Financials

F100 Financials:
Basic

Training Guide

Last Revision: 5/11/2019

Acumatica ERP 2019 R2
 | Contents | 1

Contents
Introduction............................................................................................................ 5
How To Use This Course......................................................................................... 6
Company Story........................................................................................................ 9
Part 1: Basic Company Configuration.................................................................... 11
Lesson 1.1: Configuration of a Company Without Branches................................ 11
Company Without Branches: General Information......................................... 11
Company Without Branches: To Configure a Company Without Branches.......... 13
Lesson 1.2: Configuration of the General Ledger.............................................. 15
General Ledger: Actual Ledger................................................................... 15
General Ledger: To Create an Actual Ledger................................................ 16
General Ledger: Chart of Accounts............................................................. 16
General Ledger: To Create a Chart of Accounts............................................ 18
General Ledger: To Specify a General Ledger Preferences.............................. 19
General Ledger: Financial Years..................................................................20
General Ledger: To Define a Financial Year.................................................. 21
Lesson 1.3: Configuration of Cash Management............................................... 22
Cash Management: To Specify Cash Management Preferences........................ 23
Cash Management: Entry Types................................................................. 24
Cash Management: To Create an Entry Type................................................ 24
Cash Management: Cash Accounts............................................................. 25
Cash Management: To Create Cash Accounts............................................... 26
Cash Management: Payment Methods......................................................... 27
Cash Management: To Modify a Payment Method..........................................28
Lesson 1.4: Configuration of Credit Terms....................................................... 29
Credit Terms: General Information..............................................................29
Credit Terms: To Define Credit Terms.......................................................... 30
Lesson 1.5: Configuration of Accounts Payable................................................. 31
Accounts Payable: Vendor Classes.............................................................. 31
Accounts Payable: To Create a Vendor Class................................................ 31
Accounts Payable: To Specify Accounts Payable Preferences........................... 33
Lesson 1.6: Configuration of Accounts Receivable............................................. 34
Accounts Receivable: Statement Cycles....................................................... 34
Accounts Receivable: To Create a Statement Cycle....................................... 34
Accounts Receivable: Customer Classes.......................................................35
Accounts Receivable: To Create a Customer Class.........................................36
Accounts Receivable: To Specify Accounts Receivable Preferences................... 37
Part 2: General Ledger—Working with Batches..................................................... 39
Lesson 2.1: Processing Transactions............................................................... 39
Processing Transactions: General Information...............................................39
 | Contents | 2

Processing Transactions: Mass-Processing.................................................... 42

Processing Transactions: Process Activity..................................................... 42
Processing Transactions: Related Reports and Inquiries................................. 44
Lesson 2.2: Reversing Transactions................................................................ 45
Reversing Transactions: General Information................................................45
Reversing Transactions: Generated Transactions........................................... 48
Reversing Transactions: Process Activity...................................................... 48
Reversing Transactions: Reports and Inquiries.............................................. 50
Lesson 2.3: Reclassifying Transactions............................................................ 50
Reclassifying Transactions: General Information............................................50
Reclassifying Transactions: Generated Transactions....................................... 53
Reclassifying Transactions: Process Activity..................................................53
Reclassifying Transactions: Reports and Inquiries..........................................56
Lesson 2.4: Adjusting Transactions................................................................. 56
Adjusting Transactions: General Information................................................ 56
Adjusting Transactions: Generated Transactions............................................59
Adjusting Transactions: Process Activity...................................................... 59
Adjusting Transactions: Reports and Inquiries.............................................. 61
Lesson 2.5: Processing Recurring Transactions................................................. 61
Recurring Transactions: General Information................................................ 61
Recurring Transactions: Mass-Processing..................................................... 65
Recurring Transactions: Process Activity...................................................... 65
Recurring Transactions: Reports and Inquiries.............................................. 68
Part 3: Accounts Payable Process......................................................................... 69
Lesson 3.1: Configuring a Vendor...................................................................69
Configuring a Vendor: General Information.................................................. 69
Configuring a Vendor: Implementation Activity............................................. 70
Configuring a Vendor: Related Reports and Inquiries..................................... 72
Lesson 3.2: Configuring a Non-Stock Item...................................................... 74
Configuring a Non-Stock Item: General Information...................................... 74
Configuring a Non-Stock Item: Implementation Activity.................................76
Configuring a Non-Stock Item: Related Forms.............................................. 78
Lesson 3.3: Processing AP Bills...................................................................... 78
Processing AP Bills: General Info................................................................ 78
Processing AP Bills: Generated Transactions................................................. 82
Processing AP Bills: Mass Processing and Document Consolidation...................82
Processing AP Bills: Process Activity............................................................82
Processing AP Bills: Related Reports and Inquiries........................................ 84
Lesson 3.4: Paying AP Bills............................................................................85
Paying AP Bills: General Information........................................................... 85
Paying AP Bills: Generated Transactions...................................................... 91
 | Contents | 3

