Preliminary Analysis and Configuration Related to Accounts Receivable

Block AR01

Printable Version

As is the case for supplier accounts, the general settings that apply to customer accounts must be defined in maestro*. These must first be completed before creating customers in the software and billing them. The configurations linked to customer accounts, also called accounts receivable (AR), consist of entering the general ledger accounts to be used by default, as well as entering all information regarding the application of deductions and discounts. The lien management and discharge forms to use can be defined, as well as specifications concerning the credit limit to apply, etc.

The parameters to be completed in the customer account configurations consist of global configurations that determine maestro*'s default behaviour. Specifications can be made for each customer in their own individual configurations. Although most of the fields and sections of the accounts receivable configuration options are presented in this document, some parameters will not be explained in many details; either they will be covered in a later course, or the parameter does not apply to the context or the business reality of most clients. In addition, contractual billing configurations will not be discussed in this document - these configurations will be explained in the class on this billing mode FACTCON01.

 

Prerequisites

 

Summary

 

Complete the Invoicing Module's General Settings Linked to the Use of Customer Accounts in maestro*

The general settings of the Invoicing option (also called the customer account's Configurations) are divided in ten (10) options. The first six (6) must generally be completed by the majority of maestro* users.

 

maestro* > Invoicing > Maintenance > Invoicing > Configuration

 

 

Online Help (F1) - Configuration

 

Complete the Settings in the General Tab

The General option mainly allows to identify the general ledger accounts and calculate pending holdbacks.

  1. In the Configuration window, first complete the fields of the General option by clicking on the latter, in the left-most section of the window.
  2. Fill in the parameters in the right section of the window, with the help of the explanation given in the following tables.

If a follows the name of a field, the field can/must be completed at this stage of the implementation process. The usefulness and more information about the other fields will be shared with you throughout the course, according to the impact they have on the modules and options.

Field

Description

Bank Account

Bank account used by default when entering receipts.

NOTES: It is possible to have multiple bank accounts. However, it is necessary to enter a default account, preferably the most used account.

This account is linked to the one entered in the Configuration - Accounting option. It must be completed if an account has been identified for the Accounting module. If changes are made to this account, it will automatically be changed in the accounting's configurations.

Standard Accounts Receivable

General ledger account for customer accounts, used by default in all invoices.

NOTES: The standard AR account will have to be previously associated to a sales department, in the Define Sales Department option (as explained in the AR02 course content).

Indeed. all AR accounts must be identified in the Define Sales Department option (there can be one or more, depending on the needs of the company, i.e. if other currencies are used or if there are more than one type of sale). Some specialized modules can use a customer account different than the standard customer account (for example, account 1200). Finally, it's also in this option that sale forms (or invoice templates), to use according to the AR account and/or the sales department, can be selected.

The standard AR account is linked to the one identified in the Configuration - Accounting option. If this account is changed, it will also be automatically changed in the accounting configurations.

Except if a project was created especially for interests and identified in the Interest Project field, of the Interest Accouting section (in the General Settings of the Invoicing module, Customer tab), and no AR account was identified in the Accounts Receivable field of the General Ledger Accounts sub-tab (in the Project Desc tab of the Project Management option for the said project interest), the interests to be received will be accounted for in this Standard Accounts Receivable.

Discounts on Sales

General ledger account where all sale discounts are recorded1.

NOTES: Some specialized modules, such as service management, can use a discount account different than this one.

This account is the one entered in the Configuration - Accounting option. It is completed if an account has been entered in accounting. If changes are made to this account, it will automaticallt be modified in the accounting configurations.

Separate general ledger accounts can be identified to record these discounts, though some companies choose to pair them all in a single account.

Discounts on Receipts

General ledger account used to record all discounts given to customers when cashing in receipts2.

NOTES: It is possible to use the same account as the sales discount if there is no need to separate the sales discounts from the receipt ones.

This account is linked to the one entered in the Configuration - Accounting option. It is completed if an account was entered for the accounting. If changes are made to this account, it will automatically be modified in the accounting's configurations.

