Receivables Management Period-End Closing In Dynamics GP

Thoughtware Article Published: Jul 03, 2012
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Period End for Accounts Receivable usually consists of aging customer accounts, assessing finance charges, creating statements, running paid transaction removal and issuing commissions. Some tasks are optional.

Period-End Closing Steps

  1. Post all transactions for current period
  2. Run Aging for customer accounts
  3. Assess Finance charges (Optional)
  4. Create Statements (Optional)
  5. Issue commissions and mark as paid (Optional)
  6. Remove paid transactions (Optional)
  7. Close the fiscal period for the sales series (Optional)

Run the AR Aging for Customer Accounts

The Receivables Aging process calculates the number of days old or past due for each customer account based on Receivables Management Setup; it also moves customer balances to the correct aging periods. Unapplied credit amounts will be aged if you marked "Age Unapplied Credit Amounts" in the "Receivables Management Setup" window. To run aging for customer accounts:

  1. Open the "Receivables Aging Process" window.Microsoft Dynamics GP | Tools | Routines | Sales | Aging
    Receivables Aging Process
  2. Enter the date to be used for determining the age of a document. This date is compared to either the due date or document date, depending on the selection in the "Receivables Management Setup" window.
  3. Mark the accounts to age:  open item, balance forward or all accounts.

    a)      When you mark all, open item and balance forward accounts both are aged.

    b)      When you age open item accounts, the system calculates the age of each document and the documents are transferred to the correct aging period.

    c)      When you age balance forward accounts, the system calculates the age of each document in the current aging period but doesn’t actually move them to the noncurrent aging periods. (Noncurrent balances for these accounts are consolidated after you remove paid transactions.)

  4. Select the statement cycle for the customer cards to be aged. To select more than one statement cycle, press CTRL as you make your selections.
  5. Mark "Age Finance Charges" if you want finance charges to be included in the aging process. ("Age Finance Charges" is available only when "Compound Finance Charge" is not marked in the "Receivables Management Setup" window.)
  6. Mark the type of report to print once the aging process is complete:  detailed, summarized or no report at all.
  7. Select the order for information to appear on the report.
  8. Click "Process" to begin aging. When the process is complete, the "Aging" report is printed.

Assess Finance Charges

The "Assess Finance Charges" window adds finance charges for a group of customers. If you need to enter a finance charge for just one customer, you might want to use the "Receivables Transaction Entry" window and use the "Finance Charge" document type instead. To assess finance charges:

  1. Open the "Assess Finance Charges" window.Microsoft Dynamics GP | Tools | Routines | Sales | Finance Charge
    Assess Finance Charges
  2. Select a range of customers for which to assess finance charges.
  3. By selecting a range of customer class IDs, you can assess finance charges for all customers who have been assigned to a customer class or to those assigned to a specified range of classes. Defining a range of class IDs further limits the customer records that will be assessed a finance charge. Only customers in the ranges you identified and in a class in the range specified will be assessed finance charges.
  4. Mark the account types to assess charges for:  open item, balance forward or all account types.
  5. Mark whether to "Include Unapplied Credits in Aged Balances" when you assess finance charges. If you mark "Include Unapplied Credits in Aged Balances," receivables balances will be calculated as if unapplied credit amounts were applied to the national account aging period balances—oldest aging period first—and the remaining balance will be assessed a finance charge.
  6. Enter the minimum amount you can charge a customer. Any customer who would be assessed a finance charge less than this amount won’t be charged.
  7. Enter a minimum balance a customer record must have before you can assess any finance charges.
  8. Mark to print a "Finance Charge Detail Report," which lists the finance charge documents created when finance charges were assessed for customer accounts.
  9. In the "Includes Balances and Older" field, mark this option to include any unapplied credits in the aged balances when you assess finance charges so you assess finance charges only for customers with positive balances. Any unapplied credit documents will be pseudo-applied to the oldest aging period balances first; the remaining balance will be assessed a finance charge. (This field is available only if you marked "All" or "Open Item" as the account type. If you selected "Current" in the "Include Balances and Older" list, this field automatically is marked and disabled.)
  10. Choose "Process" to begin calculating finance charges.
  11. Post the finance charge batch using the "Receivables Batch Entry" window.

Sending & Printing Statements

Statements are used to show current customer activity, including aging period balance information, total amounts due and payments received. They often are sent to customers as bills. Use the "Print Receivables Statements" window to set up the information to display on customer statements. To send and print statements:

