Version 10 ACCOUNTS RECEIVABLE

Transcription

1 Version 10 ACCOUNTS RECEIVABLE

2 Accounts Receivable Manual Version 10 ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE BILLING CONTROL FILES FIXED ASSETS GENERAL LEDGER INVENTORY PAYROLL PERSONNEL ii N/Compass Hotline

3 Contents N/Compass Version 10 Introduction Accounts Receivable Highlights Accounts Receivable Overview Accounts Receivable Roadmap Accounts Receivable Setup Guide Accounts Receivable Table Files Option 1: Receivable Control File Maintenance Option 2: Terms Code File Maintenance Option 3: Late Charges File Maintenance Option 4: Accounts Receivables Customer Type File Maintenance Option 5: G/L Posting File Maintenance Option 6: Territory Code File Maintenance Option 7: Salesman Code File Maintenance Option 8: Bank Master File Maintenance Option 16: Customer Locks/Inquiry Maintenance Table File Listing Options Option 21: Accounts Receivable Control File Listing Option 22: Terms Code File Listing Option 23: Late Charges File Listing Option 24: Customer Type Code File Listing Option 25: G/L Posting File Listing Option 26: Territory Code File Listing Option 27: Salesman Code File Listing Option 28: Bank Master File Listing Customer Processing Option 11: Customer File Maintenance Option 12: Customer File Inquiry Option 13: Customer Detail Listing Option 14: Customer Summary Listing Option 15: Customer Address Listing Option 16: Customer Comment Reporting Accounts Receivable Processing Option 1: Invoice Entry Option 2: Credit Memo Entry Option 3: Invoice/Cr. Memo Edit Listing Option 4: Post Invoices/Credit Memos Option 5: Open Invoice Inquiry iii

4 Accounts Receivable Manual Option 6: Open Invoice Listing Option 7: Unapplied Credit Memo Inquiry Option 8: Unapplied Credit Memo Listing Option 21: Initial Cash Entry and Distribution Option 22: Adjustment Entry Option 23: Cash/Adjustment Edit Listing Option 24: Post Cash/Adjustments Option 25: Unapplied Cash Inquiry Option 26: Unapplied Cash Listing Option 27: Apply Cash/Credit Memo Process Option 28: Automatically Apply Cash Option 31: Transaction Register Option 32: Aged Trial Balance Detail Option 33: Receivables Analysis Report Option 34: Credit Limit Exception Report Option 35: 3-Up Labels Option 36: Real - Time Aged Trial Balances Detail Statement Processing Menu Option 1: Statement Detail Listing Option 2: Statements Option 3: Past Due Notices Option 4: Statement Posting Process Option 5: Statement Schedule Listing Year End Menu Option 1: Statement History Listing Option 2: Statement History Purge Option 3: Re-Calculate Aging Balances Option 4: Reorganize Physical Files Option 5: Year - End Closing Option 10: History Transaction Report Questions & Answers Resolving a Customer In Use By Another Update Process Error Message Deleting an Unapplied Credit Memo Deleting Inactive Customers That Have Activity Voiding a Bounced Check Debit and Credit Entries Recalculating Your Aging Running Statements Resolving the Credits Greater than Charges Error Message Interfacing Your Billing System with the N/Compass Accounts Receivable System Files that are Up-dated During Accounts Receivable Transactions iv N/Compass Hotline

5 Version 10 ACCOUNTS RECEIVABLE chapter 1 Introduction

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7 N/Compass Version 10 Accounts Receivable Highlights Customer information screen international phone number and country code capable. Last payment date viewable from the customer information screen. Due date, discount, and PO information displayed in current and history inquiry. View transactions in real-time or static aging mode. Run statements for open items only. History statements show unapplied cash. Cash application allows charge backs. Enter adjustments at the same time you apply cash and apply the amount requested as an adjustment. Write off adjustments or age if disallowed. Complete customer information, including current, future, and four aging periods. Extensive detail and summary analysis reporting. Audit reports for all transaction types. Calculated credit limits and average days to pay. Multiple selection screens for customer reporting. Ability to override sales account during Invoice and Credit Memo Entry. Handles parent and subsidiary relationships for a customer. Batch transaction processing in Invoice Entry, Credit Memo Entry, Initial Cash Entry, and Adjustment Entry. Codes to represent credit terms, late charges, and customer types. Provides uncollectible account analysis. Capability to maintain two different aging schedules (an aging schedule can be any number of days you want). Generates statements and past due notices for both open item and balance forward customers. Ability to override the adjustment account when adjusting balance. Invoices can be entered or brought in from your own invoicing system. Extensive discount processing for invoices. Cash can be applied to a specific charge or automatically to the oldest balances. Complete interface to Support Net s General Ledger system (a report is generated to help you enter journal entries into your own General Ledger). Introduction 1-3

8 Accounts Receivable Manual Supports multiple banks. Aging by invoice date or gross due date. View aging by next statement date or real-time from customer inquiry. Age unapplied credits. Apply credit adjustments and change discounts during cash adjustment and cash entry. 1-4 N/Compass Hotline

9 N/Compass Version 10 Accounts Receivable Overview Flexible Cash Application. N/Compass can automatically apply the cash for your customer accounts or provide the capability to apply it when you enter it or post it. Accounts Receivable Aging. Choose from two user-defined aging schedules to generate statements and management reports, printable in detail or summary format. Introduction Unlimited Customer Comments. A built-in contact management feature allows you to track comments, complaints, and compliments by type. Multi-Bank. For the company that operates from several offices, manage receivables from a single bank or multiple banks. Projected Collectibles. Assign a collectible percentage to each aging period, N/Compass will notify you, in exact percentages or in dollar amounts, of your outstanding receivables as projected collectibles. Statement Inquiry. Your users have real-time access to customer statements, allowing them to instantly address customer inquiries. User-Defined Inquiries and Reports. Custom management reports provide a comprehensive array of measurement selections to overview your collectibles. 1-5

10 Accounts Receivable Manual Accounts Receivable Roadmap You must setup the N/Compass Control Files and Chart of Accounts first. Detailed instructions are provided in the Control Files Manual. The Control Files Manual contains helpful information on how to sign on to the system as well as how to access your live data or the sample data library. Each company has it s own Accounts Receivable Control File Maintenance records in the Table Files. You must enter a control record for each company that you have. Accounts Receivable control options and system defaults need to be setup first. If you have the N/Compass General Ledger, setup the source code in the General Ledger Table Files Option 2 Source Code File. 1-6 N/Compass Hotline

11 N/Compass Version 10 Accounts Receivable Setup Guide Options 1-8 on the Accounts Receivable Table Files are mandatory. If you have the N/Compass Billing and it is setup Options 2, 4, 6, & 7 have been completed. 1. Receivables Control File Maintenance: Table Files Option 1. Determine if Receivables will interface with GL, assign a GL source code to all entries from AR (optional), debit AR & credit GL during invoice entry, generate GL entries even if you do not have N/Compass GL, choose cash or accrual accounting, open item detail, age by invoice or due date, age unapplied credits, print future invoice totals on statements, print unapplied credits on statements, include a comment to appear on statements, and aging period comments. Introduction 2. Terms Code File Maintenance: Table Files Option 2. Define payment terms. 3. Late Charges File Maintenance: Table Files Option 3. Based on past due balance & any late charges. 4. Customer Type Code File Maintenance: Table Files Option 4. Group customers by type for reporting. 5. G/L Postings File Maintenance: Table Files Option 5. Enter the G/L account numbers for each company. 6. Territory Code File Maintenance: Table Files Option 6. Setup territory code & description. 7. Salesman Code File Maintenance: Table Files Option 7. Setup GL posting levels. 8. Receivables Bank Master Maintenance: Table Files Option 8. Maintain multiple banks. 1-7

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13 Version 10 ACCOUNTS RECEIVABLE chapter 2 Table Files Menu

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15 N/Compass Version 10 Accounts Receivable Table Files Purpose: The Accounts Receivable Table Files contains the files that are used to drive the Accounts Receivable application. Allows you to list and maintain control files, codes and G/L interface tables for the accounts receivable system. After completing this section, you will be able to set up the N/Compass Accounts Receivable system by adding customers, entering invoices and cash, and processing aging reports. Accounts Receivable Table Files must be set up before you begin any Accounts Receivable processing procedures. After you set up the Table File Options, you can run the Table File Listings to verify the information. Use the Accounts Receivable Setup Guide in the front of this manual as a reference and guideline for essential steps to follow. Table Files Menu 2-3

16 Accounts Receivable Manual In this menu you set up the following: Terms codes Late charge codes Default general ledger account numbers Sales rep codes Accounts Receivable bank numbers Customer Type Codes Territory Codes Begin by setting up the Receivables Control File. Choose Option 1 (Receivables Control File Maintenance) from the Table Files Menu and proceed to the next page. 2-4 N/Compass Hotline

17 N/Compass Version 10 Option 1: Receivable Control File Maintenance This option is mandatory Description: The Control File contains information used to identify certain values for the Accounts Receivable system as well as the set up for the aging schedules. Each customer must be assigned to an aging schedule. The Accounts Receivable system supports two aging schedules. The information entered in the control file is used to run statements and calculate your customer s aging balances. Table Files Menu Interface With G/L, Y/N: If you are not using the N/Compass General Ledger package and want to generate a General Ledger report listing of the accounts that were debited and credited during posting, enter Y here. If you do not want to generate a General Ledger report upon posting, enter N here (This option prints a report RCP042T if not using N/Compass General Ledger, regardless of the flag setting). If you are using the N/Compass General Ledger package, the General Ledger posting journal is generated regardless of your entry. General Ledger transactions will not be taken to the G/L files if the flag is N. G/L Source Code: Use this field if you have Support Net s N/Compass General Ledger application. These codes are defined in Source Code File Maintenance (General Ledger Table Files Option 2). This code identifies where the journal entry in General Ledger originated. You can also run selected reports in General Ledger that only print journal entries for a specified source code. You need to assign one source code for each Support Net application you have. Enter the source code for Accounts Receivable. 2-5

18 Accounts Receivable Manual Invoice Entry G/L Interface Y/N: If you want to credit the N/Compass General Ledger sales account and debit the Accounts Receivable account during invoice entry, you must enter a Y. If you do not want to debit and credit these accounts during invoice entry, enter an N. If you have the N/ Compass Billing system, the General Ledger sales account is credited and the Accounts Receivable account is debited when you run the Billing Update Process (Billing Processing Menu Option 8). Cash/Accrual Basis C/A: Enter C for cash basis accounting or A for accrual basis accounting. For more information on the difference in posting to the General Ledger for Cash and Accrual basis accounting, see G/L Posting File Maintenance. Open Item Detail: This field determines whether all open transactions are displayed in detail. You can view applied credit detail on charges until the invoice is fully paid, or only show the remaining balance after posting statements. This field only applies to those customers that are open item customers. Customer File Maintenance and Customer File Inquiry (Processing Menu Options 11 and 12) allow you to see whether a customer is open item or balance forward. Note: This option has no effect on Balance Forward customers. 0 Shows only the new balance for open charge items. Applied credits are not shown as applied to the invoice after statement posting. 1 Keep credit transaction detail for open charge items. All applied credits are displayed until the item is paid in full. Age by Invoice or Due Date: Determine whether you want your Accounts Receivable aging based on invoice date or due date. The invoice aging method is used when producing statements and generating Aged Trial Balance Reports (Processing Menu Options 32 and 36). Age Unapplied Credits: Enter a Y to age the unapplied credits. If you enter an N, unapplied credits are not included on the Aged Trial Balance reports. Unapplied credits are credit memos that have been applied to a customer instead of an invoice through Credit Memo Entry (Processing Menu Option 2). Statements Print Future: Enter a Y to print future invoice totals on the statements. Enter an N if you do not want to print future invoice totals on statements. Future invoices are invoices that have been entered and have an invoice date that falls after the statement date you are processing. The next statement date determines whether it is a future invoice. Receivables Control File Maintenance (Table Files Option 1) allows you to view the next statement date. Print Unapplied Credits: Enter a Y to print unapplied credits on statements. Enter an N if you do not want to print unapplied credits on statements. Unapplied credits are credit memos that have been applied to a customer instead of an invoice through Credit Memo Entry (Processing Menu Option 2). Statement Comment: A sixty-character field for a message that will appear on all customer statements. 2-6 N/Compass Hotline

19 N/Compass Version 10 Aged Period Comments: There are four aging period comments, each of which represents an aging period (example: over 30 days, over 60 days, and so on). The comment associated with the oldest aging balance on the customer file is printed on the statement. If a customer s oldest balance is for aging period 2, for example, the comment entered on age 2 is printed on the statement. Likewise, if a customer s oldest balance is for age period 4, the comment entered on age 4 is printed on the statement. The following fields are maintained for both schedule 1 and schedule 2 You can set up one or two aging schedules. Each schedule can have a different number of days included in the aging period. For example: you can send statements monthly to some customers and bi-weekly to others. Note: A customer can be assigned only one of the two schedules. Next Statement Date: Enter the next date (in MMDDYY format) that the statements will be run. You are required to enter the statement date for schedule 1. Schedule 2 is optional. Make sure you do not enter a statement date that has been posted. If you enter a previously posted statement date, you will receive the error message RHHEADL attempts to write a duplicate a record. This means that when the system tried to run the Statement Posting Process (Statements Menu Option 4), it found that information already existed in the file with the date you were trying to process. This will halt the posting job and cause incomplete data to be entered in your files. The next statement date is also used in determining the aging periods for invoices when running Re-Calculate Aging Balances (Year - End Menu Option 3). Aging Period Days or Monthly Y/N: The number of days for each aging period (example: 30 for monthly, 7 for weekly, and so on). If you plan to run monthly statements on a certain day of the month, enter a Y in the Monthly Y/N field. Enter an N if you do not plan to run monthly statements. Monthly statements can either be the last day of the month or the same day each month (the 15th for example). Table Files Menu Press Enter after you key in the preceding fields. The system calculates the last four aging periods and the statement date. 2-7