Holdback on Sales

General ledger account where client warranty holdback on sales are recorded.

NOTES: It is recommended to have an account different from the customer account.

This account is linked to the one entered in the Configuration - Accounting option. It is completed if an account was entered for accounting. If changes are made to this account, it will automatically be modified in the accounting configurations. It is also in this last option that the Tax on Holdback, applicable to the standard holdback calculation method, needs to be entered.

Customer Advance

General ledger account used to record deposits received by customers. These advances can be entered when entering receipts.

NOTE: This account must be different than the customer accounts / accounts receivable. That's becasue accounts receivable are an asset of the company whereas customer advances are a liability - that is, an amount of money paid for services not rendered.

This account is linked to the one entered in the Configuration - Accounting option. It is completed if an account wa entered for accounting. If changes are made to that account, it will automatically be modified in the accounting configurations.

Interest Income Account

General ledger account used to recored interest income when entering receipts, i.e. the amount entered in the Interest Amount column of the Cash Receipts options in maestro*.

Default Revenue Group

Defaut income group used when entering a sale.

Cost of Sales Account

General ledger expense account used to record the cost of sold merchandise.

Cost of Sales Group

Expense group used when accounting for the cost of sold goods.

NOTE: The sales cost group must be specified in addition to the sales cost account to allow the display of costs in the financial statements generated by maestro* and based on the use of a PAG.

Invoice Status

Status assigned to transferred invoices by default.

NOTE: It is possible to set the invoice status in the Receivable Invoice Status Codes Table (as explained in the AR03 course content).

Do not automatically balance taxes

Allows to determine whether tax needs to be calculated per line or on the whole invoice amount.

NOTES: This field is not checked by default, so taxes are calculated on the total invoice amount when it is saved. Therefore, if a discrepancy exists between the taxes calculated per line vs. taxes calculated on the whole invoice amount, maestro* automatically adjusts the tax of the last detail line so the tax sum of each line matches the amount calculated on the whole invoice.

By checking this box, maestro* calculates the taxes per line and does not compare them to the taxes calculated on the whole invoice. This setting also allows to keep, if applicable, the modifications made to the taxes manually.

This configuration affects the following sale entry options, as well as the work order reports accessible through the Enter Work Orders option: 

  • Enter a Sale
  • Lump Sum Billing
  • Progress Billing
  • Construction Management Billing
  • Cost Plus Invoicing
  • Holdback Invoicing
  • Work Order Review
  • Work Order Review (Billable Items Only)
  • Work ORder Approval Report

Invoice Printing Order

Available values:

Customer Code

Prints the invoices in customer order.

Invoice No.

Prints the invoices in number order.

Entry Order

Prints the invoices in transaction completion order.

Acceptable Profit %

Allows to enter an acceptable profit percentage on sales entered using the Enter a Sale option or on orders entered using the Customer Order option.

NOTES: Maestro* validates the sale amount against the item costs (calculated from the average cost).

For the user to be able to view the profit percentage of a sale, the The user can see the profitability of an order or a sale function must be activated in the Access Restrictions tab of the Security Management option.
Holdback Calculation Method Section

Field

Description

Billing and Contractual Billing

Allows to indicate whether taxes have to be calculated on holdbacks.

NOTE: Please refer to the explanations concerning holdbacks provided in Concept titled The Different Invoicing Methods in maestro*. Many impacts and configurations result from the value selected in this field.

 Available Values:

Without Tax

No tax will be calculated on holdbacks. They will be calculated entirely based off the sale amount, at the time of the sale, without any regard for the holdbacks.

With Tax

Taxes applicable to the holdback amount will be calculated immediately (i.e. when the sale is entered) and recorded in a holdback tax account. When the holdback is due, these taxes will be reversed then charged to a tax receivable account.

Standard - Tax Deferred Holdback

Taxes applicable to holdbacks will be calculated when the holdback invoicing will be performed in the Release Holdback option.

NOTE: To ensure better management of the company's cash flow, as well as to facilitate accounting when holdbacks are released, the standard deduction calculation method is the one preferred by Maestro.

