TRAVERSE Global v11.1

Accounts Receivable - Setup and Maintenance Overview

Before you can use the Accounts Receivable application, you must follow the setup procedures outlined below. Setup procedures include gathering your information, defining the customers you do business with, assigning codes and IDs, and setting up initial account balances. Follow the setup procedures carefully, because the choices you make determine how the system operates.

Gather and organize your accounting data:

  • a chart of accounts for your business
  • identification and credit information about your customers
  • previous- and current-year sales, return, and receipt history organized by customer
  • a list of unpaid invoices organized by customer or an aging report

To set up the Accounts Receivable application, follow these steps:

  1. Use the Business Rules function from the System Manager Company Setup menu to define how you want the system to work.
  2. Define the IDs and codes you plan to use. See Setting Up IDs and Codes.
  3. Set up tax classes, locations, and location groups:
    • Tax classes define the tax category of the items you sell. Ten tax classes are predefined, in the sample company and only the description can be changed. You can add tax classes. For information about adding tax classes or changing tax class descriptions, see Tax Classes.
    • Tax location IDs identify the tax authorities to which you pay sales tax. When you set up the system, enter the sales tax percent, taxable sales, nontaxable sales, and tax collected for each applicable tax class. These fields are updated when you post sales. For information about defining tax location IDs, see Tax Locations.
    • Use tax groups to group the tax locations. Tax groups are assigned to customers, transactions, and recurring entries. For information about defining tax groups, see Tax Location Groups.
  4. Use the Payment Methods function to set up payment methods. Payment method IDs specify which kinds of payment you honor for customers. For example, you can set up IDs to designate personal checks, company checks, write-offs, cash, credit cards, and so forth.
  5. Use the Ship-To Addresses function to set up shipping addresses and assign them to customers. Ship-to IDs provide quick and easy access to shipping addresses, shipping methods, and payment methods for a customer.
  6. If you send invoices to customers regularly, use the Recurring Entries function to set up recurring invoice records.
  7. Batch codes allow you to post sales, miscellaneous credits, and cash receipts on a group basis rather than on an individual basis. Batch codes also enable many users to enter and post transactions simultaneously without interfering with each other. For information about defining batched, see Transaction Batch Codes.
  8. You can assign class codes as an additional sort criterion for reports. Class codes are arbitrary attributes; the information is stored only with the customer record. For information about defining customer class codes, see Class Codes.
  9. You use distribution codes to allocate general ledger accounts for freight, miscellaneous charges, Project Cost Deposit Receivables and Deposit Receivables Contra accounts. For information about defining distribution codes, see Distribution Codes.
  10. Run codes are used by the Recurring Entries, the Sales Reps, and the Commissions functions as an additional grouping method. You might want to set up run codes to reflect when you want to print commission checks or run recurring entries. For example, you might assign run code 01 to entries that should be used to create transactions on the first of the month, and 15 to those that should be used to create transactions on the fifteenth of each month. The run codes for the Sales Reps and Commissions functions are the same and distinct from the run codes for the Recurring Entries function.
  11. The Sales/COGS Accounts codes serve as a shorthand method of assigning the accounts to a transaction. When you post transactions, information associated with a sales/COGS code is sent to the specified accounts. For information about defining sales/COGS accounts, see Sales/COGS Accounts.
  12. Use the Sales Reps function to set up information about your sales representatives. Sales rep. IDs identify sales reps and their commission schedules.
  13. Shipping method codes serve as a shorthand method of entering information about how goods are shipped when you enter transactions. For information about defining shipping method codes, see Shipping Method Codes function.
  14. Terms codes define the discount percentage and the number of days in which a customer must pay you to receive a discount. For information about defining terms codes, see Terms Codes.
  15. Use the Customers function to define your customers, and assign customer price IDs and customer levels.
  16. Set up initial account balances for each customer. See Setting Up Initial Balances.

Use the Master Lists menus from the Accounts Receivable application to produce lists for the following Accounts Receivable information:

  • Payment Methods
  • Sales Reps
  • Customer Records
  • Customer Labels
  • Ship-to Addresses
  • Recurring Entries