How to Enter Accounts Receivable in Sage 300

Initial Setup Requirements

Before you can begin entering accounts receivable transactions, you need to ensure your system is properly configured. The setup process involves installing the necessary components in the correct order:

First, install System Manager, which includes Bank Services and Tax Services. Next, install General Ledger if you plan to use it, followed by Accounts Receivable. After installation, create both a system database and a company database to store your financial information.

Configuring Basic Options

The foundation of your accounts receivable system lies in proper configuration of the A/R Options screen. Here are the essential settings to configure:

Company Information Enter your company's contact information and administrative details for accounts receivable management.

Processing Options Configure how your system handles transactions by setting:

• Batch processing preferences
• Multicurrency options (if applicable)
• Retainage accounting settings
• Statistical tracking preferences

Document Numbering Set up your preferred numbering system for:

• Invoices
• Credit notes
• Debit notes
• Interest charges
• Recurring transactions

Creating Customer Records

A well-organized customer database is crucial for efficient accounts receivable management. To set up customer records:

Basic Customer Information Enter fundamental details including:

• Customer name and contact information
• Credit limits and payment terms
• Tax information
• Account set assignment

Additional Settings Configure optional but important elements:

• Multiple shipping locations
• Recurring charge schedules
• Custom fields for tracking specific information
• Statistical tracking preferences

Entering Invoice Transactions

The invoice entry process is one of the most common AR tasks. Here's how to enter an invoice properly:

Creating a New Invoice Batch

1. Navigate to Accounts Receivable > AR Transactions > Invoice Entry
2. Click the New button beside the Batch Number field
3. Enter a meaningful batch description
4. Select the appropriate date

Invoice Header Information

Enter the following details in the header section:

• Customer number
• Document date
• Due date
• Purchase order number (if applicable)
• Payment terms

Invoice Detail Lines

For each line item on the invoice:

• Enter the distribution code or GL account
• Specify the amount
• Add description and reference information
• Include optional fields if needed

Processing Payments

Receiving and applying payments is a critical AR function. Here's the proper procedure:

Receipt Entry

1. Navigate to the Receipt Entry screen
2. Create a new receipt batch
3. Select the customer
4. Enter the payment amount
5. Choose the payment method

Payment Application

When applying payments:

• Use the selection mode to view all open documents
• Select the invoices being paid
• Enter any applicable discounts
• Verify the application of funds

Special Transaction Types

Credit Notes

For issuing credit notes:

1. Select Credit Note as the document type
2. Reference the original invoice if applicable
3. Enter the credit amount and distribution
4. Add any necessary comments or explanations

Recurring Charges

To set up recurring charges:

1. Create a recurring charge record
2. Specify the frequency
3. Enter the standard amount
4. Set up the schedule for processing

Journal Entry Generation

Understanding how Sage 300 generates journal entries is crucial for accurate accounting. Here are the standard entries created:

For Invoices:

• Debit: Receivables Control
• Credit: Revenue accounts

For Payments:

• Debit: Bank account
• Credit: Receivables Control

For Credit Notes:

• Debit: Revenue accounts
• Credit: Receivables Control

Maintaining Records

Regular maintenance ensures your AR system continues to function efficiently:

Daily Tasks

• Post all batches
• Print batch listings
• Review aging reports
• Process customer payments

Monthly Tasks

• Reconcile AR subsidiary ledger to GL
• Generate customer statements
• Review customer credit limits
• Process recurring charges

Year-End Procedures

• Clear history (optional)
• Update customer statistics
• Archive closed transactions
• Generate year-end reports

Best Practices

To maintain an efficient accounts receivable system:

Data Entry

• Use consistent naming conventions
• Enter transactions daily
• Verify all information before posting
• Maintain detailed transaction descriptions

Documentation

• Keep supporting documents for all transactions
• Document any special customer arrangements
• Maintain audit trails for all adjustments
• Record reasons for credits and write-offs

System Management

• Regularly back up your data
• Keep your software updated
• Train users on proper procedures
• Review security settings periodically

Troubleshooting Common Issues

When working with accounts receivable in Sage 300, you might encounter these common situations:

Batch Posting Errors

• Verify batch totals
• Check for missing required fields
• Ensure GL accounts are active
• Confirm customer credit limits

Payment Application Issues

• Verify exchange rates for multicurrency transactions
• Check payment terms and discounts
• Confirm customer account status
• Review unapplied cash entries

By following these comprehensive guidelines, you can effectively manage your accounts receivable in Sage 300. Remember that consistent attention to detail and regular maintenance are key to maintaining accurate financial records and ensuring smooth business operations. As your business grows, you may need to adjust these procedures to accommodate increased transaction volume or more complex accounting requirements.

Sources: [1] https://help.sage300.com/en-us/2024/classic/Content/Financials/Accounts_Receivable/Setup/SettingUpAccountsReceivable.htm [2] https://www.youtube.com/watch?v=jmqj9AkVp6c [3] https://cdn.na.sage.com/docs/en/customer/300erp/2021/open/Sage300_AccountsReceivable_UsersGuide.pdf [4] https://www.youtube.com/watch?v=J5LcnmRA1WY [5] https://www.youtube.com/watch?v=XdCI3qgLJs0 [6] https://help.sage300.com/en-us/2023/classic/Subsystems/AR/Content/Transactions/JournalEntriesGeneratedByAR.htm?TocPath=Accounts+Receivable%7CEntering+and+Posting+Transactions%7C_____1 [7] https://www.acutedata.com/how-to-invoice-a-customer-in-accounts-receivable-for-sage-300/