Acumatica Finance: Accounts Receivable Module/Workspace

When to use this module/workspace

  • Using the Acumatica Distribution Suite, Sales Order (SO) module/workspace

    • You have to use the Acumatica Distribution Suite, Sales Order module/workspace when you want to book sales of stock items since inventory management module is required, which is only available in the the Acumatica Distribution Suite, Sales Order module/workspace. Non-stock items can also be handled by this SO module/workspace

    • Normally when you plan to sell a serious amount eg. a new machine, you will create first a Sales Quote, and if approved by the customer,  a Sales Order (SO) in the Acumatica Distribution Suite, Sales Order module/workspace.  Or the customer will purchase eg. the machine online at your B2C or  B2B E-Commerce store. 

      • If eg. the machine is purchased online by the customer, the customer may have to pay immediately with a credit card if the customer doesn't have a credit line with your company.​

      • You will ship the product to the customer with a sales invoice.

      • Acumatica Distribution Suite, SO module/workspace will enable you to create a sales invoice from the sales order.

    • You need to use the Acumatica Distribution Suite, Sales Order module/workspace also in the following scenarios:

      • When you want to use a Sales Quote​

      • When you want to use "Sales Order to Purchase Order" to make sure that products from vendors/suppliers get reserved for your Sales Order.

      • When you need to use Service Order" for the Field Service Management Edition

    • All of this will be discussed in the webpage titled Acumatic Distribution: Sales Orders Module/Workspace

  • Using the Acumatica Finance Suite: Accounts Receivable module/workspace

    • When the sale includes only non-stock items, you don't have to use the Acumatica Distribution Suite, Sales Order module/workspace. You can just use the Acumatica Finance Suite: Accounts Receivable module/workspace.

    • When your customer doesn't require a Sales Quote and/or a Sales Order for a sale since for instance the sale amount for non-stock items is under a certain limit , then your accounting department may just create a customer sales invoice. The creation of a customer sales invoice may still be subject to an approval process since the available credit of the customer may have to be checked first.

      • Remember that you will have to create a new customer record first if not already created, and if you sell an non-stock item, you have to create a new non-stock item if not already created.​

Steps in handling Accounts Receivables

The steps you go through in Accounts Receivables for services (non-stock items) are normally as follows:

  1. Create a customer

  2. Create an invoice

  3. Release an invoice

  4. Create a payment

  5. Release a payment

  6. Close a financial period and print an AR statement

  7. Create and release an early payment (e.g. a deposit)

Each step will be discussed and illustrated below with a video.

 

However for smaller invoices and payments, a quick release procedure is available in the Acumatica Distribution Suite, that will create a shipment, shipping label, and an invoice in about 2 steps.  This will be seen in the webpage titled "Acumatica Distribution Suite: Sales Orders" .

  • Create a customer

    • When a business account, created in the Customer Management Suite,  finally signed a sales agreement with your company, or purchased an item from your company, that business account should be converted first to a customer. ​Conversion can easily be done in the business account document. Most business account information (contact info, activities, class attributes, ..) is carried over to the customer record. This will be shown here.

    • You can also create a new customer without it being ever a business account. Some important items should be taken care of before creating a new customer. They are mainly:

      • Creating a default customer class with attributes, default GL accounts (AR account, Sales account, Discount account, Prepayment account), default credit limit and term, and some other default settings to be used.

      • Default payment method (check, credit card, ACH,..)

    • Video ( mins) ​

  • Create an invoice

    • You can create an invoice in this module/workspace "Accounts Receivable" for only non-stock items (aka service). 

      • You can enter an amount in the document details where normally the non-stock items are selected, and save the invoice.

      • If you want to enter a non-stock item, you must have created that non-stock item first. Creating a non-stock item requires you to create or select a vendor, and create or select an item class with a pricing sheet. Creating a vendor was shown before in Accounts Payable. Creating a non-stock item is also in the Accounts Payable module/workspace. 

      • Just like with creating a bill and a payment in the Accounts Payable module/workspace, creating and releasing an invoice and then a customer payment, will go through the statuses of:

        • Creation'​

          • Balanced​ status

          • On hold status if needed to be edited

        • Release​

          • Open status​

          • Post to GL account. Status will be then "Posted"

        • If invoice is fully paid, the invoice and its payment will take on the status "Closed".​

    • Video ( 25 mins) ​

  • Release an invoice

    • You release an invoice to basically lock it, and to create a batch of GL transactions (debit AR account, credit Sales account). Then you can do the following:

      • Post the GL transactions manually to the GL, or have it done automatically upon release

      • Email the pre-formatted invoice to the customer, or add it to a bulk email schedule for emailing invoices

      • Just like with releasing a bill in the Accounts Payable module/workspace, releasing an invoice  will go through the statuses of:

        • Open status​

        • Post to GL account. Status will be then "Posted"
    • Video ( 10 mins) ​

  • Create a Customer Payment

    • When the customer pays via check or credit card or EFT, then you can do the following:

      • Create a payment for the corresponding invoice

      • It is possible to prepare payments for several invoices at once.

      • Just like with releasing a bill in the Accounts Payable module/workspace, releasing a payment  will go through the statuses of:

        • On Hold

        • Open status​

    • Video ( 6 mins) ​

  • Release a Customer Payment

    • Once the customer payment has been created, the customer payment can be released:

      • Post the GL transactions manually to the GL, or have it done automatically upon release

      • Just like with releasing a bill in the Accounts Payable module/workspace, releasing a payment  will go through the statuses of:

        • On Hold

        • Open status​

        • Post to GL account. Status will be then "Posted"
    • Video ( 10 mins) ​

  • Close the Financial Period and Print the AR statement

    • You can only close a financial period when all documents that are still in the hold status, are released to change to Open status. ???

      • You can then post the GL transactions manually to the GL, or not. 

      • Documents such as invoices or payments can stay in open status for the current financial period since they were not completed (not paid yet or only partially paid), and can be posted in a future financial period.

    • Then you can close the financial period for the AR subledger. Remember that you have to do the same for the other subledgers AP, Cash and GL. 

    • It is good to finally deactivate the financial period so that no postings can be done anymore to the closed financial period.

    • You can print the AR statement with its aging periods. ​

    • Video ( 14 mins) ​

AR Datasheet

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