Moreover, the value Yes must be selected in the Transfer of Holdbacks field (Contractual Billing > Configuration > General). Even if Yes is selected, as the holdback calculation method is Standard, taxes applicable to holdbacks are not calculated. These will be calculated when releasing holdbacks.
Release Holdback ('Standard' Mode) Section

Field

Description

Revenue Activity

Activity used for holdback invoicing - this invoicing is performed in the Release Holdback option.

Invoicing Group

Group used in the invoicing of holdbacks.

Line 1 & 2 Description

Description displayed in the invoice produced by the release holdback.

NOTE: It is possible to set up messages in both languages (English and French) - the user must simply click on the button to the complete right of the description.
Cash Receipts by Invoice Section3

Field

Description

Tolerance Amount

Limit of the tolerance amount between the value of the deposit and the receivable invoice.

NOTES: If the payment of the invoice is greater than the invoice itself and the difference is within the tolerance limit, the excess will be deposited in the customer's advance account.

If the invoice payment is less than what is due and the difference is within the tolerance limit, the difference will be posted to the discount account and the invoice will be fully paid.

Discount Account

General ledger account used to record payment discrepancies.

Post Overpayment exceeding Tolerance Amount to A/R

Applies the overpayment amount exceeding the invoice's tolerance amount to obtain a credit balance if this box is checked.

NOTE: If this box is not checked, the overpayment exceeding the tolerance amount will be recorded in an advance account.

  1. Click on the Save icon.

 

Complete the Settings in the Forms Option

Create and/or select the invoice, lien, release, and order forms that will be used and indicate their recipient, if needed.

  1. In the Configuration window, click on the Forms option, displayed on the left.
  2. Create and/or select the desired form in the right portion of the window with the help of the explanations given in the following table. These can be standard forms, which are provided in maestro*, or custom forms, which are created and/or adapted specifically to meet the needs of the company.

Field

Description

Statement of Account

Form used be default when printing a Statement of Account.

Lien

The selection of a lien form will be explained in the AR03 course. Please refer to that document if needed.

Release

The selection and identification of these two forms will be explained in the AR05 course. Please refer to that document if needed.

Delivery Preparation

Customer Order

The selection and identification of this section's forms will be explained in the APP07 course. Please refer to that document if needed.

Rental Order

Quotation Request

Delivery Slip

Invoice from a Customer Order

CRM – Call

CRM – Email

Holdback Invoicing

Form used by default when printing a holdback invoice in the Release Holdback option.

  1. Click on the Save icon.

 

Complete the Settings in the Statement of Accounts Option

The Statement of Account tab allows to specify some of the default parameters applied to statement of accounts made in maestro*.

  1. Still in the Configuration window, complete the fields in the Statement of Account option, by clicking on it in the left-most part of the window.
  2. Complete the settings in the right portion of the window with the help of the explanations given in the table below.

Field

Description

Print Holdback?

Allows to display holdbacks on statement of accounts if the box is checked.

Message

Allows to enter a message to print on the statement of accounts.

NOTE: This field is limited to 60 characters and must be set up on the form to be printed.

Receipts

Allows to print cash receipts, either in detail or a summary, on the statement of accounts. In summary mode, maestro* displays a total of the cash receipts for the month.

Print if balance

 

Allows to print the statement of account according to the selected condition.

Available values: 

O- All

Prints all statements of account, whatever their balance.

N- All without Zero balance

Prints all statements of account with a balance other than 0.

G-Positive only

Prints the statements of account with a positive balance only.

S-Negative only

Prints the statements of account with a negative balance only (credit).

  1. Click on the Save icon.

 

Complete the Settings in the Client Option

The Customer tab is mainly dedicated to the management of default parameters related to customer credit management.

  1. In the Configuration window, complete the fields in the Customer option by clicking on it in the left-most part of the window.
  2. Complete the settings in the right portion of the window with the help of the explanations given in the table below.

