the date you deposited the check. This field is available for entering post-dated checks. It is enabled only if the payment type is Check, and no credit memo is associated with the payment. Enter the date on the customer's check. G/L Reference Description Bank Code Payment Amount Type a reference ID to appear in the distribution journal for this transaction, or accept the default which is ARP followed by the check or draft number. Type a description to appear in the distribution journal for this transaction, or accept the default description. This field displays the customer's default bank code, but you can select a different code for the bank into which the payment will be deposited. Type the amount of the payment. The value from the Number field is used as part of the reference ID. Example: ARP Lesson 5: Customer payment processing

115 Field Description Notes Applied The sum of all the distribution records entered displays. This field must equal the payment amount before the payment can be posted. Remaining The difference between the payment amount and the applied amount displays. This amount displayed here is the amount of the payment that has yet to be distributed SyteLine: Using Accounts Receivable 101

116 Demo: Entering a customer payment Your instructor will demonstrate how to enter customer payments. Exercise 5.1: Entering a customer payment In this exercise, you will enter customer payments. Two customer payments have been received. Enter the following payments into the A/R Payment form: 1. Customer 18 check number 985 $26, Customer 25 check number 526 $83,000 Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payments form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select customer 18 from the Customer drop-down list. 5. Select Check from the Type drop-down list. 6. Leave [today s date] as the Receipt Date. 7. Type 985 in the Number field 8. Type in the Payment Amount field 9. Save the record. 102 Lesson 5: Customer payment processing

117 10. Select System > Actions > New. 11. Select customer 25 from the Customer drop-down list. 12. Select Check from the Type drop-down list. 13. Leave [today s date] as the Receipt Date. 14. Type 526 in the Number field 15. Type in the Payment Amount field 16. Save the record. SyteLine: Using Accounts Receivable 103

118 Distributing customer payments You can use the A/R Payment Distributions form to apply or distribute payment amounts before posting them. The distributions determine how a payment is applied to a customer's account, and how it is distributed to the general ledger (G/L). Distributions categorize payments as: Payment of invoices Payment of finance charges Prepayment for an order An open credit A non-ar payment The system posts only balanced transactions, one side to the cash account for the payment and the other to the accounts receivable (A/R) account for the distributions. Therefore, the applied amount for any transaction must equal the check amount of the payment. If these amounts are not equal, the system detects the error and cancels the posting. Before you post payments, you must apply or distribute the payment amount to invoices, finance charges with balance due, non-a/r cash, or an open payment. You can do so manually through the Distributions button, or you can select System > Actions > Generate Distributions to have the system automatically distribute it. Distributing customer payments automatically Creating distributions automatically will use the G/L default account from the Accounts Receivable Parameters form. To distribute payments automatically: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payments form or A/R Payment Distributions form. 2. Turn off the Filter In Place mode. 3. Select the customer for which you want to create the distributions. 4. Select System > Actions > Generate Distribution. 5. To review the distributions that were automatically generated, if you are using the A/R Payments form, click Distributions. This method will apply the payment to invoices and finance charges in the order of their due dates, oldest first, until the payment is fully distributed. If the payment is greater than outstanding invoices and finance charges, an open credit for the customer will be created for the remaining amount. 104 Lesson 5: Customer payment processing

119 When you generate distributions for invoices with multiple due dates, if you apply a payment towards a due date, the system creates a partial payment record. If more than one payment for the same invoice is applied, only one record will be created for that invoice. For a corporate customer, the system distributes payments to the invoices and finance charges for the corporate customer based on due date. After this process, any remaining funds are applied to the invoices and finance charges of subordinate customers based on due date. At this point, any outstanding funds cause the system to create an open credit for the corporate customer. This does not generate multi-site distributions. Distributing customer payments manually To distribute payments manually: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payment Distributions form. 2. Select the customer for which you want to create the distributions from the Customer drop-down list. 3. Select System > Actions > New. 4. The top section of the form displays the previously entered payment information. You can change the payment information if necessary. 5. The bottom section of the form displays the details of the distribution on three tabs. Select or type the appropriate distribution information in the fields on the three tabs. Use the field descriptions, by tab, in the tables below as reference information. General tab Amounts tab Accounts tab 6. Save the record. SyteLine: Using Accounts Receivable 105

120 A/R Payment Distribution form General tab field descriptions: Field Description Notes Type Select the type of distribution. There are four distribution types: 1. Invoice - applied against a specific customer's invoice This type of payment is required for open item customers. You must enter an invoice number for all invoice payments. For corporate customers, you can enter the invoice of a subordinate customer. The subordinate customer number and name will display on the form. 2. Open Credit - applied to the customer's total account balance Open credits can be used for prepayments by specifying the order number in the "Order" field. The order will automatically be updated with the prepayment. Open credits can also be used if, for any reason, the user wants to apply the payment at a later date. This type of payment is the only payment type required for balance forward customers. For open item customers, these open credits need to be reapplied against invoices or finance charges at a future time. 3. Finance Charge - applied against a finance charge balance 4. Non-A/R - cash receipt not relating to A/R or order entry When you enter finance charges, the invoice number will default to -1. To apply the payment to the finance charge balance of the corporate customer, leave the Apply To Customer field blank, or select the corporate customer's number in that field. Not applied to the accounts receivable G/L account. The amount applied is posted to the cash account on one side, and to the account entered for the distribution record on the other side. One example of a non-a/r payment would be the return of a payroll overpayment. Apply to Customer Invoice Number If the payment applies to a corporate customer and you want to apply this distribution to a subordinate customer, select that subordinate customer in this field. Select the number of the invoice to which the payment should be applied. This field is required if the distribution type is Invoice. 106 Lesson 5: Customer payment processing

