Accounts Receivable Features and Objectives:
The primary objective of the Accounts Receivable System (AR System) by Legler Systems
is to process accounts receivable information in an online environment, so
specific online procedures are performed in seconds rather than the hours required
for traditional batch methods of computer processing. This AR System performs
the basic accounts receivable objectives by providing a complete and accurate
record of all accounting transactions affecting each customer.
Specific accounts receivable features and objectives of this business software
application are highlighted below:
Customer prepayment information can be entered into the Accounts Receivable
System as a Customer Invoice Record prior to entry of the actual invoice
where a temporary record is created with a special invoice number (PPNNNN).
When the actual invoice is added to the system, customer prepayment information
is automatically moved to the new invoice and the temporary prepayment record
- Maintain Customer Master Record for each customer of the company.
Information in this master record includes customer name, address,
sales tax rate terms, credit dollar limit and standard general ledger
revenue account codes. The Customer Text Record (optional) stores the
customer's web address, e-mail address and cell phone number.
- Maintain a Customer Invoice Record on the dollar amounts to be collected
from customers, as well as the actual general ledger revenue account codes.
One record for each customer invoice.
- Automatic voucher number assignment is done when new customer invoice
transactions are added to the AR System for voucher number control and
audit trail purposes.
This automatic voucher number assignment feature can be overridden by
the setting of System-Option-16 (DB03), so the voucher number must be
manually assigned and entered.
- Automatically post dollar amount and revenue account code information
from Customer Invoice Records to General Journal Records in the
online General Ledger System (AR09) by accounting period (YRMO) to
eliminate clerical posting errors. Either the cash accounting method
or accrual accounting method is supported. This accounts receivable
objective minimizes the clerical data entry workload depending on
the setting of System-Option-04 (DB03). If System-Option-04 is set
to "2", these General Journal Records are written to a Transfer File
for input to an external general ledger application.
- Print accounting reports, such as Customer Invoice Report, Cash
Receipts Report, Aged Receivables Report, Receivables Distribution
Report and other reports to provide an audit trail of accounting data
entered into the system, so adequate control is maintained over
company cash receipts and GL revenue distributions.
- Print customer Account Statements (AR11) showing the invoices issued during
the period and customer payments received.
- Automatically calculate the average days delay between the invoice date
and the date the customer payment is received and store this
information in the Customer Master Record.
- Handle cash sales associated with customer invoices.
- Allow for the receipt of a partial customer payment
against a single customer invoice. Up to four partial customer payments
can be entered for one customer invoice. Procedure AR03 is used to
enter a partial customer payment against a single invoice.
- Print Past Due Notices (AR12) showing all unpaid customer invoices and
calculate a customer finance charge when requested by the user.
New Customer Invoice Records can be automatically created to reflect
this customer finance charge.
- Provide reporting capability by different locations. The location
code used by this system should be consistent with that used by
other financial systems installed at the company.
- Provide auxiliary data input capability for initial file creation and
processing customer invoice transactions created by other computerized
systems, including separate data entry operations. Multiple
customer invoice transactions are processed at one time by
- Handle any fiscal year for accounting purposes, even one different from
the calendar year, through the use of a separate accounting period
number (YRMO) field.
- Provide source document control over input invoice transactions to the
computer by assigning a batch number to a group of customer invoices.
This batch number control feature aids in providing a complete
audit trail of documents processed. If no batch number is entered,
the system date (YRMODA) is assigned to the AR batch number field
for positive batch number control.
- Provide online inquiry capability to identify all invoices and
payments received for a specific customer.
- Provide online inquiry capability to identify all invoices
associated with a specific customer and to summarize payments by
month for the last five years.
- Define an Active-Flag for each customer to prohibit online entry of new
invoice data for an inactive customer, yet reference that old customer
number for historical reporting purposes.
- Handle multiple bank accounts through a user definable Bank-ID code.
- Automatically update the Customer Master Record with amounts received in
the latest calendar year with automatic internal rollover from one year
to the next, so special year-end clerical procedures are avoided.
- Provide the capability to create custom AR reports where the user
defines the data fields to be selected, sorted and printed. Procedure
DB12 is a general purpose custom report writer that produces
custom AR reports.
- Provide the capability to enter customer prepayment information in AR03
and automatically update the actual invoice when it is added to the
AR System by procedures AR02, AR14 or OE05. This customer prepayment
information stored in a temporary Customer Invoice Record.
- Customer payment application allows the updating of
multiple customer invoices at one time from a single customer payment
using procedure AR18. Also, customer payments can be applied to each
individual customer invoice using procedure AR03.
