Accounts Receivable

2 sets of topics to cover:Basic every day transactions

Less frequent & monthly transactions

For each topic proper procedures will be explained.

Daily TransactionsOrder ConfirmationAgency payments Applying creditsCredits versus paymentsApplying grantsPutting credit on accountPrinting agency invoices

Order Confirmation

This is when an order becomes an invoice

PaymentsMoney is received from an agency

CreditsReduce the order balance for any reason besides a payment being received.Example: Agency did volunteer work and received a $25 coupon to use for product.Example: Write off uncollectable account.

Notice that a credit allows you to specify a GL Acct.

DebitCreditPaymentCreditCashAccounts ReceivableAccounts ReceivableGL Acct assignedFrom Warehouse record or Bank Accts table in the DSAUser assigns the GL Acct when credit is enteredPaymentCreditPaymentCredit

Applying grants - 2 methods

Putting credit on account

2 methods:

Apply a payment amount that is greater than invoice balance, or create a new order with a payment and credit balance.

Use a grant to record agency pre-payments and over payments.

Option 1 - Create a new order and add a payment to the orderYou can not apply a payment without an order to attach it to.

Option 2 - Enter the payment in Cash Receipts and create a new order automatically

Applying credit on account to invoices

Use a grant for pre-payments & over paymentsAdd a Pre-Payment

Printing agency invoices

Access invoices on PWW

Less frequent & monthly transactionsPrinting statementsHow to handles returns, bounced checks and write offsCredit memos versus adding credit to an orderGrant related transactionsParent Agency/Program relationship and ARHow to fix mistakes

Generate statements

Access Statements on PWW

How to handles returnsThe best solution is to create a Credit Memo against the order:

Example 50 lbs of the Fresh Potatoes get returned from the agency in Sept.

Creating a Credit Memo

How to handle bounced checksSolution is to get the payment removed and the order balance back on to the agencys account.

How to handle account write-offsSolution is to credit every open invoice for the agency.

What if the balance of the agencys account being written off is a credit?In thePrimariusDSA, you need to set up a miscellaneous charge namedRefund. Assign a liability account, such asAgencyRefundsorAgencyPayable.

In the orders, for each credit balance order, add the miscellaneous charge.

InAccountsPayable, enter an invoice for the refund using the liability account then generate the check to pay the agency.

When to use Credit memos versus adding credit to an orderUse a Credit Memo if:Product is returned from the agency.Agency did not get all of the qty of a product on an order.An entire order was issued to the wrong agency.Wrong item was put on the order.

* If there is product that needs to be put back in to your inventory, use a Credit Memo.

When to use Credit memos versus adding credit to an orderUse a Credit on the Credit tab if:You need to credit a misc. charge on an order.The agency got over charged for an item and the order is within a period that is closed.The agency did get the product, but they are no longer a member agency (write-off). The agency got the product but had to dispose of it (bad product or a recall).

* If no product needs to be returned to your inventory, use a Credit.

Grant related transactions

Removing a grant from an orderChanging the amount applied to a product on an order.Changing the grant that got applied to another grant.Applying a new grant to an old order.

Removing a grant from an order

Changing the amount applied to a product on an order.

Changing the grant that got applied to another grant

Applying a new grant to an old orderIf needed reset Effective Date to a date that is less than or equal to the orders Pickup Date.

If you post grants to GL using Pickup Date or Confirmed Date, grant will post to an older period or the first opened period in GL.

AR Aging reports and AR Statements do not back out grants applied after the period ending date. This will affect the ending balance of a past period.

Parent/Program relationship and AR

How to fix common mistakes

Mistake #1Price of a product on order is not correctOrders which are not confirmed are easy to fix.

Fixing a price on an unconfirmed order1) Fix the source of the incorrect price:

Fixing a price on an unconfirmed order2) Remove the product from the order

Fixing a price on an unconfirmed order3) Reorder the product.

Fixing a price on a confirmed orderAfter the source of the price is corrected:You have a few options based on the situation:Situation 1 The Pickup Date of the order is within the current order period.Situation 2 You are locked out of changing confirmed orders.Situation 3 The Pickup Date of the order is within a closed period.

The Pickup Date of the order is within the current period.In this case you may want to change the original order:

If you are locked out of changing the order:DSA setting is set to not allow changes to confirmed orders:

The Pickup Date of the order is within a closed period.Transaction Close Date is before the orders Pickup Date.

Using a new transaction to correct a price on an existing order2 common options:

1) Use a credit on the Credit tab

2) Return the product on a Credit Memo and reorder on a new order.

Option 1 Use a credit on the Credit tab

Return the product on a Credit Memo and reorder on a new order.

How to fix common mistakes

Mistake # 2Payment is posted to incorrect Account

Payment is posted to incorrect Account

Solution (If deposit is not posted, then delete it)

1) Create offsetting transaction to remove the payment from the incorrect agency account.

2) Enter payment again to the correct agency account.

How to fix common mistakesMistake # 3A confirmed order with the wrong pickup date.ORA confirmed order was placed for the wrong agency.

A confirmed order with the wrong pickup date or wrong agency.Solution:Create a Credit Memo against the entire order using the bad pickup date or the bad agency ref.

Create a new order with the correct agency and pickup date.

End of Accounts Receivable