121 A/R Payment Distribution form Amounts tab field descriptions: Field Description Notes Dist Amount Disc/Credit 1 Allowance/Credit 2 Enter the amount for this distribution. If the distribution type is Invoice or Open Credit, you can change it to the actual amount to be applied for this distribution. Discount credit. Enter the amount of discount or credit (in the customer's currency). For invoices, if the payment receipt date is less than the discount date of the invoice, the discount amount for the invoice displays. For non-a/r payments, enter the amount of the credit distribution. The account used for this credit is specified on the Accounts tab. Allowance credit. For non-a/r payments, enter the amount of the allowance distribution. The account used for this credit is specified on the Accounts tab. The A/R account used is based on the values in the customer End User type or the Account Receivable Parameters. This field is available only for distribution types of Invoice, Open Credit, and Non-A/R. This field is available only for distribution types of Invoice, Open Credit and Non-A/R. For example, you might give a customer an allowance because some of the product was damaged. You might also give them an allowance if there s a small variance in the payment amount versus the invoice amount. A/R Payment Distribution form Accounts tab field descriptions: Field Description Notes Disc/Credit 1 Allowance/Credit 2 Deposit Acct Enter the G/L account number for posting of the discount/credit 1 amount. For a discount, the Discount G/L account number defaults from the Accounts Receivable Parameters form. Enter the G/L account number for posting of the allowance or credit amount. For an allowance, the Allowance G/L account number defaults from the Accounts Receivable Parameters form. Select the G/L account number for posting of the open credit (deposit) amount. This field is accessible only if the distribution type is Invoice, Open Credit or Non-A/R. This field is available only for open credits, invoice and non-a/r payments. This field is available only if the distribution type is Open Credit. The number of the Deposit G/L account defaults from the Accounts Receivable Parameters form. SyteLine: Using Accounts Receivable 107

122 Demo: Payment distribution Your instructor will demonstrate how to perform automatic payment distribution, and enter a customer payment and distribute it manually. Exercise 5.2: Payment distribution In this exercise, you will perform automatic payment distribution, and enter a customer payment and distribute it manually. Perform the following tasks: 1. Initiate automatic payment distributions for the two customer payments you created in the previous exercise. 2. Enter a payment from customer #13. The check number is The amount is for $90, Apply the payment to invoice # 25. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payments form. 2. Turn off the Filter In Place mode. 3. Select the payment for customer 25 to open that payment record. 4. Select System > Actions > Generate Distributions. 5. Click OK in the message box informing you that, [Generate Distributions] will be performed. 6. Click OK in the message box informing you that, [A/R Payment Distribution] was successful. 7. Repeat steps 3 6 for the payment for customer Select System > Actions > New. 9. Select customer 13 from the Customer drop-down list. 10. Select Check from the Type drop-down list. 11. Leave [today s date] as the Receipt Date. 12. Type 2222 in the Number field. 108 Lesson 5: Customer payment processing

123 13. Type in the Payment Amount field. 14. Save the record. 15. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payment Distributions form. 16. Turn off the Filter In Place mode. 17. Select customer 13 from the Customer drop-down list. The top part of the form should populate with the information from the payment entered for this customer. 18. Select 25 from the Invoice drop-down list on the General tab. 19. Select the Amounts tab. 20. Type in the Dist Amount field. 21. Save the record. SyteLine: Using Accounts Receivable 109

124 Using the A/R Quick Payment Application The A/R Quick Payment Application is the most efficient method of distributing payments to outstanding invoices, finance charges, payments, and credit memos. You can also use it to create payments. Enter new payments or select existing ones in the upper part of the form. Upon saving a new payment, all the customer's open invoices, credit memos, finance charges, and open payments display in the grid at the bottom of the form. You can then select these items and apply the payment to their outstanding amounts. There are distributions you cannot create with this form: Debit memos are not included on this form because you cannot enter the invoice number (required with debit memos). You must apply debit memos through the A/R Posted Transactions form. Non-A/R payment distributions must be entered in the A/R Payment Distributions form To process payments using the A/R Quick Payment Application form: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Quick Payment Application form. 2. Select System > Actions > New. 3. Enter the appropriate information in the following fields: Customer - Enter the customer ID of the customer for which you're entering the payment. Type - This field displays the customer's payment method by default, but you can select a different method. Number - Enter the check or draft number for this payment. Receipt Date - Enter the date you received the payment, or accept the default, which is today's date. Payment Due Date - (Available only if the payment type is Draft.) Enter the date the draft is due. Deposit Date - Enter the date you deposited the check. This field is available for entering post-dated checks. It is enabled only if the payment type is Check, and no credit memo is associated with the payment. Enter the date on the customer's check. G/L Reference - Enter a description to appear in the distribution journal for this transaction, or accept the default, which is ARP followed by the check or draft number. Description - Enter a description to appear in the distribution journal for this transaction, or accept the default description. Bank Code - Enter the bank code of the bank from which the payment will be made, or accept the customer's default bank code. Amount - Enter the amount of the payment. 4. Select System > Actions > Save. Note: You must perform this step before you can select any transactions in the grid. All open invoices, finance charges, payments, and credit memos for this customer display in the grid at the bottom of the form. If any of these transactions have been distributed, the Selected check box is selected for each. 110 Lesson 5: Customer payment processing

125 Note: On the A/R Quick Payment Application form, non-a/r payment distributions display as selected in the grid. The amounts display in the Discount and Allowance columns. The Discount column is used to enter Credit Amount 1, and the Allowance column is used to enter Credit Amount For each transaction you want to make a payment against, select the Selected check box, or, to select all of the displayed transactions, click Select All. As you select each transaction, notice the change in the amounts in the Applied and the Remaining fields. The Applied field indicates how much of the payment has been applied to distributions, and the Remaining field indicates how much of the payment has yet to be distributed. 6. Select Apply. The system displays a message informing you of the actions that were taken. SyteLine: Using Accounts Receivable 111

126 Demo: Using the A/R Quick Payment Application Your instructor will demonstrate how to enter a payment and generate the distributions using the A/R Quick Payment Application. Exercise 5.3: Using the A/R Quick Payment Application In this exercise, enter a payment and generate the distributions using the A/R Quick Payment Application. Using the A/R Quick Payment Application, complete the following tasks: 1. Enter a payment from customer #3. Check number: 1111 Amount: $ Apply the payment to invoices 34, 35 and 36. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Quick Payment Application form. 2. Turn off the Filter In Place mode. 3. Select System > Actions > New. 4. Select customer 3 from the Customer drop-down list. 5. Select Check from the Type drop-down list. 6. Leave [today s date] as the Receipt Date. 7. Type 1111 in the Number field. 8. Type in the Payment Amount field. 9. Save the record. The list of invoice transactions for this customer displays in the grid at the bottom of the form. 10. Select the Select check box for invoices 34, 35, and 36 in the grid. 11. Click Apply. 12. Click OK in the message box informing you of the actions that were taken. Note: Find the payments from customers 13, 18, and 25 in the A/R Quick Payment Application form. Notice that the automatic and manual distributions that you created in the previous exercise display. If necessary you can update, add, or delete those distributions using this form. 112 Lesson 5: Customer payment processing

