|
Introduction
Summit uses an open item receivables system, which means that payments, trade
credits, adjustments, and other transactions apply to individual invoices rather than to a
balance forward. However, compressing the invoice detail into a single balance forward for
the previous month(s) is an optional feature that you may decide to include as part of
your invoice or statement format.
Daily Activities
Use the A/R Daily Activities Balance form (next page) or your own ledger sheet
for the following instructions.
If you use the form on the next page, copy it and save the original for future use.
Enter the total of last month's A/R Aged Balance Report as the starting figure of
Previous Day’s Ending Balance at the top of the balancing form.
Print reports for any activities you have performed since your last balance. Include
all invoices and transactions for the following activities:
Payments
Pre-payments
Application of trade credits
Finance charges
Service charges
Sales taxes and adjustments
Enter the totals of the reports in the appropriate column (charges, credits, or
adjustments) with a + or - sign.
Charges always use a + sign, credits use a - sign. Adjustments can use either.
Enter the new balance after each entry.
Print a new Aged Account Balance Report. (Summit ages invoices from the invoice date to
today's date.) Accept the autofill on the from and thru dates for both
invoices and transactions, which results in a report showing all billing, payment and
transaction activity from the time you started using your system to the current date. The
total of this report should match the "running balance" you created by following
these procedures. If they do not match, find the error and correct it before your next
billing cycle.
A/R - Daily activities balance form
Date Charges Credits Adjustments Balance
Previous Day's Ending Balance
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
___/___ _________ _________ _________ _________
Monthly balancing procedures
To ensure all accounts are in balance, do the following to last month’s
Aged Account Balance Report:
add this month’s Billing Report total.
subtract this month’s Collections Report total.
subtract this month’s Trade Credit Report total.
add this month’s Finance Charges Applied Report total.
add this month’s Service Charges Report total.
add this month’s Sales Taxes Applied Report total.
add or subtract (depending on the balance) the totals from the Adjustments Report for
all adjustment types.
The total from the above steps should match this month’s Aged Account Balance
Report.
If you do not balance
If you are not in balance after following the monthly
procedures, follow these steps:
Reprint the Aged Account Balance Report for last month to verify that it
still matches the original that you printed at the end of last month. If it
does not match, A/R transactions made since the end of last month have been applied with a
transaction date prior to the start of this month.
Print the reports listed in Monthly balancing procedures, sorting by account
exec and then by advertiser. Sorting by these categories makes finding discrepancies
easier because you can check sub-totals vs. report totals.
Adjust as necessary.
Re-print this month’s Aged Account Balances Report to see if you are now in
balance.
Accounts receivable programs
In this section, we will provide a brief overview of the accounts receivable
programs. This manual will only review some functions of the accounts receivable programs,
which include the following:
A/R Customization
Finance charges
Payments
Prepayments
Overpayments
Enter other A/R transactions
Entering open invoices when initializing Summit
Bad debt write-offs
Printing account statements
Reports
A/R
customization
In this section, we will describe some of the
customization fields, depending on their potential for confusion:
Aging on reports based on Actual days or by Months: If you’re
billing by calendar months, you will normally age reports based on months. Conversely, use
actual days if you’re billing by standard broadcast months.
Sales type to ignore applying pmts: Use this field to sort payments. Enter the
sales type then a comma, then another sales type.
Since this field causes that sales type to always be eliminated, be careful when using
this field.
Sales type to ignore applying f/cs: Enter the sales types that won’t have
finance charges applied.
Use external invoice key file for reports: If you type Y, this allows quicker
access to reports.
New for Summit 2.7.
You can also set up the following in a/r customization:
Your normal finance charge rate (can be changed on individual accounts).
The minimum finance charge amount, maximum normal charge limit, and finance charge rate
above the limit.
Which sales types (usually trade) to skip when applying payments.
Whether to apply payments to invoices for more than one station at a time.
Whether to automatically apply payments to all accounts belonging to one agency.
Which sales types to skip when applying finance charges (usually trade).
If you are using the general ledger system, whether you want Summit to display G/L
accounts during data entry for verification.
Whether you want a standard or custom layout.
Finance
charges
To set up finance charges, follow these steps:
Make sure fields two through five are defined in the customization / defaults program
of accounts receivable management.
Determine the finance charge default for each advertiser in enter advertisers in
traffic management - utilities.
If you are using general ledger, go to traffic management utilities and then define
sales type. Fill in fields thirteen and fourteen.
This is only applicable to those using general ledger.
Go to finance charges applied report in accounts receivable management and fill in all
fields. This report details which invoices finance charges have been applied to.
Go to apply finance charges in accounts receivable management and fill out the fields
in the pop-up window.
The finance charge application date is used in the data entry screen of enter other a/r
transactions.
Payments
Once the you invoice, this creates an accounts receivable number. Payments
are applied to the corresponding number through enter payments or is applied through the
invoice itself in enter other a/r transactions.
