Configuring Accounts Receivable Account Types

Account Receivable account types enable you to categorize AR accounts. The account type selected in each AR Account is used for filtering in both the application and also on reports, such as when generating an AR aging report subtotaled by account type.  Account types also determine the stationery templates to use when generating statements and reminder letters.

You can also set up Comp Accounting AR types to automatically receive comp transactions for AR handling. For more information, see Comp AR Accounts.

When the Finance Charges OPERA Control is active a 'late payment' charge can be levied against overdue balances for accounts in each AR account type. An End of Day procedure calculates and posts the finance charges using the transaction code selected in the Default Finance Charge Transaction Code OPERA Control. The financial charge is posted as a separate invoice in each AR account. In the invoice, the financial charge supplement reads: "Finance Charges Posted Automatically".

Example:

The Post AR Finance Charges process is scheduled to run for an AR account type on the 18th of each month and apply a 10% charge for invoice balances older than 30 days . Today's business date is June 18:

The debtors account shows the following outstanding balances:

Invoice Date	Invoice Age	Invoice Open Balance	Account Balance	Financial Charge
Jan 13	156 days	$100	$100
Feb 12	123 days	$200	$300
Mar 11	99 days	$150	$450
May 10	39 days	$100	$550
May 11	38 days	–$100 (unallocated payment)	$450
May 20	29 days	$175	$625
June 18	0 days	$45 / $55		$45 / $55	If the $100 unallocated payment is not included in the calculation, the total amount outstanding is $550 and the financial charge applied is $55. If the $100 unallocated payment is included in the calculation the amount outstanding is $450 and the finance charge applied is $45.

The finance charge is posted to the AR account as a new invoice dated June 18th.

The outstanding invoice created on May 20th is not included in the calculation because it is less than 30 days old.

Adding AR Account Types

1. From the Administration menu, select Financial, select Accounts Receivables Management, and then select Account Types.

2. Click New and complete the following

   1. Property. Enter or select the property

   2. Type. Enter a code for the account type

   3. Description. Enter a description for the account type

   4. Credit Limit. Enter a default credit limit for AR Accounts of this account type

   5. Statement Mode. Select a mode from the list

      1. Balance Forward. A balance as of MM/DD/YY field on the statement shows the total previous balance for the account. The last statement date and total amount from the last statement will be printed on the statement as the balance forward date and balance forward, respectively, by default, unless overridden by a date in the Balance Forward From field

      2. Individual Open Items. All open balance invoices are listed as individual line items on the statement

   6. Reminder Cycle. Select a reminder letter cycle

      1. Days. Reminder letters are generated based on the number of days for which the account has had an outstanding balance. Use this option, for example, if you want to send a reminder letter for outstanding balances of 30 days, 60 days, and 90 days. These letters can be customized for each cycle.

      2. End of Month. Reminder letters are generated at the end of each month if the account has an outstanding balance. This option might be appropriate, for example, if you select the Balance Brought Forward Statement Mode.

         1. Letter Name. Select a reminder template from the list

   7. Report (Aging) Delays Days. Select a value from the list to define the aging delay days for unpaid invoices (Available when the Delay Days Report OPERA Control is active).

   8. Statement (Template). Select a customized statement from the list

      1. Select Print Invoices without details if you do not want to print invoice details on the statement.

      2. Select Print Invoices with details to print invoice details on the statement. Invoice details appear under each invoice number, along with a subtotal per invoice. Invoice details include date, individual charges, and a description.

      3. Select Print Separate Folios to print the statement followed by the separate folios included in the statement. When you select this option for the account type, the Print Folios check box is selected by default when selecting Statement Options for the AR Account NOTE: Invoices created AR Enter Old Balances (link: t_toolbox_entering_old_balances_ar_accounts.htm) will not have a folio number assigned and will not be printed. .

   9. Finance Charges. (Available when the Finance Charges OPERA Control is active)

      1. Post on Day. Enter the day in the month when the End of Day procedure should run the AR Post Finance Charge procedure for this account type.

      2. Charges Older than (n) Days. Enter the number of days after which an outstanding balance triggers finance charges. For determining the age of the invoices and AR balance, the clock starts on the date when the invoice is created.

      3. Percentage. Select to post a charge calculated as percentage of charges. Enter the percentage

      4. Amount. Select to post a flat amount. Enter the amount.

      5. Include Unallocated Payments. Select to subtract any unallocated payments from the outstanding balance before the finance charge is calculated.

   10. Daily Reminder Cycle. When the Reminder Cycle field is set to Days, the Daily Reminder Cycles configuration lets you determine which reminder letters are generated for AR accounts with an outstanding balance for a given number of days. You can generate a different reminder letter for outstanding balances of 30 days, 60 days, 90 days etc. The date when the aging "clock" starts, and thus when the first reminder cycle begins, is determined by the Date For Aging OPERA Control.

       1. Click New

          1. Number of Days. Enter the number of days in the reminder cycle

          2. Letter (Template) Name. Select a reminder template from the list

       2. Repeat to add additional letters

       3. To edit a cycle, select the cycle and update the Days and Letter.

       4. To delete a cycle select the letter and days, click the vertical ellipses and select Delete.

   Note:

   When the Simple Reminder OPERA Control is active, the Reminder Details screen sorts reminder letters in the order in which they were set up, starting with the first letter that was configured. This is typically the order in which these letters are generated for reminder letter mailings. There may be more than one letter "queued up" to be generated for the account depending on the age of the account balance and which letters have already been generated.

   Note:

   When Simple Reminder OPERA Control is inactive, reminder letters are sorted based on the number of days in the reminder cycle, lowest to highest. For this parameter setting, reminder letter mailings are generated depending on the age of the account balance, not on which letters have already been mailed. For example, assuming there are 30, 60, and 90-day cycles,  if the account balance is 63 days old when letters are generated, the 60 day letter is sent, regardless of whether the 30 day letter was sent.

3. Click Save.

Editing AR Account Types

1. From the Administration menu, select Financial, select Accounts Receivables Management, and then select Account Types.

2. Enter search criteria and click Search.

3. From search results, select an account type and click the vertical ellipsis and select Edit.

4. Update the details

5. Click Save.

Deleting AR Account Types

1. From the Administration menu, select Financial, select Accounts Receivables Management, and then select Account Types.

2. Enter search criteria and click Search.

3. From search results, select an account type and click the vertical ellipsis and select Delete.

4. Click Delete to confirm.