127 Posting customer payments During posting, the system updates three types of records: Customer master records Open item records G/L journal records Following is a summary of the posting process: The system updates two fields of the customers file for each transaction posted. If the receipt date for the payment transaction is later than the last payment date in the customer s record, the receipt date becomes the new last payment date. The system reduces the Customer Posted Balance amount by the payment amount and any discount or allowance you give to the customer. The system creates an Open Item record for each transaction being posted. The system creates A/R Ledger Distribution Journal records. For each transaction, there is one journal record for the cash amount and one transaction for each distribution record you enter. While posting payments, the system recalculates the Customer's Days Outstanding fields for customers with an Open Item Balance Method. The values change if the payments being posted fully pay an invoice. The system enters multi-currency gains and losses in the A/R journal (if applicable). A/R Payment Transaction Report Use the A/R Payment Transaction Report to list unposted payment transactions. When you post payments, this report is automatically printed. This report is useful to verify that distributions and account numbers are valid. This report prints each unposted payment transaction for each payment type you select, and includes a summary of debits and credits by account on the last page. The report includes the Total New Payments Amount and Total Re-application Amount fields and prints in order of customer check or draft number. If there is a credit memo associated with a payment, it displays below the payment number. SyteLine: Using Accounts Receivable 113

128 Payment posting process 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Activities > A/R Payment Posting form. 2. (Optional) By default, payments for all customers will be posted, but you can further refine the posting by selecting a range of customers, bank codes, receipt dates, and check numbers. You also can select a single payment for posting. 3. The Print option is automatically selected. You must first print the A/R Payment Transaction Report to review and verify the transactions that will be posted. 4. To produce the report, select Process. 5. The payments to be posted display in the grid at the bottom of the form. You can prevent any payment from being posted by clearing the Process check box in the grid for that payment. 6. Select the Commit radio button. 7. To post the payments and create the Bank Reconciliation records, click Process. Note: The system does not post transactions containing errors. If a transaction contains errors, correct them, and then try to post again. When you post an A/R open payment that is tied to a customer order, the system asks if you want to apply it as a prepaid amount on the customer order. You have three options: 1. To post the payment and not update the customer order, select No. 2. To post the payment and update the customer order, select Yes. 3. To cancel the action and not update the order or post payments, select Cancel. 114 Lesson 5: Customer payment processing

129 Demo: Payment posting Your instructor will demonstrate how to perform posting of customer payments. Exercise 5.4: Payment posting In this exercise, you will perform posting all of the customer payments that you entered in the previous exercises. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > Activities > A/R Payment Posting form. 2. Click Process to print the A/R Payment Transaction Report and populate the grid at the bottom of the form with the payments to be posted. 3. Verify that the correct payments will be posted, then select the Commit radio button. 4. Click Process. 5. Click OK in the message box informing you that, [Post] will be performed. 6. Click OK in the message box informing you that, # Payment(s) were posted. SyteLine: Using Accounts Receivable 115

130 Reversing posted payments To reverse a posted A/R payment, do the following: 1. Enter a negative A/R payment for the customer with the same check number. You must add a one or zero to the end of the original check number, as the system will see that this check has already been used for this customer. 2. Distribute the negative amount to the invoices that were originally paid. If the original payment was distributed as an open payment to the customer's A/R journal, then distribute the negative amount the same way. 3. Create a zero-amount invoice (for example, 0.00) and post it to the customer's A/R journal. 4. Reapply the open positive payment to the zero-amount invoice. 5. Reapply the open negative payment to the zero-amount invoice. 6. Post the payments to zero them out on the customer's A/R journal. 116 Lesson 5: Customer payment processing

131 Check your understanding On the A/R Payments form, how are the values in the Amount, Applied, and Remaining fields related? What are the four types of A/R payment distributions? SyteLine: Using Accounts Receivable 117

132 Which form can be used to enter customer payments, and distribute payments to outstanding invoices, finance charges, payments, and credit memos, all on the same form? a) A/R Payments form b) A/R Payment Distributions form c) A/R Payment Posting form d) A/R Quick Payment Application form Which report is used to list unposted payment transactions and is automatically generated during the payment posting process? a) A/R Payment Transaction Report b) A/R Posted Transactions Detail c) Invoice Transaction Report d) A/R Aging Report 118 Lesson 5: Customer payment processing

133 Lesson 6: Posted transactions Estimated time 30 minutes Learning objectives After completing this lesson, you will be able to: Explain the use of the A/R Posted Transactions (Summary/Detail) forms. Describe the process to reapply open payments or credits. Topics Introduction A/R Posted Transactions Summary A/R Posted Transactions Detail Reapplying open credits or payments Running the Accounts Receivable Aging report SyteLine: Using Accounts Receivable 119

134 Introduction After all invoices, debit memos, credit memos, payments, adjustments, etc. have been entered, distributed, and posted, you may want to check the status of the accounts receivable activities and balances on what customers owe. SyteLine provides a number of reports and utilities for reviewing and auditing accounts receivable transactions. You will learn about a few of them in this lesson. 120 Lesson 6: Posted transactions

135 A/R Posted Transactions Summary The A/R Posted Transactions Summary form shows summary information about customers posted transactions, including: Invoices with outstanding balances Debits and credits posted from invoice processing Payments posted from payment processing Finance charges posted from finance charge processing To view summary information for posted accounts receivable transactions: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Posted Transactions Summary form. 2. Turn off the Filter In Place mode. 3. Select a customer from the grid on the left side of the form to view information for that customer. 4. If applicable, select the Subordinate check box to include posted transactions for the subordinate customers of this corporate customer. 5. To display the detail of an invoice including part number, quantity invoiced, and unit price, select the invoice listing in the grid and select System > Actions > List Invoices. The linked List Invoices form displays containing more detail for the selected invoice. 6. To display transaction details, select the invoice listing in the grid and click Details. Notes: 1. In the grid in the lower part of the form, the transactions are sorted by invoice number in descending order. Note that open credits and finance charge transactions will be listed first. 2. If the customer is on credit hold, a red X displays to the right of the Currency field; otherwise, a green check displays, indicating that the customer is not on hold. 3. This form also calculates and shows gain/loss amounts previously posted to the A/R journals for domestic values. 4. For a record to be cleared from this form, it must first be tied to an invoice. SyteLine: Using Accounts Receivable 121