  1. Open the "Print Receivables Statements" window. Microsoft Dynamics GP | Tools | Routines | Sales | Statements
    Print Receivables Statements
  2. Enter or select a statement ID and enter a description.
  3. Select a form on which to print your statements:  long, short, side, user-definable, blank paper, short continuous, side continuous, multicurrency long or multicurrency blank.
  4. In the "Customers" and "Documents" fields, select the order for printing the customer statements and a method for listing documents for each customer on the statement.
  5. Select printing specifications to indicate the customer groups that should receive statements. You also can indicate how applied payments should appear on statements.
  6. Mark "Alignment Form" to print an alignment form to verify that the forms are positioned correctly in the printer. Mark "Statements" to print the actual statements.
  7. Select a date to print on the statement. Select a date in the "Summarize to" field to summarize transactions before a particular date. Transactions on or before this date are summarized, and a total balance for those transactions is displayed. Transactions after this date are displayed in detail. Select a cutoff date to print statements for transactions through the specified date.
  8. Enter or select the address ID for your company’s address to appear on the statement.
  9. Mark whether to reduce the oldest aging period amounts by unapplied credit amounts. This option is available only if you didn’t mark "Age Unapplied Credit Amounts" in the "Receivables Management Setup" window.
  10. Mark the account types to include:  all, open item or balance forward accounts. Mark the information to print on the statements:  credit limits, payment terms, finance charge and messages. If you’re using national accounts, you also can include individual child statements.
  11. Choose "E-mail Options" to open the "E-mail Statements Options" window, where you can define email statements options and mark whether to email customer statements.
  12. To create a message, choose "Messages" to open the "Sales Statement Message Entry" window. Using this window, you can enter your own message. Each of the situations in the description column can have its own message and is printed on any statement where that situation occurs. Choose "OK" to close the window when you finish.
  13. Select a range of customers to print statements for and choose "Insert." The range restriction is displayed in the restrictions list. You can enter only one restriction for each restriction type.
  14. To print multiple ranges of customer records, you must print each range separately.
  15. If you’re printing statements for national account customers, the parent customer ID must be in the range selected for either consolidated or individual national account statements to print.
  16. Choose "Save" to save the statement ID selections for future printing or choose "Print" to immediately print the statements.
  17. Use the "Reprint Statements" window to reprint or remove customer statements at any time, if you marked "Reprint Statements" in the "Receivables Management Setup" window. When you reprint statements, statement data is saved each time you print statements so that the information is available for reprinting. You also can remove the statements using the "Reprint Statements" window if you no longer want the statement to be available for reprinting.
  18. If you’re using national accounts and you select to reprint or remove a parent customer’s statement, you cannot separate that statement into individual child customer statements.

Marking Commission Amounts as Paid

Use the "Transfer Sales Commissions" window to group all payable commissions and mark them as paid. You can then assign an audit trail control code to be used for reprinting posting journals. Depending on whether you marked “Pay Commissions After Invoice Paid” in the "Receivables Management Setup" window, commissions are payable either when the invoice is posted or when it has been paid in full. If you remove paid transactions before marking the commissions as paid, the commissions are saved until you mark them as paid. It is recommended that you mark commissions as paid before removing paid transactions. To mark commissions as paid:

  1. Open the "Transfer Sales Commissions" window.Microsoft Dynamics GP | Tools | Routines | Sales | Transfer Commission
    Transfer Sales Commissions
  2. Mark whether to transfer commissions in detail or in summary.
  3. If you mark "Detail," each commission distribution is recorded individually. If you mark "Summary," payable commissions for each salesperson are grouped together and only the summary amount is recorded.
  4. Click "Process."
  5. The posting journal and the commission distributions records show that commissions have been paid. However, you must use the "Transferred Commissions Posting Journal" to create transactions in Payroll to pay the salespeople.

Removing Paid Transactions

Use the "Paid Sales Transaction Removal" window to transfer paid transactions to history and to consolidate balance forward accounts. If you aren’t keeping history, this procedure removes paid transactions from the system; reports can’t be printed containing information about removed transactions. To remove paid sales transactions:

  1. Open the "Paid Sales Transaction Removal" window.Microsoft Dynamics GP | Tools | Routines | Sales | Paid Transaction Removal
    Paid Sales Transaction Removal
  2. Select a range of customer records for which to remove paid transactions.
  3. Select a range of customer class IDs to further restrict the customer records to be affected. A customer record must fall within both the customer range and the class range to have transactions removed.
  4. Mark the types of transactions to remove and enter a cutoff date. You can remove NSF checks, voided transactions, waived finance charges, paid transactions and checks.
  5. Checks have a separate cutoff date because those transferred to history or removed from the system can’t be marked as NSF. It is recommended that you enter a cutoff date one month prior to the transaction cutoff date to allow for any potential NSF checks.
  6. Mark whether to consolidate balance forward customer accounts. If you mark this option, all documents for the customer are summarized and moved from the current aging period to the noncurrent aging period.
  7. Mark "Print Register" to print a "Removed Transaction Register." After the transactions are removed, the report is printed and all removed transactions are displayed.
  8. Choose "Process" to remove the selected transactions.

Close the fiscal period for the Sales Series

Use the "Fiscal Period Setup" window to close each series by period. To close the fiscal period for the sales series:

  1. Open the "Fiscal Period Setup" window.Microsoft Dynamics GP | Tools | Setup | Company | Fiscal Period Setup
    Fiscal Period Setup
  2. Check the "Series" and "Period" to be closed.

For more information about period-end closing in Receivables Management, contact us now.

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