Long Business Systems, Inc.

(LBSi)
LBSI is a technology services firm that understands technology is a tool that enables you to grow profitably, outpace the competition, and provide better service to your customers.
Cleveland Columbus Cincinnati Pittsburgh

AR & AP Down Payments

Presented by: Vicki Smith

Agenda: About Down Payment Invoices Settings G/L Account Determinations How to Create Down Payment Invoices How to Create Incoming or Outgoing Down Payments How to Apply Down Payment Invoices to Regular Invoices General Ledger Transactions

About Down Payment Invoices

Used when payments are required in advance from customers or vendors Way to create a payment not based on a regular invoice Relevant for both sales and purchasing documents Has own numbering series Does not affect on hand balances or stock valuation

Settings G/L Account Determinations

Go to: Main Menu > Administration > Setup > Financial > Financials > GL Account Determination

Enter GL code on Sales - Purchasing> General Tab

Numbering Series Down Payments

Go to: Main Menu > Administration > System Initialization > Document Numbering

Define numbering series for Down Payment Invoices

How to Create Down Payment Invoices

Go to: Main Menu > Sales A/R > AR Down Payment Invoice Main Menu > Purchasing A/P > AP Down Payment Invoice

Use Copy to function to create from Sales or Purchase Order Click on copy to and select AR or AP Down Payment Enter the DPM % to calculate the down payment amount Add any text or payment instructions and then click Add Down Payment Invoices can be reviewed on Aging reports Note: DPM % can be greater than 100% if freight or sales tax need to be included

How to Create Incoming and Outgoing Down Payments

Payments are handled in same way as regular invoices

Down Payment invoices are referenced with DT for origin code

Use Incoming Payments to record customer down payments Use Outgoing Payments to issue vendor down payments

How to apply DT invoices to regular Invoices

Follow normal process to ship and receive Create AR and AP Invoice using Copy to or Copy from Apply down payments by clicking on Down payment amount will be applied to regular invoice Any balance will be shown in Balance Due
Note: Down Payment Invoices must be paid in full before they can be applied (linked) to regular invoices

and Add

General Ledger Transactions

Standard Process - AR Down Payment Invoices [A] AR Down Payment Invoice DR CR Acct. Rec. DT Account [B] Payment Received DR CR Cash Acct Rec. [C] AR Invoice - Apply DT DR CR DT Account Revenue

Standard Process - AP Down Payment Invoices [A] AP Down Payment Invoice DR CR DT Account Acct Payable [B] Payment Sent DR CR Acct. Payable Cash [C] AP Invoice - Apply DT DR CR Expense/Inven DT Account

Long Business Systems, Inc. (LBSi)

Cleveland Columbus Cincinnati Pittsburgh

Contact Information:
Vicki Smith Senior Consultant email: vicki@lbsi.com Phone: 440-846-8500 ext 22 www.lbsi.com

Next Meetings:

Tuesday, July 12, 2011

o

10 Ways to Improve Customer Service

Tuesday, August 16, 2011

o SAP

8.81 New Feature

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Long Business Systems, Inc. (LBSi)

Cleveland Columbus Cincinnati Pittsburgh

Contact Information:
Vicki Smith Senior Consultant email: vicki@lbsi.com Phone: 440-846-8500 ext 22 www.lbsi.com