136 A/R Posted Transactions Detail The A/R Posted Transactions Detail form displays detailed information about a customer's transactions, including: Invoices Debits and credits posted from invoice processing Payments posted from payment processing Finance charges posted from finance charge processing. This form also calculates and shows gain/loss amounts previously posted to the A/R journals for domestic values. For a transaction to be cleared from this form, it must first be tied to an invoice. This form displays invoices in descending order. Each invoice is followed by credit memos, debit memos, finance charges, and payments applied toward that invoice. Next, open (unapplied) credit and debit memos and payments are displayed, followed by finance charges. To view detailed information for posted accounts receivable transactions: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Posted Transactions Detail form. 2. Select an entry in any of the drop-down lists on the form to filter the transaction records to display and then turn off the Filter In Place mode. For example, to view all of the posted transactions for a particular invoice, select the invoice number from the Apply To Invoice drop-down list and then click the Filter In Place icon in the toolbar. All of the posted transactions for that invoice will be listed in the grid on the left side of the form. You can also display the details for a transaction by selecting the transaction on the A/R Posted Transactions Summary form and clicking Details on that form. 3. Select a transaction from the grid on the left side of the form to view details for that transaction. 4. If necessary, you can update transaction information on the form such as applying the transaction to an invoice. 5. Save the record. Actions Menu The Actions menu includes options to filter the data to show only transactions where the due date is 7, 14 or 30 days in the future, and an option to show only transactions where the due date is any number of days past due. 122 Lesson 6: Posted transactions

137 Demo: Applying a posted transaction to an invoice Your instructor will demonstrate how to apply a posted open credit memo transaction to an invoice. Exercise 6.1: Applying a posted transaction to an invoice In this exercise, you will apply a posted open credit memo transaction to an invoice. In Lesson 4 you entered a price adjustment invoice for customer 18 to correct the unit price on an invoice that had already been generated but not posted. Both the original invoice and the price adjustment invoice, which generated an open credit memo, were later posted at the same time. However, the credit memo amount was not applied to the invoice. You should now make the adjustment that will apply the open credit to the original invoice. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Posted Transactions Summary form. 2. Turn off the Filter In Place mode. 3. Select customer 18 from the grid on the left side of the form to display the posted transactions for that customer. Note: Both the credit memo and the invoice appear in the grid. 4. Click the Credit Memo transaction entry in the grid to select it. 5. Click Detail to display the A/R Posted Transactions Detail form for the credit memo transaction. 6. Select Invoice id 56 from the Apply to Invoice drop-down list. 7. Save the record. 8. Close the A/R Posted Transactions Detail form. SyteLine: Using Accounts Receivable 123

138 Reapplying open credits or payments You can reapply open credits or open payments against invoices. To reapply an open credit, enter a new payment against an existing check or draft number. The system fills in the G/L Reference field with the description Re-Application of Open Payment. The system does not post the transaction to the general ledger or to the customer's record. The transaction updates the corresponding Open Item record. If you entered a customer payment with a payment distribution type of Open Credit or Open Payment and then posted the payment, you can reapply the posted payment. To reapply an open credit or open payment: 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payments form. 2. To add a payment, select System > Actions > New. 3. Select the customer number, and enter the check number that matches the open payment you want to reapply. The system fills in the G/L Reference field with the description Re-Application of Open Payment. 4. (Optional) Change the G/L Reference, Description, and Notes fields. When reapplying open credits, do not change the Receipt Date. The journal entries created will be a debit and credit to the A/R account. When reapplying an open payment and a separate A/R Deposit account is used, change the Receipt Date to the current date. The journal entries created will be a debit to the A/R Deposit account and a credit to the A/R account. If the deposit account is the same as the A/R account, then the receipt date should not be changed. 5. Save the record. 6. Distribute the payment using any of the distribution methods described in the previous lesson. 7. Post the reapplied payment and distributions. 8. To verify that the system has reapplied the open payment, view the A/R Posted Transactions Detail and A/R Posted Transactions Summary forms. The check number for the original open payment can be found in the A/R Posted Transactions Detail form. 124 Lesson 6: Posted transactions

139 Demo: Reapplying an open payment Your instructor will demonstrate how to reapply an open payment. Exercise 6.2: Reapplying an open payment In this exercise, you will reapply an open payment that has already been posted. Customer #5 has an open payment as one of their posted transactions. Reapply that open payment to invoice 37. Note: The original check number must be re-entered in the A/R Payments form. Exercise steps 1. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Posted Transactions Summary form. 2. Turn off the Filter In Place mode. 3. Select customer 5 from the grid on the left side of the form to display the posted transactions for that customer. Note: Both the Open Payment and Invoice 37 appear in the grid. 4. Click the Open Payment transaction entry in the grid to select it. 5. Click Detail to display the A/R Posted Transactions Detail form for the open payment transaction. 6. Make note of the check number in the Chk/Ref field. 7. Open the Master Explorer > Modules > Finance > Accounts Receivable > A/R Payments form. 8. Turn off the Filter In Place mode. 9. Select System > Actions > New. 10. Select customer 5 from the Customer drop-down list. 11. Type the <check number> that you took note of in the Number field and press Tab. 12. Click OK in the message box informing you that the customer, bank code, and check number already exist and that the add will continue. 13. Click OK in the message box to acknowledge the warning about changing the receipt date. 14. Save the record. SyteLine: Using Accounts Receivable 125

