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6
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Part 7 – Accounting
Preparation for Accounts Receivable Setup
Before starting your AR customization, you will need the following information:
From your General Ledger Chart of Accounts:
A.
Cash Deposit GL account:
This is the account that “receives” all cash from your business
operations. Customarily, cash on deposit GL accounts are in the 1000
or 10000 ranges in your Chart of Accounts.
B.
Accounts Receivable GL Acct:
This account increases with each invoice and decreases with each
payment. Customary ranges are in the 1100 or 11000 ranges in your
Chart of Accounts.
C.
Sales Taxes Payable:
This account increases with each sales tax amount invoiced.
Customarily, Payables are numbered in the 2000 or 20000 series of
numbers in your Chart of Accounts.
D.
Finance Charge Income Acct:
This account increases with generated finance charges. Income or
Revenue Accounts are usually numbered in the 4000 or 40000 range of
numbers in your Chart of Accounts.
E.
Revenue Accounts:
You may have as many revenue accounts as you wish (to
departmentalize your company’s income). All invoices cause an
increase in a selected revenue account. Revenue accounts are
customarily numbered in the 4000 or 40000 range of numbers in your
Chart of Accounts.
F.
Refunds and Allowances Acct:
You may have as many accounts as you deem necessary to categorize
refunds or allowances. These should all be expense accounts. The
customary numbering scheme would place expense accounts in either
6000 or 60000 in your Chart of Accounts.
G.
Write Off Accounts:
You may have as many accounts at you desire to categorize write-offs
of invoices which are due. These should also be expense accounts with
customary numbering in either 6000 or 60000 in you Chart of
Accounts.
H.
Credit Memo Liabilty Acct:
A credit memo is a liability to your company until is is applied to an
outstanding invoice.
I.
Customer Pre-Payments Acct:
Pre-payment GL accounts are liability accounts, with the customary
numbering range in the 2000 or 20000 range. Accepting funds from a
customer for services not yet rendered create an increase in a liability
account.
J.
Customer Overpayment Accts:
Overpayment GL accounts are also liability accounts, with the
customary numbering range in the 2000 or 20000 range. You may
create a customer credit balance resulting from a substantial invoice
overpayment, causing an increase in a Overpayment liability account.
From your current accounts receivables journal:
a)
Your oldest unpaid invoice date. This will become the start-date of Quantrac 2005 Accounts Receivable
functions.
b)
The accumulation of invoices (invoice number, date, description of service, invoice total, and previous
payments. (Entering of beginning balances is optional; the old unpaid invoices can die a natural death in your
previous accounting system, or be recorded in Quantrac 2005.)
Note: Do not attempt to create invoices, payments, or produce AR reports before completing the Accounts
Receivable Customization/Setup in the following pages. Failure to comply may cause improper accounting
of revenues and expenses.
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