 

Note concerning customer credit management

As explained in the How-To - Managing Customer Credit, maestro* allows to ensure that customers do not exceed their credit limit and/or that the collection of invoices is carried out on time by providing companies with two methods of credit management:

Method 1 - Automatic validation of a customer's credit based on a credit limit;

With this method, the user is only informed of the customer exceeding their credit limit when they enter or try to transfer a sale. The customer is still ACTIVE, so it is possible to enter other types of transactions in maestro* for that customer.

Method 2 - Using the Credit Validation option to block, or not, a customer.

This method allows more leeway since it allows a user to block or not a customer according to the credit limit OR the authorized payment period. Blocking a customer is done manually through the Credit Validation option (AR02) and must be done regularly. Depending on the settings, a customer can be completely blocked or a warning message can be displayed when selecting said-customer. As soon as a customer is blocked, it is impossible to enter a new transaction for that customer. As soon as the customer code is entered, the user is informed of the customer's status and of the reason why that customer was blocked.

The settings specific to the Customer tab in the Configuration option of the Invoicing module therefore relate to the use of one or both of the customer credit management methods.

 

If a functionality made to manage the credit limit of customers is used, an amount must be entered in the Credit Limit field of the Customer Management option for each customer. For more information, please refer to the How-To - Managing Customer Credit.

Field

Description

Credit Limit Management

Specifies the verification mode to apply to customer transactions (method 1 of the customer credit validation, previously explained).

Available values:

None

No verification is performed by maestro*.

Transfer

Notifies when a sale is transferred to the general ledger if the credit limit is exceeded. The transfer is still accepted.

Sale

Notifies when the sale is validated if the credit limit is exceeded. Maestro* adds that amount to the customer's current balance to perform its verification. Maestro* refuses the transaction if the amount exceeds what is allowed upon saving.

Sale - Validate Only

Validates the customer's credit limit at the moment of the sale. Maestro* displays a warning if the credit limit is exceeded, but no blocking action is triggered.

NOTE: Credit limits can be specified by default in the Credit Validation section below, or by customer in the Customer Management option. Actually, the credit limits identified in the Customer Management option prevail.

Afterwards, the Credit Validation, Block a Customer, and Unblock a Customer options allow actions to be carried out that are necessary to the continuation of activities - see the content for course AR02.

Discount Calculation Method

Allows to indicate what tax must be calculated on discounts granted to customers when collecting the cash receipts.

There are four discount calculation methods: With Tax, Without G.S.T., Without P.S.T., and Without Tax.

Credit Terms

Credit code issued by the Credit Terms Management option (course AR02) and corresponding to the default payment terms of a sale.

NOTE: If applicable, the code entered ensures that a predetermined number of days in indicated to maestro* for the payment of customer invoices and that the due date is determined upon the entry of a customer invoice in accordance to the real date.

Credit conditions can also be associated to customers in the Customer Management option and be used as the default value in the various invoice entry options. If no condition is associated to the customer, the invoice date will be used as the due date.

Due Date Calculation

Allows to indicate the calculation method for the invoice's due date.

It can only be calculated Only when the duer date is blank when saving, or can be recalculated Always when the invoice date, accounting date, or credit terms are changed. It is also possible to receive a confirmation message for each modification by choosing the Confirm when the invoice date, accounting date, or credit terms are changed option.

List Code

Default price list code, if applicable, issued by the Maintain Price Lists option.

Generate Customer Numbers Section

For those who wish to do so, maestro* has a functionality that systematically assigns a number (or code) to all newly created customers. However, many choose to manually assign a customer code so that it may be more meaningful and therefore easier to remember.

Box/Field

Description

Generate Customer Numbers

When enabled, this feature automatically generates customer numbers in sequence, eliminating the need for a user to manually enter them.

Counter

Allows to indicate the next number to be assigned.

NOTE: It is possible, in the multidimensional mode, to use a separate counter per prefix.

Format

Allows to apply a specific format to the assigned numbers.

NOTE: Entering the # symbol in the Format field means that the customer number will be completed with 0. For example, if the next number is 12345, entering ######## in the Format field will generate the number 00012345. This field can also be used to add a prefix to the generated numbers.