Paying AP Bills: Mass Processing of Documents............................................ 91

Paying AP Bills: Process Activity................................................................. 91
Paying AP Bills: Related Reports and Inquiries..............................................93
Lesson 3.5: Correcting AP Bills...................................................................... 94
Processing Debit and Credit Adjustments: General Information.......................94
Processing Debit and Credit Adjustments: Mass Processing............................ 97
Processing a Debit Adjustment: Process Activity........................................... 97
Processing a Credit Adjustment: Process Activity.......................................... 99
Processing Debit and Credit Adjustments: Related Reports and Inquiries........ 101
Lesson 3.6: Paying Multiple Bills................................................................... 101
Paying Multiple Bills: General Information.................................................. 101
Paying Multiple Bills: Generated Transactions..............................................104
Paying Multiple Bills: Process Activity........................................................ 105
Paying Multiple Bills: Related Reports and Inquiries..................................... 108
Lesson 3.7: Processing Prepayments.............................................................108
Processing Prepayments: General Information............................................ 108
Processing Prepayments: Generated Transactions....................................... 113
Processing Prepayments: Mass Processing of Documents............................. 113
Processing Prepayments: Process Activity.................................................. 113
Processing a Refund for a Prepayment: Process Activity............................... 117
Processing Prepayments: Related Reports and Inquiries............................... 119
Part 4: Accounts Receivable Process...................................................................121
Lesson 4.1: Configuring a Customer............................................................. 121
Configuring a Customer: General Information.............................................121
Configuring a Customer: Implementation Activity....................................... 122
Configuring a Customer: Related Reports and Inquiries................................124
Lesson 4.2: Working with AR Invoices........................................................... 125
Working with AR Invoices: General Information.......................................... 126
Working with AR Invoices: Generated Transactions......................................131
Working with AR Invoices: Process Activity................................................ 131
Working with AR Invoices: Related Reports and Inquiries............................. 133
Lesson 4.3: Paying AR Invoices.................................................................... 134
Paying AR Invoices: General Information................................................... 134
Paying AR Invoices: Generated Transactions...............................................139
Paying AR Invoices: Mass Processing.........................................................139
Paying AR Invoices: Process Activity......................................................... 142
Paying AR Invoices: Related Reports and Inquiries...................................... 143
Lesson 4.4: Correcting AR Invoices...............................................................144
Correcting AR Invoices: General Information.............................................. 144
Correcting AR Invoices: Generated Transactions..........................................146
Creating a Credit Memo: Process Activity...................................................148
 | Contents | 4

Creating a Debit Memo: Process Activity....................................................150

