Lesson Seven Setting up Customers Accounts Receivable monitors the products and services sold to customers and the money received from customers. You can set up both default and specific customer information. Default information is good for all of the customers you deal with, but each customer will need special treatment too. When transactions are posted in Accounts Receivable, the journals are updated. The journals in turn update the General Ledger. The interaction between Accounts Receivable and the other sections in Sage 50 is illustrated below: Account Receivable Expenses Tickets Accounts Payable Time Tickets Inventors Job Cost Journal General Ledger 1
Entering Customer Defaults Click Maintain, Select Default Information, Click Customers Or Click Customer & Sales Navigation Bar Button Select Customer Button Click Set Up Customer Defaults Customer Defaults Window The Customer Defaults window stores basic information that applies to most of your customers and sales transactions. Customer Defaults window consist of 5 tabs: Terms and Credit Tab, Account Aging, Customer Fields, Finance Charges, and Pay Methods. 2
Terms and Credit Tab This tab controls the standard payment terms for invoices sent to customers, establishes the General Ledger discount account number and discount allowance percentages. You can also set the default credit limit that applies to all customers. In addition, you can set a default credit status that will control how Sage 50 handles your customers. Changes made on this window affect all customers using standard terms. If certain customers have special payment terms, you can modify their records individually in Maintain Customers. This will ensure that they receive their special terms, without upsetting the defaults that all existing and new customers will receive. Select Term and Credit Tab Select Stranded Terms (Due in Number of Days)- Enter Net Due in Days (45) Enter Discount in Days (15) Enter Discount % (2) Enter the Credit Limit (500,000) Select Credit Status (Notify Over Limits) Select GL sales account code (40,000) Select Discount GL account (89500 edit name as Discount given) Account Aging Tab Select the Account Aging tab to access aging information. The information in these fields is used to age sales invoices. You can choose to age your customer invoices by invoice date or by due date and set up aging categories. However you set these up, you ll be able to see at a glance what invoices are due, when; just look at the Sage 50 Aged Receivables report. Changing these categories will automatically update the reports. Select Account Aging Tab- Select Age Invoices By (Due Date) Set the Aging categories 1st Column (45, 0-45), 2nd Column (60, 46-60), 3rd Column (90, 61-90), 4th Column (Over 90 days) 3
Custom Fields You may have additional information that you keep on your customers, such as additional contact people or additional phone numbers, e-mail addresses, and so on. If so, you can set up custom fields to track this information. Then, when you set up an individual customer, on the General tab of the Maintain Customers window, you could enter the appropriate information for that customer. Sage 50 allows you to customize up to five additional fields for maintaining information about your customers. Select Custom Fields Tab Enter the Field labels (Second Contact, Reference, Mailing List? Multiple Sites?) Tick Enable Boxes Finance Charges If you assess late charges on your customers invoices, you will want to access this tab first. Here, you will set up the terms and percentages for calculating finance charges. You can also specify whether or not these finance charges are compounding. Enter your defaults here. If you have customers that you don t want to bill finance charges, you can modify their records on the Payment and Credit tab in Maintain Customers. Select Finance Charge Tab Tick Charge Finance Charges Enter No days on invoice overdue (120) Enter Overdue amount (100,000) Enter annual Interest Rate (2%) Enter Balance above the overdue rate (3%) - Enter the minimum finance charge (100) - tick the finance charging account - Select General ledger account (45,400) Select the appearance of the statement (Late Charge) Type the warning massage (Overdue invoices are subject to late charges.) and tick the Box Pay Methods Here, you set up the different types of payments that you receive from your customers, anything from cash to credit card. Sage 50 gives you ten options so that you can receive money in a variety of ways. Then, when you enter your customers payments, you can specify what type of payment it is. The payment method can be displayed in some reports and forms. Select Pay Methods tab - 1st field (Cash), 2nd field (Cheque), 3rd field (Visa), 4th field (Master card) Tick Assign Deposit ticket IDs (In select for deposits) Statement and Invoice Defaults Sage 50 provides a number of options and variables that you can use to control the printing of customer statements and dunning messages on invoices. These options can only be set at the company level; you cannot set them at the individual customer level. To access statement and invoice defaults: Click Maintain- Select Default Information- Click Statement/ Invoices. 4