140 15. Click Quick. The A/R Quick Payment Application form displays. 16. Select the check box in the Select column for Invoice 37 in the grid at the bottom of the form. 17. Click Apply. The payment amount is re-applied to the invoice. 18. Click OK in the message box informing you of the actions that were taken. 19. Close the A/R Quick Payment Application form and return to the A/R Payments form. 20. Click Payment Posting. The A/R Payment Posting form displays with the Starting and Ending Customer fields populated with the value of Click Process to print the A/R Payment Transaction Report and populate the grid at the bottom of the form with the payment to be posted. 22. Verify that the correct payments will be posted, then select the Commit radio button. 23. Click Process. 24. Click OK in the message box informing you that, [Post] will be performed. 25. Click OK in the message box informing you that, 1 Payment(s) were posted. 126 Lesson 6: Posted transactions

141 Running the Accounts Receivable Aging Report Use the Accounts Receivable Aging Report to view the current status of all customer account balances. Normally you print this report at the end of the period, before you print statements. Access the report from the Master Explorer > Modules > Finance > Accounts Receivable > Reports folder. The Accounts Receivable Aging Report shows the age of a customer's balances and places them into the aging buckets defined in the report options. The aging buckets default to those that are defined on the Accounts Receivable Parameters form. However, you can change the bucket definitions before running the report. You can print the report either in a detailed format, which includes all the open item information, or in summary format, which includes only the totals for each customer. Report output The Accounts Receivable Aging Report prints the customers you specify using the report options, and it prints the names and billing information for each. The Print Posted Transaction option determines how the posted transactions, if displayed, are sorted. There are other report options that determine how the overall report is sorted, for example Sort by Currency, and Consolidate Customers. The main part of the report is the aging buckets. These show how much each customer owes and how long that amount has been due. This report also prints finance charge information, which includes charges and payments. The report also displays the exchange rate for multi-currency purposes. When printed in domestic currency, the report also includes gains/losses already written to the A/R journal. The bucket amounts are the sum of all transactions, including any gain/loss values. The bucket amounts do not include any estimate gain/loss amounts. If an invoice has multiple due date payment terms, a line will print for each scheduled payment that has not been completely paid. If an invoice has a debit memo or credit memo applied to it, the report shows the applied debit or credit memo number. You can print all posted transaction information showing the date and amount of each transaction. The end of the report provides grand totals for all selected customers. SyteLine: Using Accounts Receivable 127

142 Check your understanding How do you view all of the posted transactions for a particular invoice? To reapply an open payment against an invoice, what must you enter in the Number field on the A/R Payments form when entering the new payment? a) Invoice number b) Check number that matches the check number from the original open payment c) Next number in the sequence of customer payment numbers d) Account number to which the original open payment was distributed 128 Lesson 6: Posted transactions

143 Where can you find the check number for a previously posted open payment? SyteLine: Using Accounts Receivable 129

144 Course summary Estimated time 30 minutes Course objectives Now that you have completed this course, you should be able to: Describe the process to create customer records and the information that is maintained for customers. Describe the system parameters applicable to accounts receivable processes. Describe how accounts are set up for accounts receivable and how they are used in invoice and payment distributions. Explain how invoices, debit memos and credit memos from both order entry and accounts receivable modules are created and processed. List the steps to add, distribute and post customer payments. Explain how bank deposits are made using the Bank Reconciliation form. Identify the reports that are used to view the status of the various accounts receivable transactions. Topics Course review 130 Course summary

145 Course review The system calculates the default due date for a customer order to be: Due Date = (Order Date) + ( ). a) Number of days difference between Order Request Date and Order Date b) Number of days specified in the Std Due Period field of the Order Entry Parameters form c) Number of days until expected availability date What invoice number should be used if you are entering an open debit or credit to be applied against a customer account? a) 0 b) -1 c) 999 d) The number of the most recent invoice for the customer What happens if you post an invoice that has not yet been distributed? a) An error occurs and the posting process stops. b) Distributions of the invoice will be done automatically by the system and then posted. c) Posting will be performed on all other transactions and you are notified that the invoice was not posted. d) Posting is still performed resulting in journal entry errors. SyteLine: Using Accounts Receivable 131

146 When creating a new customer record, how do you allow the system to automatically assign a customer identifier? a) Place your cursor in the Customer field, right-click, and select Assign Identifier. b) Click Generate Customer Identifier. c) Leave the Customer field blank and save the record. d) Type? in the Customer field and save the record. Which form can be used to enter customer payments, and distribute payments to outstanding invoices, finance charges, payments, and credit memos, all on the same form? a) A/R Payments form b) A/R Payment Distributions form c) A/R Payment Posting form d) A/R Quick Payment Application form What does the symbol to the right of the customer name in the image above signify? a) The customer is very difficult to interact with. b) The customer is no longer active in the system. c) The customer has been placed on credit hold. d) The customer has exceeded their credit limit. 132 Course summary

147 Which form is used to set up the default aging periods ( buckets ) for use on aging reports? a) General Parameters b) Accounts Receivable Parameters c) Order Entry Parameters d) Inventory Parameters To reapply an open payment against an invoice, what must you enter in the Number field on the A/R Payments form when entering the new payment? a) Invoice number b) Check number that matches the check number from the original open payment c) Next number in the sequence of customer payment numbers d) Account number to which the original open payment was distributed Which of the following are types of A/R payment distributions? Select all that apply. a) Non-A/R b) Miscellaneous Charge c) Finance Charge d) Open Credit e) Processing Fee f) Invoice SyteLine: Using Accounts Receivable 133

148 A billing term for a customer is set up as follows: Prox Due Day: 20 Prox Discount Day: 10 Prox Months Forward: 0 Prox Discount Months Forward: 0 Holiday Offset: None If an invoice date for that customer is 5/2/2013: What is the due date for payment of the invoice? What is the discount date? Which forms does SyteLine check to retrieve account numbers for distribution of systemgenerated invoices? Select all that apply. a) Accounts Receivable Parameters form b) Chart of Accounts form c) Distribution Accounts form for product code of invoiced items d) End User Types form for end user type of the invoiced customer How do you access the form to add additional shipping locations for a customer? a) Click Ship Tos at the bottom of the Customers form Ship To tab. b) Click Add Locations on the Order Shipments form Address tab. c) Select System > Actions > Add New while the cursor is in the Ship To field on the Customer Orders form. 134 Course summary