Correcting AR Invoices: Related Reports and Inquiries................................. 151
Part 5: Cash Transactions and Bank Reconciliation............................................. 153
Lesson 5.1: Processing a Cash Entry.............................................................153
Cash Entries: General Information............................................................ 153
Cash Entries: To Create a Disbursement Cash Entry.................................... 155
Lesson 5.2: Performing a Funds Transfer....................................................... 157
Funds Transfers: General Information........................................................157
Funds Transfers: To Record a Funds Transfer.............................................. 159
Lesson 5.3: Reconciling a Cash Account........................................................ 162
Bank Reconciliation: General Information...................................................162
Bank Reconciliation: Uploading and Processing Bank Transactions................. 165
Bank Reconciliation: To Process a Bank Statement in OFX Format and Reconcile a
Cash Account......................................................................................... 167
Part 6: General Ledger—Period-End and Year-End Procedures............................ 174
Lesson 6.1: Closing Financial Periods............................................................ 174
Closing Financial Periods: General Information............................................174
Closing Financial Periods in a Subledger: Process Activity.............................179
Closing Financial Periods in Subledgers and GL: Process Activity................... 180
Closing Financial Periods: Related Reports and Inquiries.............................. 182
Lesson 6.2: Generating Financial Calendar for a New Financial Year...................182
Financial Calendar for a New Financial Year: General Information.................. 182
Financial Calendar for a New Financial Year: Process Activity........................ 183
 | Introduction | 5

Introduction
This course consists of five parts, each part providing a set of lessons that illustrate the
basic financial management processes in a midsize company. In the course, you will learn
how to work with GL batches, AR documents, AP documents, run reports, perform bank
reconciliation and period-end and year-end procedures.

After you complete the course, you will have an understanding of how to perform basic
operations in the general ledger, accounts payable, and accounts receivable subledgers
Acumatica ERP and how to manage financial periods in a particular company.

While completing this course, you will use Acumatica ERP with all features available
under the trial license. For production, each particular feature might be subject to
additional licensing; please consult the Acumatica ERP sales policy for details.

The lessons are independent and can be completed in any order. Several lessons in the
course are optional and can be skipped. Some lessons contain self-test exercises that you
can complete based on the information given in the lessons.
 | How To Use This Course | 6

How To Use This Course

This course is to complete on Acumatica ERP 2019 R2. For this course, ask your system
administrator to deploy an instance of Acumatica ERP for training and to create a tenant and
preload the U100 data set to it; this data set provides the preconfigured settings and entities
you will need as you complete the course. (You can find detailed instructions on creating a
tenant below.)

You add a company with the U100 data set as described in How to Create a Company on an
Acumatica ERP Instance With the Needed Data.

Follow these steps to complete the course:

1. Prepare an Acumatica ERP 2019 R2 instance.

2. In the company with the U100 dataset, complete the lessons of the guide.

3. Take the assessment tests at Acumatica University.

4. Complete course survey at Acumatica University to finish the course and get the
Acumatica University certificate of course completion.

What Is in a Guide?

The guide includes the Company Story topic and lessons, including general information and
activity related to the lesson. Company Story explains the organizational structure of the
companies preconfigured in the U100 dataset, as well as the company's business processes
and requirements. General information topics provide overviews of the processes that are
performed in Acumatica ERP. Each of the lessons of the course is dedicated to a particular
user scenario and consists of processing steps that you complete.

What Is in a Configuration Lesson?

A lesson dedicated to configuring system settings and entities typically includes general
information that provides a brief overview of required system configuration and description
of other settings that could affect workflow. Also, the lesson could provide information about
reports and inquiry forms that can be used for gathering information. Each lesson includes
an implementation activity that you have to complete in your Acumatica ERP instance to
configure the core system settings, or prepare system entities.

What Is in a Process Lesson?

A lesson dedicated to performing a particular business process typically includes general

information, provides a brief overview of settings and entities that are required to be
prepared in the system before you start to perform the business process. Also, the lesson
could provide information about reports and inquiry forms that can be used for gathering
information related to a described business process and transactions generated during
performing a business process. Each lesson includes a process activity that you have to
complete in your Acumatica ERP instance to learn how to perform the described business
process.
 | How To Use This Course | 7

What Are the Documentation Resources?

