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Daily Accounts Receivable Procedures

This Help File Page was last Modified on 02/20/2016

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Daily Accounts Receivable Procedures

This Help File Page was last Modified on 02/20/2016

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Daily Accounts Receivable Procedures

This Help File Page was last Modified on 02/20/2016

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So, how do I actually use this Accounts Receivable module?

The steps outlined below will provide an overview of how daily Accounts Receivable transactions should be managed.

This is a guide and that means you will do what is needed, when its needed based on your Company's specific business needs and methods.

 

I.Enter New Sales

1.The Invoices created for Sales are best entered and mailed (or emailed) as they occur.  

This is not only important for new installations, but also for service calls that were not "paid at the door".  

The promptness of receiving the Invoice for services provided is important.

Also, see the Work Order chapter for more information if you are, or will be using the Service Tracking System with this Accounts Receivable module - which of course you should.

When an Invoice arrives shortly after the service was provided, it ensures that the Subscriber still remembers the quick resolution of their problem, and so is more likely to pay promptly.

The Invoice that arrives several days (or weeks) later may come as a "surprise" ...

And you know how customers react to surprises!

 

2.To enter an Invoice for a new Sale, open the Subscribers Form and Press F2 to locate the appropriate Account, then Select the Invoices option on the Subscribers Form's Subscriber Options Menu.

Include as much detail as possible in that Invoice to ensure that Subscriber will clearly understand the reason for these charges.

As appropriate, use the Note field on each Detail Line Item for specific explanations, and the Comments field at the bottom of the Invoices Form for a general comment about the Invoice as a whole.

 

II.Print Invoices

1.At the end of the day, use the Invoices selection located in the Receivable Reports Menu, to print all of the unprinted Invoices for that day.

2.Once the appropriate Invoice Printing parameters are chosen, request to View these Invoices to ensure that this is the format that you want to be used when the Invoices are actually printed (or emailed).

3.If the Invoices do not appear as desired:

Close the View

Answer No to the "Did the Invoices Print Correctly?" question.

Re-select the Invoice Printing options to correct the formatting problem, then request another Preview.

4.If they are now correctly formatted, go back to the Options tab and Check the Save Settings? box so that all future Invoices will be formatted in a consistent manner from one printing to the next.

5.Then, Print the Invoices.

6.MKMS keeps track of whether or not an Invoice has previously been printed, so you don't have to.

 

III. Post Receipts

1.Receipts should be posted daily!

There is no sense in "holding checks until we have enough to record".  

From both a security and cash flow perspective, Receipts from Subscribers should be recorded on the day they are received.

2.Use either the "one at a time" posting method using the Receipts selection (located on the the Subscribers Form's Subscriber Options Menu), or for rapidly entering multiple Receipts, use the Receipt Posting Form available from the Maintenance > Receivables Menu or by using the Post Receipts Icon on the Receivables Tab.

The advantage of using the Receipt Posting process is: As each Receipt is recorded, it is automatically Allocated (assigned) to the appropriate Invoice(s).

 

IV. Allocate Receipts

1.If using the Subscribers Form Subscriber Options Menu's Receipts Form to post a Receipt, each Receipt entry should also be Allocated, either as a step performed when posting the Receipt, or done later using the Allocate Form which is also available on the Subscriber Options Menu.

 

V.Deposit all Receipts

1.Receipts should also be Deposited daily!  

2.Each day's Receipts should be assigned a unique batch number - which is by default - the day number of the current Day.

3.Then, in preparation for physically making that deposit, use the Bank Deposits Form to identify which Receipt(s) will be deposited in which Bank(s).

Refer to the Bank Deposits - Depositing Receipts in the Bank chapter for the recommended procedure.

 

VI. Contact Past Due Accounts

1.Regularly, print an Accounts Receivable Report for Past Due Accounts.

2.Make the necessary Collection Calls (yes, it is not be everyone's favorite past time) because regular, staged, follow up with those Subscribers who have one or more Past Due Invoices is the most effective method of getting those Invoices Paid.

 

VII. Perform the appropriate Periodic Procedures when, and as needed.