Introduction To Accounts Receivable

Profi'C Accounts Receivable covers all occurrences where you generate billing and receive monies for services and goods. Profi'C will maintain records of each of your customer purchases, invoices, and payments. You can use this Accounts Receivable module by itself for the generation of statements with Profi'C File Maintenance in place. This means to use it to create Invoices, Debits, and Credits for goods and services already rendered OR it will interact with the Profi'C Order Processing module to create an invoice during Order Processing Confirmation.

NOTE: If you are using the Profi'C Retail Sales module, Profi'C will create your invoices at that time.

Accounts Receivable and General Ledger

When a company maintains an Accounts Receivable account in its General Ledger and places its customer accounts in a subsidiary ledger, the accounts receivable account is said to control the subsidiary ledger and is called a Control Account.

The extent of the control is that after all posting is completed, if no errors were made, the sum of the customer account balance in the subsidiary ledger will equal the balance of the control account in the General Ledger. This equality is also proof of the total of the customer account balances.

If you are running more than one company, you must establish a General Ledger Control File for each company.

If you do not have the Profi'C Order Processing module installed, then you will process your invoices through debit memos, credit memos, and Accounts Receivable Invoice Posting.

SPECIAL NOTE: Accounts Receivable AND FILE MAINTENANCE (FM)

Accounts Receivable relies on several of the file Maintenance Master files to be in place before the module can be used. The following Master Files MUST exist before you can operate this Accounts Receivable module:

1. Customer Master File
2. Branch Master File
3. Salesman Master File
4. Tax Master File
5. Reason Master File
6. Company Master File
7. Bank Master File
8. General Ledger Chart of Account Master
9. General Ledger Control File
10. Terms Master File
11. Division Account Master File
12. Division Control File
13. Region Control File

NOTE: INVENTORY CONTROL

In the Inventory Control module, the product numbers and descriptions are stored in the File Maintenance portion. If you are not using the Inventory Control module, but in fact do have inventory and wish to note product numbers and descriptions on the debit and credit memos, etc., you must enter that information each time rather than have the system fill the information in using the product number as a guide. If you do not list each product individually it becomes even more important that the "REASON" file in File Maintenance (FM) module is filled out to take into consideration the various reasons credit and debit memos are issued.