20 Accounts Receivable Manual % UN - collectable: Enter the estimated percent of past due balances that you consider potentially uncollectible (1% is.01). Generally, there will be a larger percent for older balances. Enter this percentage for each of the four aging periods, if applicable. Last Invoice Number: The last invoice number used. The system automatically assigns invoice numbers. If you want to start with invoice 1501, for example, enter 1500 here. If the N/ Compass Billing application is installed, the invoice number is maintained in the Billing Control File (Billing Table Files Option 1) and is not displayed here. Last Credit Memo Number: The last credit memo number used. The system automatically assigns credit memo numbers. If you want to start with credit memo 500, for example, enter 499 here. 2-8 N/Compass Hotline

21 N/Compass Version 10 Option 2: Terms Code File Maintenance This option is mandatory Description: This is where you enter the different terms codes you offer to your customers. Each customer is assigned a default terms code. The terms code is used to calculate the following values: The discount amount. The number of days from the invoice date that the discount can be taken. The number of days from the invoice date that the invoice is considered overdue. If invoices are due on a specific day of the following month, set the End of Month to Y and the Net days to the desired amount. For example: If you have a customer who does not get a discount, and that customer s invoices re due net 30, you define the terms code here (see Net 30 terms code below). Enter the terms code in Customer File Maintenance (Processing Menu Option 11). You can override the terms code when you key in an invoice. Table Files Menu Terms Code: Enter any valid number from Terms Description: The terms code description is used to describe the terms code (due upon receipt, for example). This is printed on certain reports and inquires. 2-9

22 Accounts Receivable Manual Net Discount %: Enter the rate of the discount (2% is.02). The discount amount is calculated based on this percentage. Discount Days: The number of days past the invoice date that the discount is available. Net Days: The number of days past the invoice date before the invoice becomes overdue. End of Month: Enter a Y if invoices are due on a specific day each month. The Net Days field determines the day the invoices are due. If invoices are due on the 15th of the next month, for example, net days are 15 and end of month is Y N/Compass Hotline

23 N/Compass Version 10 Option 3: Late Charges File Maintenance This option is mandatory. Description: Late charges are applied to a customer s file based on the customer s past due balances and late charge code. Late charges are calculated when you post statements (Statements Menu Option 2) using a percentage of the customer s past due balance. The late charges that are calculated during the statement posting show up in the customer s record and will print on the next statement run. Calculating late charges is optional, but each customer must be assigned a late charge code. If you do not assign late charges to your customers, you must set up one late charge code with zeros in the fields. Table Files Menu Late Charge Code: Enter any number from to designate a late charge code. Late Charge Percent: This percentage is used to calculate the late charge by multiplying this percentage by the past due balance. Minimum Late Charge: This amount is used as the late charge if the calculated amount is less than this amount. For example, if the calculated late charge for a customer is $8.50, and the minimum late charge entered here is $10.00, the system applies $10.00 as the late charge. Past Due Balance Before a Late Charge is Calculated: If you only want to issue a late charge if the balance due is over a certain amount, enter the minimum balance here. For example, if you entered $ and a customer has a past due balance of $ , that customer does not get a late charge. If the same customer has a past due balance of $ or more, a late charge would be calculated on the full amount. 2-11

24 Accounts Receivable Manual Late Charge Due Period (1-4): You can elect to issue a late charge to all balances that are overdue as of a certain aging period. To charge a past due balance as soon as it is overdue, enter 1 here. If the past due balance is to be charged when it reaches aging period 2, enter 2 here and so on. Aging periods are set up in Receivables Control File Maintenance (Table Files Menu Option 1) N/Compass Hotline

25 N/Compass Version 10 Option 4: Accounts Receivables Customer Type File Maintenance This option is mandatory Description: Customer types are used to group your customers together. You can also specify different Accounts Receivable accounts for each customer type you set up here. You are required to assign a customer type to each customer. Examples of customer types might be distributors, wholesalers, or retailers. If you have the N/Compass Billing system, the customer types entered here are also used in the Billing system. Table Files Menu Customer Type: This field is an alphanumeric field. Enter in the letter or number you wish to use to represent your customer. Customer Type Code Description: This 15-character field is used to identify a customer type. Examples of a customer type might be distributor, dealer, wholesaler, retailer, and so on. 2-13

26 Accounts Receivable Manual Option 5: G/L Posting File Maintenance This option is mandatory Description:Whether or not you have the N/Compass General Ledger system, you need to enter the default General Ledger account numbers for each of your companies. The account numbers you enter here are the default account numbers used throughout the Accounts Receivable system. You need to enter your Accounts Receivable banks in Bank Master File Maintenance (Table Files Menu Option 8) before you enter the G/L account numbers here. As you enter invoices, credit memos, or adjustments, you have the opportunity to change the sales account number. If you have the N/ Compass Billing system, the sales accounts are used when you run the Billing Update Process (Billing Processing Menu Option 8). This screen allows you to add, change or delete your default account numbers. The following six General Ledger account fields include valid Level 1 and Level 2 numbers each account. The sales account can be overridden in Invoice Entry (Processing Menu Option 1) when you manually enter invoices into the Accounts Receivable system N/Compass Hotline

27 N/Compass Version Interest Revenue Account: This is a revenue account that gets credited when a late charge is generated during Statement Posting (Statements Menu Option 4). 2. Sales Account: This is a revenue account that is credited when an invoice is posted. You have the opportunity to override the sales account for each invoice as it is entered. If you have the N/Compass Billing system, the sales account is determined from the Billing system when you run the Billing Update Process (Billing Processing Menu Option 8). Table Files Menu 3. Returns & Allowances Account: This is a contra-account for revenue that is debited for credit adjustments and credit memos when you post invoices/credit memos or post cash/ adjustments (Processing Menu Options 4 and 24). 4. Discount Account: This is an allowance account that is debited to offset any discounts taken against a revenue account. 5. A/R Account: The Accounts Receivable account is debited during invoice posting and credited during cash posting. You need to enter an Accounts Receivable account for each customer type on your system. Customer types are set up in Customer Type Code Maintenance (Table Files Menu Option 4). 6. Cash Account: The cash account is debited when a cash entry is posted (balance sheet). The following is a summary of the accounts that are affected when you process Accounts Receivable transactions. The account numbers that are affected depend on whether you are on a cash or accrual basis. You specify which basis you use in Receivables Control File Maintenance (Table Files Menu Option 1). 2-15

28 Accounts Receivable Manual Accrual Basis Accounting CASH A/R INT SALES RETURNS DISCOUNT Invoices DR CR Credit Memos CR DR Cash: Payments DR CR DR Non-A/R DR CR Adjustments: Credit (-) CR DR Charge (+) DR CR Late Charges DR CR Cash Basis Accounting CASH A/R INT SALES RETURNS DISCOUNT Cash: Payments DR CR DR Non-A/R DR CR 2-16 N/Compass Hotline

29 N/Compass Version 10 Option 6: Territory Code File Maintenance This option is mandatory. Description: The territory codes entered in this option are used to identify territories for your sales people. Each customer is required to have a territory. If you do not use territories, you need to set up one territory code and assign that code to each of your customers. Billing Sales and Profit Analysis reports (Billing Customer & Reports Menu Options 15 and 16) are sorted by territory codes. Table Files Menu Territory Code: Any valid 3-character alphanumeric code. This code is used to identify a sales territory. Description: A 30-character field used to describe a territory code. (Examples: North, east, south, etc.) 2-17

30 Accounts Receivable Manual Option 7: Salesman Code File Maintenance This option is mandatory. Description: This option is used to enter and maintain salesman codes and commission percentages. A salesman code is required for each customer. If you do not use sales codes, you need to enter one salesman and use that code as you set up your customers. The commission for the salesman is calculated on the sales that are made to the customer through the N/Compass Billing system. The commission is only calculated if you are using the N/ Compass Billing system to process your sales orders. Billing Sales and Profit Analysis Reports (Billing Customer & Reports Menu Options 17 and 18) are sorted by salesman code. Salesman Code: Any valid sales representative code from This field is numeric only. Name: A 30 - character field is used for the sales representative s name. Report Levels: The level 2 (Div) and level 1 (Dept) for which the sales rep works. Commission Percent: A 5-digit, 4-decimal field for the sales rep commission percent (2% =.02). This is used in the Support Net Billing System (percent multiplied by the net sale = com- mission for the sale) N/Compass Hotline

31 N/Compass Version 10 Option 8: Bank Master File Maintenance This option is mandatory. Description: This is where you set up the bank(s) you are using in the Accounts Receivable system. ach customer is assigned a default bank number. The bank number(s) entered here are used to determine the default cash account when posting Accounts Receivable transactions. You will specify the default Accounts Receivable account numbers in the G/L Posting File (Table Files Menu Option 5). You should set up your bank code(s) for each company before you set up the G/L Posting File (Table Files Menu Option 5). Table Files Menu Bank Number: Any valid bank number from Bank Account Number: The bank account number for the cash checking account. This should not be confused with the cash account from the General Ledger Chart of Accounts. Bank Name and Address: The name and address of your bank. Telephone Number: Enter the telephone number and extension. Fax Telephone Number: Enter the fax number. Contact Name: Enter the main contact at your bank. Comment: A 30-character field used for any additional information. 2-19

32 Accounts Receivable Manual Option 16: Customer Locks/Inquiry Maintenance This option is used to clear customer locks off the system. Description: Use this option to clear locks on your customer records. A lock can occur if a user had an abnormal system exit. Things that may cause a customer lock include turning off the terminal while in a customer record or a power outage that caused your AS/400 to go down. If you have a customer lock, you will get the message, Customer in use by another update process. The information associated with the customer lock is displayed. The user who is either in the Customer file or was in it last will be displayed along with the date. You will need to have them finish and exit if possible. In the event that this is the result of an abnormal session end you will need to clear the lock. To clear the lock, enter 4 in the Del column. You can now continue with your transaction N/Compass Hotline

33 N/Compass Version 10 Table File Listing Options The following options (21 through 28) generate report listings for each of the previous Table File information maintenance options. Examples of each can be found in the Reports section in the back of this manual. Table Files Menu 2-21

34 Accounts Receivable Manual Option 21: Accounts Receivable Control File Listing Lists General Ledger interface options, statement schedules, statement uncollectables, and comments for each aging period. Option 22: Terms Code File Listing Lists Terms codes and descriptions with discount days, net days, and discount percentages. Option 23: Late Charges File Listing Lists late charge codes and descriptions with late charge percentages, minimum late charges, late charge balances, and the period due. Option 24: Customer Type Code File Listing Lists all customer types and descriptions. Option 25: G/L Posting File Listing Lists accounts that will debited and credited when posting Accounts Receivable transactions. It also includes Accounts Receivable accounts by customer type. Option 26: Territory Code File Listing Lists all territory codes and descriptions. Option 27: Salesman Code File Listing Lists all salesman codes and names along with the level 1 and level 2 assigned to the salesman. The report also shows the commission percentage. Option 28: Bank Master File Listing Lists all banks along with the address, phone number, and contact person N/Compass Hotline

35 Version 10 ACCOUNTS RECEIVABLE chapter 3 Customer Processing

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37 N/Compass Version 10 Customer Processing Purpose: In this chapter, you set up and maintain all customer information for the N/Compass Accounts Receivable system. These options allows you to do the following: Add, change, and delete your customer records Inquire into customer records Produce customer reports To begin this section, choose Option 11 from the Processing Menu (Customer File Maintenance) and proceed to the next page. Customer Processing 3-3

38 Accounts Receivable Manual Option 11: Customer File Maintenance Description: In Customer File Maintenance, you will enter and maintain your customers in the Accounts Receivable system. This process requires you to enter information on one main screen. You also have access to function keys to add multiple ship-to addresses and comments for your customers. This section is broken down into a section for each screen. You should have already completed Chapter 2, Accounts Receivable Table Files before you begin this option or any other processing option. If you have the N/ Compass Billing system, the customers you enter into Customer File Maintenance (Billing Customer & Reports Menu Option 1) are transferred to the Account Receivable Customer File. The three screens include the following: General customer information Additional ship-to addresses Customer comments If you are adding a new customer, press the F9 key for add mode. If your customer already exists on the system, press F10 for change mode. If you choose to delete press F11. Press Enter to proceed to the customer screen. 3-4 N/Compass Hotline

39 N/Compass Version 10 Screen 1: Customer File Maintenance Description: On this screen, you set up basic information for a customer. Both Accounts Receivable and the Billing systems share the customer file, so if you change information in one system, it is automatically changed in the other. Some of the information on this screen is specific to the Billing application, and is only displayed on the screen if you have the N/Compass Billing system installed. Bill-To Customer Name: A 30-character field to identify the customer name. Bill-To Contact Name: A 30-character field to identify customer contact name. Bill-To Address Lines 1 and 2: Enter the customer s street address for billing purposes. Bill-To City,St.,Cntry: Enter the city, state, and country to which the bill should be mailed. Update country code in the Control Files option 12, Country Code File Maintenance. Customer Processing Bill-To Zip Code 1 &2: Enter zip code and 4-digit extension for billing purposes. Web Dft Whse: Web default warehouse(s) are available for web entry for the Bill -To and Ship - To addresses. 3-5

40 Accounts Receivable Manual Ship-To Address: Enter the ship-to address only if it is different than the bill-to address. If you leave this field blank, the system uses the bill-to address as the ship-to address. The address entered here is used as the shipping address in the Billing system. You can enter multiple ship-to addresses for the customer by pressing F5. Multiple ship-to addresses are only used for the N/ Compass Billing system. Cust. Phone No. & Extension: Enter the customer contact phone number from left to right in the spaces provided for: international code (if applicable), area code, phone number, and extension. (international#) area code/prefix-number Ext. extension (111) 111 / Ext Fax Number: Enter the fax number to be used for general correspondence. You do not need to include the dashes as part of the fax number. A long distance number should be entered as Invoice FAX Number: Enter the fax number to be used when faxing billing invoices. The fax product allows you to automatically fax your invoices directly from the system without printing them. Enter the fax number, as you would dial it ( , for example). This field is used if you have the N/Compass Billing application and a Fax Server application and/or software. Invoice Auto - Route Code: This code determines automatic processing of invoices for the customer. This code determines how you want invoices to be handled when you are ready to print them. This code notifies the system if you want to interface with the Fax Server/401 application. This is functional only when the N/Compass Billing application and a Fax Server application and/or software installed. The three options you can enter are: 0 Print paper copy of invoice. 1 Fax invoices, do not print paper copy. 2 Fax and print paper copy of invoices for this customer. Customer Type: Enter the appropriate customer type for the customer. The customer type is used to group customers and also determines the Accounts Receivable account number that is used. Customer types are set up in Customer Type Code File Maintenance. Accounts Receivable Table Files Option 4 Billing Table Files Option 5 Trade Disc Code: Two-character field that is used in calculating discounts for this customer based upon their trade code. This field only appears if the N/Compass Billing system is installed. Valid codes are set up in Trade Discount Code File Maintenance (Billing Table Files Menu Option 11). See the Billing/Order Entry section for detailed information. 3-6 N/Compass Hotline

