Overview
The Accounts Receivable (AR) Settings screen allows you to configure the default settings that will automatically be applied whenever a new Accounts Receivable customer is created.
These settings establish your organization's standard credit terms, statement preferences, email options, and credit limit notifications. While these defaults apply to newly created AR customers, they can always be customized for individual customers as needed.
Accessing AR Settings
To open the AR Settings screen:
Select Menu.
Navigate to Accounts Receivable.
Select Settings.
The AR Settings page will open, allowing you to configure default values for new Accounts Receivable customers.
Configure Default Customer Settings
The upper section of the AR Settings screen contains the default values that will be assigned when a new AR customer is created.
You can configure the following default information:
AR Payment Terms
Credit Limit
Interest Rate
Additional Statement Fees
Credit Limit Threshold Percentage
These settings become the starting point for each new customer account but can be modified individually after the customer has been created.
Note: These are default values only. Individual customer accounts can have different terms, credit limits, interest rates, and other settings based on your business needs.
Schedule Customer Statements
The AR Settings screen also allows you to schedule when customer statements are generated automatically.
Available scheduling options include:
First day of the month
Middle of the month
Last day of the month
Custom calendar date
Weekly (specific day of the week)
For example:
Months with 31 days run on the 16th when using the "Middle of the Month" option.
Months with 30 days run on the 15th.
February (28 days) runs on the 14th.
Recommended Practice
Many organizations choose to generate statements on the first day of each month to maintain a consistent monthly billing schedule.
Statement Options
When statements are generated, you can choose to include additional information.
Include Invoices
Enable this option to automatically include copies of customer invoices with each statement.
This option is recommended for most businesses.
Include AR Aging
You may also choose to include an Accounts Receivable Aging report.
Before enabling this option, consider the following:
Statements reflect account activity as of the statement generation date.
Aging reports always calculate balances based on the date they are viewed or printed.
For example:
If statements are generated on the 1st of the month but printed on the 5th, the aging report will reflect balances as of the 5th, while the statement reflects activity as of the 1st.
Because these dates may differ, some organizations choose not to include aging information with customer statements.
Configure the Default Email Address
When emailing AR statements, you can specify the default email address that appears as the sender.
Instead of using the system-generated email address, you may configure:
An individual employee's email address
A shared Accounts Receivable mailbox (for example, [email protected])
Any verified email address approved for your organization
This helps ensure customers know who to contact with billing questions.
Note: Any email address used must complete the standard email verification process before it can be selected.
Configure the Credit Limit Threshold
The Credit Limit Threshold Percentage determines when sales staff receive a warning that a customer is approaching their credit limit.
Example
If:
Customer Credit Limit = $10,000
Credit Limit Threshold = 25%
The system will notify users when a new order would cause the customer's balance to fall within 25% of their available credit limit.
This warning allows employees to:
Review the customer's current balance
Request additional payment before processing the order
Evaluate whether extending additional credit is appropriate
The threshold percentage can be adjusted to meet your organization's credit policies.
Enable Past Due and Over Credit Limit Alerts
You can configure new Accounts Receivable customers to automatically display alerts when they are:
Past Due
Over their Credit Limit
When enabled, users receive a prominent warning during order entry whenever the customer meets either condition.
This replaces the smaller visual indicators previously displayed on sales orders and provides greater visibility to users before completing a transaction.
Place Individual Customers on Credit Hold
Although not part of the default AR Settings, individual customer accounts can be configured with additional credit restrictions.
To configure a customer-specific credit hold:
Navigate to Accounts Receivable.
Open the AR Aging screen.
Select the customer.
Choose Edit.
Within the customer record, you can enable a Hold option.
Depending on your configuration, the hold can:
Display a warning to the user
Prevent new orders from being created until the hold is removed
This setting is managed individually for each customer and does not affect the default settings for all AR accounts.
Modify Individual Customer Settings
Default settings only apply when a new customer is created.
At any time, you can edit an individual customer's:
Payment Terms
Credit Limit
Interest Rate
Statement Fees
Credit Alerts
Other account-specific settings
This flexibility allows you to maintain organization-wide defaults while accommodating customers with unique credit arrangements.
Best Practices
Establish default settings that apply to the majority of your Accounts Receivable customers.
Schedule statements on a consistent cadence, such as the first day of each month.
Include invoices with statements whenever possible to reduce customer inquiries.
Carefully consider whether including Aging information aligns with your billing practices.
Use a shared Accounts Receivable email address if multiple employees manage customer billing.
Configure a Credit Limit Threshold to provide sales staff with advance notice before customers exceed their available credit.
Apply customer-specific credit holds only when additional credit controls are required.
Summary
The Accounts Receivable Settings screen allows you to establish organization-wide defaults for new AR customers, including:
Payment terms
Credit limits
Interest rates
Statement schedules
Statement content
Default email sender
Credit limit notifications
Past due and over-credit-limit alerts
These default settings streamline new customer setup while still allowing each customer account to be customized as needed.