ARSLSENT Accounts Receivable Sales and CR/DR Memo Processing
Sales & CR/DR Memo Processing
Application Overview
Sales & CR/DR Memo Processing is an application that you will use very often. You will use it whenever you want to record in your Accounts Receivable new transactions that have occurred. For example, if a customer has made a recent purchase from you, you would use this application to enter the data from the invoice. The transaction would then become part of the customer's account, and you could make collections on it.
If you will not be using Elliott’s Customer Order Processing package, you will in fact be entering all Accounts Receivable activity with your customers except payments by way of this application. So it is a pretty important application.
If you will be using Elliott's Customer Order Processing package, it will not be necessary for you to manually enter the sales transactions that come about as the result of orders that have been invoiced. The Customer Order Processing programs will automatically create sales transactions here in the Accounts Receivable package as part of their processing.
You can enter four types of transactions by way of Sales & CR/DR Memo Processing. The main transaction type that you will be entering is an invoice. This will probably make up more than 90% of all the transactions processed here. But you can also enter credit memos, debit memos and finance charge transactions here.
A credit memo is a transaction recording some sort of credit you are giving the customer, other than a payment, usually because some of the goods sold were found to be unsatisfactory upon receipt. Perhaps some of the goods were damaged or found not to be exactly what was ordered. In this case, you would give the customer credit against the amount of the original invoice by entering a credit memo.
A debit memo is a transaction recording some sort of an additional charge that is to be added to the customer's account. For example, let us say that the price of the sale was negotiated with the customer based on a certain shipping method, which later on turned out not to be fast enough, and so another faster (and more expensive) method of shipping was used. You could charge the customer for this additional expense by entering a debit memo, which will add to the amount the customer, owes you for the sale.
A finance charge is an amount the customer owes you because he has open items on his account, which are too long overdue. There is a separate application in A/R, which will automatically calculate the amount of finance charge a customer owes, but if you want to manually enter finance charges, you can do so here.
Transaction File
The sales transactions you enter here eventually end up being recorded in the A/R Open Item File. But since this is such an important file, it is a good idea not to have a lot of different people entering data into it, and changing and deleting data that is already in it. For this reason, a transaction file approach to sales transaction processing has been used.
The invoices you enter by way of this application do not go directly into the A/R Open Item File. Instead, they go into a temporary Sales Transaction file. When you have finished entering all your current invoices, you can get a printout of what has been entered and look it over. If corrections need to be made, they can be made before the transactions become permanent. If everything is the way it should be, then these temporary transactions are transferred, or posted, to the permanent A/R Open Item File. At the same time, a report is produced that shows you exactly what was transferred to the permanent files. You can keep this report as your permanent record of the transactions processed.
When this posting occurs, other files are updated in addition to the A/R Open Item File. The Customer File is updated to reflect the fact that the customer's account balance has changed. The fields that store the amount of sales for the customer so far this period and so far this year are also updated. These same fields are updated for the salesperson responsible for the sale, so that you can later obtain reports analyzing what percent of sales came from each customer and salesperson.
The distributions to General Ledger that you entered during data entry are also recorded in the A/R Distribution to G/L File. At a later time, these distributions can be transferred to Elliott's General Ledger package for use in preparing your company's Financial Statements.
Customer Order Processing
If you will be using Elliott's Customer Order Processing package to keep track of customer orders, and to send invoices to the customers, then you will save yourself a lot of the manual work that is involved in entering a large number of sales transactions.
In Customer Order Processing, once you send the customer an invoice for the goods that you have shipped to him, the programs will automatically create the correct open items in the A/R Open Item File. The programs will also automatically generate the necessary distributions indicating how the sale amounts will be recorded in G/L. The Customer File, Salesman File and Commissions Due file are also directly updated by the Customer Order Processing package. Elliott's Accounts Receivable and Customer Order Processing packages were designed to work together.
Run Instructions
Select Sales & CR/DR Memo Processing from the pull down A/R Processing window. The following screen will then be displayed:
Sales & CR/DR Memo Processing Entry Screen
The following options are available:
- Add invoices, credit memos, debit memos or finance charges and their G/L distributions to a customer's account
- Make changes to the transactions entered
- Delete transactions entered
- Print to screen, the transactions with amounts, taxes, commissions and G/L distributions
To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.