41 N/Compass Version 10 Price Code: Enter the price code to represent the Billing discount/mark-up percents table. This field only appears if the N/Compass Billing system is installed. Valid codes are set up in Discount/Mark Up % File Maintenance (Billing Table Files Menu Option 7). See the Billing/ Order Entry section for detailed information. Salesman Code: Enter the code to identify the salesman for this customer. The salesman codes are entered in Salesman Code File Maintenance. Accounts Receivable Table Files Option 7 Billing Table Files Option 3 Territory Code: Enter a 3-character code to identify the territory code for this customer. The territory code reflects sales territories. You establish territory codes in Territory Code File Maintenance (Table Files Menu Option 6). Accounts Receivable Table Files Option 6 Billing Table Files Option 2 Misc-1 Code & Misc-2 Code: Two 10-character fields to be used for any purpose. This field could be used to track additional information that is not maintained in the system. This information can be easily accessed through Query or iseries Navigator. Partial Ship, Y/N: Enter Y if your customer allows partial shipments. Enter N if your customer does not want partial shipments. A warning message appears in Billing/Order Entry if partial stock is being shipped. This field only appears if the N/Compass Billing system is installed. Refer to the Billing/Order Entry section for detailed information. Shipping Inst Code: Two-character field from used to define specific shipping instructions for this customer. Examples of shipping instructions are: ASAP Delivery, General Delivery. This field only appears if the N/Compass Billing system is installed. Valid codes are set up in Shipping Instruction Code File Maintenance (Billing Table Files Menu Option 10). See the Billing/Order Entry section for detailed information. Taxable Y/N: Enter Y if orders for this customer are taxable. Enter N if the orders are not taxable. This field is used in the Billing system to determine whether tax needs to be calculated. This field only appears if the N/Compass Billing system is installed. State Tax Code: Enter the state tax code that should be used to calculate state tax on items sold to this customer. This field only appears if the N/Compass Billing system is installed. Valid codes are set up in State Tax Code File Maintenance (Billing Table Files Menu Option 12). See the Billing/ Order Entry section for detailed information. Customer Processing Local-1 TaxCd: Enter the local tax 1 code that should be used to calculate local 1 tax on items sold to this customer. This field only appears if the N/Compass Billing system is installed. Valid codes are set up in Local 1 Tax Code File Maintenance (Billing Table Files Menu Option 13). See the Billing/ Order Entry section for detailed information. 3-7

42 Accounts Receivable Manual Local-2 Tax Cd: Enter the local tax 2 code that should be used to calculate local 2 tax on items sold to this customer. This field only appears if the N/Compass Billing system is installed. Valid codes are set up in Local 2 Tax Code File Maintenance (Billing Table Files Menu Option 14). See the Billing/ Order Entry section for detailed information. Credit Rating: Enter a user-defined value to define the customer s credit rating. Examples of credit ratings are excellent, good, fair, and poor, and so on. This field is for informational purposes only and is not used to determine whether this customer should receive credit. See the Credit Limit field that follows to set a credit limit for the customer. Invoice Terms Code: Enter the appropriate terms code to identify the terms you have offered to the customer. The terms code is used to determine due dates and potential discounts during Invoice Entry (Receivables Processing Menu Option 1). Invoice Terms Codes are set up in Terms Code File Maintenance. Accounts Receivable Table Files Option 2 Billing Table Files Option 4 Late Charge Code: Enter a late charge code to identify how a customer is charged for unpaid past due balances. Late charges are calculated when you post statements (Accounts Receivable Statements Menu Option 2) using a percentage of the customer s past due balance. The late charges that are calculated during the statement posting show up in the customer s record and will print on the next statement run. Late charge codes are set up in Late Charge Code Maintenance (Accounts Receivable Table Files Menu Option 3). Aging Schedule, 1/2: Specify the aging schedule that applies to this customer. Valid aging schedules are 1 or 2. Refer to Receivable Control File Maintenance (Table Files Menu Option 1) for detailed information on aging schedules. Aging schedules are also used to age the customer balances during the Statement Process (Accounts Receivable Statements Menu Options 2 and 4). Open Item or Bal Fwd, O/B: Enter O for an open item type customer or B for a balance forward type customer. If you specify O for open item, you can elect to show only the new balance for open charge items or to keep credit transaction detail for open charge items. You do this by entering a 0 or 1 in the Open Item Detail Field in Receivables Control File Maintenance (Table Files Menu Option 1). Balance forward keeps only current detail while summarizing each aging period balance. Print Statement Y/N: Enter Y if you want to generate a statement for this customer. Enter N if you do not want to generate statements for this customer. Running Statements (Accounts Receivable Statements Menu Option 2) generates customer statements. Order Entry Hold: Enter a Y here to put a global hold on all new orders entered for this customer. This hold is put on orders entered in the Billing/Order Entry system. This field will only appear if the N/Compass Billing system is installed. Valid codes are set up in the Order Hold Code File Maintenance (Billing Table Files Option 8). See the Billing/Order Entry section for more detailed information. 3-8 N/Compass Hotline

43 N/Compass Version 10 Last Pay Date: When you post cash / adjustments (Receivables Processing Menu option 24), the last payment date will update and display in month/day/year format, i.e. 02/14/04. Last Invoice Date: The field displays the last date and invoice was entered for this customer. The system automatically maintains this field, and you cannot change it. Credit Limit: You can enter a credit limit for the customer. If a customer has a balance that exceeds this limit, you are notified when you enter an order through Order Entry (Billing Processing Menu Option 1). You can run the Credit Limit Exception Report (Receivables Processing Menu Option 34) to find all customers that are over their credit limit. Sales This Year: The system accumulates year-to-date sales based on invoices (accrual basis) or entered cash (cash basis). If you are entering customers that have existing activity, enter the customer s sales balance here. Override Adjustments in this field, if necessary. The year-to-date figures in this field are transferred to sales last year field when you run Year-End Closing (Accounts Receivable Year- End Menu Option 5). Sales Last Year: During Year-End Closing (Accounts Receivable Year-End Menu Option 5), sales this year will be moved into sales last year. This field is updated automatically for you. If necessary, this field can be overridden. Customer Processing 3-9

44 Accounts Receivable Manual Screen 2: Ship-To File Maintenance (F5 key) Description: You can enter a default ship-to address on the first screen of the Customer File Maintenance. If you have customers with more than one ship-to address, use F5 (Multiple Ship-To F/ M) to enter and maintain all ship-to addresses for a customer. Ship-to addresses are used in the Billing system to determine the address where the order should be shipped. You need to complete this section if you have the N/Compass Billing system and have multiple ship-to addresses. Press Enter to proceed to the next screen. Press Enter to add the Ship-to address N/Compass Hotline

45 N/Compass Version 10 Press Enter to update the ship-to address. View all existing Ship-to addresses in change mode (F10). Customer Processing Place an X to select the desired Ship-to address. 3-11

46 Accounts Receivable Manual Screen 3: Customer Comments (F6 key) Description: The N/Compass Accounts Receivable system allows you to enter and maintain a record of internal comments for your customers. Each customer has their own comment file, and these comments can be accessed from Accounts Receivable and Billing any time you are in a processing option that has the comment function key available. You can use these comments to track things such as records of calls that were made to the customer, additional credit information, and follow-up dates. The comments are for internal use and are not printed on customer statements. Comment types are set up in Comment Type Code Maintenance (Control Files Menu Option 8). To enter or look at a comment, press F6 (Comments) from any of the customer screens. You are then prompted to enter a comment type and date. You can leave the comment type blank to see all comments. From the comment entry screen, you can enter the comment type and text. A comment can consist of as many lines of text as you need N/Compass Hotline

47 N/Compass Version 10 F9 (Fold/Truncate): This option displays three additional fields: user, schedule date, and action date. The user field defaults to the current user s user profile but can be used to assign comments to other users. A listing of comments and follow-up schedules can be printed on Employee Comment Reporting (Processing Menu Option 16). Customer Processing 3-13

48 Accounts Receivable Manual Comment Type: If you want to display comments for only one comment type, enter the comment type code here. Leave blank to display all comments. You must set up comment type codes in Comment File Maintenance (Control Files Menu Option 8). Date: Defaults to the current date. This date is the date given to any new comments. You can change the date by pressing F5 (Change Date). Press Enter to display existing comments The most recent page of comments is displayed. Use the Page Up key to display previous comments. To add comments, use the following fields. Type: Enter the comment type code you want to classify this comment under. The comment type code entered must be set up in Comment File Maintenance (Control Files Menu Option 8). If you selected a comment type at the top of the screen it will default here, but can be changed to any other valid comment type code. Comment: Enter your comment. You may use as many lines as needed. You can delete comments by clearing the line on which it appears. Use the function keys at the bottom of the comment entry screen to do the following: F5 (Change Date): Press F5 to change the date of new comments added. F6 (Print All Comments): Press F6 to print all comments on file for this customer N/Compass Hotline

49 N/Compass Version 10 F7 (Print Comments for Type Code): Press F7 to print only the comments with the comment type code entered at the top of the screen. F9 (Fold/Truncate): Press F9 to display or remove additional information: User: The User ID of the user who entered the comment. This defaults to the current user profile. If you want to assign this comment to another user, enter that user here. Schedule Date: The date on which the action described on the comment line is scheduled to be done. This is a very useful field for items that you want to follow up on by a certain date. If you discussed late payment with a customer and want to talk with them in a month to conduct a follow up call, for example, you can enter the date that you want to speak with them in this field. You can then run comment reports sorted by schedule date to remind you when you need to follow up on the comment. Action Date: Enter the date that the action described on the comment line is actually completed. Comment entry is available in many Accounts Receivable options. If it is available, a Comment function key appears at the bottom of the screen. All comments are entered in the same file and the file is shared between the Accounts Receivable and Billing systems. You can print out comments by using Customer Comment Reporting (Processing Menu Option 16) Customer Processing 3-15

50 Accounts Receivable Manual Option 12: Customer File Inquiry Description: This option allows you to view customer data on your screen. After you have added a customer to the system, you can view all information that you set up when you were in Customer File Maintenance (Processing Menu Option 11). After you apply invoices, credit memos, and so on to their record, you can see the current balances and aging here. Depending on the information you need, you can directly access the customer information, balances, history, and/or comments. When you choose this option, you see the following selection screen. This screen automatically pulls up your customers in alphabetical order. By pressing F8 (Customer #/Customer Name Selection), you can display the customers in customer number order. On either of these screens, you can use the position to field to move the screen to a certain customer name or number. If you want to create your own selection criteria, press F7 (Selection). If you press F7, you see the following screen N/Compass Hotline

51 N/Compass Version 10 This selection screen allows you to enter the sequence in which you want the customers to be displayed, as well as the range of values you want to have on the screen. After you press Enter you see the customer inquiry screen shown on the previous page, but it will contain only the customers you selected on this selection screen. Use the four options (described on the following pages) to view customer information. In the preceding example, the total due sequence is selected for customer balances of $ or greater. Press F2 (Clear Screen) to clear the current values and make a different selection. If you know part of a customer name use the Name String Search feature to return all customers with that string in their name, i.e. the string side would return Northside Nursery and Wayside Contracting. See Initial Cash Entry and Distr (Receivables Processing Menu Option 21), in this manual for a screen view. Once you select the customer sequence, you can view the customer information by entering an option next to a customer. Below are the options you can choose. A detailed explanation for each option follows. Customer Processing INQUIRE BY: 1. CUSTOMER 2. BALANCES 3. HISTORY 4. COMMENTS 3-17

52 Accounts Receivable Manual Inquiry Option 1 - Customer Information This option takes you into the general information for this customer. From this screen, you can access the history, balance, and comment screens. This screen displays all information you keyed into Customer File Maintenance. In addition to the information from Customer File Maintenance, the following fields are displayed for you on this screen. Average Days to Pay: The system calculates and maintains this field based on the total days a customer takes to pay divided by the total number of payments. Average days to pay is calculated as follows: Difference (# of days) between the check date and invoice date = X X added to the existing amount in the Number of Days to Pay field = Y Add 1 to the Number of Payments = Z Average days to pay is Y Z (# of days to pay divided by # of payments) Last Pay Date: When you post cash / adjustments (Receivables Processing Menu option 24), the last payment date will update and display in month/day/year format, i.e. 02/14/ N/Compass Hotline

53 N/Compass Version 10 Terms Code: Set up in the Terms Code File Maintenance (Accounts Receivable Table Files Menu Option 2). Entered in the Customer File Maintenance (Receivables Processing Menu Option 11). Discount %: This is the percentage of the invoice amount calculated for discounts. The percentage is determined from the terms code set up in Terms Code File Maintenance (Table Files Menu Option 2). Days: The number of days for the discount period. The discount days are determined from the terms code set up in Terms Code File Maintenance. See Table Files Menu Option 2 for more information. EOM (Y/N): This field will tell you if the terms code is set to calculate due dates on a certain day of the month. See Terms Code File Maintenance (Table Files Menu Option 2) for more information. Current Statement Date: The date the next statement for this customer will be issued. Late Charge Code: The assigned late charge code for the customer. Late charge codes are set up in Late Charge Code Maintenance (Table Files Option 3). %: The percentage used to calculate the late charge. Min PastDue Bal: The minimum balance the customer must have before a late charge is calculated. Age Period: Any past due balance on and older than this aging period will be charged a late charge. Valid periods are 1, 2, 3, and 4. Aging periods are set up in Receivables Control File Maintenance (Table Files Menu Option 1). Min LC: The minimum late due charge that will be calculated for this customer. Late charges are set up in the Late Charges File Maintenance (Table Files Option 3). After you have had a chance to look at this information, press Enter to see the current transactions, balances, and aging for this customer. See the following page for information on the Customer Balance Screen. You can also access the Customer Balance information directly by choosing Option 2: Balances from the Customer Inquiry screen. Customer Processing 3-19

