Creating and Managing Open Credit Balances in Accounts Receivable
Objective
To provide a clear and concise process for team members to create and manage open credit balances for customers in the accounts receivable system, ensuring accurate financial records and efficient customer transactions.
Key Steps
Initiate Return Process
Log into the accounts receivable system.
Locate the item to be returned.
Click on the "Return" button to initiate the return process.
Confirm the return by clicking "Return" again.
Generate Invoice for Return
After confirming the return, select the option to "Generate Invoice."
Indicate that you are returning the item.
Click "Next" to proceed.
Finalize Payment Process
Choose the option to "Pay and Finalize."
Select "Accounts Receivable" and ensure you are using the current customer’s account.
Enter the balance owed into the accounts receivable field.
Check the box labeled "Put into Open Deposits."
Click "Process Payment" to complete the transaction.
Return Item to Stock
After processing the payment, ensure to return the item to stock to maintain accurate inventory records.
Verify Open Credit Balance
Navigate to the accounts receivable section and search for the customer (e.g., Mason Builders).
Check the AR aging report to confirm the total deposit reflects the open credit balance (e.g., $798.62).
Create New Order Using Open Credit
Click on "Open Orders" and select "Add a New Order."
Input the details for the new order (e.g., selling a miscellaneous item for $100).
Save the order.
Process Payment for New Order
Click on "Take Payment" for the new order.
Select "Accounts Receivable" and confirm you are using the current customer’s account.
Choose the option to apply the open deposit to the new order.
Confirm the amount available (e.g., $798) and process the payment.
Refresh Accounts Receivable Screen
Return to the accounts receivable screen and refresh to verify the updated balance (e.g., $698 remaining).
Cautionary Notes
Always double-check that you are processing transactions for the correct customer account to avoid errors.
Ensure that the item is returned to stock immediately after processing the return to maintain accurate inventory levels.
Be cautious when applying open deposits to ensure that the correct amount is deducted from the available balance.
Tips for Efficiency
Familiarize yourself with the accounts receivable system interface to streamline the process.
Use keyboard shortcuts where possible to speed up navigation.
Keep a checklist of these steps handy to ensure no steps are missed during the process.
Regularly review the AR aging report to stay updated on customer balances and open credits.