The complete Acumatica ERP documentation is available on https://help.acumatica.com/ and is

included in the Acumatica ERP instance. While viewing any form used in the course, you can
click the Help button on the top pane to bring up a form-specific help menu; you can use
the links on this menu to quickly access form-related concepts and procedures and to open a
reference topic with detailed descriptions of the form elements.

How to Create a Tenant with an Out-of-the-Box Company

To add to an existing Acumatica ERP instance a tenant with an out-of-the-box company,

perform the following instructions:

1. Launch the Acumatica ERP instance, and sign in.

2. Open the Tenants (SM203520) form, and click Add New Record on the form toolbar.

3. In the Login Name box, type a name to be used for the tenant.

4. On the form toolbar, click Save.

The system creates the tenant.

5. Sign out of the current tenant.

You are now on the Welcome page and you can sign in to the tenant you have just
created.

How to Create a Tenant with the U100 Dataset

To add to an existing Acumatica ERP instance the tenant with the U100 dataset, which is
required for the completion of this course, perform the following instructions:

1. Go to Amazon Storage (the builds/19.2/ folder).

2. Open the folder of your Acumatica ERP instance version.

3. In this folder, open the Snapshots folder, and download the u100.zip file.

4. Launch the Acumatica ERP instance, and sign in.

5. Open the Tenants (SM203520) form, and click Add New Record on the form toolbar.

6. In the Login Name box, type a name to be used for the tenant.

7. On the form toolbar, click Save.

8. On the Snapshots tab, click Import Snapshot.

9. In the Upload Snapshot Package dialog box, select the u100.zip file, which you have
downloaded, and click Upload.

The system uploads the snapshot to the Snapshots tab of the Tenants form.
 | How To Use This Course | 8

10.On the form toolbar, click Restore Snapshot.

11.If the Warning dialog box appears, click Yes.

12.In the Restore Snapshot dialog box, make sure that the correct snapshot package is
being uploaded, and click OK.

13.Sign out of the current tenant.

You are now on the Welcome page, and you can sign in to the tenant you have just
created.

Licensing Info

For the educational purposes of this course, you will use Acumatica ERP under the trial
license, which doesn't require activation and provides all available features. For production,
you have to activate the purchased license; each particular feature may be a subject to
additional licensing; please consult the Acumatica ERP sales policy for details.
 | Company Story | 9

Company Story
This topic explains the organization structure and operational activity of the company with
which you will work during this training.

Company Structure

The SweetLife Fruits & Jams company is a midsize company located in New York. The
company consists of the following branches:

• SweetLife Office and Wholesale Center: This branch of the company owns a jam
factory and a large warehouse where fruit (purchased from wholesale vendors) and the
produced jam are stored.

• SweetLife Store: This branch has a retail shop with a small warehouse, to which the
goods are distributed from the company's main warehouse.

• Service and Equipment Sale Center: This branch is a service center with a small
warehouse where juicers are stored. This branch sells juicers, installs juicers, trains
customer's employees to operate juicers, and provides juicer servicing.

Operational Activity

The company has been operating starting in the 01-2018 financial period. In November
2018, the company started using Acumatica ERP as an ERP and CRM system and migrated
all data of the main office and retail store to Acumatica ERP. As the company grows, the
equipment center starts working from 01-2019.

Company Purchases

The company purchases fruits and spices for sale and for jam production from large fruit
vendors. For producing jams and packing jams and fruits, the company purchases jars,
labels and paper bags from various vendors. For internal needs of the main office and store,
the company purchases stationery (printing paper, pens, and pencils), computers, and
computer accessories from various vendors. The company also purchases juicers for sale
from a large juicer vendor and purchase the installation service of juicers.

Company Sales and Services

Each company's branch has its own business processes, as follows:

• SweetLife Office and Wholesale Center: In this branch, jams and fruit are sold to
wholesale customers, such as restaurants and cafés. The company also conducts home
canning training at customer's place, or webinars at the company's website.