149 How do you determine which customer orders have shipped but not yet been invoiced? a) Generate the To Be Invoiced Report. b) Review the Order Shipments form. c) Generate the Approved Not Invoiced Report. d) Review the Approved Shipments grid on the Order Invoicing/Credit Memo form. Which statements below are true statements regarding the invoicing of a customer order? Select all that apply. a) Invoices can be created only for customer orders that have items that have been shipped but not yet invoiced. b) Invoices should be generated before order shipment so that they can be included in the shipment. c) Applicable non-inventory charges should be added to the customer order record before an invoice is processed. d) The Order Invoicing/Credit Memo form is used to generate invoices for shipped customer orders. SyteLine: Using Accounts Receivable 135

150 Appendix A: Review exercise 136 Appendix A: Review exercise

151 Comprehensive review exercise Exercise A.1: Enter customer payments In this exercise, you will familiarize yourself with the processing logic of the SyteLine Accounts Receivable module. You will review Accounts Receivable by adding a customer, processing an invoice, then looking at the results in an aging report. Then, you will process a payment and review the aging report again. Exercise steps 1. Set up a new customer. 2. Add the following customer as shown on the form below. Credit Limit: 1,500,000 Terms: N30 Ordering Contact: Shannon Fink Shipping Contact: Lee Morgan Billing Contact: Danielle Beyer Enter an invoice. This invoice will have no effect on inventory forms. If we wanted it to, we could have run this through the customer order entry module. SyteLine: Using Accounts Receivable 137

152 4. Enter this invoice and distribute using the default account distribution. 5. Use today's date. 6. Add the following text to the invoice: This invoice represents charges incurred for the sale of bicycle parts at the Cincinnati trade show. Amount = $ Post the invoice along with any other unposted transactions. 8. Review the Invoice Transaction report. Are invoices distributed to the proper G/L accounts? If yes, then post. 9. Run the aging report for the customer you just added and review the output. All of the transactions in the Invoice, Debit, and Credit Memo form have been posted. 10. We received a check from Bikes of the Valley. Enter the data into the payment form and apply to the invoice using the Quick Pay method of distribution as shown: Check Number: 8964 Amount of Check: $ Post the payment and run the Payment Transaction Report. 12. Review the report. Are payments applied to the proper invoices and G/L accounts? If yes, then post. 13. View the Posted Transaction form for Bikes of the Valley. What is their balance? 138 Appendix A: Review exercise

153 Appendix B: Reports and utilities SyteLine: Using Accounts Receivable 139

154 Accounts receivable reports A/R Aging Report The A/R Aging Report prints a detail or summary by customers of the posted transactions in Accounts Receivable. Multiple parameters allow the user to pull information that is needed. Customer Statements Customer Statements prints statements listing the amount customers owe. The value you enter in the Statement Cycle field on the Customer Maintenance form determines when to print each customer's statement. Dunning Report output A Dunning Report is a letter you send to a customer as a reminder about past due invoices. SyteLine allows you to print Dunning letters for each customer whose oldest invoice is a specified number of days past due. Letters of Credit by Customer Use the Letters of Credit by Customer Report to print all outstanding Letters of Credit (LCRs) for one customer or a group of customers. Draft reports Draft reports are used primarily in European communities. It is a document representing payment between a buyer and a seller. A draft is a promise to pay at an agreed upon date from buyers that sellers take to their bank and deposit. Invoice Transactions, Payment Transactions, Finance Charge Transactions These reports allow the user to view the detail in the respective unposted batch form. These reports are the same as those printed before posting the batch form. Journal Transactions, Journal Transaction by Account These reports are a detail listing of journal entries in the A/R Distribution Journal. These are the same reports accessed through General Ledger Reports. Bank Reconciliation The Bank Reconciliation Report provides the user with a transaction listing for the bank reconciliation. This report will also give a listing of outstanding checks. Print Inv/Credit/Debit Memo Using the same forms as invoices, the Print Credit/Debit Memo Report prints posted credit or debit memos created in the Accounts Receivable Invoice, Debit and Credit Memo form. Cash Receipts Due The Cash Receipts Due Report lists details of all transactions, giving a running net due of the transactions. 140 Appendix B: Reports and utilities

155 Open Cash Receipts Posted The Open Cash Receipts Posted Report provides a detailed listing of unapplied payments by customer number. SyteLine: Using Accounts Receivable 141

156 Other accounts receivable reports Taxable Revenue Report The Taxable Revenue Report summarizes (or shows detail) of gross revenues, taxable revenues, and tax liability by tax code. This report can be sorted by date, customer, or tax code. Customer by Number, Customer by Name These reports provide a listing of customers by number or name. Corporate Customer The Corporate Customer Report displays the corporate customer with their respected subordinate customers. Customer Analysis The Customer Analysis Report expresses each customer as a percent of total sales (current year and last year) and discounts (current and last year). Chart of Accounts The Chart of Accounts Report prints a detail of the Chart of Accounts for the range of accounts specified. Customer Communications Log Use the Customer Communications Log Report to print a report of all communications between you and your customer. Miscellaneous tax and European Union (EU) reports These reports are used for international tax reporting. 142 Appendix B: Reports and utilities

157 Accounts receivable utilities Delete A/R Posted Trx For (O)pen Item Customers: deletes all invoices fully paid through date. For (B)alance Forward Customers: deletes all invoices up to the amount of payments available and generates a balance forward entry for the first partially paid amount. Re-balance Customer Balances Ensures the On Order Balance and Posted Balance fields in the Customers form are correct. Re-adds all ordered line items for the On Order Balance. Re-adds all posted transactions for the Posted Balance. A/R Balance History The A/R Balance History utility calculates the credit information on the Payment History tab of the Customer Master. Period/Year End Procedures The Period/Year End Procedures Utility zeroes all sales period-to-date or year-to-date fields on the Pay History page of the Customer Master and/or Salesman Master Period/Year to Date. Purge Invoice History Deletes records from the Invoice History Forms posted by Order Invoicing, Credit Memos, and Accounts Receivable Procedures. This utility does not affect posted transaction Forms or journals. Move Local Customers The Move Local Customers utility will move an existing local customer record to a new local customer record with a customer number that already exists in another shared site s database. Delete Global Customers Removes customers from the Global Customer Master. Currency Revaluation Multi-currency utility - calculates currency gains/losses for Accounts Receivable and/or Payable accounts due to currency rate changes. Activate/Deactivate Posted Trx With this utility, you can mark fully paid, posted invoices (and their associated payments, credits, and adjustments) as inactive. When SyteLine processes posted transactions, forms, and reports, it no longer searches through the inactive invoice. Also, you can mark inactive posted invoices (and their associated payments, credits, and adjustments) as active again. After you mark the invoice as active, SyteLine again includes it on the posted transactions forms and reports. This utility can now be run in the background. SyteLine: Using Accounts Receivable 143

