Methods for entering historical accounts receivable records

Important! We strongly recommend that you work with your business partner and accounting professionals before you begin with accounts receivable startup.

You can choose from three methods of entry. Each successive method provides more detail for reports than the previous method, and requires more time to enter data. No matter which method you select, post the transaction to the period before the current posting period. For example, if you are setting up during period 7, post the records to period 6.

Method 1

For each job, enter a single and separate record for the total outstanding balance. While this method is the quickest, it has numerous limitations:

• The statements do not list the invoices.
• The agings do not reflect the invoices entered during startup because the balance is entered as a single amount.
• The detail for prime contract audits is limited.

Method 2

For each job, enter a record for the outstanding balance of each unpaid or partially paid item. When entering a partially paid invoice, make two separate entries.

Using Method 2, you enter a significant amount of information with each item.

Method 3

For each job, enter a record for each receivable invoice or credit. Not only are you entering the outstanding balances for unpaid and partially paid items, but also fully paid invoices and credits. When entering a partially paid invoice, make two separate entries.

Assign paid record status 4-Paid.

Assign open records status 1-Open.

Enter all items in chronological order so that Statements and Contract Audits display the invoices in sequence.

It is not necessary to enter the individual parts as line items in the grid. A single line containing a quantity, price, and ledger account number is all that is necessary.