A/R Invoices
Accounts Receivable Menu -> A/R Invoicing -> A/R Invoices
Because Texada SRM is fully integrated, posting invoices will automatically debit Accounts Receivable and credit the selected accounts (revenue or sales tax) in the General Ledger.
To enter customer invoices, select A/R Invoices and the prompts are:
INVOICE NUMBER
Type in the invoice number. This field is mandatory.
A window is provided to display the unposted invoices already entered as outlined in A/R Invoice Search.
This is useful for checking the manual invoices against the entries entered, before posting.
Invoice numbering restrictions:
•A blank invoice number cannot be used.
•Invoice numbers cannot be re-used for the same customer on the same date.
•Invoice numbers can be re-used for a different customer or even for the same customer if the invoice has a different date.
Note: New Invoices cannot be entered when Daily Close processing is being done on another workstation.
A warning message displays on the screen.
CUSTOMER #
Type in the customer's number, or look for it in the Accounting Customer Search window.
Account Warnings:
•A/R invoices cannot be entered for customers that are not flagged as On Account in Customer Information. The message THIS CUSTOMER IS CASH ONLY will display.
•If the customer has been given a Credit Rating that is flagged to generate a credit warning or to NOT allow any further activity, a warning message is displayed as outlined in Customer Credit Rating Warning.
•A/R invoices cannot be entered for any customer designated as a child of another customer.
The message CANNOT USE A CHILD ACCOUNT - SWITCHING TO PARENT ACCOUNT# will display, and the customer number will flip to the parent customer account number.
The parent credit limit applies.
A/R and Counter Payments entered by the child customer, cannot be applied to an A/R invoice created through this option. Only payments from the parent customer can be applied to this type of invoice.
CHILD ACCOUNT#
This field only applies if this invoice was originally created from the counter or order programs for a child customer and has been posted through Daily Close 2.
This is display information only. The A/R invoice will be posted to the parent customer.
ACCOUNT BALANCE
The customer's total Account Balance will display.
This is a running balance, which gets updated each time an invoice is completed.
CREDIT AVAILABILE
The available credit amount will display.
Credit Warnings:
•If the customer has exceeded their credit limit, the words NO CREDIT will display. This is a warning only, and does not prevent the invoice from being entered.
•If the credit limit is zero or less than zero, then the words LIMIT NOT SET will display.
•If invoice details are accepted that cause the total invoice amount to exceed the remaining credit available, a warning will appear stating that the CREDIT LIMIT HAS BEEN EXCEEDED.
Acknowledge the warning to continue.
INVOICE DATE
Accept today's date or type in the date of the invoice.
DUE DATE
Accept the default date according to the terms selected for this customer in Customer Information or over-type it with the correct due date.
This due date is used to determine when payment is overdue, and the invoice is eligible for finance charges.
DISCOUNT DAYS
Accept the default number of days according to the terms selected in Customer Information, or over-type it with the correct number of days when the discount expires.
DISCOUNT %
Accept the default percent according to the terms selected for this customer in Customer Information, or over-type it with the correct discount percentage which applies up to and including the discount date.
CURRENCY
Accept the default currency code as selected for this customer in Customer Information, or select the correct currency from the drop-down list.
Invoices on the Aged A/R Reports can be printed by currency code.
If currency exchange postings are required, enter manual detail transactions distributing to the expense account and to the currency exchange account as assigned in Default Accounts, for the exchange rate.
SITE #
The Site # can be used for Job numbers or for different branches of the same firm.
Customer Statements can later be printed by Site #, which may be useful to the Customer to track the costs separately.
Leave this field blank if the site is not relevant, or type in the site number to be tracked for this invoice, or select one from the Site Search window.
A flag in the Required Document Information in the Company Contract Parameters can be set, forcing the operator to enter a valid site code on each invoice.
DIVISION
Leave this field blank for Head Office Division, or type in the correct division that applies to this invoice, or select one from the drop-down list.
The Aged A/R Reports can be printed according to this division.
Note: This division becomes the default on the invoice detail lines, but can be over-typed on specific lines are required.
Division Posting in the General Ledger:
•The "A/R Control Account" Debit posting for the invoice total is controlled as follows:
oIf the Activate G/L Posting By Division feature is activated in Support Application Parameters the "A/R Control Account" posting to the General Ledger always reflects this Division that is assigned to the invoice header regardless of the posting division on the details of the invoice.
oIf the divisional posting feature is not activated then the "A/R Control Account" always posts to the blank division even if the details on the invoice post to different divisions.
•The invoice details always post to the division defined for that specific detail in the detail distribution screen of the invoice.
EVENT WINDOW
This window only appears if the event management processing has been activated in the Company Rate Parameters and it has not been de-activated for the operator's division in the Additional Pop-Up Windows, in the Divisional Contract Parameters.
Close this window if event rates do NOT apply to this document, or enter the event information as prompted in Location and Event Information.
BATCH
Leave this field blank for the Unassigned Batch, or type in your Batch Code, or select a Batch from the drop-down list.
Batch codes can be setup in A/R Invoice Batch Codes.
Note: When using separate batches, Invoice entry and posting is NOT locked for other batch codes.