158 Rebalance Letters of Credit Use the Rebalance Customer Letters of Credit utility to correct the accumulated CO values tied to letters of credit. You can also use it to correct the accumulated-shipped value of letters of credit tied to COs. Draft utilities A few draft utilities are available to accommodate draft processing for the European Communities. 144 Appendix B: Reports and utilities

159 Appendix C: Finance charges SyteLine: Using Accounts Receivable 145

160 Overview You can generate and post finance charges for customers who have a past-due balance AND for whom the Finance Charge check box on the Customers form is selected. Follow these steps: 1. Enter the finance charges. You can enter them manually on the Finance Charges form or generate them using the A/R Finance Charge Generation form. 2. Post the finance charges using the Finance Charge Posting form. After the finance charges are posted, they display on the A/R Posted Transactions Detail form with Finance Charge as the type and -1 as the invoice number. 146 Appendix C: Finance charges

161 Finance Charge form Finance charge records displayed on this form can be posted. You can enter the records manually or generate them using the A/R Finance Charge Generation activity. Please note: You can create finance charges only for customers that have their Finance Charge checkbox selected. Customers will be charged the rate specified in the Accounts Receivable Parameters form. Finance charges appear on statements. Generally, the user should print statements after generating finance charges. SyteLine: Using Accounts Receivable 147

162 A/R Finance Charge Generation form Use this activity to generate finance charges that will appear on the Finance Charge form. 1. Enter information in the following fields: Site Group - Enter the multi-site group ID for which you want to generate finance charges. Start and End Customer - Enter the range of customers for whom you want to generate finance charges. Statement Cycle - Select from the drop-down list the statement cycles for which you want to generate finance charges. Cutoff Date - Enter the cutoff date of the transactions you want to include in the calculation. Include Fully Paid Invoices - Select this check box if you want to include invoices that are fully paid, but which are late. Delete All Records First - Select this check box if you want to delete all finance charge records before generating the new amounts. Increment Date - Select this check box if you want the system to automatically increment date ranges and re-run reports and utilities. 2. Click the Process button to generate finance charges for the selected customers. 148 Appendix C: Finance charges

163 Finance charge posting Master Explorer \ Modules \ Finance \ Accounts Receivable \ Activities Use this activity to post finance charges that appear on the Finance Charge form. 1. Select the range of customers whose finance charges you want to post, or, to post finance charges for all customers, leave these fields blank. 2. Select Print and click the Process button. The system will print the Finance Charge Transaction Report. Verify that the finance charges are correct. Note: You must print this report before you can post the charges. The Commit option is inactive until you perform this step. 3. After verifying the report, select Commit and then click the Process button again. The system will post the charges. 4. The system does not post transactions that contain incorrect information. In this case, the system displays an error message stating that the posting process is partially complete. You must correct the errors, and then post the finance charges again. After the finance charges are posted, they display on the A/R Posted Transactions Detail form with Finance Charge as the type and -1 as the invoice number. SyteLine: Using Accounts Receivable 149

164 Appendix D: Customer statements 150 Appendix D: Customer statements

165 Customer Statements Report Using the Customer Statements Report form, you can produce customer statements that list the amount customers owe. Typically, you print statements on a weekly, monthly, and/or quarterly basis. The statement cycle you assign to a customer determines when that customer's statements are printed. The report is sorted by customer. The statements list the open item transactions and the total amount each customer owes, along with the customer's amount due in each of the five aging buckets. The report also lists the Apply to Invoice number when printing payments, debit memos, and credit memos that are not open. The report displays (unapplied) finance charges first, followed by open (unapplied) credit memos, debit memos, and payments, and lastly, invoices in descending order. Each Invoice is followed by credit memos, debit memos, finance charges, and payments applied toward the individual Invoice. You can print statements for particular cycles and for ranges of customers. You can elect to include or exclude zero balance and credit balance customers. You can also elect to omit invoices that are older than a specific number of days. In addition, you can elect to print: Aged totals Open payments Active transactions only Euro totals All posted transactions or only old ones Statement comments. The user is given two lines of text. You can produce the statements for a particular site group's customers, or for customers in all site groups. You can also select the aging basis for the statements by invoice date or by due date, and can specify the date of the statements. If an invoice has multiple due date payment terms, a line will print for each scheduled payment that has not been completely paid SyteLine: Using Accounts Receivable 151

166 Appendix E: Letters of credit 152 Appendix E: Letters of credit

167 Overview Key points A letter of credit (LCR) is a document from a bank stating that the bank will insure the customer's payment. The customer either deposits money with the bank, or the bank extends them credit; but the bank guarantees payment to you. Many vendors in Asia and some European countries require letters of credit. To use letters of credit: 1. On the Customers form, select the LCR Required check box. If you only use LCRs on some orders for a customer, leave this blank. 2. Enter an LCR for the customer using the Customer Letters of Credit form. 3. On Customer Orders, enter the customer's LCR number you ll use for that order. The system ties the LCRs to customer orders. The available amount remaining on an LCR affects whether you can enter and ship orders to the customer. LCRs link to only one customer, though corporate customer functionality is still available when checking credit. In the Customers area of the system, letter of credit authorizations are the same as in the Accounts Receivable area. LCRs are not available for multi-site orders. How letters of credit affect customer orders The list below describes the situations in which customer letters of credit (LCRs) affect customer orders. The LCR number prints on invoices, credit/adjustment forms, CO order verifications, bills of lading, pick list and pack slips. The system issues a WARNING when you enter or change an order: That causes the accumulated order amount (on a line level) for the LCR to exceed the original LCR. If an LCR is required and you have not entered one. If the line item due date you entered is later than the LCR expiration date. The system STOPS order shipment to a customer if the Customers form indicates you must use an LCR, and at least one of the following is true: The order LCR has passed its expiration date as compared to the line's ship date. The combined value of the current shipment and the previous shipment against the LCR exceeds the LCR original amount. There is no LCR tied to the order. During shipment, the system WARNS you if a customer does NOT require LCRs but optionally uses them, and at least one of the following is true: The line item due date is later than the LCR expiration date. SyteLine: Using Accounts Receivable 153

