Chapter 3

Customer and Accounts

Receivable
The Sales Ledger is a central point of accessing comprehensive customer information that supports detailed
accounts receivables and automated credit control applications. As part of an integrated solution, the Sales
Ledger contributes customer information to routines in other parts of the system including sales order
processing, customer incentive price discounting, service management, and the interface to CRM.
The Sales Ledger supports receivable management for customers invoicing in multiple currencies requiring
multiple tax rates that trade from multiple or subsidiary sites. Credit control routines support analysis of aged
balances and overdue transactions, generate reminders and statements, charge overdue interest penalties,
deliver credit warnings during customer order creation in other modules, and, if necessary, set an automatic
credit hold across selected ranges of customer accounts based on total outstanding receivables and/or order
pipeline totals against predefined credit limits.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Customers and Trading Terms

These initial routines allow you to enter various customer information before using the Sales Ledger.
Define Basic Customer Information
To define basic customer information, expand the Sales Ledger folder, expand the Customer File folder, and select
Enter/Change Customers.

Enter a Customer Code, or,

to adjust an existing
customer, search for and
select one from the list of
customers.

Enter the Global ID. This

entry is a unique identifier
of the customer among all
the clients worldwide.

Enter a customer Name,

Search Name, and Long
Name.

Type address details in the

Address and City fields.
Enter the same type of
information in the lines of
the Address field for all different customer files as this
will make reporting using
third party tools simpler.
Enter the Post Code and
the Country Code, or
search for and select one
from the list of available
codes.

1
2
3

5
6

8
7

Enter a Reference. It is usually the name of the customer's contact person. If the customer has several contact persons,
enter the additional names in the other Reference fields.

7
8

Enter the Telephone Number, Telex, Fax No., and Remarks.

Define if the customer is a Draft customer or regular customer.

Move to the next screen.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Define Delivery Address

Enter the customer's Delivery address,

City, Post Code, Telephone, and Fax
Number.

Select the Warehouse No. normally

used for shipping for this customer.

If required, enter the Delivery Address

No. and Container No. These fields are
mainly used for shipping documents.

Press [Enter] twice to move to the Statistics

Budget screen. (The Credit/Payments screen is
discussed later in the Credit Control section.).

2
3
Note: Only enter the customers primary delivery address in this screen.
To enter additional delivery addresses, use the Enter Delivery Addresses
option in the Other Customer Files routine.
Enter Statistics and Budget Information

1
2

Enter the customers Category.

Select a Frequency Code. The default
value is [F]. This code monitors the
frequency of the customer's purchases.
The value range of this code is [A] to
[P] and is updated as customers place
orders.
Select the customer's ABC Code (A-C)
for the ABC analysis to identify the
most important customers by turnover
or gross profit. Code [B] is the default
value for new customers.

1
2
3

Use the District field to enter

additional customer codes. Use codes
previously set up in the system to
differentiate between multiple site
customers.

Use the Advertising Area, Area Codes,

and Trade Codes fields to assist in report
refinement.

Enter salesman bonus payment

calculations in the Bonus % and the Allocated Bonus fields.

Complete all other fields as required, accepting default values where applicable. Press [Enter] to move to the next screen.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Enter Currency and Tax Information

Enter a Currency Code. The

system supports multi-currency
Accounts Receivables.

Enter a Language Code.

Select the code customer

organization in the Type of
Organization field.

Enter Yes in the TAX Liability

field if the company is liable for
local taxes (VAT, Sales tax).

1
2

3
4

Complete all other fields as required,

accepting defaults where applicable.
Move to the next screen.

Accounting

Enter the account where the

customer advance payments
are to be posted in the
Prepayment Account field.

Select the appropriate

Automatic Acc. Code for the
customer. This code ensures
system-generated transactions
involving this customer are
posted to the correct revenue
and cost accounts.

1
2
3

Use the Account Code field to

enter the account for the
customer accounts receivable
to be used as the default in the
invoice entry procedure.

Complete the accounting dimension fields, as required. Press [Enter] to move to the next screen.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Enter Order Information

Enter a Document Code from

0 - 9. This facilitates the
selection of customer specific
documentation layouts within
the same language code.

Select Yes in the Electronic

Partner field to set this
customer as an electronic
partner. This allows users to
create electronic sales orders for
the customer.

Use the Accrual Bonus Code

and Commission Code fields
to define customer accrual
bonuses and commissions of
salespeople.
Select the mode of delivery in
the Delivery Method field and
the Delivery Terms for the
customer.

1
2
3
4
5
6

Confirm Yes or No if an
Invoicing Fee is to be charged.