54 Accounts Receivable Manual F5=History F7=More F8=Toggle between Real-Time Aging/Static Aging (Explained in the next section - Inquiry Option 2 Balances) 3-20 N/Compass Hotline

55 N/Compass Version 10 Inquiry Option 2 - Balances You can also access this screen by pressing enter from the Customer s current activity screen. This option takes you into the current balances for this customer. You can see the total amount due, plus a breakdown of current activity (invoices, credit memos, payments, and so on) that have not been posted through the Statement Posting Process. Use the position to fields to position to a certain date, transaction code (such as IV for invoice or CM for credit memo), or invoice number. The customer s current balance activity is displayed in the top portion of the screen, and the open transactions are displayed in the bottom portion of the screen. If you know the transaction date, transaction code, or invoice # you want to see, use the position to fields to find it quickly. By using one of these fields, the entry you select will become the starting entry displayed. The information you see on this screen includes: Sales This Year: Current year-to-date gross sales. This field is updated during Post Invoices/Credit Memos (Processing Menu Option 4) as well as the Billing Update Process (Billing Processing Menu Option 8). Sales Last Year: Last year s sales. This field is updated when you run Year - End Closing (Year - End Menu Option 5). The year-end processing transfers sales this year into sales last year. Late Charges Due: Total outstanding late charges due. This field is updated when you run the Statement Posting Process (Statements Menu Option 4). Late charges are calculated when you post statements (Statements Menu Option 2) using a percentage of the customer s past due balance. The late charges that are calculated during the statement posting will show up in the customer s record and will print on the next statement run. Not Yet Due: Total future amount due. A future charge is one that is dated after the current statement date. Unapplied Cash Total: Total cash that has been entered and posted, but not applied to a charge. Current Period Due: Total due in the current period. The current period is determined by the next statement date and aging period fields in Receivables Control File Maintenance (Table Files Menu Option 1). If the next statement date is 11/01/04 and the aging period days is 15, for example, the current period is from 11/01/04 to 11/15/04. Past due Period (1): Total due in past due period 1 (aging period 1). The aging periods are defined in Receivables Control File Maintenance (Table File Menu Option 1). Customer Processing Past due Period (2): Total due in past due period 2. The aging periods is defined in Receivables Control File Maintenance (Table File Menu Option 1). Past due Period (3): Total due in past due period 3. The aging periods is defined in Receivables Control File Maintenance (Table File Menu Option 1). 3-21

56 Accounts Receivable Manual Past due Period (4): Total due in past due period 4. The aging periods is defined in Receivables Control File Maintenance (Table File Menu Option 1). Total Amount Due: Total of the current period plus the four past due periods. This field does not include the Not Yet Due amounts, but it does include unapplied credits (if you chose to age your unapplied credits). If you want to age your unapplied credits, enter a Y in the Age Unapplied Credits field in Receivables Control File Maintenance (Table Files Menu Option 1). All open transactions for a customer are displayed in the bottom half of the screen. To view more transactions use the Roll Up key or the position to fields. Valid transactions are as follows. Charges: BF: Balance Forward (applies to customers designated as balance forward) IV: Invoices LC: Late Charges AJ: Adjustments (positive or charge adjustments) Credits: AJ: Adjustments (negative or credit adjustments) CM: Credit Memos PA: Payments (entered cash) F5=History: If you would like to view statement history information for this customer, press F5 (History). You can also access the history information directly by choosing option 3: History from the Customer Inquiry Screen (see the following page for the screen). The next section covers the statement history screens. F7=More: If you would like to view the check numbers and the credit memo numbers, press F7 (More). The check number and credit memo numbers have also been added to the Statements and the Accounts Receivable trial Balance Reports (Options 32 and 36). IV: PO#, Gross Due (date), Net Due (date), and Disc (discount) PA: Check No. (number input in initial cash entry) AJ: Comment (input in initial cash entry) 3-22 N/Compass Hotline

57 N/Compass Version 10 F8=Real-Time Aging / Static Aging: Toggle between these options. The screen heading will change to indicate what mode is currently displayed. You will only be able to view/alter Aging Date when in Real-Time mode. Real-Time Aging date will calculate aging on whatever date you input. The default is today s date. Static Aging is calculated as of the last statement date. Inquiry Option 3: Statement History You can also access this screen by pressing enter from the customer balance screen. This option takes you to the statement history screen, where you can view statement history records for this customer. This includes all statements that have been posted. You can enter a Beginning Statement Date (in MMDDYY format) to specify a starting statement date or leave the field blank to get all statement dates. After you press Enter, you see all statement dates that have been posted for this customer. Select which statement you want to view by entering a 1 next to it. Customer Processing 3-23

58 Accounts Receivable Manual After you enter 1 next to the statement date and press Enter, you see the activity as it appeared on the printed statement. Current activity is displayed first, followed by future (deferred) activity. Unapplied cash is not displayed. You can view additional entries by using the Page Down/Up keys N/Compass Hotline

59 N/Compass Version 10 F7=More (Explained in the previous section - Inquiry Option 2 Balances)Inquiry Option 4: Comments This option will take you directly into the customer comments screen. From here you can add, modify, or print the comments for this customer. Refer to Customer File Maintenance (Processing Menu Option 11) for detailed information about this screen. Customer Processing 3-25

60 Accounts Receivable Manual Option 13: Customer Detail Listing Description: You can use this option to print a listing of customers that have been entered into the Accounts Receivable system. When you run the listing, you can select the sequence you want the report to print in, as well as which customer(s) you want on the report. After you choose this option, you are presented with the following selection screen. This screen is divided into two sections. The left side of the screen is where you choose the sequence in which you want the report to print. To select the sequence, enter an X next to the sequence. The second portion of the screen contains the selection criteria fields. If you want to see selected customer information, enter the beginning of the range in the from value field and the end of the range in the to value field. To see one employee, enter that employee number in the from and to fields. Leave all values blank if you want all customers to print on the report. The only entry that is required on this screen is an X next to the sequence in the first portion of the screen. After making your selections, press Enter to submit the report N/Compass Hotline

61 N/Compass Version 10 Option 14: Customer Summary Listing Description: This report summarizes the information that was entered in Customer File Maintenance (Processing Menu Option 11). The report prints the key customer fields that include the following: You are prompted with the same selection screen as you were when using the Customer Detail Listing (Processing Menu Option 13). Press Enter to submit the report. Customer Processing 3-27

62 Accounts Receivable Manual Option 15: Customer Address Listing Description: This report lists customer name, address and phone number for the customers you select. This list could be used as a reference listing for any customer in your company. You are prompted with the same customer selection screen as you were when using Option 13 (Customer Detail Listing). Press Enter to submit report N/Compass Hotline

63 N/Compass Version 10 Option 16: Customer Comment Reporting Description: This option allows you to selectively print a listing of customer comments that have been entered into the Comments file. See Chapter 3 for detailed instruction on entering comment information into the file. When you choose this option you are presented with the following screen. Enter the selection criteria in the top portion of the screen. The criterion entered here deter- mines which comments are printed on the report. Enter applicable selection ranges in one or more of the following fields. Comment Date: This refers to the date the comment line was entered into the system. Enter a range of dates to include only comments with a comment date in that range. Schedule Date: This refers to the date on which the actions described on the comment line are scheduled to be done. You can access the schedule date through comment entry by pressing F9 (Fold/Truncate) and entering the appropriate schedule date. If you enter ranges in this field, you get only comments that have a schedule date within that range. Customer Processing Action Date: This refers to the date on which the action described on the comment line is completed. You can access the action date through comment entry by pressing F9 (Fold/ Truncate) and entering the appropriate action date. See Chapter 3 for information on entering comments with action dates. If you enter ranges in this field, you see only comments that have an action date within that range. 3-29

64 Accounts Receivable Manual Customer Number Range: If you want to print comments for a range of customers, enter the range on this line. If you want to print comments for only one customer, enter the customer number in the from and to fields. Comment Type: Enter a valid comment type code to print only the comments that have that type code. The comment type code must be set up in Comment Type Code Maintenance (Control Files Menu Option 8). User: Enter a valid user if you want to print comments that have been assigned specifically to that user. When you enter a comment, you can specify the user by pressing F9 (Fold/Truncate) and entering the appropriate user. If no user is entered, it defaults to the user that keyed the comment. The bottom portion of the screen is where you specify the sequence in which you want to print the comment report. Enter the appropriate number in the Report Sequence field. You must enter a selection here. Press Enter to submit the report N/Compass Hotline

65 Version 10 ACCOUNTS RECEIVABLE chapter 4 Accounts Receivable Processing

66 Accounts Receivable Manual 4-2 N/Compass Hotline

67 Accounts Receivable Processing Purpose: N/Compass Version 10 In this chapter, you complete the steps required to enter your Accounts Receivable invoices, credit memos, adjustments, and cash in the Accounts Receivable system. The Accounts Receivable process includes the following options: Invoice Entry (Option 1) Credit Memo Entry (Option 2) Cash Entry and Application (Option 21) Adjustment Entry (Option 22) Accounts Receivable Processing Accounts Receivable Trial Balance Reports (Options 32 and 36) This chapter begins by discussing the invoice entry process. Enter a 1 in the selection field and proceed to the next page. 4-3

68 Accounts Receivable Manual Option 1: Invoice Entry Description: This is where you enter your invoices into the Accounts Receivable system. The N/ Compass Invoice Entry program is designed for basic invoice entry. You have the opportunity to override the sales account for each invoice as you enter it. After the invoices are entered, you can apply cash and age these invoices. If you have the N/ Compass Billing system installed, the invoices from Billing are brought to the Accounts Receivable system as posted invoices when the Billing Update Process is completed. The invoices are added in batches, which allows multiple users to enter and process their batches individually. After invoices are entered, you can modify or delete them until you post the batch through Post Invoices/Credit Memos (Processing Menu Option 4). There are two different ways to get to invoice entry. You can create a new batch, or enter invoices into an existing batch. Each of these options is explained in this section, followed by the instructions for entering the invoice and changing the account distribution. Adding a New Batch for Invoices Press F9 to create a new batch for invoices. You are asked to enter a batch description. The description is helpful in identifying the batch when you run edit listings and post batches. The system assigns the batch number in numeric order. If you need to change an invoice after it is entered, see to the Change a Batch section that follows. After you add the batch, proceed to the Entering an Invoice section on the following page. Press Enter to add your invoice to the batch. 4-4 N/Compass Hotline

69 N/Compass Version 10 Accounts Receivable Processing Changing an Existing Batch (F10) You can add or change invoices in an existing batch by entering a 1 next to the batch number (see preceding page for the screen). You are only allowed to change an invoice if it has not been posted. If you have the N/ Compass Billing system, the invoice is brought to the Accounts Receivable system for you when you run the Billing Update Process. 4-5

70 Accounts Receivable Manual Entering or changing an Invoice When you are in a batch, you can add (F9), change (F10), or delete (F11) invoices. The screen you see looks like the one that follows. The screen is divided into two sections. When this screen is displayed, you will see the top portion of the screen. Once that information is entered, press the enter key for the second portion of the screen. 4-6 N/Compass Hotline

71 N/Compass Version 10 Invoice Number: If you are adding a new invoice, the next invoice number is entered for you. If you are changing an invoice, enter the invoice number you want to change. Customer Number: Enter a valid customer number. If you are not sure of the customer number, press F2 or F4 (Customer Lookup) to find the customer. Purchase Order Number: Enter a customer P.O. number if applicable. Invoice Date: Enter the date of invoice in MMDDYY format. G/L Posting Period: Enter the fiscal posting period to which you want this invoice to post. The invoice date must fall within this posting period. Posting dates and periods are set up in Posting Period File Maintenance (Control Files Menu Option 6). For more information on posting dates and periods, see the N/Compass Control Files Manual. Accounts Receivable Processing Invoice Amount: Enter the total invoice amount. After you enter this information, press Enter to see the remaining invoice information. The four fields in the lower section of the screen default based on the terms code assigned to the customer. They can be overridden if necessary. Terms Code: This code defaults from the customer file and can be overridden to any valid terms code. Terms codes are set up in Terms Code Maintenance (Table Files Option 2). Discount Amount: The discount amount is calculated based on the terms code you entered. Discount amounts are calculated using the discount percentage in Terms Code Maintenance (Table Files Option 2). Discount Date: The discount date defaults based on the discount days assigned to the terms code. This date can be overridden. Due Date: The due date defaults based on the net days assigned to the terms code. This date can be overridden. 4-7

72 Accounts Receivable Manual Changing the Account Distribution (F7 key) You can override your sales account number when you enter an invoice into the system by pressing F7. After you key in the invoice information and press Enter to calculate the due dates, the F7 key is displayed at the bottom of the screen. When you press F7, the following screen appears. The F14 (Customer Maintenance) CMD key will allow you to change the customer default information from the master file. The default account number appears on the screen. At this point, you can change the account or add additional accounts. To do this, enter the new information over the old information. Press Enter to complete invoice. 4-8 N/Compass Hotline