Enter the payment as a positive number (e.g., 100.00, 150.00) in
enter payments and a negative number in enter other transactions.
If you want to apply a payment to the oldest invoice amount, follow these steps:
Go to enter payments.
Fill out the payment amount in field number two.
Press pgdn twice, and click Y to apply the payment to the oldest invoice.
If you want to apply the payment to an invoice other than the oldest, follow these
steps:
Enter the payment amount.
Press pgdn twice, and click N to apply the payment to another invoice.
Enter the field number of the invoice you want to apply the payment to.
Prepayments
Prepayments are payments made up front before the spot
runs. The prepayment field on the contract is marked 'yes' and the payment is
applied on an invoice for that contract. At invoicing time the charges are
then applied to this invoice.
Overpayments
If you have overpayments for an active account, follow
these steps:
Enter the amount of the overpayment as an apy (adjust payment) transaction type
on the invoice. This transaction type credits the cash account and debits the accounts
receivable, resulting in a zero balance invoice.
If you are using Summit’s accounts payable system, use an A/P voucher for the
refund amount. Assign the same G/L account number to both the expense and payment fields,
which prevents duplicate entries to the General Ledger.
Enter the check number if you wrote a check and simply wish to record it.
If you are using Summit’s Accounts Payable program, you need to write the refund
check for this account.
If you have overpayments for an inactive account, follow these steps:
Enter a new transaction of apy to the credit balance invoice for the amount of
the overpayment. Make sure you note that a refund check is being sent in the reference
space.
If you are using Summit’s Accounts Payable system and an A/P voucher for the
refund amount, assign the same G/L account number to both the expense and payment fields
to prevent duplicate entries to the General Ledger.
Enter the check number if you wrote a manual check and simply wish to record it.
Enter
other A/R transactions
In enter other a/r transactions program, consider the
following:
A negative number reduces the invoice balance. Positive numbers add to the invoice
balance
TTY stands for transaction type. Press F6 when you are in these fields to choose the
transaction type
Summit assumes that the amount entered on the first line (field #10) is a prepayment.
Consequently, always enter prepayments on the first line.
In TTY, you can select one of the following adjustments:
Adjust charge
Adjust for cash discount
Adjust invoice amount to write off
Adjust account exec. commission
Adjust rep firm commission
Adjust trade credit
Adjust service charge
Adjust payment
Adjust sales tax
Adjust fc (finance charge)
Entering
open invoices when initializing Summit
When you convert to Summit from an older version of
the system or from another system, you will need to enter the current balance at the time
of conversion for invoices that are still open. To enter this information, you have the
following choices:
As you go through the list, each choice gets more specific and consequently requires
more data entry. Select one of the following based on how much data you will need to
enter.
Enter the bulk balance for each advertiser.
Enter invoices per 30 day period for each advertiser.
Go to enter other a/r transactions and press F3 to add separate invoices for each
contract and advertiser.
Bad
debt write-offs
At the end of the year, your accountant may want to
write-off bad debts. To write off bad debts, follow these steps:
Go into enter other a/r transactions, and use the awo transaction type.
Make any necessary adjustments.
Print the Adjustments report for the awo transaction type.
Compare the report total to your own calculation of the adjustments. These two figures
must match. If these figures do not match, find and correct the discrepancy, and reprint
the Adjustments report.
Printing account statements
When printing account statements, you first need to
fill out all fields in the print account statements program (Figure 1).
When entering information into these fields, make sure you do the following
Enter the correct dates in fields 1 and 2.
In fields 20 and 21, set one of these fields to 0.
Reports
In accounts receivable management, you can use the
following reports:
Payments received: This report shows all collections applied. To check for
correct payment application, enter the payment and invoice dates to include, and compare
that report to bank deposit amounts.
Trade credits report: Shows trade credits (transaction type TRD only).
Adjustments report: Shows all adjustments made for specific invoices and
transaction dates.
Aged account balance report: This report groups your receivables by age,
includes transaction detail and/or zero balance invoices transactions from one date
through another, and ages the invoices from any date.
Past due accounts report: Shows invoices that are past due by the dates you
specify.
Transaction Codes for Accounts
Receivable
CH CHARGE
ACG ADJUST CHARGE
ACD ADJUST FOR CASH DISCOUNT
AWO ADJUST INVOICE AMOUNT TO WRITE OFF
AEC AE COMMISSION
REP REP FIRM COMMISSION
ARP ADJUST REP FIRM COMMISSION
AGC AGENCY COMMISSION
AAG ADJUST AGENCY COMMISSION
FIN FINANCE CHARGE
AFC ADJUST FINANCE CHARGE
STX SALES TAX
ATX ADJUST SALES TAX
TRD TRADE CREDIT
ATR ADJUST TRADE CREDIT
PMT PAYMENT
APY ADJUST PAYMENT
SCG SERVICE CHARGE
ASC ADJUST SERVICE CHARGE
NOT NOTE
|
