Step 6: Creating Customers, Accounts Receivable, Apply Documents, and Cash Receipts

In this section we’ll cover the following:

  • Creating Customers
  • Reporting & Inquiry
  • Applying Documents
  • Cash Receipts
  • Voiding Transactions

 

You can easily manage your accounts receivable using Dynamics GP. The basic functionality allows you to track open invoices, apply credits and payments, and send statements.

Once you completed the basic setup of the accounts receivable module, you’ll want to enter you customers into your system. Customers can be added and edited in the Customer Maintenance screen. Navigate to this screen as follows: Cards >> Sales >> Customers.

The required fields on this screen are Customer ID and Address ID. You can use a combination of alphabetic and numeric characters to create a Customer ID. This value uniquely identifies the customer in the system. Many people use alphabetic characters for the first few characters, and then numeric characters at the end to allow for any possible duplications, but it’s up to you.

Every customer needs at least one Address ID. The Address ID is just a name for a particular address. Examples would be: HEADQUARTERS, RECEIVING, DALLAS, NYSALES, etc. Any customer may have an unlimited number of addresses entered in to Dynamics GP.

Be sure to assign each new customer to a Customer Class. This will reduce the amount of data entry you have to do because many of the values for the various fields on the Customer Maintenance screen will be inherited from the default values of the Customer Class. This also makes maintaining and reporting on customers easier.

Enter or edit the remaining fields as you wish.

If you plan on using Project Accounting in Dynamics GP, make sure to click on the Project button at the bottom of the screen, to open the PA Customer Options screen, and make any changes if necessary. You can always come back to this screen later.

Click on the Address button at the bottom of the screen to add additional addresses if you wish.

Click on the Options button to review the Customer Maintenance Options screen, and make any necessary changes or add additional customer details.

The general ledger accounts that will be used when transactions involving a specific customer can be viewed by clicking on the Accounts button. Most likely this information was added to the customer information when you assigned the customer to a customer class, and will not need to be changed.

When you’re done completing this information, click on Save.

Accounts Receivables 1

To print an accounts receivable aging report, navigate to the Receivables Trial Balance Reports dialog box: Sales >> Reports>> Trial Balance.

The Aged Trial Balance w/Options report is a useful report to use.

Accounts Receivables 2

Create a new report option if necessary by clicking on “New”.

To save to your Home Page, click on “My Reports”

To apply open credits to open invoices, navigate to the Apply Sales Documents screen: Sales>> Transactions >> Apply Sales Documents.

Enter or lookup the Customer ID.

Lookup the credit that you wish to apply to open invoices.

Select the invoices to which you want to apply the credit. You can change the amount to apply if you wish.

Accounts Receivables 3

To enter cash receipts, navigate to the Cash Receipts Entry screen: Sales >>Transactions >> Cash Receipts.

Enter or select the Customer ID

Enter the payment information.

Click on the Apply button.

Accounts Receivables 4

 

In the Apply Sales Documents screen, you can select the “Auto-Apply” button to apply the payment to open invoices based on the Due Date or Document Number (this is a setting in the Receivables Management Setup screen.

To manually apply the payment, select the invoice to which you want to apply the payment. You can override the amount being applied to any specific invoice, by entering the amount to be applied in the Apply Amount field.

Accounts Receivables 5

Click OK when you’re completed with applying the payment.

Save the Cash Receipt entry to a batch or Post.

If you need to void a transaction, navigate to the Receivables Posted Transaction Maintenance screen: Sales >> Transactions >> Posted Transactions.

Select the Customer ID, Document Type, and Document Number.

You can select a different Void Date and Posting Date if you wish.

Accounts Receivables 6

Take a look at this video to see this in action: Creating Customers, Accounts Receivables, Apply Documents, and Cash Receipts