95 Update Balance Forward Records

This chapter contains the topic:

95.1 Updating Balance Forward Records

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From Accounts Receivable (G03), enter 27

From A/R Advanced and Technical Operations (G0331), choose Update Balance Forward

You update balance forward records to:

  • Summarize the open items in the A/R Ledger table (F0311) as of a specific date

  • Create a balance forward amount for a customer

When you run Update Balance Forward each period, the system creates a separate balance forward record for the following:

  • Customer

  • Company

  • G/L bank account

  • Currency code

If you update your balance forward records before processing your A/R statements, the system summarizes invoices from the previous period. Therefore, only the current period's activity is shown in detail and all previous periods' activity is shown as a single balance forward amount.

Every time you update the records, the system creates a new balance forward record that overwrites the existing record for the previous period.

Caution:

Post all invoices before you run the Update Balance Forward program to ensure the system updates only one balance forward per period. Otherwise, when you rerun this program (for the same period), a new balance forward record is created for that period, rather than the existing balance forward record you are "adding to."

95.1.1 Example: Creating Balance Forward Records

The following example shows information for customer 1001 before updating balance forward records:

Document Information
Document R1401
  • F0311 amount: 500

  • Invoice date: June 12

  • Pay status before balance forward: A (approved)

  • Pay status after balance forward: S (balance forward summarized)
Document R1443
  • F0311 amount: 200

  • Invoice date: June 15

  • Pay status before balance forward: A (approved)

  • Pay status after balance forward: S (balance forward summarized)
Document RR517
  • F0311 amount: 400

  • Invoice date: June 17

  • Pay status before balance forward: A (approved)

  • Pay status after balance forward: S (balance forward summarized)
Document R1521
  • F0311 amount: 100

  • Invoice date: June 19

  • Pay status before balance forward: A (approved)

  • Pay status after balance forward S (balance forward summarized)

The following example shows information for customer 1001 after updating balance forward records:

Document Information
Document RW589
  • F0311 amount: 1,200

  • Invoice date: June 30 (G/L date)

  • Pay status after balance forward: A

After you run Update Balance Forward, there is one summarized invoice (RW) in the A/R Ledger table. When you enter a receipt, you must apply it to the RW document, not to the individual invoices. You cannot make adjustments to a summarized invoice, for example, 1401, because the system considers it paid and posted.

95.1.2 Before You Begin

  • Activate balance forward on Customer Master Information.

  • Post all invoices for the period to ensure that the system updates only one balance forward record per period. Otherwise, when you rerun this program (for the same period), the system creates a new balance forward record for that period rather than the existing record you are adding to.

95.1.3 What You Should Know About

Topic Description
Multi-Currency If your customer uses multiple currencies, the system calculates the currency exchange rate for the balance forward record by:

  • Domestic and foreign amounts it writes to the record

  • Conversion method specified on General Accounting Constants.
Viewing balance forward records You can view the summarized invoices that are included in the balance forward record on Standard Invoice Entry and Customer Ledger Inquiry. The open amount of each invoice is 0 (zero).

To view the invoice detail, activate the Paid field on Customer Ledger Inquiry. For parent companies that have invoices associated with several children, the system creates a separate balance forward record for each child.
Determining the "as of" date and due date The system uses the invoice date for the "as of" date as the cutoff for invoices that are included in the balance forward record.

The system uses the payment terms for the customer to calculate the due date for the balance forward amount.

95.1.4 Processing Options

See Section 117.3, "Balance Forward Update (P03501)" for more information.