Open Forum

AR Module

  • 1.  AR Module

    Posted 09-10-2018 02:39 PM
    ​Good afternoon!

    We have a new arrangement with an international customer that we have not come across before.  They pay us in advance.  Then as we fill shipments for them, we apply that to their invoices.  Currently, we do a monthly journal entry to record unearned revenue, based on what the customer has not used.  I am new to SL, but it seems like there should be a better way to handle this?  The hope is that we will be able to have other similar arrangements.

    I appreciate any input.


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    Melody Maczko, CPA
    LifeLink Foundation
    Tampa FL
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  • 2.  RE: AR Module

    SILVER CONTRIBUTOR
    Posted 09-10-2018 02:43 PM
    Hi Melody,

    Do you use Cash Manger for your deposits?  If so, you can do a cash payment to that customer in cash transactions using the entry type PA....it will leave an unapplied payment on the customer until you bill then you can apply the payment once invoiced....

    If you need help or have questions, just let me know.

    Thanks,
    Michael

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    Michael O'Neill
    Controller
    Eastex Telephone Cooperative
    Henderson TX
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  • 3.  RE: AR Module

    Posted 09-17-2018 08:31 AM
    ​HI Michael,

    We do use Cash Manager for the deposits, which does exactly as you mentioned when we pull the customer's statement.  The problem is that the unapplied amount is credited to our AR account upon deposit.

    I wonder then if the issue on our end is really how Cash Manager is set up to process the entries for unapplied cash?

    Melody

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    Melody Maczko, CPA
    LifeLink Foundation
    Tampa FL
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  • 4.  RE: AR Module

    SILVER CONTRIBUTOR
    Posted 09-17-2018 09:01 AM
    Hi Melody,

    In CM Setup, there is a spot to put the AR Holding acct / subacct.  Most people put this as their AR account.  This is the acct/subacct that is tied to the PA entry type.  Changing that acct/subacct would allow you to put the deposits in an acct different then AR while still allowing you to have them associated with customer account.

    Hope this helps.  Let me know if you need anything else....

    Thanks,
    Michael

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    Michael O'Neill
    Controller
    Eastex Telephone Cooperative
    Henderson TX
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  • 5.  RE: AR Module

    Posted 09-18-2018 08:04 AM
    I'll check that out the CM setup - thank you!

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    Melody Maczko, CPA
    LifeLink Foundation
    Tampa FL
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  • 6.  RE: AR Module

    Posted 10-23-2018 02:18 PM
    ​Upon looking into this further, the payments are not processed through Cash Manager.  We use the Payment Application in AR.  I am really new to SL, so I do not if it is possible to leave an unapplied amount on a customer's record.  Does similar logic apply?


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    Melody Maczko, CPA
    LifeLink Foundation
    Tampa FL
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  • 7.  RE: AR Module

    SILVER CONTRIBUTOR
    Posted 10-23-2018 02:52 PM
    Hi Melody,

    You can make a payment application in AR and just not apply it to an invoice at the time of creation.  Enter your check amount, deposit date, etc and just don't apply to any of the invoices at the bottom.

    When you are ready to apply the payment, you would just call up that customer and check # in Payment Application (the same screen).

    Hope this helps...let me know of any issues.

    Thanks,
    Michael


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    Michael O'Neill
    Controller
    Eastex Telephone Cooperative
    Henderson TX
    ------------------------------



  • 8.  RE: AR Module

    BRONZE CONTRIBUTOR
    Posted 10-24-2018 08:14 AM
    You could also treat this as a deposit (which it is) and apply each invoice against the deposit until the deposit is cleared.  That way the deposit shows up on your balance sheet (not in AR) and each invoice, with the remaining balance, keeping you and your customer informed of the remaining balance.

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    Marvin Cornelison
    President
    Raines Brothers, Inc.
    Chattanooga TN
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  • 9.  RE: AR Module

    Posted 10-25-2018 07:57 AM
    ​Thanks everyone!

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    Melody Maczko, CPA
    LifeLink Foundation
    Tampa FL
    ------------------------------