Entry Field Descriptions
Name | Type and Description |
1. Cust No | 6 alphanumeric characters. Enter the customer number. Even though this customer number is alphanumeric, you can enter purely numeric digits if you wish. After you enter the customer number, the program will display the customer's name, terms, accounting method and comments about the customer. If you enter the number of a miscellaneous customer, the program will request that you enter the customer's name. A miscellaneous customer number is one, which begins with an asterisk (*). The usual reason that you would be using a miscellaneous customer number would be that you have a transaction that you want to process for a customer that you do not ordinarily do business with, and who you do not want to add to your Customer file. If you would like more information about miscellaneous customers, refer to the instructions for Customer File Maintenance. Press the F7 key for customer search by number or press the F8 key for customer search by name. |
2. Doc No | 6 numeric digits (999999). Enter the document number. In most cases this is the number of the invoice that records the transaction. |
Doc No (continued) | In the add mode, press the F1 key for automatic assignment of the next document number. The manual entry of a document number will not affect the automatic assignment of numbers. Only automatic document number assignment through the F1 key will cause it to be incremented. In change mode, the F1 key can be used to get the next document on file for this customer. |
3. Doc Date | A date is the standard date format. The system date will be displayed upon entering the screen. |
4. Doc Type | 1 alphanumeric character. Enter the document type. You can enter one of these four document types here: I = Invoice C = Credit Memo D = Debit Memo F = Finance Charge Default is I. |
Apply‑To‑No | 6 numeric digits (999999). If the transaction being entered is either a credit memo or a debit memo, and if the customer uses Open Item accounting, you will be asked to enter the number of the document to which this transaction applies. For example, let us say that you had previously entered an invoice for customer number 10. The invoice number of this transaction was number 1100. The customer later wrote to you to tell you that a portion of the order was damaged enroute, and he would like credit for that portion of the order. Now you are entering the credit memo that will record this credit. This credit memo applies to invoice number 1100. So you would enter 1100 for this Apply‑To‑No field. This will have the effect of reducing the amount the customer owes you for invoice number 1100. |
5. Due Date | A date in the standard date format. Enter the date after which the document can be considered overdue, if it has not been paid off by then. If the transaction is an invoice or a finance charge and you press the RETURN key for the date, the program will use the customer's terms to calculate and display the date when the document will be due based on the document date. If the transaction is a credit memo or a debit memo, pressing the RETURN key here will default the due date to the document date. |
6. Sale Amt | 9 numeric digits with 2 decimal places and an optional minus sign (9,999,999.99-). Enter the amount of the actual sale not counting any sales tax or other charges. If the transaction is a finance charge, you will automatically drop to the Reference field. |
7. Misc Chg | 8 numeric digits with 2 decimal places and an optional minus sign (999,999.99-). Enter the amount of any miscellaneous charges, such as special handling or packaging charges for which the customer is expected to pay. |
8. Freight | 7 numeric digits with 2 decimal places and an optional minus sign (99,999.99-). Enter the amount of any freight charges the customer is to pay. |
9. Tax Code 1 | 3 alphanumeric characters. Enter the tax code that designates how this sale is to be taxed. If the tax code entered is not on file, an error message will be displayed, and you will be asked to enter another tax code. Press the RETURN key to accept the default tax code 1 for this customer. |
Tax Code 1 (continued) | You must enter a valid tax code here whether the customer is taxable or not. Enter a tax code in Tax Code File Maintenance for non‑taxable customers. This code will allow you to accumulate total non‑taxable sales. Press the F7 key to search for tax code. |
Amt | 8 numeric digits with 2 decimal places and an optional minus sign (999,999.99-). The amount of sales tax will be calculated by the program and displayed. The calculation is based on tax code 1. The tax is computed on the total of the sale amount and the miscellaneous charges. You can accept the computed sales tax by just pressing the RETURN key to go on to the next field, or you can enter a different sales tax by just typing over the displayed sales tax. |
10. Tax Code 2 | 3 alphanumeric characters. Enter the tax code that designates how this sale is to be taxed. If the tax code entered is not on file, an error message will be displayed, and you will be asked to enter another tax code. Press the RETURN key to accept the default tax code 2 for this customer. You may make an entry if you wish, but none is required. Press the F7 key to search for Tax Code. |
Amt | 8 numeric digits with 2 decimal places and an optional minus sign (999,999.99-). The amount of sales tax will be calculated by the program and displayed. The calculation is based on tax code 2. The tax is computed on the total of the sale amount and the miscellaneous charges. You can accept the computed sales tax by just pressing theRETURN key to go on to the next field, or you can enter a different sales tax by just typing over the displayed sales tax. |
11. Tax Code 3 | 3 alphanumeric characters. Enter the tax code that designates how this sale is to be taxed. If the tax code entered is not on file, an error message will be displayed, and you will be asked to enter another tax code. |
Tax Code 3 | Press the RETURN key to accept the default tax code 3 for this customer. Press the F7key to search for tax code. You may make an entry if you wish, but none is required. |
Amt | 8 numeric digits with 2 decimal places and an optional minus sign (999,999.99-). The amount of sales tax will be calculated by the program and displayed. The calculation is based on tax code 3. The tax is computed on the total of the sale amount and the miscellaneous charges. You can accept the computed sales tax by just pressing the RETURN key to go on to the next field, or you can enter a different sales tax by just typing over the displayed sales tax. After all of the tax codes and amounts required are entered, the total amount of tax will be automatically displayed. |
12. Terms | 2 alphanumeric characters. Enter the code of the terms for this sale. The description of the terms code will display beside the code. Press RETURN and the terms will default to the customer's terms code. Press the F7 key to search for terms code. |
13. Cost Amt | 9 numeric digits with 2 decimal places and an optional minus sign (9,999,999.99). Enter the cost of the goods sold to the customer on the order. It is important that you enter accurate cost of goods sold figures here if you want to be able to produce meaningfulSales Analysis Reports later on. |
14. Salesman No | 3 alphanumeric characters. Enter the number of the salesperson responsible for the sale. A salesperson number must be entered here. After you enter the salesperson number, the salesperson's name will be automatically displayed. |
Salesman No | If you press the RETURN key for the salesperson number, it will default to the salesperson number of the salesperson who usually works on this customer's account. This salesperson number is obtained from the customer record. Press the F7 key to search for Salesman. |
15. Comm Amt | 8 numeric digits with 2 decimal places and an optional minus sign (999,999.99-). The commission will be automatically calculated from the salesman file or you may enter the amount of commission the salesperson is to be paid as a result of the sale. |
16. Reference | 30 alphanumeric characters. Enter a brief description of the transaction or some comments about it. What you enter in this field is entirely up to you. The default reference consists of a brief description of the transaction type. For example, if the transaction is an invoice and you press the RETURN key for the reference, the program will insert a default of: Cust# XXXXXX Inv# 999999 |
The bottom half of the screen displays the distribution table. This table will only be used if you have specified in A/R Setup that you want to distribute either the Sale amount, the Miscellaneous Charges amount and/or the Freight amount. If any of these Setup flags are set to Y, and there is a non-zero value entered in the corresponding field in this application, you will be required to distribute the appropriate amounts to G/L accounts. You will not be allowed to exit the table until the Amount Remaining To Distribute field at the bottom of the screen equals zero.