Statement Print Options On this tab, you can set options that help you print statements the way you want. These include such options as when to print statements with zero or negative balances, and how long invoices must be overdue before they will generate statements. When you are ready to print statements, select Reports & Forms, Forms, Customer Statements. Select the form you want from the Forms list on the Select a Report or Form window. Click Preview and Print. When printing the statements, Sage 50 will use the default options you set. Select Statement Print Options tab and keep the default information appear in the Statement Print Options window. Dunning Messages Tab You can use this tab to create short notices that will notify customers on invoices if they have other invoices that are overdue by a certain number of days. In this way, you can have Sage 50 automatically remind your customers of overdue bills. Select Dunning Messages Tab, 1st raw (0 days overdue, Thanks for your business), 2nd raw (45 days overdue, You may have forgotten this bill. Thanks for your attention) and 3rd raw (60 days overdue, Please attend to this payment as soon as possible) Click OK 5
Setting Sales Tax Before you can bill your customers, you will want to set up your sales taxes. Once these are set up, you can make a particular sales tax part of each customer s record and automatically call up the correct sales tax when you create orders, bills, and so forth, for that customer. To add or edit sales taxes Click Maintain - select Sales Taxes Or Click Customer & Sales Navigation Bar Button Click Sales Taxes Button 6
Select Set up a new sales tax Click Next What is the total rate that you will charge? Enter the total of the tax rate. If this tax rate is made up of, for instance a state tax of 4% and a county tax of 2%, enter 6 here. If the rate is based, in whole or in part, on a formula, leave this field blank. 7
How many individual rates make up this total rate? Enter here the number of agencies that will make up this tax rate. If this tax rate is made up of, for instance, a state tax and a county tax, enter 2 here. Click Next Enter Sales Tax agency ID ( IRD), (IRD2) Enter Sales Tax agency name ( Inland Revenue Department) Select How a Sales Tax need to be calculated (By single rate/ By formula) Enter the Rate (0%), (11%) Select the Account Code ( 23100- VAT Control Account) Click Next 8
Enter Sales Tax ID (0% VAT), (11% VAT) Enter Sales Tax Name (0% Tax Items), (General Tax Rate) - Select Do you charge sales tax on freight (Yes/No) Click Finish Creating Customer Ledger After entering customer default information and sales tax information, the next step is to enter each customer. As you add customers, you can use the default information or change the information for specific customers. To access the Maintain Customers/Prospects window Click Maintain Select Customer/Prospects Or Click Customer & Sales Navigation Button Click Customer Button Select New Customer 9
Enter the following to General Tab The General tab is used to add, edit and view information about your customers. Enter Customer ID (IBRDS001) Enter the Name (I.B.R. De Silva) Enter Contact Name (Ruwan) Enter Billing Address (43, High Level Road, Kirulapuna,)- Enter the City (Colombo 5)- Enter the country (Sri Lanka) Enter the customer type (Consumer)- Enter Telephone No (011-2845697) Enter the Fax No (011-2845698) Enter e-mail (silva@yahoo.com) Enter the customized fields (Namal, R001,yes, yes)click Save Enter the following to Address Tab You can use the Addresses tab to keep track of shipping addresses for each customer. You can have a separate sales tax for each address. Recipient (I.B.R.De Silva) Address Line 1 (125, Galle Road) Address Line 2 (Bambalapitiya) City (Colombo 4) Country (Sri Lanka)- Click Save The History Tab The History tab offers a view of sales, receipts, last invoice, and payment information. Sage 50 updates this window each time you enter a transaction for a customer. You can enter historical information when creating a customer, but once the record is saved, you cannot make changes. 10
