Managing Accounts Receivable with Acumatica

Accounts Receivable is one of the most important aspects of a business. Once a sale is made (unless it’s cash, of course), you are reliant on your accounting software to help you track revenue as well as cash flow. Acumatica makes managing accounts receivable a pretty seamless process.  

Here is a basic overview of our receivables process:

Once a deal is made and proper paperwork signed, the sales team creates a sales order invoice, leaving it in the “balanced” status.

Unlike payables, invoices cannot be released (posted) from the invoice screen. They must be posted from one of two areas. I have a recurring task on my to-do list daily to check for any invoices that need to be posted and/or sent to the customer. 

Here is the first procedure/process:

• Click on Receivables.
• Click on Release AR Documents.
• Invoice numbers are in blue and can be clicked on to review the invoice for accuracy.
• Once all invoices are ready to be posted, either click on the box to the left of invoice type to choose certain items, then click RELEASE at the top. Or, simply click on RELEASE ALL at the top to post all invoices.
• At this point, the invoices will be in the "Open" status.
  

Here is the second procedure/process:

• Click on Sales Orders.
• Click on Process Invoices and Memos.
• Under the Action drop-down, choose Release.
• All sales order invoices ready to be posted will be listed.
• Invoice numbers are in blue and can be clicked on to review for accuracy.
• Once all invoices are ready to be posted, either click on the box to the left of invoice type to choose individual invoices, then click PROCESS at the top. Or, simply click on PROCESS ALL at the top to post all invoices.
• Once all are released, change the action drop-down box to email invoice.
• All invoices ready to be sent to customer will show up in this list.
• Either click the box next to the type to select invoices individually and click PROCESS at the top, or click PROCESS ALL to send all invoices in the list to the customer.
• Use the same process to print invoices if you have customers set to DO NOT EMAIL and will be mailing invoices.

I use our Financial Dashboard to keep an eye on accounts receivable:

From the dashboard, you can see that there are 8 overdue invoices.

Click on the arrow under the 8 to see the invoices that are overdue.

If you do not have a dashboard created, you can also look at the AR Aged Past Due report under Receivables.

• Choose the report format.
• Choose company.
• Choose Branch.
• Choose Customer Class if you only want to look at a certain set of customers. Leave blank to look at all customers.
• Choose Customer if you only want to look at one customer. Leave blank to look at all customers.
• Choose the aging date.
• Click RUN REPORT at the top of the page.

At this point, follow your company’s collection procedures for any overdue invoices.

Any phone calls or correspondence concerning receivables should be kept in the customer’s ACTIVITIES tab.

• Emails sent through Acumatica will automatically show up here.
• You can add notes by clicking the ADD ACTIVITY.
• By keeping notes in a central place, any employee who has access to a customer can see collection efforts.
  

Changing Customer Status

Sometimes it’s necessary to place customers on Credit Hold (always follow your company’s collection procedure). Once a customer is placed on credit hold, Acumatica prevents any new invoices from being created for that customer.

• Click on Receivables.
• Click on Customers (Under Profiles).
• Click on the customer in question.
• Change the status to Credit Hold.
• Customer’s status remains on credit hold until you take it off.

If you want to tell Acumatica when to place a customer on credit hold, follow these steps:

• Click on Receivables.
• Click on Customers (Under Profiles).
• Click the customer in question.
• Under the GENERAL INFO tab, there are CREDIT VERIFICATION .RULES.
• Choose the Credit Verification that suits your policy.

• Then choose the customer’s credit limit.
• Choose the number of days the customer is allowed to be past due.
• Once the customer has gone over these thresholds, no future invoices will be allowed to be posted.

Let Acumatica take care of tracking accounts receivable, so you don’t have to.