- Allow the user to specify the sequence of records in a report by
entering a primary (customer) and secondary (invoice) sort option.
- Automatically display a detail record (screen AR01, screen AR02 and
screen AR03) when function key F7 is pressed from data entry procedure AR03
and procedure AR02 and from inquiry procedure AR10 and procedure AR15.
This accounts receivable objective enables the operator to quickly
drill down to more specific information.
- Select customer invoices with a credit balance, invoices with a net
balance less than x dollars, or invoices with net balance greater
than y dollars when printing the Aged Receivables Report (AR07) and
Outstanding Invoice Report (AR16).
- Verify the state code and ZIP code (first 3 digits) associated with
a customer address. The Canadian province code is validated when
the ZIP code is not numeric.
- Automatic customer number lookup occurs whenever the
customer name initials are entered as the customer number for fast
customer number lookup. The customer name initials are manually or
automatically set in the Customer Master Record when it was created
to aid in looking-up or finding a customer number.
For customer number lookup by name, enter the "#" character as the
customer number and when prompted, enter the customer name or
- Automatically test for duplicate invoices at the time of entry of
new customer invoices. This option is set by System-Option-25.
- Establish a Sales-Tax code to identify different sales tax rates and
store it in each Customer Master Record to minimize file updates
associated with a sales tax rate change. This accounts receivable
objective allows the user to define multiple county Sales-Tax codes.
- Provide system options in the Company Control Record to handle
6-digit dates or 8-digit dates for data entry and reporting purposes.
- In addition to online processing, batch job processing is supported where
multiple AR report requests are entered online for later batch processing.
- Easily enter notes or comments on a specific customer (AR01) or invoice (AR02)
when the Trans-Code is set to "N" to automatically link to procedure DB17
(General Notes Record) in the DB System.
The Accounts Receivable System keeps track of unpaid customer invoices
and partial customer payments against an invoice. The Aged Receivables Report
(AR07) can be printed at any time to identify the total dollar amount of all
unpaid invoices by customer. Individual unpaid customer invoices
are identified in the Outstanding Invoice Report (AR16).
Customer Account Statements (Statement of Accounts) and Past Due Notices are
printed on letter-size paper for direct mailing to customers with the company
heading format specified by System-Option-12 (DB03).
The AR System procedures that can be run by the user are identified in the
Accounts Receivable Menu document.
Customer Master Record:
Customer name, address and other information is stored in the Customer Master Record.
Online procedure AR01 is used to add, change (modify), query or delete
Customer Invoice Records by entering a specific customer number. For new
customers, automatic customer number assignment is done by the AR System
when the customer number is blank. The customer name and address printed on
customer Account Statements and Past Due Notices is from these master records.
The primary key of the Customer Master Record (CMR) is the Record-Type code and
customer number. Five alternate keys are defined for rapid access to different
groups of CMR data.
Customer Text Record:
Customer's web address (URL), e-mail address, cell phone number and resale
number are stored in the Customer Text Record. Online entry procedure AR01
automatically displays and updates these fields in the Customer Text Record.
The primary key of the Customer Text Record is the Record-Type code and
Customer Invoice Record:
Information about each invoice mailed to a customer is stored in a separate
Customer Invoice Record for tracking customer payments of the services performed
and products sold. Online procedure AR02 is used to add, change (modify),
query and delete Customer Invoice Records. For all new customer invoice entries,
the voucher is automatically assigned using a sequence number counter in the
Company Control Record (DB03) for positive voucher number control. This
sequence number counter (SEQNO-1) is incremented by one every time a new customer invoice
is added to the online database. Procedure AR03 is used to modify these
invoice records with customer payment information.
The primary key of the Customer Invoice Record (CIR) is the Record-Type code,
customer number and voucher number. Five alternate keys are defined for rapid
access to different groups of CIR data.
General Journal Record:
At the end of the month, procedure AR09 is run to create General Journal Records
summarizing GL account code transactions depending on the setting of
System-Option-04 (DB03). These General Journal Records are subsequently
processed by the General Ledger system (optional) for accounting record keeping
and financial reporting. Alternatively, procedure DB18 can be used to export
an ASCII file of comma separated values (csv) containing data fields from these
General Journal Records.
The primary key of the General Journal Record (GJR) is the Record-Type code,
accounting period (YRMO) and voucher number (SEQNO-1). Five alternate keys are
defined for rapid access to different groups of GJR data.
More Information on the AR Software:
For additional information on this online Accounts Receivable software and
a free CD-ROM demo, e-mail
Bill Legler in the SF Bay Area, California
or go to the Accounts Receivable System main page.
Version 11.7 (2017). All rights reserved by Legler Systems Company.