73 Option 2: Credit Memo Entry N/Compass Version 10 Description: You use this option to enter credit memos that were not posted through the N/Compass Billing system. You can override the sales account, if necessary. When you enter a credit memo, you can apply it toward an invoice (which makes it an applied credit memo) or apply it to a customer s account (which makes it an unapplied credit memo). If you enter an unapplied credit memo, you can apply it to an invoice using Apply Unapplied Cash and Credit Memos (Processing Menu Option 27). The credit memos are added in batches, which allows multiple users to enter and process their batches individually. After credit memos are entered, you can modify or delete them until you post the batch through Post Invoices/Credit Memos (Processing Menu Option 4). There are two ways to get to credit memo entry. You can create a new batch, or enter them into an existing batch. Each of these is explained in this section, followed by the information for entering the credit memo and changing the account distribution. Accounts Receivable Processing Add a New Batch for Credit Memos Press F9 to create a new batch for credit memos. You are asked to enter a batch description. The description is helpful in identifying the batches as you run edit listings and post batches. The system assigns the batch number in numeric order. If you need to change a credit memo after it is entered, see the Change a Batch section that follows. After you add the batch, proceed to the Entering or Changing a Credit Memo section on the following page. Press Enter to add your credit memo to the batch. 4-9

74 Accounts Receivable Manual Changing an Existing Batch You can add or change credit memos in an existing batch by entering a 1 next to the batch number (see previous page for the screen). You can only change a credit memo if it has not been posted N/Compass Hotline

75 N/Compass Version 10 Entering or changing A Credit Memo When you are in a batch, you can enter (F9) or change (F10) invoices. If you are adding a new credit memo, the next credit memo number defaults for you. If you are changing an existing credit memo, enter the credit memo you want to change. The screen you see looks like the one that follows. Accounts Receivable Processing Credit Memo Number: Enter the credit memo number. If you are in add mode, the next credit memo number defaults for you. You can override it if necessary. Invoice Number: If you know the invoice you want to apply this credit memo to, enter it here. If you do not know the invoice number, leave this field blank and enter the customer number in the customer number field. You can enter an invoice number or a customer number but not both. If you do not know the invoice number you want to use, press F5 (Invoice Lookup) for a listing of all invoice numbers. If you apply this to the customer instead of an invoice (unapplied credit memo), the credit memo can be applied to an invoice in Apply Cash/Credit Memo Process (Processing Menu Option 27) after it has been posted. Customer Number: If you do not know the invoice to which you want to apply this credit memo, you need to enter the customer number here. If you apply this to a customer instead of an invoice, the credit memo will be entered as an unapplied credit memo. When you are ready to apply it, use Apply Cash/Credit Memo Entry (Processing Menu Option 27). You can enter either an invoice number or a customer number, but not both. If you do not know the customer number, press F2 (Customer Lookup) for a listing of all customers. 4-11

76 Accounts Receivable Manual After you enter the fields from the preceding page, press Enter to continue with credit memo entry. You see the following screen. Depending on whether you are applying this credit memo to an invoice or customer, you see the following fields. Customer: You see the name and number of the customer regardless of whether you are applying this credit memo to an invoice or a customer. Invoice Date: The original date of the invoice to which you are applying the credit memo. Original Invoice Amount: The amount of the invoice before any discounts or payments. Invoice Balance: The system calculates the current balance of the invoice based on the original invoice amount less any discounts or credits that have been applied (payments, adjustments, and other credit memos). You need to enter the following fields: Credit Memo Date: Enter the date of credit memo in MMDDYY format. G/L Posting Period: Enter the fiscal posting period for this credit memo. The credit memo date must fall within this posting period. You set up posting dates and posting periods in Posting Period File Maintenance (Control Files Menu Option 6). For more information on posting dates and periods, see the N/Compass Control Files Manual. Credit Memo Amount: Enter the credit memo amount as a positive number. This amount cannot exceed the invoice balance N/Compass Hotline

77 N/Compass Version 10 Changing the Account Distribution (F7 key) You can override the sales account number as you enter your credit memo by pressing F7. After you enter the credit memo information and press Enter to calculate the due dates, the F7 key is displayed at the bottom of the screen. After you press Enter, the following screen appears. Accounts Receivable Processing The default account number appears on the screen. At this point, you can change the account or add additional accounts. To do this, enter the new information over the old information. Press Enter to complete credit memo entry. 4-13

78 Accounts Receivable Manual Option 3: Invoice/Cr. Memo Edit Listing Description: This option generates a listing of all the invoices and credit memos not yet posted. The listing gives you an opportunity to review the invoices and credit memos before you post them. The account distribution is also displayed on this report. This gives you the opportunity to verify the distribution before posting. If you find any errors, go back into the entry options (Options 1 and 2) and make any desired additions, changes, or deletions. You can run the edit listing by batch number. This allows you to run the listing for one batch, multiple batches, or all batches N/Compass Hotline

79 N/Compass Version 10 Accounts Receivable Processing Press the F4 lookup key to view all existing batches. From and To Batch: 1. To select an individual batch, enter the batch number in the from batch and the to batch fields. 2. To select a range of batches, enter the beginning batch number in the from batch field and the ending batch in the to field. Leave blank to select all batches. Example: from batch to batch To select batch 2 only 2 2 To select batch Press Enter to submit the listing. 4-15

80 Accounts Receivable Manual Option 4: Post Invoices/Credit Memos Description: This option posts all invoices and credit memos to the open invoice and credit memo files. The posting process also updates your N/Compass General Ledger accounts if you have entered a Y in the interface with G/L field in Receivables Control File Maintenance (Table Files Menu Option 1) and a Y in the Invoice Entry process in a G/L interface. If you are using accrual basis accounting, the Accounts Receivable account is debited and the Sales account is credited for invoices. For credit memos, the Accounts Receivable account is credited, and the Returns account is debited. If you are using cash basis accounting, no entries are posted to the General Ledger. For more details on the accounts that are debited and credited during Accounts Receivable transactions, see the Question and Answer section in the back of this manual. We suggest you review your Invoice/Credit Memo Edit Listing (Option 3) closely before selecting this option. After the invoices and credit memos are posted, you cannot change or delete them. If you find errors after posting, you can make changes by entering an adjustment into Adjustment Entry (Option 22). You must make sure that all users are out of the invoice and credit memo entry screens before you take this option N/Compass Hotline

81 This process generates two report listings: Receivables Posted Invoices and Credit Memos This listing shows you all invoices and credit memos that were posted. N/Compass Version 10 General Ledger Posting Journal This report shows you all the General Ledger postings that were made during this posting run. If you do not have the N/Compass General Ledger, this listing still prints if you answered Y to the G/L interface field in Receivables Control File Maintenance (Table Files Menu Option 1) and a Y to Invoice Entry G/L interface. Press Enter to post the invoices and credit memos. Accounts Receivable Processing 4-17

82 Accounts Receivable Manual Option 5: Open Invoice Inquiry Description: This option allows you to display all invoices that are open as of the last statement generated. This includes all invoices that have an outstanding balance. You can select a beginning invoice number or customer number. This can be done by pressing F2 to toggle between F2 = by customer # or F2 = by invoice #. If you choose to sequence by invoice, the information is displayed in invoice number order. If you choose to sequence by customer number, you are asked to select the sequence: either invoice number or P.O. number sequence. The first screen is by invoice number. You can enter a beginning invoice number and press enter or make no entry and press enter. This will display open invoices for all customers starting with your beginning selection. If you select by customer number, the following screen will appear. After entering a beginning customer number (or you can leave it blank), you will be prompted for a sequence selection. If you select option 1 - By Customer Number and Invoice Number, the data will be presented by invoice within customer (the preceding screen will order the data by invoice within company). Option 2 - By Customer Number and P.O. Number, will display the data by customer P.O. number within customer number N/Compass Hotline

83 N/Compass Version 10 After pressing enter from either selection screen, you will be presented with a multiple-line display of invoice information. Additional pages can be displayed by using the page down key. Previous pages can be viewed using the page up key. The following fields will be displayed. Accounts Receivable Processing Customer Number: The customer number and subsidiary number identifying the customer. This field will be highlighted if your selection is by customer number Customer Name: The customer name description. Invoice Number: The numeric invoice number. This field will be highlighted if you selected by invoice number. Invoice Date: The date of the invoice in MM/DD/YY format. Posting Period Date: The invoice date posting period. Discount Date: The discount eligibility date in MM/DD/YY format. Discount Amount: The amount of the discount. Invoice Due Date: The date the invoice is due for full payment Original Invoice Amount: The invoice amount as it was originally entered (before discounts and credits). Invoice Balance: The invoice balance left to pay. 4-19

84 Accounts Receivable Manual Terms Code: The terms code assigned to the invoice. Press F3 to exit invoice inquiry N/Compass Hotline

85 Option 6: Open Invoice Listing N/Compass Version 10 Description: This option allows you to print all invoices that are open as of the last statement generated. This includes any invoices that still have an outstanding balance. The listing gives you the same information shown in Open Invoice Inquiry (Processing Menu Option 5). You have three choices for the report sequence. Accounts Receivable Processing By Customer Number and Invoice Number: This groups invoices by customer with customer totals. By Customer Number and P.O. Number: Purchase orders are grouped by customers with customer totals. By Invoice Number: This selection lists all customers and is sequenced by invoice number. This does not print in customer order. Press Enter to submit the report. 4-21

86 Accounts Receivable Manual Option 7: Unapplied Credit Memo Inquiry Description: This option displays all credit memos that have not been applied to an invoice. This information displays in credit memo number order. All unapplied credit memos are displayed if both beginning and ending numbers are left blank. Enter a range if you want to view multiple credit memos, or enter the same credit memo number in the beginning and ending numbers to see one credit memo. Press Enter to see the credit memos N/Compass Hotline

87 Option 8: Unapplied Credit Memo Listing N/Compass Version 10 Description: This generates a printed listing of all unapplied credit memos by credit memo number. You can enter a range of numbers or leave the fields blank to get all unapplied records. Press Enter to submit the report. Accounts Receivable Processing 4-23

88 Accounts Receivable Manual Option 21: Initial Cash Entry and Distribution Description: This is where you enter and apply your Accounts Receivable cash. You can apply the cash directly to an invoice (applied cash) or bypass distribution and apply the cash to the customer s account (unapplied cash). You can apply unapplied cash using Apply Cash/ Credit Memo (Processing Menu Option 27). The cash is entered in batches, which allows multiple users to enter and process their batches individually. After cash has been entered, you can modify or delete it until you post the batch through Post Cash/ Adjustment (Processing Menu Option 24). There are two different ways to get to cash entry. You can create a new batch, or enter cash into an existing batch. Each of these is explained in the following sections. Adding a New Batch Press F9 to create a new batch for cash. You are asked to enter a batch description. The description is helpful in identifying the batch as you run edit listings and post batches. The system assigns the batch number in numeric order. If you need to change a cash entry after it is entered, see the Change a Batch section that follows. F2 By P.O. #: Set the screen sort option to have the Cash Entry screen display in P.O. # order. F5 Customer Lookup: Lookup the customer by beginning name or search string. F6 Bypass Distribution: Press F6 before you enter the customer number to bypass distribution. F14 Customer Inquiry: Use this option to immediately access the customer inquiry screens. Press enter to add cash to your new batch N/Compass Hotline

89 N/Compass Version 10 Accounts Receivable Processing Changing an Existing Batch You can add or change cash entry in an existing batch by entering a 1 next to the batch number (see preceding page for the screen). You can only change cash entry if it has not been posted. Once you are in a batch, follow the steps below to enter cash. Step 1: Create a batch or use an existing batch Refer to the Adding a New Batch and Changing an Existing Batch sections on the preceding pages for an explanation on how to get into a batch. Batch processing allows multiple users to enter cash into different batches and process the batches individually. Step 2: Enter the Customer Number and Check Number Enter the customer number, to which you want to apply the cash, as well as the check number you are entering. If you do not know your customer number, press F5 (Customer Lookup) shown on the bottom of the screen (add mode only). To add a new check, the check number cannot have been used previously for this customer. If you are changing cash that has already been entered (change mode), press F5 (Cash Lookup). After you enter cash, you can only change (F10) or delete (F11) cash that has not been posted through Post Cash/Adjustment (Processing Menu Option 24). F2 By P.O. #: Set the screen sort option to have the Cash Entry screen display in P.O. # order. F5 Cash Lookup: All unposted cash is displayed select the entry with an X. F6 Bypass Distribution: Press F6 before you enter the customer number to bypass distribution. F14 Customer Inquiry: Use this option to immediately access the customer inquiry screens. 4-25

90 Accounts Receivable Manual If you do not want to apply cash to an invoice as you are entering it, press F6 (Bypass Distribution). This allows you to enter cash quickly because you do not have to take the time to apply it. This cash goes into the customer record as unapplied cash. You can apply the cash later using Apply Unapplied Cash (Processing Menu Option 27). Press Enter to continue N/Compass Hotline

91 Step 3: Enter Check Date and Amount N/Compass Version 10 Accounts Receivable Processing Enter the bank number that is used for posting cash. The bank number determines the cash account that is used during the posting. Enter the payment date (in MMDDYY format), fiscal posting period (in MMYY format), and the amount of the check. The payment date and posting period determine the date the entries are posted to the General Ledger system. You must specify whether this cash is A/R or Non-A/R cash. If you enter Non-A/R cash, the system will accept the cash (you cannot apply this to invoices) and posts it to the General Ledger. The entry for Non-A/R cash is a debit to the cash account and a credit to the sales account. These accounts can be overridden by using the Sales Ac- count override window. The default account numbers are set up in G/L Postings File Maintenance (Table Files Menu Option 5). The sales figures for the current year are updated, but no A/R balances are affected by a Non-A/R entry. If the flag in Accounts Receivable Control File Maintenance is set to C for Cash Basis Accounting, the Receivables Cash Entry screen will display an F8 function key which will allow an override of the Sales Account and addition of a Project #, if desired. Press Enter to apply cash to invoices. 4-27

92 Accounts Receivable Manual Step 4: Apply cash to open invoices You are now ready to apply cash to invoices or other outstanding charges (late charges, charge adjustments, balance forward). You will not see this screen if you selected to bypass distribution or entered Non-A/R in step 3. This screen displays all open activity for this customer. You can distribute the check amount to multiple charges. Use the Roll Up and Roll Down keys to view additional activity. You will see some of the following charge and credit transactions on this screen. Trans- actions that have been applied are grouped together. Charge Transactions: BF: Balance Forward (for customers that are defined as balance forward customers) IV: Invoices LC: Late Charges AJ: Adjustments (positive charge adjustment) Credit Transactions: PA: Payments (cash that has been entered) CM: Credit Memos AJ: Adjustments (negative credit adjustments) If you know the invoice or dollar amount you want to apply, use the position to fields. With these fields, you can sort the transactions by invoice number or by transaction amount. This eliminates the need to scroll through all transactions until you locate the one you want N/Compass Hotline

