Handling special problems

There are several problems that may arise when using Accounts  Receivable.  The following sections detail some of the problems  encountered by bookkeeping specialists, and the Accountant methods  for resolving

them.

Running A Single Account Statement

To run a statement for a single account, first go to the Edit  option of the Receipts menu, locate the account, and then edit the billing cycle, changing the flag to a  special code, ie. X.

Next, go to the Statement option, and enter  the same special cycle code for the billing cycle.  Answer the date,  and interest questions, and the statement will be printed.  If everything is acceptable, return to the Edit option, and change  the billing cycle back to its original value.

Although this may seem cumbersome, running statements for individual  accounts is not a usual activity.  If you have an account that needs  this on a regular basis, they should have a personal billing cycle code assigned from the  beginning.

Something's Out of Balance

Sometimes the system seems 'out of balance.'  This generally occurs  when the account balance summary has an amount that is different  than the Accounts Receivable asset total in the General Ledger.  The most likely cause of this problem is that a transaction exists  in the transaction file which has not been picked up on an account.

This is particularly easy to isolate by running the transaction  report for an unusually extended date range, ie. 01/01/80 to  12/31/99.  This will cause the system to list every transaction in  the file.  By checking the dates, and the billing cycle entries, you  will probably find that transactions exist which are assigned to  accounts without billing cycles.

If old dates are displayed, then  the account is on a cycle which hasn't been cleared in quite awhile.  To correct the problem, place the involved account(s)  on a special billing cycle, and  re-run the balance report.  If everything is correct, run the  statements, and close the period.  Remember to close all old  accounts also.

If a problem still exists, there may be file contamination.  Use  dSalvage to test the aartrn.dbf file.  It is likely that an end of  file marker has found its way into the file.  dSalvage will remove  the offending critter, and alleviate your problem.

Posting Returned Checks (NSF)

When checks are returned, simply post them as a negative payment ($  - 12.50).  You will want to apply the amount to the invoice, or if  that item has been cleared, post it as a negative credit to the  system.

Posting a Credit

To post a credit, it is best to write a credit invoice.  This will  adjust the income fields appropriately in the general ledger.   This  allows you to have a detailed statement explaining the action, and  a printed receipt.

Enter the amount as a negative price under  parts, assigned to a part called Credits.  Labor should be entered  as a negative charge, with a credit description that can be  pre-developed in the glossary system.

You can post a credit, alternatively, by entering a negative charge ($  -12.50).  The General Ledger will have to know which number in the  Income accounts to apply the amount toward.  You will handle this by  entering the number in the credit field of the General Ledger  numbers.  However, this method does not adjust entries relative to parts and labor costs / profits.

Correcting Posting Errors

The easiest way to correct posting errors is through a new pair of  entries.  The first entry should be a reversal of the first,  incorporating an exact duplication of the transaction, except using  negative numbers.  You would then post a new entry with the correct  activity.

If you have applied payments to invoices, and thus cleared them,  this will not work.  In that case, you will need to post the  difference between your original entry, and what should have been  entered.

Handling Account Defaults (Bad Debt)

Account defaults are much like credits.  It is best to write an  invoice for a negative amount, detailing the default, and efforts  that have been made for collection.  This then becomes a permanent  record of the deleted charges, and provides an excellent 'paper  trail' should you need to verify the data later.  When the invoice is totaled, it will have a negative amount.  Enter  no payment, but permit it to be posted to receivables.  It will balance the amount due.  The closing will automatically pick up on  this balanced account and clear the data.