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Accounts Receivable surface listing customer invoices

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Overview

The Accounts Receivable module manages customer invoicing, payment collection, credit memos, and aging analysis. It integrates with the General Ledger for automatic revenue posting. Navigation: Finance & Accounting → Accounts Receivable (/fa/accounts-receivable)

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Permissions

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Customer Management

Customers are managed within the AR module:
  1. Navigate to Customers tab
  2. Click New Customer
  3. Enter customer details: name, contact info, billing address
  4. Set payment terms (Net 30, Net 60, etc.)
  5. Optionally assign a default revenue account

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Creating an Invoice

  1. Click New Invoice from the invoices list
  2. Select a Customer
  3. Set the Invoice Date and Due Date (auto-calculated from payment terms)
  4. Add Line Items:
    • Description of service or product
    • GL revenue account
    • Quantity and unit price
    • Fund, department, and program coding
  5. Review the Invoice Total
  6. Save as Draft or Post the invoice

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Invoice Statuses

  • Draft: Editable, no GL impact
  • Posted: Creates GL journal entry (debit AR, credit Revenue)
  • Partially Paid: One or more payments applied, balance remaining
  • Paid: Fully settled
  • Void: Reversed; creates reversing GL entry

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Recording Payments

  1. Open a posted invoice (or go to Payments tab)
  2. Click Record Payment
  3. Enter payment details:
    • Amount received
    • Payment Date
    • Payment Method (check, ACH, wire, credit card, cash)
    • Reference Number (check number, transaction ID)
  4. Apply the payment to one or more open invoices
  5. The system creates a GL entry: debit Cash, credit AR

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Partial Payments

  • Apply any amount less than the invoice balance
  • Remaining balance stays open on the invoice
  • Invoice status changes to Partially Paid

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Overpayments

  • If payment exceeds invoice balance, the excess creates a credit balance on the customer account
  • Credits can be applied to future invoices

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Credit Memos

Credit memos reduce a customer’s outstanding balance:
  1. Click New Credit Memo
  2. Select the Customer and optionally link to the original invoice
  3. Enter credit line items with amounts
  4. Post the credit memo
  5. Apply the credit to open invoices or leave as customer credit

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AR Aging

The Aging Report shows outstanding balances by age bucket:
  • Filter by customer, date range, or aging bucket
  • Export to CSV or PDF for collections follow-up

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GL Integration

All AR transactions automatically create GL journal entries:

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Tips

  • Set up payment terms on customers to auto-calculate due dates
  • Use the aging report weekly to identify overdue accounts
  • Apply payments promptly to keep aging accurate
  • Credit memos linked to invoices provide better audit trail