This Technical Note highlights the interaction between files to control current receivables and to process statements.
Receivable categories in the Customer File
As Invoices are created, their date and terms are recorded. The aging of these Invoices is tracked and accumulated into six fields in the customers record:
1. Balance due the total amount owed by this Customer (total of unpaid Invoices and unapplied payments)
2. Future due the amount due at some time beyond 30 days. This is used with complex Terms.
3. Current the current date minus the date of the Invoice is less than the days granted by the Terms.
4. Period 1 the age of the Invoice is greater than the days granted by the terms and less than 30 days past due.
5. Period 2 the age is greater than 30 days and less than 60 days past due.
6. Period 3 the age is greater than 60 days past due. If the terms are Net 30, this would be Invoices over 90 days old.
Several files are used to manage the age, status and collection of Receivables.
1. Invoices and payments document the amount of money owed or on credit. and the age of those open transactions.
2. The terms define the number and due dates of payments.
3. Ledgers record the balance between Payments and Invoices.
4. The "Default" record defines the frequency of and Comments on statements.
5. The Customer file stores the age and value of the open transaction as of the last Tally.
1. Tally receivables prior to sending a Statement to assure the values in each "Customer" record are current.
Note: Assure that the Comments you wish to appear on the various statements are in the "Default" record (under the File menu) and that the frequency of Statements is set to the desired value. If the value is set to zero, a Statement will print for each Customer in the current selection.
2. Select: Customer menu > By Amount Receivable for the list of all Customers with a balance due.
3. Select: File menu > Print Defined Reports and print the internal Statement, the SuperReport Statement provided by JIT or a Statement of your design. The "Customer" records will be updated, saving the current date into the" LateNotice" field.
Note: It is recommended that you print Statements for Customers who are past due two or three times a week with a "LateFreq" period of 10 days. This will cause Statements to be printed approximately every 10 days. This frequency of Statements will aid in your ability to collect receivables.
4. Calls made to support collections should be noted in the "Customer’s" record by clicking on the "date/time" button and entering who was spoken to and how the conversation went.