• SweetLife Store: In the store, small retail customers purchase fresh fruit, berries,
and jams, or pick the goods ordered on the website. Some of the goods listed in the
website catalog are not stored in the retail warehouse, such as tropical fruits (which are
purchased on demand), and tea (which are drop-shipped from a third-party vendor).
 | Company Story | 10

• Service and Equipment Sale Center: This branch sells juicers, provides training on
equipment use, and offers equipment installation including site review and maintenance
services.

The company has local and international customers. The ordered items are delivered by
company's own vehicle or using the third-party nationwide carrier (USPS). Customers can
pay for order by cash, check, or credit card.

Customer Relationship Management

The company needs to handle a large number of customers, both current and potential, to
maximize sales opportunities. All customers of the company can be divided into the following
two types:

• End customers: Organizations that buy goods from the company and use its services

• Referral partners: Partner organizations that endorse the goods and services of the
company

Potential customers of each of these types should be analyzed and processed differently, in
accordance with the qualification process adopted by the company.

In its pursuit of new potential customers, the marketing department of the company
generates a host of leads from various sources: It purchases lists of leads from third
parties; it receives direct phone calls and emails from leads attracted by marketing
campaigns or referrals, and the company’s website invites any user who is interested in the
offered services to fill in an online form, which results in yet more leads. Thus, organizing
information meaningfully is among the department’s highest priorities.

Furthermore, the marketing department needs to facilitate the process of assigning leads to
sales personnel for qualification.

The sales department of the company aims to create as many opportunities as possible and
then bring these opportunities to actual sales. To increase repeated sales and to attract new
leads, the company runs frequent marketing campaigns and sends company newsletters and
special offers targeted at specific audiences.
 | Part 1: Basic Company Configuration | 11

Part 1: Basic Company Configuration

This part of the training illustrates the operations that are necessary to implement the basic
configuration of a company without branches.

For completing a lesson of this part of the course, you will use an empty company, and you
will complete an implementation activity under an administrator.

Lesson 1.1: Configuration of a Company Without

Branches

Company Without Branches: General Information

When you initially implement Acumatica ERP, you perform the company configuration that
makes it possible for system implementation to proceed. This configuration includes enabling
the default set of features and configuring the company in the system. You can proceed to
further Acumatica ERP implementation, which includes specifying the basic settings related
to the general ledger and to cash management, accounts payable, and accounts receivable.

When you configure a company in Acumatica ERP, it can be defined as being without
branches, as consisting of branches that require balancing entries (if transactions involve
multiple branches), or as having branches that do not require balancing entries. The topics
of this chapter describe the configuration of a company without branches.

Learning Objectives

In this chapter, you will learn how to do the following:

• Enable the default set of features before you start the configuration of a company

• Perform the configuration of a company without branches

Applicable Scenarios

You configure a company without branches if the company has only one business location.
You perform this company configuration as a first phase of the implementation of Acumatica
ERP, before the entities needed for business processes are created. You can also add a new
company without branches to the existing companies in an existing tenant at any time.

Workflow of the Configuration of a Company Without Branches

To implement the basic configuration of a company without branches in Acumatica ERP, you
perform the following general steps:

1. On the Enable/Disable Features (CS100000) form, you enable the default set of features.
For details, see Company Without Branches: To Configure a Company Without Branches.
 | Part 1: Basic Company Configuration | 12

In a production environment, after the features are enabled, you have to activate
the Acumatica ERP license by using the Activate License (SM201510) form. Each
particular feature may be subject to additional licensing; please consult the
Acumatica ERP sales policy for details.

2. On the Companies (CS101500) form, you create the company entity in the system; you
also create its actual ledger. For details, see Company Without Branches: To Configure a
Company Without Branches and General Ledger: To Create an Actual Ledger.

3. On the Chart of Accounts (GL202500) form, you add the accounts that are necessary for
performing the financial operations of the company, as described in General Ledger: To
Create a Chart of Accounts.

4. On the General Ledger Preferences (GL102000) form, you specify the settings for
processing transactions in the general ledger. For details, see General Ledger: To Specify a
General Ledger Preferences.