168 The combined value of the current shipment and the previous shipment against the LCR exceeds the LCR original amount. 154 Appendix E: Letters of credit

169 Customer Letters of Credit form The first step is to enter the LCR into the Customer Letters of Credit form. Then update the customer record to indicate an LCR must be used and which one will be applied to that customer. Status Enter the status of the letter of credit. Valid entries are: Planned Open Expired Complete If the status of the LCR is Planned, Open, or Expired, you will not be able to update the LCR, Customer, Vendor, or Currency Code fields. Note: Only LCR's with a status of Planned or Complete can be deleted. Expiration Date Enter the expiration date of this letter of credit. This field is required. The expiration date must be greater than or equal to the date issued. Transferable Select this check box if you wish this letter of credit to be transferable. Revolving Select this field to allow the letter of credit to be used on multiple customer orders. A revolving letter of credit is generally used when the delivery of goods is made in installments and at stipulated intervals. The amount of a revolving letter of credit may, under the terms and conditions, be renewed without specific amendments. Revocable Select this field to make the selected letter of credit revocable. A revocable letter of credit can be amended or cancelled by the issuing bank at any time without the consent of the beneficiary, often at the request, and on the instructions, of the applicant. Currency Like payments, you can enter customer LCRs in the customer's currency or the base currency. Letter of Credit Amount Enter the amount of the letter of credit. SyteLine: Using Accounts Receivable 155

170 Accumulated Customer Order Value This field displays the accumulated total of customer orders tied to this specific letter of credit. You can refresh this amount with the Rebalance Letters of Credit utility. Accumulated Shipped Value This field displays the accumulated value of all shipped goods tied to this specific letter of credit. You can refresh this value with the Rebalance Letters of Credit utility. 156 Appendix E: Letters of credit

171 Appendix F: Alphanumeric invoicing SyteLine: Using Accounts Receivable 157

172 Overview SyteLine requires you to set up the numbering sequence you will use for invoices, debit memos, and credit memos. If you desire, you can use separate sequences for customers or groups of customers. 1. Enter the invoice number length in the Accounts Receivable Parameters form. 2. Enter the invoice categories you will use. 3. Set up your invoice, debit and credit memo numbering sequences. 4. Update your customer records with the sequence category each customer will use. 5. Periodically void unused invoice, debit memo, and credit memo numbers. 158 Appendix F: Alphanumeric invoicing

173 Order Entry Parameters form Invoice Length Enter the length of all invoice numbers in the system (maximum length: 12 characters). This should be one of the very first tasks you perform when setting up your system. Until the invoice length is set, you cannot run any of the invoice processing forms. Once the record is saved, it cannot be updated. Since the parameters have been changed you need to log out and log back in. Allow Customer Order on Multiple Batches Select this field to allow the same customer order number to be on more than one batch order shipment. SyteLine: Using Accounts Receivable 159

174 Invoice Categories form Invoice Category These categories are used to link a customer to a sequence of invoice numbers. The categories are userdefined. 160 Appendix F: Alphanumeric invoicing

175 Invoice Debit and Credit Memo Sequences form Use this form to set up and maintain the alphanumeric sequences used for: Invoices Debit memos Credit memos You must set up at least one sequence for each of these. You can also set up multiple sequences for each if you need them. However, you must close the sequence record for a category before you open another one for that category. Three default initial sequences are set up after you specify the Invoice Length on the Order Entry Parameters form. EXAMPLE: Set up a range of 500 credit memo numbers to use during September 2008, for customers in the invoice category DEFAULTCATEGORY. The numbers use the prefix CR and start with number You would enter the following information on this form: Type: Credit Memo Start Date/End Date: 9/1/08 through 9/30/08 Group: 1 Category: DEFAULTCATEGORY Starting Invoice: CR2000 (number expands automatically to the full invoice number length) Ending Invoice: CR2500 (number expands automatically to the full invoice number length) If you use up all of these numbers before the end of September, close the sequence. The next group is automatically set to Group 2 for the same date range, and you can add more numbers. If you do not use all the numbers in the range by the end of September, you must close the sequence and void the remaining unused numbers. A sequence record may be deleted only if the sequence is marked as Closed. Deleting a sequence record removes any voided invoices that exist within the invoice number range being deleted. Group The Group field displays a system-generated number that is used to distinguish between records within the same date range. This value is not displayed until after the record is saved. Category The invoice category links a customer record to a specific invoice/credit memo/debit memo number sequence. The category must exist in the Invoice Category form. Starting Invoice\Ending Invoice Enter a starting invoice, credit memo, or debit memo number for this sequence. Alphanumeric key logic is applied to all entered values. For example, if you enter AB3 and your invoice length is set to 12, the starting value becomes AB Last Invoice This field displays the last invoice number used in the sequence. SyteLine: Using Accounts Receivable 161

176 Customers form Invoice Category Select the Invoice Category that is linked to this customer. 162 Appendix F: Alphanumeric invoicing

177 Void Unused Invoices form Type Invoice, Debit or Credit Memo Invoice Category Select the Invoice Category to be voided. Reason User-defined reason code for voiding invoices. This is a required field. SyteLine: Using Accounts Receivable 163

178 Void Invoice, Credit and Debit Memo Reason Codes form User-defined list of reason codes. A reason code is required when using the Void Unused Invoices utility. 164 Appendix F: Alphanumeric invoicing

179 Voided Invoices, Credit and Debit Memos form This form lists any invoice, debit or credit memos that have been voided. SyteLine: Using Accounts Receivable 165

180 Appendix G: Consolidated invoicing 166 Appendix G: Consolidated invoicing