TAXES
The tax options are include:
•TAX 1 and TAX 2
If your firm uses the standard tax processing, the tax codes defined for the customer for Tax 1 and Tax 2 will display, and will indicate whether the customer is eligible or exempt from these taxes.
TAX 1 or 2 = YES Then the customer is eligible for the tax.
TAX 1 or 2 = NO Then the customer is exempt from the tax.
This is for information purposes only, and will not prevent charging the customer tax even if the customer is exempt.
•TAXES
If your firm utilizes the Enhanced taxing activated in the Company Taxing Parameters, a window is provided on the Taxes field to view taxes and the exemptions for this customer, as outlined in Taxes and Exemptions.
INVOICE TOTAL
As the revenue details and tax amounts are added in the invoice details, the total for the entries for this invoice displays.
Visually check that the invoice amount is correct before proceeding with the next invoice.
Detail Paging Screen:
The Invoice Number, Customer Number, Child Account#, and Account Balance from the invoice header screen are displayed at the top.
The Invoice Total displayed at the bottom is the running total of the invoice details.
The fields in the invoice details include:
SEQ #
The sequence number tracks the entries made for this invoice.
ACCOUNT #
Enter the G/L account which is to be Credited, or select it from the G/L Account Search window.
The General Ledger account numbers for Accounts Receivable control account or Accounts Payable control account can not be entered directly on an A/R invoice.
Note: Operators can be restricted from posting to a control account by role permission as defined in Security Role Permissions.
DESCRIPTION
The G/L account description is displayed.
DIVISION
Accept the division defaulted from the invoice header, or enter the correct division, or select one from the drop-down list.
This transaction will post the Credit to this Division, regardless of the Division on the invoice header.
DESCRIPTION
The division description is displayed.
AMOUNT
Enter the amount that should be allocated to the G/L Account # selected for this detail.
To enter a credit invoice, type in the amount as negative ( -10.00).
Expanded Detail Record
Click EXP/CON or press <F9> to expand the detail lines and to access any Detail notes.
These notes print on the A/R Sales Journal generated from Post A/R Invoices, and also post to the G/L transactions.
TAX CODE DETAIL
If the Calculate Tax On feature has been activated for AR Invoices or ALL in the Company Taxing Parameters, the tax code window is triggered after each detail is completed displaying the default Tax code associated with the GL Account as assigned in Tax Codes.
AR Invoices are included on the Tax Activity Report as Type INV and are listed under Collected.
•If the Account # entered for this transaction is not associated with any Tax Code, leave this field blank and close the window if taxes do not apply, or select the tax code required for this transaction from the drop-down list.
This defines the tax code to associate with the journal line in the Tax Activity Report and will be noted in the G/L transactions.
Note: This does not calculate any tax amounts and does not trigger any tax posting to the G/L.
•A valid tax must be selected if the Account # entered for this transaction is defined as a posting G/L Account for any tax code in the Tax Codes table.
This is a mandatory field that is used to manually link this Tax transaction with the Tax Codes that have been input for the other expense detail lines of the journal.
When the journal detail is posting to a G/L Account that is defined as tax account in Tax Codes then the transaction itself is not written to the BAS report in Tax Activity Report as the system does not automatically calculate taxes in these functions.
Security:
To change the default Tax Code on the Journal transaction the operator must have Security Role to 'Change Tax Codes' set in the "Document Field Access" window of the Role Permissions.
Finished ?
Multiple invoice detail lines may be entered.
Check that the Invoice Total is correct then click ACCEPT twice (once to accept the last detail line, and once to accept the invoice).
Invoices can be posted by batch in Post A/R Invoices to complete posting to the Customer's Account and the G/L.
Delete Unposted Invoices:
1.To delete an unposted invoice, click the DELETE button or press <F7> in the invoice header before selecting the invoice number.
2.Select the invoice to be deleted from the window, and accept the invoice number and customer number values displayed.
3.At the prompt ARE YOU SURE?
Click Yes to finish.
A deletion record is written and can be viewed in Delete Log by function ARIF01.
Entering a Credit Invoice:
If a mistake was made and the invoice has been posted against the customer's account, it is too late to fix the original invoice.
Generally, another invoice number is issued as a Credit Invoice, to process the correction on the customer's account separately from the original invoice.
Entering a credit invoice uses exactly the same steps as entering a normal invoice, except that the amounts entered are negative. Generally, the credit invoice is broken into several entries, to credit back the revenue, and sales taxes separately.
e.g. Use three separate sequence numbers to separate the entries.
Note: To credit Rental or Sales Equipment, if inventory has been loaded, issue the Credit Invoice using either Miscellaneous Invoices or Credit Invoices. If the credit has to do with rental or sales revenue for a specific product #, the revenue needs to be credited back to that particular product. A/R INVOICES does not allow this.
Refunding an Overpayment on Account:
If a customer has over-paid his account and a refund check needs to be generated, refer to instructions in Credit Invoices for Issuing A Refund For A Credit Account Balance.
