This article covers the entire sequence of producing customer statements. Consider using the Job Stream to automate this process as part of the End of Month Close.
Before generating statements, every customer account must have specific fields populated in the File > Customer > Master: Setup page.
- Main Tab: Verify that the necessary mailing address, fax number, and email are present.
- General Tab: A statement send option must be specified (none, print, fax or e-mail) on the Send Options panel.
- Credit Tab: A relevant Terms code must be present. For example, a Net 30 Days code would allow 30 days from the invoice date before the item becomes overdue. A 2%-10, Net 30 code would allow a 2% discount if paid within 10 days and otherwise 30 days.
- Credit Tab: A monthly Finance Charge % must be entered for accounts receiving finance charges. For example, if the annual rate is 18%, enter 1.5% in the field. Setting the rates individually provides more flexibility.
- If the end of month close is on the last day of the month. The Job Stream defaults to the close date as the statement date.
- If statements are produced in bulk without the need for detail invoices.
- If statements are produced for all customers with account activity without the need to filter.
- If the end of month close is not on the last day of the month, the Job Stream is not ideal because the statement date may not be accurate when using the EOM close date as the statement date.
- If statements with detail invoice copies are produced, the manual option is required.
- If statements are produced for a filtered range of customers, the Job Stream may not be ideal.
- Go to Accounting > End of Month Closing & Journals.
- Click the Job Stream Setup button. The process is divided into two separate functions: Finance Charges and Customer Statements.
- To make changes, select Enable .
- Finance Charges control the calculation and application of fees assessed on overdue balances. Do not enable this section unless customers receive finance charges on overdue balances.
- Finance Charges Based On: This value is set in Company Master.
- Aging by Invoice Date ages each item individually when paired with Individual Aging in the Company Master.
- Aging by Due Date collectively ages the entire monthly balance when paired with Monthly Aging in the Company Master.
- Number of Days Past Invoice/Due Date: This field is based on the specification in the field above. Enter a number of days to allow a “grace period” before assessing a charge. Enter 0 days to begin calculating charges immediately after the due date.
- Apply to Previous Finance Charges: Check this box only if previous unpaid finance charges should be included in the overdue balance.
- Apply to Credit Memos: This box should always be checked to ensure that all balances (debit and credit) are considered before adding a finance charge. It will not result in negative finance charges. If the box is not checked, customers will be penalized based on debit balances only and risk being overcharged.
Minimum Finance Charge Dollars to Generate: Enter a minimum finance charge dollar amount to calculate. For example, entering $1.00 for a system that calculates an 18% annual rate (1.5% monthly) will result in accounts with overdue balances under $66.67 not being considered.
- Exclude Credits Exceeding ___ Days Old: Entering a number of days in this field will exclude any older credit balances from displaying on the statement. Note that it will not remove credits or change any customer balances. Leave the field blank to print all credits.
- Print Salesperson Name: Check this box to print the salesperson assigned on the account level. Note that individual transaction sales people will not be displayed.
- Print Zero Balance: Check this box to print statements for zero account balances.
- Show Paid Invoice: This is optional and pairs with the field below.
- Show Period Payments: Check this box to display payments made during the statement period.
- Show Balance Forward: This option will accumulate all prior balances and display them as one value on the statement, rather than displaying each invoice. To enable it to function properly, you must set Use Balance Forward Statement Format to Y in the Company Master. If you want to see all open invoices, then leave this check box cleared.
- Suppress Negative Balance: Check this box only if you want to exclude any credit balance statements from generating. This option considers the entire account balance when determining whether to print.
- Overdue Accounts Only: Check this box to produce statements for overdue accounts only.
- Show Discount on Overdue: Check this box to allow a discount on an overdue balance.
- Ensure that all daily posting functions are complete before starting an end of month close.
- Implement a system posting blackout for the time required to complete the close. Users may not enter or post any transactions that affect a customer, vendor, product or G/L account.
- Go to Accounting > End of Month Closing & Journals. Verify that the necessary functions are enabled in Job Stream Setup and that there is paper in the statement printer.
- Click Close Accounts Receivable (or Close Month if the one step close is enabled). Do not interrupt the process while it is running. It will take several minutes or more, depending on the size of your organization. Statements will begin printing almost immediately. A notification will appear when the process is complete.
- Go to Accounting > Accounts Receivable > Customer Statements > Sent Results Report to produce a listing of all faxed and e-mailed content. This content will be generated overnight as part of the Phantom Processes.
- Produce a Finance Charge Journal from the EOM Closing & Journals menu if desired.
Manual finance charges
This step must be performed before the End of Month Close to include the finance charges in the current accounting period.
- Go to Accounting > Accounts Receivable > Finance Charge Update.
- You can now calculate and post the charges; however, note that this process is irreversible once started. Any reversals will need to be done manually. When you are read to calculate and post the charges, click Update.
- Print the Finance Charge Journal.
The A/R Finance Charge Update window displays the same options as the Job Stream.
- Go to Accounting > Accounts Receivable > Customer Statements.
- The options are similar to the Job Stream with a few exceptions:
The A/R Customer Statements window will appear.
- Statements may be run by Branch.
- The Statement Date may be entered manually. For reconciliation purposes, the statement date should be the same as the date of the A/R close (if the close is on the last day of the month).
- The Discount Date applies only to qualifying balances.
- Print Detail Invoices is available to include invoice copies with each statement. This is not recommended for bulk statement runs and is best used for individual statements.
- Click Select Criteria to filter for a specific range of customers.
- Click Clear Criteria to start over.
- Click Run to print the material. The system will display a Print Options window.
- Click Sent Results for a report of faxes and e-mails scheduled for overnight delivery.