93 N/Compass Version 10 To apply cash Enter the amount you want to apply in the credit column next to the invoice(s) to which you want to apply it. The system will not allow you apply more cash than the check amount. To apply cash to the entire invoice amount, enter an X in the Pay Bal Column. Continue until the cash is applied. The system will check to make sure that credits are not greater than charges. This prevents the possibility of applying more cash than the charge amount. Any cash that has been entered and applied but not posted through Post Cash / Adjustments (Processing Menu Option 24) will display with **UNPOSTED** in the P.O. field. To take the discount If the customer paid within the discount period, the discount date is highlighted. To take a discount, enter an Y in the Discount Y/N field. The charge amount is recalculated to reflect the discount amount. If you want to remove a discount, enter an N in the Discount field. The discount amount can be changed if the discount has not been taken. Accounts Receivable Processing To adjust off the balance If you want to create an adjustment entry to adjust off the remaining balance of a charge, enter an X in the Adj. Bal. Column. This automatically creates the adjustment entry and applies the adjustment to that charge. To enter an adjustment comment, press F2. To change the adjustment account number The system uses the default interest (for charge adjustments) and returns (for credit adjustments) account numbers for adjustment entry. The default account numbers are entered in G/L Posting File Maintenance (Table Files Option 5). If you want to override the account number, press F2 (fold). You can change the account number for each adjustment line. Press F2 again to return to the unfolded screen. You can override the account number for adjustment entries only. 4-29

94 Accounts Receivable Manual Step 5: Update your entry When you have completed all cash entry, press F5 to update. After you have applied the payment), press F5 to update the entries. You still need to run the edit listing and post the cash. Press F5 to update N/Compass Hotline

95 Option 22: Adjustment Entry N/Compass Version 10 Description: This is where you enter any credit or charge adjustments to a customer s account. The adjustments are entered in batches, which allows multiple users to enter and process their batches individually. After adjustments are entered you can modify or delete them until you post the batch through Post Cash/Adjustment (Processing Menu Option 24). There are two ways to get to adjustment entry. You can create a new batch or enter adjustments into an existing batch. Adding a new batch and changing an existing batch are explained in the sections that follow. Accounts Receivable Processing Add a New Batch Press F9 to create a new batch for cash. You are asked to enter a batch description. The description is helpful in identifying your batch when you run edit listings and post batches. The system assigns the batch number in numeric order. After you add the new batch, proceed to Step

96 Accounts Receivable Manual Change an Existing Batch You can add or change adjustment entries in an existing batch by entering a 1 next to the batch number (see preceding page for the screen). You can only change adjustments if they have not been posted. To enter adjustments, follow these steps Step 1: Create a batch or use an existing batch Refer to the Add a New Batch and Change an Existing Batch sections above for explanation on how to get into a batch. Batch processing allows multiple users to enter adjustments into different batches and process the batches individually. Step 2: Enter the Customer Number and Adjustment Information Enter the customer number for this adjustment. If you do not know the customer number, press F5 (Customer Lookup). Enter the adjustment date and fiscal posting period for the General Ledger posting. You can enter an adjustment comment if you want. This comment prints on the customer statements as well as many of the Accounts Receivable reports. You also need to enter the account number you want to post to in the General Ledger system. The account number depends on the type of adjustment you are entering. A description of each follows N/Compass Hotline

97 N/Compass Version 10 Accounts Receivable Processing DR - Adj Accrual: This account number is only used for charge adjustments. The account number entered here is credited and the Accounts Receivable account is debited. You can override this account number. If you are doing a charge adjustment, the system does not use the (CR) Adj Accrual account below. CR - Adj Accrual: This account number is only used for credit adjustments. The account number entered here is debited and the Accounts Receivable account is credited. You can override this account number. If you are doing a credit adjustment, the system does not use the (DR) Adj Accrual account above. F2= By P.O. #: Set the screen sort option to have the Cash Entry screen display in P.O. # order. F5=Customer Lookup: Lookup the customer by beginning name or search string. (see p. 4-40) F14= Customer Inquiry: Use this option to immediately access the customer inquiry screens. Press Enter to proceed to the next screen. 4-33

98 Accounts Receivable Manual Step 3: Enter the Adjustment You are now ready to enter your adjustments. This screen displays all open activity for this customer. You can enter both credit and charge adjustments on this screen. You can only enter a credit adjustment if you have open invoices or other outstanding charges (late charges, charge adjustments, balance forward). Use the Page Down and Page Up keys to view additional activity. You may see the following transactions on this screen. Transactions that have been applied are grouped together. Charge Transactions: BF: Balance Forward (for customers that are defined as balance forward customers) IV: Invoices LC: Late Charges AJ: Adjustments (positive charge adjustment) Credit Transactions: PA: Payments (cash that has been entered) CM: Credit Memos AJ: Adjustments (negative credit adjustments) Entering Charge Adjustments You will enter charge adjustments in the charge column. Enter a charge adjustment by using the Roll Up key to get to the end of the transactions. Enter the charge adjustment in the charge column next to transaction code AJ. You can press F8 (Go to Bottom) to get to the first available charge adjustment line N/Compass Hotline

99 N/Compass Version 10 Entering Credit Adjustments You will enter credit adjustments in the credit column. Enter a credit adjustment next to the charge you want to credit. You need to enter the credit amount as a positive number. You cannot enter a credit that is greater than the charge. Taking the discount If the customer paid within the discount period, the discount date is highlighted. To take a discount, enter an Y in the Discount Y/N field. The charge amount is recalculated to reflect the discount amount. If you want to remove a discount, enter an N in the Discount field. You can change the discount amount if the discount has not been taken. Adjusting off the balance Accounts Receivable Processing If you want to create an adjustment entry to adjust off the remaining balance of a charge, enter an X in the Adj. Bal. Column. This automatically creates the adjustment entry and applies the adjustment to that charge. To enter an adjustment comment, press F2 (Fold). Press F2 again to return to Unfolded mode. Press F5 to update once adjustments are complete. All unposted adjustments can be changed or cleared. All unposted cash and adjustments are displayed with *UNPOSTED* in the P.O. Number field. All of these entries can be altered before posting (posting is done with Option 24: Post Cash/ Adjustments). If cash or credit memos have been applied to an unposted adjustment, that adjustment cannot be altered. 4-35

100 Accounts Receivable Manual Option 23: Cash/Adjustment Edit Listing Description: This option generates a listing of all unposted cash and adjustments. This listing gives you an opportunity to review the cash and adjustments you have entered before you post them. If you find any errors, go back into the entry options (Options 21 and 22) and make any desired additions, changes, and deletions. You can run the edit listing by batch number. This allows you to run the listing for one batch, multiple batches, or all batches. You will receive 2 reports: the General Ledger Posting Report - No GL Update (you will be able to review the lvl 1 / lvl 2, account number, and amount prior to posting) and the Receivables Cash / Adjustments Edit Listing. From and To Batch: To select an individual batch, enter the batch number in the from and the to batch fields. To select a range of batches, enter the beginning batch in the from batch field and the ending batch in the to batch field. Leave blank to select all batches. Press the F4 lookup key to view all existing batches. Press Enter to submit the report N/Compass Hotline

101 Option 24: Post Cash/Adjustments N/Compass Version 10 Description: This option posts all cash and adjustments that have been entered. If you have the N/ Compass General Ledger system, entries are posted to the General Ledger. If you do not have the N/ Compass General Ledger and want to receive a General Ledger Posting journal, enter a Y in the Interface with G/L field in Receivable Control File Maintenance (Table Files Option 1). You can select the batches you want to post by entering a 1 next to them. We suggest you review the Cash/ Adjustment Edit Listing (Processing Menu Option 23) closely before you select this option. After the cash and adjustments are posted, you cannot change or delete them. If you need to make changes after they are posted, enter adjustments in Adjustment Entry (Processing Menu Option 22). Accounts Receivable Processing This process generates two report listings: Receivables Posted Cash and Adjustments: This report shows you all activity that was posted during this posting run. General Ledger Posting Journal: This report shows you the General Ledger postings that were made to the General Ledger. If you do not have the N/Compass General Ledger, this listing still prints if you answered Y to the G/L interface field in Receivables Control File Maintenance (Table Files Option 1). The posting journal prints regardless of the flag setting of Y or N. The transactions will only post to the General Ledger if the flag is set to y and to N/compass software, flag set to N. Place a 1 beside each batch you want to post. Press Enter to submit the posting. 4-37

102 Accounts Receivable Manual Option 25: Unapplied Cash Inquiry Description: Unapplied Cash Inquiry displays all cash that has been entered but not applied to a charge. You can select a beginning and ending customer number. Leave these fields blank to select all customers. After you press Enter, the following screen appears N/Compass Hotline

103 N/Compass Version 10 Accounts Receivable Processing You can use the Page Up and Page Down keys to scroll through the unapplied cash listed on this screen. 4-39

104 Accounts Receivable Manual Option 26: Unapplied Cash Listing Description: This option generates a listing of all unapplied cash. The report prints in customer sequence with totals for each customer as well as the grand totals. You can select certain customers by entering a beginning and/or ending customer number in the following screen. All customers are selected if these entries are left blank. Press Enter to submit the report N/Compass Hotline

105 Option 27: Apply Cash/Credit Memo Process There are four steps to applying cash and credit memos. Step 1: Enter the Customer Number N/Compass Version 10 Accounts Receivable Processing 4-41

106 Accounts Receivable Manual F5 - Enter a valid customer number. If you do not know the customer number, press F5 (Customer Lookup) to conduct an alphabetical search. To select your customer from the lookup, enter a 1 next to the customer. F14 - From the Customer # selection screen use the F14 function to access Customer Inquiry. This will allow you to access customer information N/Compass Hotline

107 N/Compass Version 10 F2 - The transactions automatically print in invoice number order. If you want to see the customer transactions in purchase order number, press F2 (By P.O. #). Accounts Receivable Processing 4-43

108 Accounts Receivable Manual Step 2: Apply Cash and Credit Memos Unapplied cash and credit memos are displayed in the top portion of the screen. Open Accounts Receivable transactions are displayed at the bottom of the screen. To access additional unapplied cash and credit memos, place your cursor in the top portion of the screen (by using your arrow keys). Use your Roll Up and Roll Down keys to see additional transactions. To apply an unapplied check or credit memo to a charge, enter the sequence number of the check or credit memo next to the charge. The sequence number is displayed at the top of the screen in the sequence column. You can enter the same sequence number for one or more charges until the check or credit memo balance is zero. You can also enter multiple sequence numbers for each charge. After you enter a sequence number in the field and press Enter, another sequence field will appear next to the charge. Balance - This option will indicate to current balance of the invoice including all adjustment credits and cash applications. In situations where a DISCOUNT Y (yes) is chosen or an X is entered in the ADJUST BALANCE column; a pop-up window will appear after pressing F5, allowing you to enter a posting date and period for the G/L transaction. Enter the posting date and period for the transaction and press F5 to complete. Press Enter to continue N/Compass Hotline

109 N/Compass Version 10 F8 - Another way to apply the cash quickly is to press F8 (Auto Apply). Pressing F8 automatically applies all unapplied cash and credit memos to the open charges for this customer. This takes all unapplied cash/credit memos (oldest first) and applies them to the open charges (oldest first). You will not be able to change the way the cash is applied. Adjusting off the balance of an IV (invoice) will result in a Credit to the G/L Accounts Receivable Account and a Debit to the G/L Returns and Allowances Account (specified in the A/R Table Files). Adjusting off a LC (Late Charge) will result in a Credit to the Accounts Receivable Account and a Debit to the Interest Revenue Account (specified in the A/R Table Files). Adjusting off the balance of an AJ (adjustment) will result in a Credit to the Accounts Receivable Account and a Debit to the G/L Account that appears with the transaction (it can be viewed by using the F2 FOLD Function). Adjusting off an AJ (adjustment) can ONLY be done in Option 21. Invoice BALANCES will appear on the Cash Entry screen Accounts Receivable Processing If you select Auto Apply, the Receivables Apply Cash/Credit Memo Audit Listing is generated from this process. This listing reports the applied cash entries made during the process. To remove cash/credit memos that you just applied delete the sequence number you entered and press Enter. This removes the entry and reverses the amount you applied. Step 3: Take the Discount With an invoice transaction, you have the possibility of a discount. If an invoice is still within the discount period, the discount date is highlighted. To take a discount, enter a Y in the Discounts, Y/N field and press Enter. After you take a discount, the charge invoice amount recalculates and shows the discounted amount. You can remove discounts by entering an N here. Discount amounts can be overridden. Step 4: Update your Entry When you are done applying cash, press F5 (Update). You are asked if you are ready to update. The default response is Y. If you do not want to update, enter an N. An N reverses all cash and credit memos you just applied. 4-45

110 Accounts Receivable Manual Option 28: Automatically Apply Cash This option applies all unapplied cash to any open invoices for all customers, oldest invoice first. This option also posts those entries to the General Ledger system. You must make sure that all transactions for all customers are posted before you select this option. Description: This option takes ALL unapplied cash (oldest first) and applies it to the open charges (oldest first) for ALL customers. If you select this option, you will not have the opportunity to make changes in the way the cash and credit memos were applied. You are prompted with a warning screen when you take this option. After you press the Enter key, the program is submitted and applies ALL unapplied cash for ALL customers. Read the warning message at the top of this screen before you press Enter. When the process is complete, you receive the Auto Apply Cash Audit Listing showing the customers and amounts that were applied N/Compass Hotline

111 Option 31: Transaction Register N/Compass Version 10 Description: This report lists all open transactions for your customers. You can select the transaction dates you want to include by entering a desired beginning and ending date. Leave the default dates to select all transactions. The sequence of the report can be by P.O. number or invoice number. Accounts Receivable Processing This report includes total transaction amounts for each customer, as well as a grand total for the report. You also receive a listing by transaction type that includes invoices, charge adjustments, credit adjustments, late charges, credit memos, and payments. Press Enter to submit the report. 4-47