Distribution Fields
Name | Type and Description |
Account No | An account number in the standard account number format. Enter the number of the account to which you wish to make a distribution. The description of the account will be displayed beside the account number. Pressing the F1 key here in add mode will cause automatic distribution to the default accounts. Pressing the F7 key will allow you to search for the account by number or pressing the F8 key will allow you to search for the account by description. In change mode, the F1 key will bring up each distribution in sequential order. |
Amount | 9 numeric digits with 2 decimal places and an optional minus sign (9,999,999.99-) Enter the amount of the distribution. |
Job No | 6 alphanumeric characters. Enter the job number that this amount is to be distributed to. This field will only be accessible if job numbers are in use. If job numbers are in use, this field will be validated unless it is left blank. Press the F7 key to search for Job Code. |
If you want to change a distribution that has been added, enter the account number of the distribution. The distribution will then be displayed, and you can then change its amount or its job number. If you want to delete a distribution that was added incorrectly, change the amount of the distribution to zero. It will then be deleted from the file. If you want to add a distribution that was not added in add mode, enter the account number that you want to distribute to. The program will tell you that the distribution is not on file, and will ask you if you want to add it. If you say yes, you will be allowed to add the distribution.
Date filled out _________________ by _____________ ADD CHANGE DELETE
SALES AND CR/DR MEMO PROCESSING FILE LOAD SHEET
1. Customer No _ _ _ _ _ _
2. Document No _ _ _ _ _ _
3. Document Date _ _ / _ _ / _ _
4. Document Type I = Invoice C = Credit Memo
D = Debit Memo F = Finance Charge
5. Due Date _ _ / _ _ / _ _
6. Sale Amount $_ , _ _ _ , _ _ _ . _ _
7. Misc Charges $_ _ _ , _ _ _ . _ _
8. Freight $_ _ , _ _ _ . _ _
9. Tax Code 1 _ _ _ Amount $_ _ _ , _ _ _ . _ _
10. Tax Code 2 _ _ _ Amount $_ _ _ , _ _ _ . _ _
11. Tax Code 3 _ _ _ Amount $_ _ _ , _ _ _ . _ _
12. Terms _ _
13. Cost Amount $_ , _ _ _ , _ _ _ . _ _
14. Salesman No _ _ _
15. Commission $_ _ _ , _ _ _ . _ _
16. Reference _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
* * * DISTRIBUTION * * *
Account # Amount Job No
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ $_ , _ _ _ , _ _ _ . _ _ _ _ _ _ _ _
Date entered ___________ by _______ Date verified ________ by ________
Sales & CR/DR Memo Processing
Sales & CR/DR Memo Processing (Distributions)
Post Sales & CR/DR Memo Transactions
Application Overview
Post Sales & CR/DR Memo Transactions transfers all transactions that have been previously created in Sales & CR/DR Memo Processing into the A/R Open Item File. In addition it sends this information to the Customer File, Salesman File and A/R Distribution To G/L file. Consequently the result of posting serves to automatically adjust the balance that a given customer owes your business. It also affects the period to date sales, and other related variables recorded in the customer and salesman files.
When you perform a posting, the system prints a journal of all transactions that were posted.
Run Instructions
Select Post Sales & CR/DR Memo Transactions from the pull down A/R Processing window.
The following screen will then be displayed:
Post Sales Cr/Dr Memo Transactions Entry Screen
The following option is available:
- Post Sales & CR/Dr memo transactions
To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.
Entry Field Descriptions
Name | Type and Description |
Do You Want To Post At This Time? | Y or N. Enter Y to post or N to decline. |
Post Sales Cr/Dr Memo Transactions