Select No in the No
Backorders field to allow
partial deliveries. A backorder
will be created if a partially
delivered order is closed.

Enter Yes if a Blanket Purchase Order No. is required for all orders to this customer.

Complete all other fields as required, accepting defaults where applicable. Press [Enter] to move to the next screen.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Enter Additional Order Information

Select a price list code in

the Price List field.

2
3

4
5
6

Note: Specific or standard price lists can be entered that relate to the Project, Service
Management, and Contract Management modules in addition to the above.

Enter a Discount Code from 0-99. This works in conjunction with the Stock Item Discount Code via a matrix to determine
the precise discount the customer receives.

3
4

Specify a standard Salesman for the customer. The salesman selected can influence the accounting.

5
6

To Consolidate an Invoice for a customers orders, projects, and contracts, set this field to [N] for no consolidation or [W]
or [M] for weekly or monthly consolidation.
Select the billing terms for the customer in the Billing Code field.
Select a Warehouse Code.

Complete all other fields as

required, accepting defaults
where applicable. Return to
the menu.

Note: To enter several customers that share the same basic information, use a Standard
Customer to speed up your work. You create a standard customer the same way as
previously discussed, defining a customer code that is unique, for example, #+ Stand
Cust. It is important the standard customer information is correct. To use the standard
customer to enter a new customer, you simply recall the standard customer code in
the Enter/Adjust Customer routine, define a new customer code and continue to enter
details specific to the new customer.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Invoicing and Payments

This section describes various routines related to entering invoices, printing invoice journals, and building payment forecasts.
Enter Invoice and Payment Transactions
Create and post invoice transactions associated with the Accounts Receivable or Sales Cycle into the system.
To enter invoice and payment transactions, expand the Sales Ledger folder, expand the Invoices/Journal folder, expand the
Enter Invoices/Credit Notes folder, and select Enter Invoices/Credit Notes.

In the Customer Code field,

enter an existing customer
code, or enter [n] to create
and enter a new customer.

1
2

2
3

Enter the Invoice Number.

Enter the Invoice Date. This
determines the invoice tax
point.

4
5

Enter the Due Date.

4
7
8

Enter the Book Entry Date.

This value determines within
which accounting period the
transaction falls.

Enter the Currency Code and

the Invoice Amount. This
normally includes taxes
(subject to system
configuration). The system calculates the TAX amount based on the Tax Code for that customer.

7
8

Accept the TAX Code proposed.

Accept the TAX Amount.

Note: To enter multiple tax codes for this invoice into a separate window
(functionality is dependent on the system configuration), enter [*] in the TAX
code field.

In the pop-up window, select the

Enter Customer Invoices option,
and press [Enter] to move to the next screen.

Select the revenue General

Ledger Account to post the
transaction to.

10

In the Amount field, enter

the Net Amount, or press
[Enter] for the balancing
amount for that transaction.

Enter the next transaction line, or if

balanced, press [Enter] to move to
the next transaction.

10

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CUSTOMER AND ACCOUNTS RECEIVABLE

Enter Credit Notes

There are two methods for entering credit notes in the system, either through the Enter Invoices/Credit Notes routine as above
or through the Enter Credit Notes routine within the same Invoices/Journals subfolder. Entry of a negative value in the Invoice
Amount field denotes a credit. Similarly, use of a positive, or debit, value in the accounting entry fields, rather than a credit,
correctly balances the transaction. Credit notes are normally entered with the next unique Invoice/Credit note number. If the entry
is made through the Enter Credit Notes routine, a separate, automated Credit Note counter sequence may be used.
In some former CIS countries, there is a requirement to use Storno or Red Storno to reverse an existing invoice instead of
entering a new credit note number. This requires entry of the same invoice number as the transaction being reversed in the
Invoice/Credit Note Number field.
Users can enter the following commands in the Invoice/Credit Note number field.
Storno creates the normal double entry journal as a simple credit note but records against the same invoice number with
an [S] added. A new system transaction number is generated.
Red Storno posts a negative transaction value on the AR debit side and a negative value on the GL revenue account credit
side of the GL journal in accordance with former CIS book-keeping requirements with an [R] following the invoice number. A
new system transaction number is generated.
Re-invoice posts an adjustment to the original invoice value.
Print an Invoice Journal
The Print Invoice Journal routine allows users to verify and post to the General Ledger individual invoice transactions that have
already been posted to the Sales Ledger.
To print an invoice journal, expand the Sales Ledger folder, expand the Invoices/Journal folder, and select Print Invoice
Journal.