5. On the Financial Year (GL101000) form, you set up the first financial year when the
company starts processing its operations in Acumatica ERP. You then generate periods
on the Master Financial Calendar (GL201000) form and open them on the Manage Financial
Periods (GL503000) form. For more information, see General Ledger: To Define a Financial
Year.

6. On the Cash Management Preferences (CA102000) form, you specify the settings to be
used in the system for processing cash transactions. For details, see Cash Management: To
Specify Cash Management Preferences.

7. On the Entry Types (CA203000) form, you add the necessary entry types for processing
cash payments. For details, see Cash Management: To Create an Entry Type.

8. On the Cash Accounts (CA202000) form, you define the cash accounts to be used to
record cash entries and funds transfers. For more information, see Cash Management: To
Create Cash Accounts.

9. On the Payment Methods (CA204000) form, you define the payment methods that the
company uses to pay its vendors, as well as the payment methods that are used by
customers to pay the company. For more information, see Cash Management: To Modify a
Payment Method.

10.On the Credit Terms (CS206500) form, you create the sets of credit terms that are
commonly used by vendors in their relations with the company and by the company in its
relations with customers. These will be assigned to particular vendors and customers and
specified in their bills and invoices, respectively. For more information, see Credit Terms:
To Define Credit Terms.

11.On the Vendor Classes (AP201000) form, you create the default vendor class, which will
provide default values for vendor accounts of the class and for other vendor classes you
create later. For details, see Accounts Payable: To Create a Vendor Class.

12.On the Accounts Payable Preferences (AP101000) form, you specify the settings to be used
in accounts receivable. See Accounts Payable: To Specify Accounts Payable Preferences for
more information.
 | Part 1: Basic Company Configuration | 13

13.On the Statement Cycles (AR202800) form, you define the necessary statement cycles
to track customers' outstanding balances, as described in Accounts Receivable: To Create
a Statement Cycle. These cycles will be used later, when you are sending electronic or
printed statements to the customers.

14.On the Customer Classes (AR201000) form, you create the default customer class, which
will provide default values for customer accounts and for other customer classes you
create later. For details, see Accounts Receivable: To Create a Customer Class.

15.On the Accounts Receivable Preferences (AR101000) form, you specify the settings to
be used in accounts receivable. See Accounts Receivable: To Specify Accounts Receivable
Preferences for more information.

Company Settings

In Acumatica ERP, you can create new companies or maintain existing companies by using
the Companies (CS101500) form. A company may have no branches, or it may consist of
multiple branches, with each being a separate office or point of sale.

To configure the company without branches, you have to specify the company's identifier,
name, address, units of measure, and ensure that the Without Branches type is selected
on the Companies form. You have to specify the company's identifier, name, address, and
units of measure. You also specify the base currency of the company, which you cannot
change after you save the newly created company for the first time. If you create multiple
companies in the tenant, this base currency will be used automatically for all companies and
cannot be changed.

After the company has been configured, the Without Branches company type can still be
changed to With Branches Not Requiring Balancing and With Branches Requiring Balancing
at any time. (If the Multi-Branch Support feature is selected on the Enable/Disable Features
(CS100000) form.)

Company Without Branches: To Configure a Company

Without Branches
In this activity, you will learn how to enable the minimum set of features and define settings
for a company without branches.

Story

Suppose that as an administrator, you are going to start configuring a new company without
branches in Acumatica ERP. The company is going to use the default features. You need to
enable these features and then you need to configure a company entity in Acumatica ERP for
the SweetLife Fruits & Jams company, which at this time has only one office in New York.

System Preparation

Before you start configuring a company without branches, sign in to a tenant with the out-
of-the-box company as a system administrator with the admin login and password.
 | Part 1: Basic Company Configuration | 14

Step 1: Enabling the Minimum Set of Features

To enable the minimum set of features, do the following:

1. Open the Enable/Disable Features (CS100000) form.

2. On the form toolbar, click Enable to enable the default set of features, for which
the corresponding check boxes have been selected on the form. This set of features
consists of Finance, Standard Financials, Centralized Period Management, Monitoring &
Automation, Scheduled Processing, Workflow Automation, GDPR Compliance Tools, and
Third-Party Integrations.