112 Accounts Receivable Manual Option 32: Aged Trial Balance Detail Description: The Aged Trial Balance Detail report lists all customer transactions within the appropriate aging period. This report age is based on the next statement date and the aging periods defined in Receivables Control File Maintenance (Table Files Option 1). Trans- action detail and total amounts for future, unapplied, current, and the four aging periods are divided into columns. The aging periods are determined by the system and cannot be changed. If you run this report and notice that your aging is incorrect, run Re-Calculate Aging Balances (Year - End Menu Option 3). Aging can be incorrect if you changed the number of days in an aging period for one of your aging schedules or if you manually changed the next statement date. In the preceding example, we would produce a printed listing in Total Due sequence. By entering an X next to Total Due and $5000 in the From Value, you select those customers that have a Total Due amount of $5, or greater. Accounts with zero balances can be excluded by entering a Y in the Exclude Zero Accounts field. You can only enter an X next to one of the twelve sequence selections. You can then select as many From and To values as you want. If you accept the default values in the From and To fields, you select all customers. If you want the listing in customer name sequence, enter an X to the left of Customer Name. This generates all customers in customer name sequence. The selection fields allow you to choose the customers you want on the report. Press Enter to submit the report N/Compass Hotline

113 Option 33: Receivables Analysis Report N/Compass Version 10 Description: The Analysis Report provides you with a summarized look at your customer balances. This report includes customer name and number, phone number, contact person, current and aged balances, total due, projected collectible, future balance, unapplied cash, and the average days to pay. You can only enter an X next to one of the twelve sequence selections. You can then select as many From and To values as you would like. If you accept the default values in the From and To fields, you select all customers. If you want the listing in customer name sequence, enter an X to the left of Customer Name. This generates all customers in customer name sequence. The selection fields allow you to choose the customers you want on the report. Accounts Receivable Processing In the preceding example, we selected to print the report in Past Due - 4 sequence. By entering an X next to Past Due - 4 and the.01 in the from value, we will get all customers that have a past due balance in period 4. Accounts with zero balances can be excluded by entering a Y in the Exclude Zero Accounts field. The projected collectible amount is estimated for analysis purposes only. This is calculated based on the uncollectible percentages entered in Receivables Control File Maintenance (Table Files Option 1). This percentage is calculated against each aging balance using the appropriate uncollectible percentage for that aging period. Total balance minus the uncorrectable amount gives you the projected collectible amount. 4-49

114 Accounts Receivable Manual Average days to pay are also calculated for this report. The system keeps track of the total days a customer takes to pay an invoice as well as the number of payments they have made. An average day is figured by dividing the total days by the number of payments. A total page is generated at the end of this listing. The purpose of this page is to combine both schedule 1 and schedule 2 together to present a comprehensive aging. This reports the balance due and projected collectible for the two schedules along with totals. Summary lines are listed for current and aged activity. The Total A/R amount should reflect the Accounts Receivable balance in your General Ledger system. Press Enter to submit the report N/Compass Hotline

115 Option 34: Credit Limit Exception Report N/Compass Version 10 Description: The Credit Limit Exception Report lists all customers that have exceeded their credit limit. Credit limits are established in Customer File Maintenance (Processing Menu Option 11). The report includes the customer name, number, contact, phone number, last invoice date, average days to pay, credit limit, total due and the percentage they are over their credit limit. The percentage over credit limit is calculated as follows: (Total Due - Credit Limit) / Credit Limit = Percentage Over Credit Limit You do not get a prompt screen for this option. The job is submitted when you press Enter. Press Enter to submit the report. Accounts Receivable Processing 4-51

116 Accounts Receivable Manual Option 35: 3-Up Labels Description: This option produces 3-Up address labels (three labels across) for customer mailings. With the flexible selection screen, you can select the sequence of the labels as well as the customers you want to include. You can only enter an X next to one of the twelve sequence selections. You can then select as many from and to values as you would like. If you accept the default values in the from and to fields, you select all customers. If you want the listing in customer name sequence, enter an X to the left of Customer Name. This generates all customers in customer name sequence. The selection fields allow you to choose the customers you want on the report. Press Enter to submit the labels N/Compass Hotline

117 Option 36: Real - Time Aged Trial Balances Detail N/Compass Version 10 Description: This report lists all customer transactions within the appropriate aging period. These reports age the invoices based on the system date rather than the next statement date. Transaction detail and total amounts for future, unapplied, current, and the four aging periods (as defined in Receivables Control Files Maintenance) are divided into columns. Accounts Receivable Processing Print Detail Y/N: Choose Y yes to list all customer transactions within the appropriate aging periods. Choose N no to list the CUSTOMER TOTALS ONLY within the appropriate aging periods You can only enter an X next to one of the twelve sequence selections. You can then select as many from and to values as you like. If you accept the default values in the from and to fields, you select all customers. If you want the listing in customer name sequence, enter an X to the left of Customer Name. This generates all customers in customer name sequence. The selection fields allow you to choose the customers you want on the report. Press Enter to submit the report. 4-53

118 Accounts Receivable Manual 4-54 N/Compass Hotline

119 Version 10 ACCOUNTS RECEIVABLE chapter 5 Statement Processing Menu

120 Accounts Receivable Manual 5-2 N/Compass Hotline

121 N/Compass Version 10 Statement Processing Menu Purpose: This menu allows you to process your monthly Accounts Receivable statements for your customers. You also can print Past Due Notices on a special form to notify your customers who have overdue balances. The Statement Posting Process is where your customer s late charges are calculated and the Accounts Receivable aging process is completed. If you choose not to run statements through the N/Compass system, you should still post statements each month in order to age your receivables and clear all complete transactions off of the system. Running the Statements and the Statement Posting Process (Statements Menu Options 2 and 4) does the following: Statement Processing Menu Determines the aging periods for invoices, credit memos, cash, adjustments, and late charges. Calculates late charges. Transfers all paid invoices from open files to history files. Before you begin your statement posting process, make sure all invoices, credit memos, adjustments and cash you want to include on this statement have been entered and posted through the Accounts Receivable Processing Menu. 5-3

122 Accounts Receivable Manual Option 1: Statement Detail Listing Description: The Statement Detail Listing provides you with a copy of your Accounts Receivable statements before you print them on the statement form. The listing looks identical to the statements and gives you an opportunity to find any errors before you send statements to your customers. If you find any errors, go back into the Accounts Receivable Processing Menu and make corrections through invoice, credit memo, adjustment, or cash entry. When you choose this option, you are prompted to enter the schedule for which you want to run the report. Valid schedules are 1 and 2. The schedules and their respective aging periods are set up in Receivables Control File Maintenance (Table Files Option 1). The next statement date for each schedule is displayed for your information. The next statement date is determined by the system, and each time you post statements the next statement date is increased by one period. The next statement date is defined in Receivables Control File Maintenance (Table Files Option 1). You should verify that this date is correct before you submit this listing. The system generates a printed listing for each customer that has activity. Each customer has both current and future activity listed, but the future charges are not included in total due. You may want to keep this listing as an internal record of customer statements. Before running the statement detail listings, make sure all invoices, credit memos, adjustments, and cash you want to include on this statement have been entered and applied through the Accounts Receivable Processing Menu. You can run this listing as many times as necessary. Press Enter to submit the listing. 5-4 N/Compass Hotline

123 N/Compass Version 10 Option 2: Statements Description: This is where you print statements for your customers. When you choose this option, you are prompted to enter the schedule for which you want to run the statements. Valid schedules are 1 and 2. The schedules and their respective aging periods are set up in Receivables Control File Maintenance (Table Files Menu Option 1). The statements are produced for the date indicated in the next statement date field in Receivables Control File Maintenance (Table Files Option 1). You should verify that this date is correct before you submit the statements. The next statement date is automatically increased by one period each time you post your statements. Before you run statements, make sure all invoices, credit memos, adjustments and cash you want to include on this statement have been entered and applied through the Accounts Receivable Processing Menu. Statement Processing Menu Statements are printed for all customers that have an outstanding balance and also have a Y in the Statements Y/N field in Customer File Maintenance (Processing Menu Option 11). If you do not want to print statements for a customer, enter an N in the Statements Y/N field in Customer File Maintenance (Processing Menu Option 11). The statements require a special form, so you will receive a message on the AS/400 to change the forms type to Statement. You can print statements as many times as necessary. After you post statements in the Statement Posting Process (Statement Menu Option 4) you cannot rerun the statements for that period. A reduced size sample statement form can be found in the Reports section in the back of this manual. 5-5

124 Accounts Receivable Manual We have added the Accounts Receivable check numbers and credit memo numbers to this option to help users and customer s identify the checks and credits easily. This information is also in the Customer Inquiry (Option 12), and the Accounts Receivable Trial balance Reports (Options 32 and 36). 5-6 N/Compass Hotline

125 N/Compass Version 10 Option 3: Past Due Notices Description: This is where you generate past due notices for your customers. As you can see from the selection screen that follows, you have many different selection options from which to choose. You can use this selection screen to select certain customers, customer types, amount of past due dollars, and so on. The past due notices are designed to print on the past due notice form. Note: Because late charges are calculated when you post statements (Statements Menu Option 4), you may want to run your past due notices after running the Statement Posting Process. Statement Processing Menu In the preceding example, we select those customers with a total-due balance over $2000, and a past-due period 4 balance (over.01). The past due notices will print in customer number sequence. You can select as many from and to values as you like. If you accept the default values in the from and to fields, you select all customers. The selection fields allow you to choose the customers you want on the report. Press Enter to submit the report. 5-7

126 Accounts Receivable Manual Option 4: Statement Posting Process Description: This option should be taken after your Accounts Receivable statements are generated. If you choose not to run statements, you should post statements each month in order to age your Receivables and clear all complete transactions off the system. During this process, all balances are aged to the next period and the next statement date is advanced by one period. The posting process also calculates late charges for all customers with late charge codes, and posts statements to the Accounts Receivable statement history file. To have the system generate late charges, set up late charge codes in Late Charges File Maintenance (Table Files Option 3) and assign your customers the appropriate late charge code. Before you run your statement posting, make sure all invoices, credit memos, adjustments and cash you want to include on this statement have been entered and applied through the Accounts Receivable Processing Menu. After you choose this option, you see the following screen. The next statement date for each schedule is displayed. The next statement date is automatically increased by one period each time you post statements. The next statement date is defined in Receivables Control File Maintenance (Table Files Option 1). You should verify that this date is correct before you submit the statement posting process. If the next statement date displayed has previously been posted to, you will receive the error message RHHEADL attempts to write a duplicate a record. This means that when the system tried to run the Statement Posting Process, it found that the same information already existed in the file that had the date you are trying to process. When you choose this option, you receive the following three reports. 5-8 N/Compass Hotline

127 N/Compass Version 10 Receivables Generated Late Charges: The Late Charges listing reports the late charges that were calculated for this statement. It displays the customer s name and number, the date of the late charge, the fiscal posting period and the dollar amount of the late charge. After the posting process is completed, the late charges are included in the customer s record and are considered an outstanding charge. Receivables Posted Transactions For / / Statements. The Posted Transactions list reports all customer transactions since the last statement posting process was completed for the respective schedule. This report provides a listing by customer that includes all transactions (invoices, payments, adjustments, credit memos, late charges, and so on) along with customer and report totals. General Ledger Posting Journal: The General Ledger Posting Journal is generated only if you have the N/Compass General Ledger application installed or you have requested the General Ledger interface by entering a Y in the General Ledger fields in Receivables Control File Maintenance (Table Files Menu Option 1). You must have the General Ledger Y/N flag in the Master Control Files (Control Files Menu Option 1) set to Y in order to indicate to the system that General Ledger is installed. In addition to receiving the preceding reports, all transactions where the credit is equal to the charges (when an invoice has been paid in full, for example) are posted to history and are no longer included on your Accounts Receivable Trial Balance Report. If you choose not to run statements through the N/ Compass system, we recommend that you post statements each month in order to age your receivables and clear all complete transactions off the system. Failure to run the statement posting process results in large trial balance reports, files, and customer transaction records. Statement Processing Menu 5-9

128 Accounts Receivable Manual Option 5: Statement Schedule Listing Description: This option generates a one-page printed listing of your up-and-coming statement dates for both of your Accounts Receivable schedules. The listing is designed to help you keep track of which days you should produce statements. This report uses the next statement date and the aging days to calculate the dates. The next statement date and aging days are entered and maintained in Receivables Control File Maintenance (Table Files Menu Option 1). There is not a prompt screen after you take this option. The listing is submitted directly to the AS/ 400 for processing N/Compass Hotline

129 Version 10 ACCOUNTS RECEIVABLE chapter 6 Year End Menu

130 Accounts Receivable Manual 6-2 N/Compass Hotline

131 N/Compass Version 10 Year End Menu Purpose: This menu allows you to run historical statement listings as well as delete statement history when you no longer need it. In addition, you can recalculate your Accounts Receivable aging if you want to see your aging based upon a different date than the next statement date or the current date. The N/Compass Accounts Receivable system is designed to run on a yearly basis. The Year - End Closing option on this menu closes out the current year to history and starts the new year. Select option 4 to enter the Year-end Menu. Year End Menu 6-3

132 Accounts Receivable Manual Option 1: Statement History Listing Description: The Statement History Listing provides a way for you to review historical statement information. After you choose this option, you can select a range of statement dates you want to print by entering the appropriate Beginning Statement Date and Ending Statement Date. Choosing this option generates a printed listing by customer showing you all transactions for each customer in their respective aging categories. Press Enter to submit the report. 6-4 N/Compass Hotline

133 N/Compass Version 10 Option 2: Statement History Purge Description: This option deletes statement history from the AS/400. Before you run this option, make sure that you have a good backup of your NETFIL, NETOBJ, and NETSRC libraries in case you need the information in the future. After you choose this option you no longer have on-line access to this information. Make sure all users are out of the Accounts Receivable system before you choose this option. Failure to do so can cause errors in the purge process. When you are ready to delete history, enter the range of dates (in MMDDYY format) for which you want to delete history. The history purge will run in batch. Statement history will be deleted for all customers for the statement dates you select. You may want to keep history for more than one year if you think you will need to access it. When this process is complete, the Purged Statements Listing is generated. This gives you an audit of which customers had statement history deleted, as well as the amount that was deleted. Year End Menu Press Enter to delete history. 6-5