1
2
3
4
5
6
7
8
9

Enter No to the prompt Do you want to change Invoice/Transactions?

Enter Yes to the prompt OK for checking, sorting and printing.
In the Company Code, press [Enter] to indicate All, or enter a company code.
In the User Code field, press [Enter] to indicate All, or
enter a user code.
On the next screen, choose the Report Format to use.
Review the Sales Ledger Invoice Journal.

Note: If the system finds any accounting code string

with missing mandatory dimension(s), it offers to
change all empty mandatory accounting dimensions to
the account's defaults.

Enter No to the prompt Is Re-printing of Journal required?

Enter Yes to the prompt OK to Update File? or No to retain the invoice file for later posting.
Enter Yes to the prompt Sales Ledger Invoice file will be emptied as the General Ledger is Updated, OK?

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CUSTOMER AND ACCOUNTS RECEIVABLE

Generate Automatic Payment Forecasts

You can generate a report of payments expected in the near future for selected customers.
To generate automatic payment forecasts, expand the Sales Ledger folder, expand the Payments/Journal/Cashflow folder, and
select Payment Forecast.

Select the print criteria in

the first screen. The
selection is defined by the
From Date and filtered by
the ranges selected from
the Customer Code,
Category, Credit Code,
and Reminder Status
fields.

5
1

Select the appropriate

report basis in the
Daily/Weekly Basis field.

Notice the field With Payment Habits offers an option to adjust the forecast using a statistical algorithm that takes into
account the payment history of each customer.

4
5

Select the appropriate assumption for With Cash Discounts.

2
3
4

Click Next to define the search criteria by Account Code and other dimensions, and click Next again to choose the Report
Format.

Use Multiple Due Dates

You and your customer can agree to use partial payments to distribute an invoice amount up to 100 due dates after the invoice
entry has been completed.
To use multiple due dates, expand the Sales Ledger folder, expand the Customer File folder, expand the Other Customer Files
folder, and select Change to Multiple Due Dates.

Enter the Customer

Code.

Enter the Invoice No. of

the invoice to change to
multiple due dates.

Enter the PARTIAL

PAYMENT amount values
in the same currency as
the invoice lines.

Amend the DUEDATE as

prompted on the screen.

Notice DISCOUNTS can

be set against predefined
payment dates for each
partial payment.

1
2
5

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CUSTOMER AND ACCOUNTS RECEIVABLE

Merge Invoicing
For high volumes of comparatively low value customer transactions, there is an option that merges or consolidates invoices on a
weekly or monthly basis. This option enables customer orders, projects, or contracts to be consolidated into one weekly or
monthly invoice. The Consolid. Invoice field in the Enter/Adjust Customer routine for the customer supports this option.
Functionality also depends on parameter setup. Once the consolidation invoice has been printed, the specification goes to Invoice
Specification History. Here it can be enquired, printed, and eventually, deleted.
To merge invoicing, expand the Sales Ledger folder, expand the Miscellaneous folder, expand the Invoice Merge folder, and
select Invoice Merge.

1
2

The Select Option window appears. Choose the Selection option.

3
4

Set the Source module criteria. When the selection is made, press [Enter] to return to the menu window.

Determine the range of transactions to merge by selecting ranges based on the available criteria. Select the Customer
Code, Inv. Specification Number, Invoice Specification Date, Account Codes, and additional dimensions.

Select Print Invoicing Proposal or Print Consolidated Invoices.

Credit Control
The system has many credit control features. These features are described in this section.
Define Credit and Payment Terms
To define credit and payment terms, expand the Sales Ledger folder, expand the Customer File folder, and select Enter/Adjust
Customer.

Select the customer to which

you wish to update the credit
and payment terms on the
Enter/Change Customer
screen. When the Menu
window appears, choose
Credits/Payments.

Set the Credit Limit at the

required level.

Define the Credit Code, if

necessary. The credit code can
be used as selection criteria
for statistics and reports to
analyze the Sales Ledger.

Set the Delivery Block field

to [0] for open, [1] to block
further deliveries to the
customer, or [2] to block the
customer from deliveries and
stop any new orders from
being entered into the system.

1
2
3
4
5

Note: For users registered in the system with the Allow to Enter Order for
Blocked Customer permission granted to the Sales Order module, entering of
sales orders is allowed.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Notice the Auto field. It is set by the Automatic Credit Hold routine which is discussed next. When it is set to Yes,
documents cannot be printed, and delivery is blocked.

Select a required, predefined Payment Terms.

Complete all other fields as required, accepting defaults where applicable.

