How do I do a write-off?
How do we go about clearing out some small outstanding amounts …?
Where can I find more information on A/R Transactions feature?
The Accounts Receivable Module in W5 allows incoming client payments to be processed and recorded. This feature assists to manage client accounts’ activity with regards to open and closed invoices, tracking outstanding charges needing to be “paid”.
W5 has the ability to push or export these transactions out into separate accounting systems (e.g., QuickBooks and Great Plains) saving double data entry while maintaining matching information between systems.
2. Click on A/R Transactions.
1. Enter in the Client code, and then press the Enter key.
Search for the Client using the Lookup button.
2. Click on the Payment button.
(a) Bank ID – In some cases, offices may have more than one bank that payments are deposited to. Lookup and select the correct bank if not already displayed.
(b) Entry Date – Date posted in system or date deposited in bank.
(c) Type (e.g., Cheque, Transfer, Cash, etc.).
(d) Reference – must be unique and is usually matched to the payment reference (e.g., Cheque Number, Client Coding, Electronic Payment Reference, etc.). This is done so that you may refer back to the client in case of questions.
(e) Amount – this is the payment amount received.
(f) Comment(s) if any are needed – (e.g., Bulk Payment May 2015 – ABC Broker paying on behalf of…, etc.).
This adds the Payment to the O/S payments list on the right side of the window.
The payment transaction will not be recorded on the client account until a Save is performed.
5. Click on the Save button to record the received payment.
The monies from a posted payment can be now be applied towards some of the outstanding charges that have accrued on behalf of the client.
6. Click on the List button found in the Apply To section.
A list of outstanding debits (usually invoices) for this client will display at the bottom of the window.
Drag the mouse cursor UP to expand the bottom section so that you can see more of the debits list then release the mouse button. You may have to grab the line again and drag it down if you have covered up too much of the payment enter portion of the form and you need to add another payment.
7. Click on the Apply check box (far right) on the payment line that you would like to use.
8. Click in the Pay checkbox(es) for each debit transaction (invoice) that you want to pay using the selected client payment.
Apply a payment for the full outstanding amount displaying in the Payment Amount column.
Click into the Payment Amount for that invoice and change the amount manually as needed you (e.g., pay $450.00 towards a $2100.00 total outstanding amount). *Payment amount can only be equal to or less than what is outstanding.
Once a payment has been fully entered into W5, it becomes part of the Client’s Profile Transaction History and no longer sits in the A/R Transaction Module.
9. Click on the Save button in the Apply To section.
The progress bar will turn green once the desired transaction(s ) have been successfully saved and the Amount O/S (Amount Outstanding) will automatically recalculate.
If a payment was not applied completely to the matching charges, it will remain as part of the outstanding credits (client payments) at the top level for future posting. This allows the payment to be fully recorded in W5 and matching to the bank deposit log while not yet applying it entirely in W5 due to unknown reasons such as unrecognized charges, double payments, etc.
(For unapplied payments requiring alternate resolution, refer to the “Accommodating Overpayments” section of this guide).
An unapplied payment will reflect in the A/R Reports as a Credit (payment received) but will NOT reflect the same way when looking at the total by the O/S Invoices as the payment is sitting as unapplied.
2. Press the F4 function key (to take you to the client profile).
3. Click on the Txn History tab in the left panel.
4. Choose PA-Payment from the Txn Type drop-down menu.
6. Click on the Dist. button of the payment you want to review.
There will be instances when payments have been applied incorrectly whereby either the details or charges it was applied to need to be changed or deleted completely. This can be done easily using these steps.
Restrictions apply if the data has been exported over to one of the external Accounting Software.
How to alter/release the monies applied to charges and reapply to others (e.g., I applied a payment that shouldn’t have been paid).
1. Click into the Transaction Source Client code field (enter in or lookup the Client code if it is not already indicated).
6. Click on the Dist. button of the payment you want to change (undo) the distribution of.
A list of everything that was applied to that payment displays below.
7. Click on the distribution line (as per example in step 6.) that you want to undo.
8. Highlight the charges needing change (as per example above).
9. Click on the Reverse Dist. button.
10. Click on the No or Cancel options to back out, or the Yes option to proceed with the reversal.
If Yes is selected, the charges will reappear as outstanding in the A/R Txn window.
In order to change payment details such as cheque date, reference numbers, etc. the payment must be “reopened”. Highlight the payment details aside the “Distribution” line and undo or reverse one of the distributed charges. This will allow you (if not yet exported) to change existing distribution details. Distribution simply means the way a payment was posted and to which charges it was applied to. Once a payment is “opened” or changed, W5 automatically refers it back to the A/R Module as an incomplete A/R Transaction requiring further work.
6. Click on the Dist. button of the Posted Incoming Payment that was used for the payment on the invoice you wish to delete.
7. Click on the distribution line (as per example in step 6.) that you want to delete the payment of.
9. Click on the Reverse Txn button.
Deleting a payment will completely remove it and its details including the way it was distributed if not posted (data not exported to external system). This feature could be used in cases such as NSF cheques or internal corrections found after its original posting.
Used when a payment has been over stated and sent over to an external accounting system. PLEASE NOTE: This is a feature that is turned OFF by default and must be configured if you wish to use it.
●· A posting error not caught on time.
●· Unknown overpayment requiring a refund back to the client.
April month end is processed and closed, without balancing Deposit Log to GL Summary (transactions have been sent to the Accounting system).
2. Click on the New Transaction Debit Adj. button.
3. Select Overstated Payment - (OSP) from the Sub Type Lookup button.
Applying the overstated payment entry to the original entered payment (with the outstanding amount). As you would a regular payment to a charge.
2. Click on the O/S Debit radio button.
3. Click on the List button.
4. Click on the Apply check box (far right) on the Debit Adjustment (Txn Type “DA”) line that you would like to use.
5. Click on the List button at the center right of screen.
6. Click in the Pay checkbox for the Payment transaction that you want to apply the Debit Adjustment to (accommodating the overpayment).
In this example we are applying a 1,000.00 debit adjustment to accommodate (correct) the 1,000.00 overpayment.
The applied amount may be different than what is O/S but NOT more than the O/S amount. This will offset the incorrectly entered amount.
Also known as accommodating bad debt.
To be used when a client’s outstanding amount (invoiced) is uncollectable and needs to be “written off”.
●· Client refuses to pay amount due to discrepancy, etc.
●· Client is unreachable, no longer in business, etc.
3. Click on the List button at the center right of screen.
A list of the client’s outstanding transactions will display.
4. Click in the Write Off checkbox for the invoice to be written off.
5. Enter a comment in the W/O Comment field to document the reason.
A comment must be entered to be able to proceed.
*In this case, revenue will be affected as the amount originally reported as revenue is now being reversed as bad debt.
**An offsetting charge (-) will appear on the file level as a reversing revenue charge entry.
4. Choose Any Credit from the Txn Type drop-down menu.
A list of the credits applied to invoices for the client will display. A “-WO” has been added to the end of the Reference as Write off indicator.