134 Accounts Receivable Manual Option 3: Re-Calculate Aging Balances Description: This process recalculates all customer aging and aging balances based on the next statement date in Receivables Control File Maintenance (Table Files Option 1). The only time you need to use this option is if your aging is incorrect or if you need to get a new aging after you make changes. Currently, the Accounts Receivable system allows you to run trial balance reports based on today (Real - Time Aged Trial Balance) or based on the next statement date (Aged Trial Balance). These trial balance reports are available on the Processing Menu (Options 36 and 32). Following are four instances where you may need to use this option. You brought over your open transactions through an interface program when you first install the Accounts Receivable system. Open transactions include invoices, credit memos, cash, and so on. The recalculation process would allow you to age these transactions and get a trial balance without having to run the statement posting process. You changed the number of days in an aging period for one of your schedules. This option can be used to recalculate the transaction balances for the new aging periods. Aging days for your schedules are set up in Receivables Control File Maintenance (Table Files Menu Option 1). You manually changed the next statement date (earlier or later). This resets all aging and aging balances based on the new statement date entered in Receivables Control File Maintenance (Table Files Option 1). For some reason the aging and/or aging balances do not match the transactions. This process re-ages all transactions for your customers and recalculates the new aging balances. Press Enter to submit the recalculation. 6-6 N/Compass Hotline

135 N/Compass Version 10 Option 4: Reorganize Physical Files Description: Deleted records are no longer available to the user, but they still take up physical space on the disk. This option frees up that space taken by deleted records. Choose this option only if there are no other users on the Accounts Receivable system. This process runs interactively and you will see messages across the bottom of the screen as it is reorganizes each file. When your screen is no longer input inhibited, you can continue with your normal Accounts Receivable processing. This option does not delete any active records. It should be done regularly to maintain maximum disk space. All employees must be out of the Accounts Receivable system prior to submit- ting this option. After you take this option, you see the following warning screen as a precaution. Press Enter to submit the reorganization. Year End Menu 6-7

136 Accounts Receivable Manual Option 5: Year - End Closing Description: The Accounts Receivable system keeps track of total yearly sales for each customer. At any point in time you can see the total yearly sales for the current year as well as the preceding year. The year-end process moves sales this year to sales last year and resets the sales this year figure to $0. All invoices and credit memos should be posted before you take this option if you want them to be included in the current year. The year-end closing screen appears as follows. All users must be out of the Accounts Receivable system before you take this option. Prior to running the closing procedure, verify that all invoices, credit memos, adjustments, cash, and statements have been posted and that no one is in the Accounts Receivable system when the year end is running. Press Enter to submit. 6-8 N/Compass Hotline

137 N/Compass Version 10 Option 10: History Transaction Report Description: Select the beginning and end date of the report. Display by P.O. Number or Invoice Number. Run for one customer (put the same number in the from and to) or a range of customers. Place an X by each transaction type desired. Transactions include: CM Credit Memos IV Invoices AJ Adjustments PA Payments LC Late Charges NA Non-A/R Cash Year End Menu 6-9

138 Accounts Receivable Manual 6-10 N/Compass Hotline

139 Version 10 ACCOUNTS RECEIVABLE chapter 7 Q&A

140 Accounts Receivable Manual 7-2 N/Compass Hotline

141 N/Compass Version 10 Questions & Answers Resolving a Customer In Use By Another Update Process Error Message Question: Q&A Answer: How can I correct the Customer In Use By Another Update Process message I received while completing transactions? You may receive this error message if there is an abnormal termination of the system. The termination puts a lock on the customer file in which you are working. Follow these steps to correct the error message and continue with your processing. 1. From the Accounts Receivable Table Files Menu, select Option 16 (Customer Locks Inquiry/Maint). 2. Enter a 4 to delete the lock on that customer. 3. Continue with the Accounts Receivable transaction. 7-3

142 Accounts Receivable Manual Deleting an Unapplied Credit Memo Question: Answer: How can I delete an unapplied credit memo that has been entered and posted? Sometimes credit memos are applied to a customer file that are not applied to an invoice (unapplied credit memo). If you need to delete the credit memo from the customer s file, follow these steps: 1. Enter a charge adjustment for the amount of the credit memo through Option 22 (Adjustment Entry) on the Accounts Receivable Processing Menu. 2. Post the adjustment in Option 24 (Post Cash/Adjustments) on the Accounts Receivable Processing Menu. 3. Apply the credit memo to the adjustment through Option 27 (Apply Cash/ Credit Memo Process) on the Accounts Receivable Processing Menu. 7-4 N/Compass Hotline

143 N/Compass Version 10 Deleting Inactive Customers That Have Activity Question: How can I delete my inactive customers from the system without deleting the history for all of my active customers? Q&A Answer: In order to delete inactive customers from the system, the activity for these customers must be deleted. The following steps delete the history for the inactive customers and delete the customer from the Accounts Receivable system. It is extremely important that you use caution when following these steps so you do not delete history for your active customers. A qualified data-processing person should complete these steps: DO NOT PROCEED WITHOUT CONTACTING SUPPORT FIRST. 1. It is vitally important that you do a back up before you run this process. This is the only way you can retrieve data if you inadvertently delete the wrong data. 2. You delete individual data records through the AS/400 DFU programs. To get into DFU, type STRDFU on a command line and press Enter. 3. Through the DFU process, delete the appropriate records in these files. Use caution to make sure that you delete only the records pertaining to the vendors you want to delete. The files to DFU are as follows: RIFILEP RMFILEP RAFILEP RSFILEP REFILEP RHFILEP RHHEADP RCFILEP 7-5

144 Accounts Receivable Manual Voiding a Bounced Check Question: Answer: How can I void a bounced check? The system provides a way of voiding bounced checks. Follow these steps to process the void: 1. Choose Option 22 (Adjustment Entry) from the Accounts Receivable Processing Menu. 2. Enter the customer number, adjustment date, and posting period. 3. Enter the adjustment comment. It may be helpful to include Bounced Check and the invoice number. 4. Enter your cash account number (from the General Ledger) in the DR accrual field. 5. Enter the amount of the bounced check in the charge field next to a line with today s date and the code AJ. 6. Press Enter and answer the prompt Do you want to update by entering a Y. 7. Choose Option 23 (Cash/Adjustment Edit Listing) from the Accounts Receivable Processing Menu to review your adjustment entry. If you see a mistake, correct it through Option 22 (Adjustment Entry). 8. Choose Option 24 (Post Cash/Adjustments) from the Accounts Receivable Processing Menu. Your adjustment is posted when this option is complete. 7-6 N/Compass Hotline

145 N/Compass Version 10 Debit and Credit Entries Question: What are the debit and credit entries made to the General Ledger when Accounts Receivable is posted? Q&A Answer: Each time you post through the Accounts Receivable system, the system automatically posts to the General Ledger system and provides a general ledger posting report for you. The following accounts are affected during the postings depending on which type of accounting basis you use. Accrual Basis Accounting CASH A/R INT SALES RETURNS DISCOUNTS (if applicable) Invoices DR CR Credit Memos CR DR Cash: Payments DR CR DR Non-A/R DR CR Adjustments: Credit (-) CR DR Charge (+) DR CR Late Charges DR CR CASH A/R INT SALES RETURNS DISCOUNTS (if applicable) Cash: Payments DR CR DR Non-A/R DR CR 7-7

146 Accounts Receivable Manual Recalculating Your Aging Question: Answer: What can I do if I run the Aged Trial Balance and the aging is incorrect? Re-Calculate Aging Balances (Year End Menu Option 3) is used to correct all customer aging and aging balances based on the next statement date in Receivables Control File Maintenance (Table Files Menu Option 1). There are four reasons why your aging may be incorrect: You brought over your open transactions through an interface program when you first installed the Accounts Receivable system. Open transactions include invoices, credit memos, cash, and so on. The recalculation process allows you to age these transactions and get a trial balance without having to run the statement posting process. You changed the number of days in an aging period for one of your schedules. This option can be used to recalculate the transaction balances for the new aging periods. Aging days for your schedules are set up in Receivables Control File Maintenance (Table Files Menu Option 1). You manually changed the next statement date (earlier or later). This resets all aging and aging balances based on the new statement date entered in Receivables Control File Maintenance (Table Files Option 1). For some reason the aging and/or aging balances do not match the transactions. This process re-ages all transactions for your customers and recalculates the new aging balances. 7-8 N/Compass Hotline

147 N/Compass Version 10 Running Statements Question: Answer: Do I have to run statements each month? Q&A The Accounts Receivable system does not require that you run statements each month. If you choose not to run statements, we recommend that you run the Statement Posting Process (Statements Menu Option 4) in order to age your receivables and clear all complete transactions off the system. Failure to run the statement posting process results in large trial balance reports, files, and customer transaction records. 7-9

148 Accounts Receivable Manual Resolving the Credits Greater than Charges Error Message Question: Answer: What causes the credits greater than charges error message and how can I resolve this? The credits greater than charges error message is usually received while in Initial Cash Entry or Adjustment Entry (Processing Menu Options 21 and 22) and is caused by one or more transactions having the same transaction sequence number. For example, if an invoice has a transaction sequence number of 0001 and there is another invoice that has the same transaction sequence number, you will receive this error. The transaction sequence number is a unique number that the system assigns to Accounts Receivable transactions. This unique number is assigned to invoices, balance forward and charge adjustments and is used to identify transactions that have been applied to each other. Payments, credit memos and credit adjustments will have the same transaction sequence number as the charge to which it is being applied. When this error is received, the system puts the cursor on the transaction in error. To find out the transaction sequence number on this transaction, press F2 (Fold). After you find the transaction sequence number, you need to change it in the data files. You need to look in the following files (through DFU) for transactions that have same transaction sequence number: RAFILEP: Adjustments File RBFILEP: Balance Forward File REFILEP: Late Charges File RIFILEP: Invoice File RMFILEP: Credit Memo File RSFILEP: Applied Cash File If you find an invoice (with payment applied) and a charge adjustment with the same transaction sequence number, you should change the transaction sequence number of the adjustment. Because the payment is already applied to the invoice, you should not change the invoice s transaction sequence number. A qualified data processing person should be the only person changing the transaction sequence numbers. If you are not familiar with changing the files through DFU, please call Support Net N/Compass Hotline

149 N/Compass Version 10 Interfacing Your Billing System with the N/Compass Accounts Receivable System Question: How can I interface my billing system to the Accounts Receivable system for invoices and credit memos? Q&A Answer: There a two options for interfacing your billing system with the Accounts Receivable system. Thefirst option is loading your billing invoices and credit memos into the entry files. The second option is loading your billing invoices and credit memos directly into the open files. Each option is outlined below. Option 1: Load invoices into the Accounts Receivable entry files Within the posting program of your Billing system, update the following files with your invoice and credit memo information: RFBTCHP: Batch File RIPOSTP: Invoice Posting File RMPOSTP: Credit Memo Posting File By inputting your invoice and credit memo information into these files, you can run an Invoice/Credit Memo Edit Listing (Processing Menu Option 3). You also have to post the invoices and credit memos by running Post Invoices/Credit Memos (Processing Menu Option 4). After they are posted, these invoices and credit memos will go to the open invoice and credit memo files. Option 2: Load invoices into the Accounts Receivable open files Within the posting process of your Billing system, update the following files with your invoice and credit memo information: RIFILEP: Invoice File RMFILEP: Credit Memo File RCFILEP: Customer File (Update sales this year) You need to make sure that the transaction sequence number for your invoices is different for each invoice you load into RIFILEP. If you have a credit memo that has been applied to an invoice, the credit memo and invoice must have the same transaction sequence number. If you have an unapplied credit memo, you do not have to enter a transaction sequence number. 7-11

150 Accounts Receivable Manual Files that are Up-dated During Accounts Receivable Transactions Question: Answer: Can you explain what files are being updated as I process my Accounts Receivable transactions? Several files are updated when you process transactions in Accounts Receivable. The following files are updated when processing Accounts Receivable. Invoice Entry: RUFILEP - Invoice and Credit Memo Number RIPOSTP - Invoice Posting File RJDISTP - Account Distribution File RFBTCHP - Batch Control File Credit Memo Entry: RUFILEP - Invoice and Credit Memo Number RMPOSTP - Credit Memo Posting File RJDISTP - Account Distribution File RFBTCHP - Batch Control File Post Invoices/Credit Memos: RIPOSTP entries go to RIFILEP RMPOSTP entries go to RMFILEP RCFILEP - Customer File RDFILEP - Temporary G/L File (gets cleared at end of posting) GLMASTP - General Ledger Master File RFBTCHP - Batch Control File 7-12 N/Compass Hotline

151 N/Compass Version 10 Initial Cash Entry: RSPOSTP - Applied Cash Posting File RAPOSTP - Adjustments Posting File RFBTCHP - Batch Control File Q&A Adjustment Entry: RAPOSTP - Adjustments Posting File RFBTCHP - Batch Control File Post Cash/Adjustments: RIFILEP - Invoice File RDFILEP - Temporary G/L File (gets cleared at end of posting) RCFILEP - Customer File RAPOSTP entries go to RAFILEP RSPOSTP entries go to RSFILEP Apply Cash/Credit Memos: RDFILEP - Temporary G/L File (gets cleared at end of posting) RCFILEP - Customer File RIFILEP - Invoice File RSFILEP - Cash File RMFILEP - Credit Memo File RAFILEP - Adjustments File 7-13

152 Accounts Receivable Manual Auto Apply Cash Process: RCFILEP - Customer File RSFILEP - Cash File Statement Posting: RDFILEP - Temporary G/L File (gets cleared at end of posting) RCFILEP - Customer File RHHEADP - Statement History Header File RHFILEP - Statement History Detail File REFILEP - Late Charges File RIFILEP - Invoice File RMFILEP - Credit Memo File RAFILEP - Adjustment File RSFILEP - Applied Cash File 7-14 N/Compass Hotline