Credit Validation Section (for method 2 of the customer credit validation, previously explained)

The Credit Validation section allows to define, by default, credit requirements (credit limit, payment term) that will determine whether maestro* must apply, or not, the previously selected behaviour (warning or blocking) in the Credit Limit Management field. Credit requirements can also be assigned to a particular customer in the Customer Management option.

The specified credit requirements will determine the customer list that will appear in the Credit Validation option and that an authorized user will be allowed to unblock if needed.

 

Please note that it is also possible, in maestro*, to manually block a customer who exceeded their credit limit, their payment period, or for any other reason.

This section, Credit Validation, is divided in two sub-sections that make up the two suggested methods: Credit Limit Validation or Authorized Payment Delay Validation. One of these methods has to be chosen and favoured to make use of the feature.

 

For more information, please refer to the How-To - Managing Customer Credit.
First Option: Credit Limit Validation

This section allows to establish the validation of the credit limit according to more precise criteria:

  • Delay in days and credit limit %, or
  • Delay in days and minumum balance

Field

Description

Delay in Days

Number of days representing the deferment period.

NOTE: Calculation begins on the date of the invoice. Only those invoices that exceed the specified number of days are take into account when calculation the balance.

Credit Limit %

Percentage of the accepted credit limit in relation to the balance.

NOTE: Maestro* will automatically offer to block customers whose total balance of unpaid invoices that exceed the specified delay in days reaches a credit limit percentage greater than this percentage.

Minimum Balance

Accepted balance.

NOTE: Maestro* will automatically offer to block customers whose total balance of unpaid invoices that exceed the specified delay in days is greater than this minimum amount. Furthermore, maestro* only takes into account this value if no credit limit % is entered.

Blocking Status

Action to be performed in the Credit Validation option4.

The two available values are: blocked or warning.

Reason for Blocking

Displayed message when selecting a customer if they have the Blocked or Warning status.

Second Option: Authorized Payment Delay Validation

This section makes it possible to establish that the credit validation is only carried out on the deferment period to perform the payment of invoices.

Field

Description

Number of Days

Number of days representing the authorized deferral of payment.

NOTE: Calculation begins on the date of the invoice. According to the chosen setting in the Blocking Status field, maestro* will block the customers that have at least one unpayed invoice since longer than the authorized delay, or will display a warning message.

Interest Accounting Section

This section allows to set up interest on sales separately. Interests are calculated according to the customer's credit conditions in the Interest Accounting option (maestro* > Invoicing > Invoicing > Processing > Interest Accounting). Furthermore, the credit conditions must have previously been entered in the Credit Terms Management option - see the content for course AR02.

Field

Description

Interest Project

Project that allows to accumulate interest income.

NOTE: If no project is indicated in the configurations, when creating the interest invoice in the Interest Accounting option, maestro* will create the interest invoice with the project of the original invoice.

Interest Activity

Activity that allows to accumulate interest income.

Interest Group

Group that allows to accumulate interest income.

Line 1 & 2 Description

Text that is printed on interest income invoices.
  1. Click on the Save icon.

 

Complete the Settings in the Sale Option

This option's parameters are essentially used to identify the number of units to keep when entereing sale amounts, as well as specify projects-activities-groups related to the accounting of discounts.

  1. In the Configuration window, complete the fields of the Sale option by clicking on it in the left-most section of the window.
  2. Complete the settings in the right portion of the window with the help of the explanations given in the table below:

Field

Description

Number of Decimals - Quantity

Number of decimals required in the Qty field when entering sale transactions.

NOTE: The number of decimals can vary from 0 to 4. By default, maestro* selects 2.

Number of Decimals - Price

Number of decimals required in the UP field when entering sale transactions.

NOTE: The number of decimals can vary from 0 to 4. By default, maestro* selects 2.

Maximum Width

Maximum width of the Description field when printing invoices.

NOTE: The default maximum value is 39 characters if the Time and Material Invoicing option is installed, otherwise the maximum value is 60 characters. It is possible to adjust the width of the description or the number of characters configuration on the invoice forms. Maestro* checks, when entering the invoice, the number of characters and prevents additional characters from being entered. This verification is done to ensure that users do not write, in transactions fields, a description that will not be entirely printed on the invoice form.

