Accounting 8

Adam de Yong

Jun 07, 2022

303

CLASS DESCRIPTION

In this class we will discuss receiving money from customers with charge accounts, also known as ROA (receive on account). How to put in discount amounts; as well as, writing off service charges, short payments, bad debt and warranty work. We will discuss entering in NSF checks and posting NSF fee’s to their AR account manually

TRAINING PHILOSOPHY

Our goal is to streamline your implementation and staff training. To make this process effective, we have created a training system designed specifically for your business. We ask for your commitment to preparation and training. Your commitment to Training will make a significant impact on your cash flow, processes & overall profitability.

KEY TERMS

Customer File – Database for the Customer information. Manage information, terms, pricing and customers account balance

F8 - AR - Accounts Receivable subledger for the customer

F12 - ROA- Received on Account, a way to process a customer payment from within the accounts receivable subledger

Paid - Shows all paid records for the customer throughout the year from within the F8 - AR

Dep - Shows all deposits(payments) received from the customer for the year from within the F8 - AR

Rec - Shows all records owed or needing to be paid by the customer from within the F8 - AR

F12 - Credit- How to process a customer's payment without having to access the F8 - AR (accounts receivable) subledger area

Amount of Credit- The dollar value of payment received from the customer

Discounts- The amount of discount you wish to reduce the customers bill by (will hit Misc. Revenue)

Unpaid Ser.Chg- The amount of unpaid service charge (late charges) you with to remove (hits interest income)

Warranty Credit- The amount you wish to reduce the customers bill by (you choose what account to hit)

NOTES

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SECTION 1. CREDITING CUSTOMER

To credit the customer account you have 2 options:

From the main customer file page select Credit (F12)

From the main customer file page select Ar. (F8) then ROA (F12)

The reasoning for the 2 different areas to accept payment is because you may not want to allow everyone into the AR (F8) area

Inside the AR (F8) subledger area you have the ability to edit values, delete items off and move invoices to different accounts
We highly recommend utilizing Visions password options to set a password for this area of Vision. This way employees who do not need to be able to access the AR (F8) area can still use the Credit (F12) option to accept payment from a customer

NOTES

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SECTION 2: PAYMENT INFORMATION

Once you have used one of the F12 options the “Payment Information” window will appear

Check/Memo F6=CC - In this Window you will type out the payment type. I.e CH#123 for check, CASH for cash payment or CC# for credit cards.

Date - Put in the date you received payment, can be backdated if payment was received earlier.

Amount of Credit - Dollar value of payment collect

Discounts - Value you wish to discount their account by (positive value = discount, negative value = charge) (will go against misc. Revenue GL)

Unpaid Ser.Chg - Value of service(late fees) you wish to remove from their account. (will go against interest income GL)

Warranty Credit - Value to reduce account balance by (you chose what GL to offset the discount too, i.e over/short, bad debt or warranty expense)

Ar Gl - The accounts receivable GL you wish to pay off (never change the number unless you have multiple account receivable accounts)

NOTES

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SECTION 3: SELECTING INVOICES TO BE PAID

After you have entered in your payment information, the next step is to select what invoice or invoices to pay

In the top right corner it shows a break down of the dollar amounts in every input field and then shows the total in the ‘Amt’ field

Use ‘Y’ or click the ‘Yes’ button to select what invoice or invoices are to be paid
Then click the Process (F8) button to finish crediting the customer

Select ‘Yes’ to save the payment

When using the Warranty Credit

When you are done processing the payment, Vision will ask where you would like to write the dollar amount off to
1. Hit the drop down arrow next to the 299 suspense account, this brings up the Chart of Accounts
2. Find the GL you would like by scrolling through or simply start typing the name of the account and it will search for it, and select it

If you push the ‘Paid’ button it will show you all the paid invoices for the year, notice the ‘OVER/SHORT’ line

You can highlight on the line you wish to look at use Ext (F9) to see the details of what GL’s are being hit with that transaction
You can always edit this field and change what accounts are being hit

NOTES

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SECTION 4: NSF CHECKS

If a customer's payment is returned for Non Sufficient Funds we will make a new deposit record to get their account and the check register in balance

You can process the NSF check by doing a negative ROA (F12) or Credit (F12) from the customer file

Notice how the Check/Memo is still the same CH# as the original check
Process the payment all the way through
1. Click ‘Ok’
2. Do NOT select anything on any invoice, just hit Process (F8)
3. ‘Yes’ to save, select user and follow prompts
4. Notice the negative unapplied amount is not showing the customer owes you “1000.00”

You may pass along the NSF Fee from your bank to the customer by using New (F2)
1. Use the name “NSF FEE”, select the date and amount you wish
2. Off set the dollar amount to your “Bank Charges” GL or Interest Income

This will create a negative “deposit” in your A-accounting -> A-deposit screen
From here you can deposit to the account that the money came out of

NOTES

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SECTION 1. CREDITING CUSTOMER

SECTION 2: PAYMENT INFORMATION

SECTION 3: SELECTING INVOICES TO BE PAID

SECTION 4: NSF CHECKS

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