Set the Automatic Credit Hold
You can specify the selection criteria of the customers and to print the list of customers to be put on credit hold, i.e. no deliveries
can be entered and no pre-delivery documents will be printed for such customers. The automatic calculation of the credit hold
routine will generate a printout based on specified selection criteria with all customers whose balances or amounts due can be a
reason for detailed inspection or credit hold. The customer credit limit set in the customer file will also be taken into consideration.
To set the automatic credit hold, expand the Sales Ledger folder, expand the Payments/Journal/Cashflow folder, and select
Set Automatic Credit Hold.
1

Enter the customer SELECTION

CRITERIA determined by the
Customer Code, Credit Code, GL
Account Code, Other Dimensions,
etc. and then press [Enter] to move
to the next screen.

Determine what is included in the

total credit exposure by setting the
credit hold calculation parameters
based on customer balances via the
fields grouped under the
CALCULATE FROM BALANCES
heading to define what is included
in the total credit exposure.

Fields grouped under the CALCULATE FROM DUE AMOUNTS heading determine the credit hold calculation parameters
based on customer amounts due. Enter Yes in the Due Ledger Balance field for the system to perform a separate
calculation for Due Ledger Amounts. Set the Accepted Amount Due to zero, and confirm Yes to Update. If not required,
enter No.

Click Next and choose the Report Format to use.

Print Reminders or Statements to Customers

To print reminders or statements to customers, expand the Sales Ledger folder, expand the Reminders/Interest Invoices folder,
and select Print Reminders/Statements.
The Select Option window appears. Select the Statements option.

Within the first screen, select search criteria by Per Date (Cut off date), Customer Code, Invoice Number, Category,
Salesman, Non Billing Invoices, etc.

2
3

Within the second screen, further selection by Account Number and other dimensions is possible.
On the next screen, choose the Report Format to use.

Charge Periodic Interest

You can calculate interest on overdue amounts and charge customers this interest.

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CUSTOMER AND ACCOUNTS RECEIVABLE

To create a periodic interest charging proposal, expand the Sales Ledger folder, expand the Reminders/Interest Invoices folder,
expand the Print Interest Invoices folder, and select Periodic Interest Charging.

On the first screen, select search criteria by Per Date (Cut off date), Min Interest per Invoice & Customer, Customer
Code, Category, Credit Control Code, Salesman, Include not billing Invoices, etc.

2
3

On the second screen, users can make further selection by Account Number and other dimensions.
Confirm Yes to the prompt Update Interest File?

To print periodic interest charging proposals and invoices, expand the Sales Ledger folder, expand the Reminders/Interest
Invoices folder, expand the Print Interest Invoices folder, and select Print Interest Charging Proposal.

1
2

Review the proposal printout.

3
4
5

If the proposal is correct, select the fourth menu option Print Interest Invoices to proceed.

If revisions are required, select the third menu option Adjust Interest Charging Proposal to view the proposed invoices by
customer to adjust accordingly.

Enter the criteria in the Print Interest Invoices selection window - Invoice Due Date, Customer Code, etc., as appropriate.
Select Updating from the pop-up window and run the
procedure to update AR.

Note: The rate of interest used is either determined

by a rate set for the customer (in the Enter/Adjust
Customer routine) or by a rate set in the Sales
Ledger parameters.

Print a Credit Control Report

To print a credit control report, expand the Sales Ledger folder, expand the Reports/Statistics folder, expand the Customer
Reports folder, and select Credit Control Report.
Selection criteria includes by Customer Codes, Categories, Main Customer Code, Address and Country Code, Salesman,
Advertising Code, Trade Code, etc.
Use Collection Proposal
The Collection Proposal lists invoices where reminders have been sent, but the invoice has not been identified and flagged for
collection or legal action.
To use collection proposal, expand the Sales Ledger folder, expand the Reports/Statistics folder, expand the Collection
Reports folder, and select Collection Proposal.

Select a sample of customer accounts to report on using search criteria such as Customer Code, Category, Salesman,
Non Billing Invs, Suspended Slips, etc.

2
3
4

Select further search criteria based on the accounting code and other dimensions, and press [Enter].
Select the Sort Order of the report from the criteria presented.
The report includes both the original invoice amounts and
the subsequent interest charges levied for late payment.

Note: Invoices can be flagged to indicate if they have

been passed for collection by expanding the Sales
Ledger folder, expanding the Customer File folder,
expanding the Other Customer Files folder, and
selecting Adjust Customer Invoice. The Collection
Status Report can be generated that lists invoices
already flagged as being within the collection process.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Enquiries
Various enquiry routines for sales processes are available. The enquiry results are displayed on the screen and are not printed.
View Customer Statements
To view customer statements, expand the Sales Ledger folder, expand the Enquiries folder, and select Customer Statement.

