ACCOUNTS RECEIVABLE GENERAL LEDGER POSTING LOGIC

When Orders are invoiced the invoiced amounts are posted into the Accounts Receivable (AR) module for the associated customer of the order. The Invoice Update (OE4100) accomplishes this. The general ledger (G/L) transactions created that affect the AR module is the Debit to the Account Receivable (AR) ‘Regular’ account, based upon the currency/branch combination (GB0700) for the total invoice amount (Taxes and any Freight included).

Dynamic3i does handle electronic funds transfers and pre-payments but to keep the example below simple, it pertains to a standard cheque file entry and cash application process for AR.

Accounts Receivable General Ledger Posting:

When entering an Accounts Receivable Cheque:

AR2100 (Cheque File Entry)

Debit -	‘Bank Account’, based upon the branch/bank combination (AR2100, GB0800) for the total cheque amount.
Credit -	‘Unapplied Cheque Account’ based upon the currency/branch combination (GB0700) for the total cheque amount.

When applying the Cheque amount to Customer’s outstanding invoices:

AR3100 (Accounts Receivable Cash Application)

Debit -	‘Unapplied Cheque Account’ based upon the currency/branch combination (GB0700) for the applied amount.
Debit -	‘Discount’ account based upon the currency/branch combination (GB0700) for any discount amount if applicable.
Credit -	‘Regular’ A/R Account Sales, based upon the currency/branch combination (GB0700) for the applied amount.
Credit -	‘Regular’ A/R Account Sales, based upon the currency/branch combination (GB0700) for any discount amount if applicable.

Interest income

When interest is charged via Finance Charge Update (AR6100) or the AR Balance Interest Update (AR6300), the following transaction occurs :

Debit -	'AR control account' based on the currency/branch combination (GB0700) for the interest charged.
Credit -	'Interest Income' based on the currency/branch combination (GB0700) for the interest charged.

For receivables in multi-currency and currency exchange postings see Accounts Receivable Foreign Exchange Postings.