Accounts Receivable

2 sets of topics to cover:2 sets of topics to cover: Basic every day transactionsBasic every day transactions

Less frequent & monthly transactionsLess frequent & monthly transactions

For each topic proper procedures will be explained.

Daily TransactionsDaily Transactions Order ConfirmationOrder Confirmation Agency payments Agency payments Applying creditsApplying credits Credits versus paymentsCredits versus payments Applying grantsApplying grants Putting “credit on account”Putting “credit on account” Printing agency invoicesPrinting agency invoices

Order ConfirmationOrder ConfirmationThis is when an order becomes an invoiceThis is when an order becomes an invoice

PaymentsPayments

Money is received from an agency

CreditsCredits

Reduce the order balance for any reason besides a payment being received.

Example: Agency did volunteer work and received a $25 coupon to use for product.Example: Write off uncollectable account.

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

DebitDebit CreditCredit

Payment

Credit

CashAccounts Receivable

Accounts Receivable

GL Acct assigned

From Warehouse record or Bank Accts table in the DSAUser assigns the GL Acct when credit is entered

Payment

Credit

Payment

Credit

Applying grantsApplying grants - 2 methods- 2 methods

Putting “credit on account”Putting “credit on account”2 methods:2 methods:

1)1) Apply a payment amount that is greater Apply a payment amount that is greater than invoice balance, or create a new than invoice balance, or create a new order with a payment and credit balance.order with a payment and credit balance.

2)2) Use a grant to record agency pre-Use a grant to record agency pre-payments and over payments.payments and over payments.

Option 1 - Create a new order and add a payment to the order

You can not apply a payment without an order to attach it to.

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

Applying credit on account to Applying credit on account to invoicesinvoices

Use a grant for pre-payments & Use a grant for pre-payments & over paymentsover payments

Add a Pre-Payment

Printing agency invoicesPrinting agency invoices

Access invoices on PWWAccess invoices on PWW

Less frequent & monthly Less frequent & monthly transactionstransactions

• Printing statementsPrinting statements• How to handles returns, bounced checks and How to handles returns, bounced checks and

write offswrite offs• Credit memos versus adding credit to an Credit memos versus adding credit to an

orderorder• Grant related transactionsGrant related transactions• Parent Agency/Program relationship and ARParent Agency/Program relationship and AR• How to fix mistakesHow to fix mistakes

Generate statementsGenerate statements

Access Statements on PWWAccess Statements on PWW

How to handles returnsHow to handles returns

The best solution is to create a Credit Memo The best solution is to create a Credit Memo against the order:against the order:

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

Creating a Credit MemoCreating a Credit Memo

How to handle bounced checksHow to handle bounced checksSolution is to get the payment removed and Solution is to get the payment removed and

the order balance back on to the agency’s the order balance back on to the agency’s account.account.

How to handle account write-offsHow to handle account write-offsSolution is to credit every open invoice for the Solution is to credit every open invoice for the

agency.agency.

What if the balance of the agency’s account What if the balance of the agency’s account being written off is a credit?being written off is a credit?

In the Primarius DSA, you need to set up a miscellaneous charge named Refund. Assign a liability account, such as Agency Refunds or Agency Payable.

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

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

When to use Credit memos When to use Credit memos versus adding credit to an orderversus adding credit to an order

Use a Credit Memo if:Use a Credit Memo if:1)1) Product is returned from the agency.Product is returned from the agency.

2)2) Agency did not get all of the qty of a product Agency did not get all of the qty of a product on an order.on an order.

3)3) An entire order was issued to the wrong An entire order was issued to the wrong agency.agency.

4)4) Wrong item was put on the order.Wrong item was put on the order.

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

When to use Credit memos versus adding credit When to use Credit memos versus adding credit to an orderto an order

Use a Credit on the Credit tab if:Use a Credit on the Credit tab if:1)1) You need to credit a misc. charge on an order.You need to credit a misc. charge on an order.