Enter the Customer Code.

1
2

Complete the From Date with the date transactions are to be displayed. Transactions before this date will be summarized in
an opening balance. If no date is entered, the full chronology is displayed.

Enter Yes to Include Paid Invoices or No to include only open invoice transactions.

When the Menu window appears, select option 1 By Invoice to view by invoice or option 2 By Statement to view by statement.
View Sales Ledger Summaries
To view sales ledger summaries, expand the Sales Ledger folder, expand the Enquiries folder, and select Sales Ledger
Summaries.

Enter the Customer Code

range.

Select Category ranges.

1
2
You can now view Sales Ledger summary information resulting from the search criteria by Ledger Values, Payment Forecast, and
Aging Analysis.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Reports and Statistics

You can generate balances and other reports and print statistics in the Sales Ledger.
Balance Reporting
To balance reporting, expand the Sales Ledger folder, expand the Reports/Statistics folder, expand the Balance Report folder,
and select Balance List Detailed.

Select search criteria by Per

Date, Current Rate Per
Date, range of Customer
Codes, Category, or
Salesman.

Choose the PN Print Mode

to include open invoices
and/or invoices paid by
promissory note.

State whether or not to

include With Paid Invoices,
Summary/Customer,
Invoices/Credit Notes,
Suspended Slips, and/or
3
Billing slips.

Select whether the format

should include Debits and
Credits in a Two Columns
Report.

Select whether the system

should Calculate Opening
Balance per Customer.

Further selection by Accounting

Code and other dimensions is
5
possible. The report can also have
a defined sort order.

Note: The system generates a report with detailed transactions per customer and,
if requested, a summary of ledger statistics for the selected range of AR accounts.
The system also allows you to follow the selection criteria above to generate a
Compressed Balance Report within the ranges of customer accounts that you wish
to summarize. Information will be presented in the form of one line aging analysis
per customer. The third possibility is to use the same search criteria selected above
but request that the system generate a Sales Ledger Summary report that will
deliver the AR statistics information without the breakdown of aging by individual
customer accounts.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Sales Ledger Routines

The Sales Ledger module features multiple special utilities for various needs.
Revalue the Sales Ledger
Use this routine to revalue the Sales Ledger currency transactions using the exchange rates for a specified date and posting the
profit/lost transactions to the General Ledger.
To revalue the sales ledger, expand the Sales Ledger folder, expand the Miscellaneous folder, expand the Special Utilities
folder, and select Revaluate Sales Ledger.

Enter the Per Date for

revaluation. Transactions
after this date will be
excluded.

Enter the Currency

Date. The system will
use the exchange rates
on or nearest to this
date.

Enter the Book-Entry

Date required for the
transaction.

Select the Currency Code range to include in the selection.

1
2
3
4

Validate Ledger Transactions

The system can validate General Ledger transactions against the Sales Ledger by comparing the General Ledger balance with the
Sales Ledger balance for the specified accounts. No adjustments will be made, but the respective report will be printed.
To validate ledger transactions, expand the Sales Ledger folder, expand the Miscellaneous folder, expand the Special Utilities
folder, and select Validate Ledger Transactions.

Enter the Accounts

Receivable General
Ledger Account No.

Enter the Book Entry

Period the validation
concerns.

1
2
3
Note: The Sales Ledger should not be emptied of paid invoices for this period in order
to avoid duplication.

Enter Yes to the prompt OK to Validate to confirm validation.

Print and review the report, and adjust any differences.

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CUSTOMER AND ACCOUNTS RECEIVABLE

Recreate Statistics
The Recreate Statistics utility can only be used if the Statistics Module is installed and if there are statistics stored for the selection
period. The system will clear turnover and profit in the Customer File and recalculate these values from the Statistics (Invoicing
Statistics). Only sales done with the Order Module will be calculated.
To recreate statistics, expand the Sales Ledger folder, expand the Miscellaneous folder, expand the Special Utilities folder, and
select Recreate Statistics.

Select the range of Customer

Code Delivery invoices for
which the statistics should be
recreated.

In the Recreate Period

Statistics field, enter Yes to
select the date range from and
to.

In the Recreate YTD Statistics

field, enter Yes to select the
date range from and to.

In the Update existing

statistics field, enter No to
delete and recreate existing
statistics or, enter Yes to update
existing statistics from subsidiary
companies only if the Common
Sales Ledger is being used.

1
2
3
4
5

Select Yes to the prompt

Confirm to recreate Statistics.

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