Display complete description of catalogue items

Allows to display the three description lines of the item code from the Catalogue Management option when a sale is entered.

NOTE: This feature is only applied if the Time and Material Invoicing option is installed.

Post Payment Discounts

Indicates to maestro* that the default values, entered in the five fields of the following sub-sections (Payment Discounts and Sale's Project) must be used to record the payment discounts when transferring cash receipts.

Payment Discounts Section

Field

Description

Project

Used to enter the default project for the allocation of payment discounts.

Activity

Used to enter the default activity for the allocation of payment discounts.

Group

Used to enter the default expenses or income group for the allocation of payment discounts.
Sale's Project Section

Field

Description

Activity

Used to enter the default activity to which will be charged the project discount of sale when transferring cash receipts.

Group

Used to enter the default expense or discount group to which will be charged the project discount of the sale when transferring cash receipts.

 

The five fields in the Payment Discounts and Sale's Project sub-sections must be completed to be able to save the Configurations.

A transfer between projects (between the sale project and the indicated project for payment discounts) will automatically be performed when transferring the cash receipts.

  1. Click on the Save icon.

 

Complete the Settings in the Project Receivables Option

Finally, a last option, related to the Invoicing module, has to be completed, if applicable.

  1. In the Configuration window, complete the fields inthe Project Receivables option by clicking on it in the left-most section of the window.
  2. Complete the settings in the right portion of the window with the help of the explanations given in the tables below.

Billing - Project Receivables Section

Field

Description

Integrate with Project

This box has to be checked for the income to be visible and associated to the projects.

NOTES: If this box is not checked, it is not mandatory to enter the project at the sale. If it is checked, the project will have to be entered.

If a sale on a project is entered and this box is not cheched, the project will not be affected.

Approve Invoice by Default?

Used to define a default approval status in a sale entry. This field tells maestro* that the default status of the Accepted field is either Yer or No.

NOTE: Only invoices with the Accepted field set to Yes can be transferred.

Status of invoices transferred from other options

Allows to define the status of invoices that are created by the work order billing module.

Available values:

None

The invoice will not have a status. The user will have to manually change the status before being able to print or transfer the invoice.

Not Accepted

The invoice will not be accepted. It will be possible to print it, but to transfer it the user will have to manually change the status.

Accepted

It will be possible to print and transfer the invoice without having to change the status.

Holdback Invoicing

Allows to select whether the holdback invoicing mode is with our without tax.

Default Activity

Allows to enter a default income activity.

Default Account

Allows to enter a default general ledger account to record incomes.

NOTE: Maestro* will first use the general ledger account indicated at the sale entry. If no account was specified, it will use the one in the Configuration option.

Integrate with Inventory

Allows to tell maestro* that the pieces entered in the sale entry will affect the inventory if the box is checked.

NOTES: This feature will only be applied of the work and time invoicing option is installed.

An inventory issue is automatically generated when transferring the sale.

Adjustment of Inventory

Allows to determine the operating mode when entering a sale, including catalogue items.

NOTES: This feature is will only be applied if the time and material invoicing option is installed.

Do not take into account this setting if you do not use the Catalogue Management option.

Available Values:

Immediate

Allows to immediately affect the inventory.

NOTE: Maestro* generated two entries: one entry for the sale and another for the decrease in inventory.

Deferred

Allows to defer the decrease in inventory by creating an Inventory to Project Transfer Adjustment.

NOTE: If this feature is selected, the decrease in inventory will have to be done through the Inventory to Project Transfer Adjustment option.

Unit Price Source

Allows to determine the selling unit price according to the selected method.

Available values:

Purchase Order

Project

Work No.

Estimate Number

NOTES: This feature only applies if the time and material invoicing option is installed.

The value in this field interacts with the Define Customer Pricing option, Customer section, with or without purchase orders (the first column of the grid on the right is adjusted according to the choice made here) and with the Customer Discounts Table option.