N.S.F. (Not Sufficient Funds) for Checks or Invoice Payments:
•NSF Invoice Payment:
When payment is declared N.S.F. on an invoice that was NOT charged on account, use Create NSF Charge to re-enter the N.S.F. invoice and bank service charge amount.
•NSF Payment On Account:
When a customer's check was entered as paid on his account but cannot be cashed, it must be re-entered into the customer's account as an N.S.F. check using A/R Invoices.
To re-instate the check On Account, enter the N.S.F. check amount and the bank service charge amount independently, for two reasons:
oTo isolate the service charge from the N.S.F. check if the customer refuses to pay the bank charge. This also makes the amounts of the N.S.F. check and the bank charge clear.
oOn your Bank Statement, the N.S.F. check and the bank service charge are usually separated.
1.Enter the N.S.F. check in A/R Invoices as follows:
INVOICE #
Enter NSF as a prefix to the check number so that it can be easily spot as an invoice for the NSF check.
INVOICE DATE
Enter the date which is on the bank memo so that your bank account has a credit entry for the same date as your bank statement.
Invoice Distribution Details:
ACCOUNT #
Enter your G/L BANK account.
This debits A/R and credits BANK.
DIV
Leave this field blank for Head Office Division.
AMOUNT
Enter the amount of the NSF check only as a positive amount.
2.Enter the N.S.F. service charge into the customer's account as follows:
INVOICE #
Enter NSFCHG or any word that identifies this as a service charge for the NSF check.
INVOICE DATE
Enter the date of the service charges.
Invoice Distribution Details:
▪SEQ 001
The first line entry will be for any Bank charge.
ACCOUNT #
Enter your G/L BANK account.
This debits A/R and credits BANK.
DIV
Leave this field blank for Head Office.
AMOUNT
Enter the amount of the bank's charge as a positive amount. ($5.00)
SEQ 002
The second line entry will be for any additional service charge amount which are charged to your customer for processing an NSF Check.
ACCOUNT #
Enter the FINANCE CHARGES REVENUE account number, or select it from the window.
This debits A/R and credits FINANCE CHARGES REVENUE.
DIV
Leave this field blank for Head Office.
AMOUNT
Enter the amount to be charged to your customer in addition to the Bank charge for handling an NSF check. ($10.00)
INVOICE TOTAL
Invoice total = Bank Charge + Service Charge NSFCHG $15.00 = $ 5.00 + $10.00
3.Post the NSF entries using Post A/R Invoices and the NSF check then appears in:
▪Customer Account Inquiry as an UNPAID invoice.
▪The BANK account in G/L Account Inquiry as a CREDIT amount.
Intercompany Payments:
Some organizations have more than one company. This can lead to some difficulties if a customer sends one check intending to pay both companies at the same time.
If the check is going to be deposited in a joint bank account, then there is no problem. However, if each company has a separate bank account, then it could be difficult to reconcile your cash & banks unless this procedure is followed:
Example: Cust#: 300 Sends a check for: $ 85.00
Company A's portion: $ 35.00
Company B's portion: $ 50.00
The entire check will be entered into Company A. It will be applied against Company A's invoices equal to $35.00, and Company B's portion for $50.00. An intercompany entry will be made for Company B.
1.In Company A enter the portion that belongs to Company B ($ 50.00) as an A/R invoice as follows:
INVOICE #
Type INT.CO to represent an intercompany transaction.
CUST #
Enter the customer's number. (Cust # 300)
INVOICE DATE
Enter the date of the bank deposit (not the check date).
SEQ
The first sequence # will display, indicating the first entry.
ACCT#
Enter your account number for Intercompany transactions.
DIV
Leave this blank for Head Office.
AMOUNT
Enter the amount of the payment ($50.00) that belongs to the other company (Company B). Enter the amount as positive.
1.Post the Intercompany invoice in Company A: using Post A/R Invoices.
1.Enter the full payment in Company A using Customer Payments and pay off Company A's original invoice for $35.00 and the intercompany invoice INT.CO for $50.00, as follows:
CUSTOMER NUMBER
Enter the customer's number. (Cust #300)
METHOD OF PAYMENT
Enter the correct Method of Payment to indicate how the payment was made.
e.g. Check, Visa, Master Card, Cash
CHECK #
Enter the number on the check.
CHECK DATE
Enter the date of the bank deposit (not the check date).
CURRENCY
The currency coinciding with the Method Of Payment selected will display.
AMOUNT
Enter the full amount of the check. ($85.00)
Include the check with Company A's bank deposit.
1.Enter the intercompany credit invoice in Company B to reduce the amount that the customer owes.
INVOICE #
Type INT.CO to represent an intercompany transaction.
CUST #
Enter the customer's number.
INVOICE DATE
Enter the date of the bank deposit (not the check date).
SEQ
The first sequence # will display, indicating the first entry.
ACCT#
Enter your account number for Intercompany transactions.
DIV
Leave blank for head Office.
AMOUNT
Enter the amount of the payment (-$50.00) that belongs to this company (Company B). Enter the amount as negative.
1.Post the intercompany credit invoice in Company B using Post A/R Invoices.
1.Cross apply the posted credit invoice against valid invoices on account in Company B.
Topic Keyword: ARIF01