A/R made easy

The title implies that the process is hard but through my teaching brilliance you will become a power user. I should probably change the title :)

 

First there are a few terms we use in A/R that you should be familiar with.

 

Accounts Receivable     /uh-kounts  ri-see-vuh-buh l/

n.  on-going contractual relationship between a buyer and the bookstore whereby payment for goods received is made at a later time.

Accounts Receivable (A/R) can be set up for an individual customer or a broader customer like the football department or a Pell Grant program. Statements can be produced through the reports menu or scheduled to run once a month and you can choose whether or not to charge interest fees. Account groups are assigned to A/R accounts that determine what items can be charged to the account, if tax is charged, and any if any discounts will be given.

 

Customer     /kuhs-tuh-mer/

n.    a person, company, or other entity that buys goods and services from the bookstore.

A customer could be Peyton Manning or the Football Department or a Pell Grant.

 

Customer Type     /kuhs-tuh-mer  tahyp/

n.    a person, company, or other entity which shares certain characteristics with other persons, companies, or entities that buys goods and services from the bookstore. Buckets of like customers.

Customer Types are:

Student, Faculty, Adjunct Faculty, Staff, Alumni, *Department, *Program, Other

*The Customer Type must be set to either Department or Program in order to let other customers (Agents) charge against their account.

 

Agent     /ey-juh nt/

n.     a person authorized to act on another's behalf.

Agents are customers (Payton Manning) who are charging to an A/R account set up as a Customer Type Department or Program (Football Department) with an Agent Type of Authorization Required or No Authorization Required.

 

Agent Type     /ey-juh nt  tahyp/

n.     a person authorized to act on another's behalf who shares certain characteristics with other authorized persons.

Agent Types are:

Individual (not shown), Authorization Required, No Authorization Required

The Agent Type determines which of the three ways the A/R account is set up. Basically which type of Agent can charge to this account. We’ll go through these in more detail in a sec.

 

Account Group     /uh-kount  groop/

n.     an on-going contractual relationship between a buyer and the bookstore whereby payment for goods received is made at a later time with characteristics that are arranged together. Buckets of like accounts.

Account groups are attached to A/R accounts and determine what can and can’t be charged, discounts given, and if the account is tax exempt.

 

 

Account Type     /uh-kount  tahyp/

Account Type is simply a bucket to organize Account Groups in. An Account Type needs to be attached to the Account Group when it is created and can be used to search for Account Groups.

 

     Now that your Pro vocabulary has increased, lets run through the things that all the A/R accounts need to make them run. You will create these and use them when you set up the A/R account.

 

Account Type.

Account type is just a bucket to help keep Account Groups organized. When an Account Group is created it will ask which Account Type will be associated.

example: Alumni or Athletics

 

Account Group.

Lets say that Tiger Woods is an Alum and he frequently shops the bookstore because he gets 50% of General Merchandise and because he frequents the store so do many other customers hoping to run into him. So we set up an Account Group that has a 50% off General Merchandise promo built right in. When he charges General Merchandise to his account he automatically gets the 50% off. Now we can use that Account Group on any other A/R accounts we set up.

example: Alumni Discounts or Football Team

 

     Now that you have a killer Pro vocabulary and you can set up the things that make the A/R accounts work, lets jump into some examples and set up some A/R accounts. There are three ways to set up an A/R account.

 

Individual Agent Type

This is an account that is set up for one customer and only that one customer can use it. The customer (Tiger Woods) is on the hook for paying the bill.

Customer = Tiger Woods

Customer Type = Student, Faculty, Adjunct Faculty, Staff, Alumni, Other.

Agent Type is auto set to Individual because of the Chosen Customer Type.

Account Group = Alumni Discounts

Line of Credit = This can be set to as little as $1, leave it wide open with no limit, or anywhere in-between.

 

 

Authorization Required Agent Type

This account is set up to be used by many customers. Only the customers (Agents) that are named as Agents in the account can charge to the account. If no Agents are attached to this account, the account cannot be used. It must have Agents and the Agents each carry their own line of credit. The customer (Football Team), not the Agents, is on the hook for paying the bill.

Customer = Football Team

Customer Type = Department or Program.

Agent Type = Authorization Required.

Account Group = Football Team

Line of Credit = This can be set to as little as $1, leave it wide open with no limit, or anywhere in-between.

 

 

No Authorization Required Agent Type

This account is set up to be used by many customers. Any customer can use this account. When this account is used in the retail cart it will require that an Agent be attached to the transaction and any Agent that charges to this account is printed on the A/R statement. The customer (The Art Department) carries the line of credit and is on the hook for paying the bill.

Customer = The Art Department

Customer Type = Department or Program

Agent Type = No Authorization Required

Account Group = Art Supplies Only

Line of Credit = This can be set to as little as $1, leave it wide open with no limit, or anywhere in-between.

 

 

Okay that’s it. Once you start using these accounts you will need to collect payment. Simply search for the A/R account customer and on the customer Info or Edit dialog click A/R Payment. You’ll be presented with any A/R accounts that customer has, choose one and make a payment. 

Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.
Powered by Zendesk