Debtors Menu Debtors Ledger

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DEBTORS Menu: Debtors Ledger

Debtors Ledger Overview

The Debtors Ledger provides comprehensive control of your debtor accounts. Debtors may be established with credit limits, default pricing, discounts, etc. The Debtors master file details may be changed and non-current debtors may be deleted from the file if no longer needed.

Some debtors may be part of a larger company or chain of stores where you wish to raise invoices to a branch for delivery of goods but bill the parent company. In this case, you should setup an account for the central office first then setup accounts for the branches, entering the access code for the central office in the Central Account field. Invoices and credit notes generated through Micronet appear on the central account and are included in the central account statement. Direct account entries, payments, handwritten invoices, journals, etc. should be entered directly to the central account. The Sales MTD and YTD are updated in the branch figures.

Each debtor account may be Open Item or Balance Forward:

Open Item debtors retain details of each transaction on the account until a cash payment, credit note or journal balances that transaction to zero. During the End of Month process, all balanced transactions are removed.
Balance Brought Forward debtors retain details of transactions on the account only during the current month. During the End of Month process, all transaction details are cleared from the account and a balance brought forward. The Aged Trial Balance printed with transactions prior to the End of Month proces provides details of these cleared transactions for easy reference.

The details for all debtors may be retained on the Debtor History file.

Accounting periods other than calendar months (30 days) may be established by entering the accounting period (in days) required into the account type field in the Debtor master file.

Transaction batches

Debtor transactions, handwritten invoices, payments and journals are entered via batches. Separate batches for different types of transactions make it easy to find transactions should you need to reference your batch reports.

A batch may be printed as required, producing an audit trail for data entry reconciliation. A batch may be left, returned to and updated as often as required without printing the final audit.

You may print a verification of the batch to check your entries, without closing the batch. The debtor account is updated as the transaction is completed regardless of whether a batch is printed or not. As a batch is printed, the batch number becomes available for another batch entry.

Handwritten Invoices

Handwritten invoices are entered in Micronet when you want to invoice a debtor for transactions that do not relate to the sale of items - e.g. advertising or franchise charges - but you don't want Micronet to produce an invoice for the amount. This facility can be used to enter opening balances or for service type invoices that are complementary to the main source of operating income (sales).

Handwritten invoices entered into Micronet affect the debtor balance (Trade Debtors account), the GST account and post to the appropriate account in the General Ledger. They do not affect the inventory files, or your monthly and yearly sales figures.

Debtor payments

Payments to Balance Forward debtors should be aged to the relevant General Ledger period, while payments to Open Item debtors are normally allocated to the relevant transaction. Payments to Open Item debtors may be entered through:

auto post, allowing Micronet to post, oldest invoice forward until all payments are posted, or
display invoices, allowing you to select invoices to be paid.

A payment may be posted as a standalone entry through DISPOSE PAYMENT - e.g. if the payment is received before the invoice is generated (deposit). Standalone payments require allocating (by journals) to an invoice before the invoice drops off the account.

Payments can be reversed if required.

Journals

If you have two standalone transactions that should be together, or should balance each other out, they may be entered in a journal together, i.e. a JED to the credit transaction and a JEC to the debit transaction. These transactions are then removed at EOM if balanced to zero. Journals do not affect sales, cost of sales or stock figures.

Journals may be used to allocate payments to:

debit (invoice) on an account
correct ageing errors
write off bad debts
indicate portions of debts paid as PPS directly to the Taxation Office by the debtor.

Your Monthly Sales Register report lists all journals made during the period so that you can reconcile all the journal changes made to the debtor accounts.

Post interest charges

Interest may be charged as a percentage or as a fixed charge on overdue accounts. When posting the interest charges, you may override the default interest as setup in the Debtor master file. You may select the period to apply overdue charges, and post to all customers with an outstanding balance, debtors on hold, or debtors over their credit limit. As interest charges are posted, Micronet produces a full audit.

Ageing

Invoices created are automatically aged to the current period. All other transactions on Balance Forward debtors need to be aged to the appropriate period, i.e. payment of an invoice should be aged to the same period the relevant invoice is in at the time of payment.

Transactions in an Open Item debtor account should be allocated to the corresponding transaction which automatically ages the transaction correctly.

Banking reports

When entering manual payment transactions (such as cash and cheque payments), you may enter details of the payment, type, drawer, bank, etc. These payments are transferred to an Undeposited Funds account until you run the Debtor Banking program to assign them to a Bank account. You then print a Bank Deposit Slip of the payments you have selected for banking. You can also print a list of automatic debtor payments received as bank transfers and already in the Bank account.

The Bank Deposit Slip and Auto Payments Reports can be reprinted as required.

Debtor accounts on hold

You may place a debtor account on credit hold through the Debtor master file. A warning is given at the time of invoice generation that the debtor is on hold.

The credit hold is reported in the Debtor Backorder Inquiry, Aged Trial Balance, Invoicing, Order Entry, Credit Note Entry, Backorder Allocation, Customer Master List, and Debtor Transaction Processing.

Reversing (correcting) transactions

The following actions can be taken to reverse (correct) transactions:

Invoice	Use a credit note so that your sales figures are affected. A journal entry does not affect your sales figures.
Handwritten Invoice	As this invoice does not affect your sales figures, use a journal.
Payment	If the payment was incorrectly entered, use the REVERSE PAYMENT menu option. This reduces the payment to the account and reduces the correct GL accounts.
Payment Refund	If you refund an amount from an account, use a JED. This posts through to the General Ledger to a Journals Clearing account for allocation as appropriate in the GL.
Ageing Corrections	Correct ageing errors on a balance forward debtor account, i.e. Journal Entry. If you have a credit balance in 60 days with a corresponding debit in 90 days, a JED to period 3 (60 days) and a JEC to period 4 (90 days), balance each period to 0.