If the Tickets module is installed, this configuration will also determine the field in which the selection of tickets to display in the Deliveries, tab of the quarry and concrete quotations, will be made.

Action when entering non-existent Catalogue Items

Used to tell maestro* which action to take when an unknown item code is entered in the Sale and Point of Sale options.

NOTE: It is not absolutely required by maestro* that the item codes entered in the sale exist in the catalogue.

Available values:

Ignore

No validation of the item code is performed.

Validate

Validates if the entered catalogue item code exists. If it does not exist, a warning message will be displayed. The user can correct the item code or continue to enter the transaction and keep the unknown item code.

Block

Validates if the entered catalogue item code exists. If it does not, an error message will be displayed and the user will have to correct the unknown item code, orelse it will be impossible to save the transaction.
Selling Price is Calculated by Increasing the Cost Price Section

The settings of this option allow to specify the basis on which the selling price should be calculated when the selling price has to be determined by applying a mark-up on the cost price.

 

The following settings are identical to those found in the Configuration option of the Purchasing module, Inventory section. If you make modifications to any of these configurations, both modules will be affected.

Field

Description

UP selection to determine the selling price

Allows the user to calculate the un it price used to determine a selling price, calculated by applying an additional charge to the unit price.

NOTE: This confoguration is only applicable if the Define Customer Pricing option is used and if a Cost Rate is entered in this window. The calculated selling price will also depend on the value chosen in the Selling Price Calculation Method configuration.

Available values:

C- Average Cost

The current average cost of the item.

NOTE: if the Multimensional option is installed (Installation Options) and the Average Cost by Company configuration is activated, the calculated average cost will be based on the current prefix.

P-Last Price

Price entered in the Last Cost field in the Catalogue Management option.

S- Quotation Only

Price entered in the Quotation Price field in the Catalogue Management option.

Selling Price Calculation Method

 

Applies when the user wishes to calculate the selling price by applying an additional charge to a cost price. This additional charge is defined in Define Customer Pricing option.

NOTES: The starting price on which the additional charge is calculated is determined in the UP selection to determine the selling price configuration.

The additional cost rate or profit percentage is entered in the Define Customer Pricing option, in the Cost Rates column.

Available values:

M- Markup Rate

Applies the indicated rate to the cost price.

NOTE: For example, a $100 part can be marked up by 10%, for a selling price of $110. The equation used is: $100 * 10% + $100.

P- Profit Rate

Takes into account that the indicated rate must be the profit rate included in the selling price.

NOTE: For example, a $100 item sold with a 10% profit will have a selling price of $111.11. The equation used is: $100 / 90% (the 90% comes from 100% - 10% profit).

  1. Click on the Save icon.

Notes:

 
 
 
 
 
 
 
 
 
 

 

Checklist

Legend

Type

Description

C

Configurations to be completed

A

Approval or meeting with management

T

Tests and trial runs

 

Block AR01

No.

Type

Task

Employee

Due Date

Done

1

C

Complete the settings in the General option of the Invoicing module's Configuration option.

  • Complete the general fields;
  • Complete the Holdback Calculation Method section;
  • Complete the Release Holdback ('Standard' Method) section;
  • Complete the Cash Receipts by Invoice section.

 

 

ü

2

C

Complete the document selection in the Forms option.

 

 

 

3

C

Complete the settings in the Statement of Accounts option.

 

 

 

4

C

Complete the settings in the Customer option :

  • Complete the fields in the Billing - Customer section;
  • Complete the Generate Customer Numbers section;
  • Complete the Credit Validation section;
  • Complete the Interest Accounting section.

 

 

 

5

C

Complete the fields in the Sale option:

  • Complete the fields in the Billing - Sale section;
  • Complete the Payment Discounts section.

 

 

 

6

C

Complete the fields in the Project Receivables option:

  • Complete the fields in the Billing - Project Receivables section;
  • Complete the Selling price is calculated by increasing the cost price section.

 

 

 

7

 

 

 

 

 

8

 

 

 

 

 

9

 

 

 

 

 

10

 

 

 

 

 

 

June 06, 2024 version