Outstanding Invoices & Partial Payments
This Help File Page was last Modified on 12/24/2012
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Outstanding Invoices & Partial Payments This Help File Page was last Modified on 12/24/2012 |
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Outstanding Invoices & Partial Payments This Help File Page was last Modified on 12/24/2012 |
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| □ | As you start the Accounts Receivable module in MKMS, you must enter your Subscribers Outstanding Balances assuming that you have not had your Accounts Receivable data converted from a previous system. |
| • | For best results: |
| • | Subscriber Outstanding Balances are established one at a time - Subscriber by Subscriber. |
| • | There is no short-cut (that is not altogether true - but the short-cut method is usually not recommended (see the "Quick Start Method" section below for how, and why you may, or may not want to do it that way). |
| • | Doing it the right way may be a bit tedious, but remember, you will only have to do it once. |
| • | To help you understand these steps, when specific terms, reports or procedures are referenced, a link is shown to view how it would be done within MKMS. |
| □ | Get the Outstanding Balance |
| 1. | If your previous Accounts Receivable system was manual: |
| a. | Look at your Ledger Card for that Subscriber. |
| b. | Identify each Outstanding Invoice. |
| 2. | If your previous Accounts Receivable system was a software application: |
| a. | Print an Accounts Receivable Report. |
| b. | Print a copy of each outstanding Invoice or a detailed Statement for each Subscriber listed on the Accounts Receivable Report. |
| c. | Use these documents to identify each Subscriber's Outstanding Invoices. |
| □ | In either case, determine which Invoice(s) need to be entered: |
| • | You may only want to enter unpaid (and partially paid) Invoices. |
| • | However, you may want to enter All Invoices for a specific time period (to establish some previous History). |
| • | Enter those Invoices which meet your needs into the MKMS Accounts Receivable System. |
| • | Enter each outstanding Invoice as a new Sale. |
| • | Enter the original Sale Date of the Invoice. |
| • | Include, as individual Invoice Detail line items, the specific information about each part of the original sale. |
| • | In the Comment section, enter the original Invoice Number (from the old software or manual system) and any other information that might be helpful to you if and when you need to refer back to it. |
| • | Write the new Invoice Number on the original Invoice document. |
| • | Optionally: |
| ▪ | Attach it to the original Invoice. |
| • | Check the Results |
| • | Print an Accounts Receivable Report in MKMS for this Subscriber. |
| • | Validate that all the open (unpaid or partially paid) Invoices you located are listed. |
| • | Compare this Accounts Receivable Report with the old paper Ledger Card or whatever printed Accounts Receivable Report you have from your old system. |
| • | Make corrections, as needed. |
| □ | Dealing with Partially Paid Invoices |
| • | As you start the Accounts Receivable module, you enter your Subscribers Outstanding Balances. |
| • | Some of these Outstanding Balances may be from Invoices that have been partially, but not completely paid, usually because of a Deposit that had been paid on it. |
| • | In this case: |
| • | Enter the original Invoice with its full original value as a new Sale. |
| • | Enter a Receipt representing the partial payment previously made for this Invoice. |
| • | Allocate this partial payment to that Invoice. |
| □ | Quick Start Method |
| • | How to: |
| • | Get the Outstanding Balance (see "Get the Outstanding Balance" above) |
| • | Create a Sale-Purchase Item named "Previous Balance" |
| • | Create one Invoice totaling the entire balance due with a single Previous Balance line item. |
| • | Make sure that its balance matches the total Outstanding Balance owed by this Subscriber. |
| • | Enter a comment on the new Invoice noting what it covers (Invoice Numbers, Partially Paid Invoices, etc.) |
| • | Why Choose the Quick Method? |
| • | You have a large number of Subscribers with an Outstanding Balance. |
| • | You have a very limited amount of time to get up and running. |
| • | You will preserve the old system for sometime so you will have a "fall back" reference source. |
| • | Why Not Choose the Quick Method? |
| • | There may be several outstanding Invoices for many of your Subscribers each with numerous line items. |
| • | Payments for those Invoices will come in - usually - for one Invoice at a time. |
| • | This means that this "Previous Balance" Invoice will eventually have multiple payments posted to it. |
| • | Over time, it may not be clear to the Subscriber what payment(s) they made, how they were posted to what (old) Invoices they owed. |
| • | Sending a reminder Statement will not list all their outstanding Invoices - just the net balance due represented by a single Invoice. |
| • | It may be somewhat confusing to the Subscriber (and to you) as they (and you) try to reconcile what they actually still owe you. |