Accounts Receivable and Payable

Invoice Example

Accounts Receivable and Accounts payable manage financial flows with customers and vendors. It allows for the completion of the sales process (sales order - production - shipping - billing - payment).

It is available at all levels of software.

Accounts Receivable

Invoices are created from shipping notes(shipping transactions).
For this, the selling price must be completed on the order line (default price on the item window).
For each item category, a VAT rate is recorded. The amount of VAT for the invoice is automatically calculated.
At advanced level, it is possible to add lines of service (eg packaging,transportation).
For each customer, there are precise terms of payment. The maturity date is automatically calculated.

When a payment comes from a customer, it is recorded and reconciled with invoices (invoices and payment matching).

You can then perform various inquiries on accounts receivable:

  • Accounts receivable position
  • Customer account balance
  • Payment aging

Accounts Payable

Invoices are create from receiving notes (receipt transactions).
For this, the purchase price must be completed on the order line (default from the vendor catalog).
For each item category, a VAT rate is recorded. The amount of VAT for the invoice is automatically calculated.
For each vendor, terms of payment are specifed.

When you pay a vendor, the payment is recorded and reconciled with unpaid invoices (invoices and payments matching).

You can then perform various inquiries on accounts payable:

  • Accounts Payable position
  • Vendor Account Balance
  • Payment aging

The implementation of AR & AP function

The implementation of the AR & AP function is very simple:

Several tables tables must be filled:

  • VAT rates
  • Item category
  • Payment terms (to calculate the maturity date)
  • Payment mode

In the item windows, specify a category and a sale price.

On the customer and vendor windows, specify a payment term.

Links with the General Ledger

If the general ledger module is activated, invoices, customer and vendor payments are automatically transferred to the accounts of the general ledger. This involves various information tables to specify the accounts to be affected.