Accounts Receivable gives options to process receipts or reversals of client monies. All entries in this area are immediately posted to general ledger and are based on the entry date entered in the individual areas if they reflect the receipt or reversal of client payments. Your options are:

Adjusting Client Invoices

Adjusting client invoices is used to record an increase or decrease in the client invoice, e.g. to write-off erroneously charged sales tax. There is no immediate impact on general ledger if the invoices were not posted. If the invoice being adjusted is posted, then e·silentpartner will create a journal entry that reflects the changes of the adjustment.

You can only change the sales tax indicator for the invoice and/or change line item tax flags. If the invoice is posted, the effect of these changes overall will be...

  • A/R will either be debited or credited (if you increased or decreased the calculated sales tax amount).
  • The sales tax payables will be debited or credited (if you decreased or increased the original sales tax(s) on the invoice).

The resulting journal entry (if any) will be posted to the fiscal period of the invoice date. If the period is closed, you’ll be prompted to select a different fiscal period.

Client Payment

Used to record monies received from a client for one or more invoices.

  • The payment amount is credited to accounts receivable in the general ledger.
  • The payment amount is debited to the cash account you specify in the payment window.
  • If a payment discount was earned in this payment, the value of the earned discount is debited to revenue adjustments in general ledger – this offsets the previously posted revenue.

The payment is debited to any invoice to which the payment applies. If the invoice was paid in full, the invoice is marked as posted and paid and the client balance re-aged.

The fiscal period used for posting is based on the payment date entered.

Reverse Client Payment

Used to reverse a previously recorded client payment (e.g. the payment was applied to the wrong invoice).

  • The payment is credited to the cash account specified the original payment in general ledger.
  • The payment is debited to accounts receivable in general ledger.

The invoice balance to which the payment had applied is debited (increased) and the age of the client’s new accounts receivable balance is re-aged.

On Account Payment

Used to record money from a client that is not for a specific invoice. Rather, this money is held by your company and is used to pay one or more invoices in the future.