The Sales Info Tab Select the Sales Info tab to view sales information assigned to the customer. This tab is used to enter sales reps, shipping methods, pricing levels, and General Ledger sales accounts for customers. Select - GL sales account (40000), Ship Via (Courier), Price Level (Price Level 1) The Payment and Credit Tab This tab contains default payment information for the customer that will be used on the Receipts window. Also, you can customize the payment terms and credit status for a customer. To override the default terms, select Customize terms for this customer from the Terms and Credit dropdown list. 11
Select - Payment Method (Cash), Cash Account (10100) Select - Use default terms Click- Save Create following customer records 1. Enter Customer ID (WAS001) Enter the Name (Wasantha) Enter Contact Name (Wasantha) Enter Billing Address (No:85,)- Enter the City (Horana)- Enter the country (Sri Lanka) Enter the customer type (Consumer)- Enter Telephone No (011-5652452) Enter the Fax No (011-2544556) Enter e-mail (wasantha@gmail.com) Ship to (Billing Address)- GL Sales Account ( 40000 ) - Ship Via (Customer Pickup) - Terms and Credit (Default) 2. Enter Customer ID (ABC001) Enter the Name (ABC Computers) Enter Contact Name (Bandara) Enter Billing Address (No: 52,)- Enter the City (Mount Lavonia)- Enter the country (Sri Lanka) Enter the customer type (Sole Trader)- Enter Telephone No (0112453666) Enter the Fax No (011-2453666) Enter e-mail (abccomputersyahoo.com) Ship to (ABC Computers,No:65, Moratuwa)- GL Sales Account ( 40000 ) - Ship Via (Customer Pickup) - Terms and Credit (Default) 3. Enter Customer ID (KAM001) Enter the Name (Kamalan) Enter Contact Name (Kamalan) Enter Billing Address (No:65,)- Enter the City (Nugegoda,)- Enter the country (Sri Lanka) Enter the customer type (Sole Trader)- Enter Telephone No (077-8393112) Enter the Fax No (011-3654556) Enter e-mail (kamalan@yahoo.com) Ship to (Kamalan, No: 96, Kalubowila)- GL Sales Account ( 40000 ) - Ship Via (Company Delivered) - Terms and Credit (50, 10, 3%, Credit limit Rs. 120,000) 12
4. Enter Customer ID (TEC001) Enter the Name (Techno (Pvt) Ltd) Enter Contact Name (Janaka) Enter Billing Address (No: 853) Enter the City (Colombo 01)- Enter the country (Sri Lanka) Enter the customer type (Company)- Enter Telephone No (011-4252331) Enter the Fax No (011-4252331) Enter e-mail (techno@slt.com) Ship to (Billing Address)- GL Sales Account ( 40000 ) - Ship Via (Company Delivered) - Terms and Credit (Default) 5. Enter Customer ID (LAY001) Enter the Name (Layanel) Enter Contact Name (Layanel) Enter Billing Address (No: 232,) Enter the City (Wadduwa)- Enter the country (Sri Lanka) Enter the customer type (Sole Trader)- Enter Telephone No (071-6425582) Enter the Fax No (011-2526331) Enter e-mail (layanel@yahoo.com) Ship to (Layanel, No:546, Wadduwa)GL Sales Account ( 40000 ) - Ship Via (Customer Pickup) - Terms and Credit (Default) 6. Enter Customer ID (JJ001) Enter the Name (J & J computers) Enter Contact Name (Kapila) Enter Billing Address (No: 87,) Enter the City (Delkanda)- Enter the country (Sri Lanka) Enter the customer type (Sole Trader)- Enter Telephone No (077-6523282) Enter the Fax No (011-2526941) Enter e-mail (j&j@yahoo.com) Ship to (Billing Address)- GL Sales Account ( 40000 ) - Ship Via (Customer Pickup) - Terms and Credit (Due Days 30, No discount) Entering Begging Balances to Your Customers Beginning balance invoices are customer invoices that are outstanding as of the date you began to use Sage 50. Since these bills were recorded to the appropriate accounts in your previous accounting system, they should not affect the General Ledger in Sage 50. The balance of the Accounts Receivable account in the General Ledger should equal the total amount of the customer beginning balances as long as no other receivables transactions have been made. How to enter the begging balances Click Customers and Sales Navigation Bar Select Customer Button Click New Customer Click History Tab Click Customer Begging Balance Button Select Customer from the list -Enter Customer Invoice No Enter Invoice Date Enter Purchased Order Number Enter Amount Select The Accounts Receivable Account No Click Save Customer ID Invoice No IBRDS001 1000 1200 1300 WAS001 0985 1400 ABC001 1290 KAM001 1150 TEC001 1250 1265 Date 14.03.2016 25.03.2016 28.03.2016 12.01.2016 28.02.2016 08.12.2015 25.12.2015 09.03.2016 22.03.2016 PO No PO006 PO025 PO125 PO236 PO369 PO457 PO125 PO365 PO456 13 Amount 75,000 15,000 10,000 25,000 25,000 125,000 100,000 75,000 50,000 A/R Code