2)2) The agency got over charged for an item and the The agency got over charged for an item and the order is within a period that is closed.order is within a period that is closed.

3)3) The agency did get the product, but they are no The agency did get the product, but they are no longer a member agency (write-off).longer a member agency (write-off).

4)4) The agency got the product but had to dispose of The agency got the product but had to dispose of it (bad product or a recall).it (bad product or a recall).

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

Grant related transactionsGrant related transactions1)1) Removing a grant from an orderRemoving a grant from an order

2)2) Changing the amount applied to a Changing the amount applied to a product on an order.product on an order.

3)3) Changing the grant that got applied to Changing the grant that got applied to another grant.another grant.

4)4) Applying a new grant to an old order. Applying a new grant to an old order.

Removing a grant from an Removing a grant from an orderorder

Changing the amount applied Changing the amount applied to a product on an order.to a product on an order.

Changing the grant that got Changing the grant that got applied to another grantapplied to another grant

Applying a new grant to an Applying a new grant to an old orderold orderIf needed reset Effective Date to a date that is less than or If needed reset Effective Date to a date that is less than or

equal to the order’s Pickup Date.equal to the order’s Pickup Date.

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

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

Parent/Program relationship Parent/Program relationship and ARand AR

How to fix common mistakesHow to fix common mistakesMistake #1Mistake #1

Price of a product on order is not correctPrice of a product on order is not correct

Orders which are not confirmed are easy to fix.

Fixing a price on an unconfirmed orderFixing a price on an unconfirmed order

1) Fix the source of the incorrect price:1) Fix the source of the incorrect price:

Fixing a price on an unconfirmed orderFixing a price on an unconfirmed order

2) Remove the product from the order2) Remove the product from the order

Fixing a price on an unconfirmed orderFixing a price on an unconfirmed order

3) Reorder the product.3) Reorder the product.

Fixing a price on a confirmed orderFixing a price on a confirmed order

After the source of the price is corrected:After the source of the price is corrected:You have a few options based on the situation:You have a few options based on the situation:

Situation 1Situation 1 –The Pickup Date of the order is within –The Pickup Date of the order is within the current order period.the current order period.

Situation 2Situation 2 – You are “locked out” of changing – You are “locked out” of changing confirmed orders.confirmed orders.

Situation 3Situation 3 – The Pickup Date of the order is – The Pickup Date of the order is within a “closed” period.within a “closed” period.

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

If you are locked out of changing the order:If you are locked out of changing the order:

DSA setting is set to not allow changes to confirmed orders:DSA setting is set to not allow changes to confirmed orders:

The Pickup Date of the order is within a The Pickup Date of the order is within a “closed” period.“closed” period.Transaction Close Date is before the order’s Pickup Date.Transaction Close Date is before the order’s Pickup Date.

Using a new transaction to correct a price on an Using a new transaction to correct a price on an existing orderexisting order

2 common options:2 common options:

1) 1) Use a credit on the Credit tabUse a credit on the Credit tab

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

Option 1 – Use a credit on the Credit Option 1 – Use a credit on the Credit tabtab

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

How to fix common mistakesHow to fix common mistakes

Mistake # 2Mistake # 2

Payment is posted to incorrect AccountPayment is posted to incorrect Account

Payment is posted to incorrect AccountPayment is posted to incorrect Account

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

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

2) Enter payment again to the correct 2) Enter payment again to the correct agency account. agency account.

How to fix common mistakesHow to fix common mistakes

Mistake # 3Mistake # 3

A confirmed order with the wrong pickup A confirmed order with the wrong pickup date.date.

OROR

A confirmed order was placed for the wrong A confirmed order was placed for the wrong agency.agency.

A confirmed order with the wrong A confirmed order with the wrong pickup date or wrong agency.pickup date or wrong agency.

Solution:Solution:

Create a Credit Memo against the entire Create a Credit Memo against the entire order using the bad pickup date or the order using the bad pickup date or the bad agency ref.bad agency ref.

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

End of Accounts ReceivableEnd of Accounts Receivable