In a production environment, after the features are enabled and before you proceed with
implementation, you have to activate the Acumatica ERP license by using the Activate License
(SM201510) form. In this practice activity, you are using Acumatica ERP under the trial
license, which doesn't require activation and provides all available features.

Step 2: Defining a Company Without Branches

To configure the company without branches for SweetLife, do the following:

1. Open the Companies (CS101500) form.

2. In the Summary area, specify the following settings:

• Company ID: SWEETLIFE

• Company Name: SweetLife Fruits & Jams

In the Company Type box, notice that Without Branches is selected; you will leave this
default setting.

3. In the Main Address section of the Company Details tab, specify the following address
settings:

• City: New York

• Country: US - United States of America

• State: NY - New York

4. In the Base Currency Settings (Shared) section, specify USD in the Base Currency
ID box.

The system fills in the Description, Currency Symbol, and Decimal Precision boxes
automatically, based on the currency you have selected.

The settings you specify in this area for the first company in the tenant will be
applied to all companies in the tenant. After you specify the base currency and
save your changes, the base currency cannot be overridden.

5. In the Miscellaneous Settings (Shared) section, specify the following settings:

 | Part 1: Basic Company Configuration | 15

• Price/Cost Decimal Places: 2

• Weight UOM: KG

• Volume UOM: LITER

If you later add additional companies to the tenant, the settings you specify in
this area for the first company in the tenant will be applied to all companies in the
tenant.

6. On the form toolbar, click Save.

On the same form, you can now create an actual ledger for the company you have created.
For details, see General Ledger: To Create an Actual Ledger.

Lesson 1.2: Configuration of the General Ledger

General Ledger: Actual Ledger

In Acumatica ERP, a ledger of the Actual type is at the core of your company’s financial
records. The records in the actual ledger make up the history of all financial transactions of
your organization. The system updates the actual ledger every time you release and post a
financial transaction in the system.

In this topic, you will read about creating actual ledgers in the system.

Creation of an Actual Ledger

You can specify only one ledger of the Actual type for each company. You add a new actual
ledger in either of the following ways:

• To first add a new ledger and then associate it with existing companies and branches,
you use the Ledgers (GL201500) form. After you create the actual ledger, you can
associate it with existing companies in the system.

• To first create a new company and then add a new ledger, you use the Companies
(CS101500) form. (You create the ledger directly on this form.)

If you have multiple companies, they can use the same ledger of the Actual type, or they
can use different ledgers, depending on the transaction processing requirements of your
organization and its organizational structure.
 | Part 1: Basic Company Configuration | 16

You cannot delete a ledger or change its currency or type if the ledger has any journal
entries or other records.

General Ledger: To Create an Actual Ledger

In this activity, you will learn how to create an actual ledger for a company in Acumatica
ERP.

Story

Suppose that as an administrator, you need to create an actual ledger that will hold the
history of all financial transactions of the SweetLife Fruits & Jams company.

System Preparation

Before you start adding an actual ledger, make sure that the company you plan to associate
with this actual ledger has been created, as described in Implementing the General Ledger.

Step: Creating an Actual Ledger

Perform the following instructions to create the actual ledger to be used by the company:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Companies (CS101500) form.

3. In the Company ID box, select SWEETLIFE.

4. On the form toolbar, click Create Ledger.

5. In the Create Ledger dialog box, which opens, in the Ledger ID box, type ACTUAL.

6. Click Create.

The system creates and saves the ledger and closes the dialog box.

7. On the Ledgers tab, verify that the ledger you have created is listed in the table.

General Ledger: Chart of Accounts

Each company has its own structured list of general ledger accounts. Acumatica ERP
provides you with the ability to define a chart of accounts that suits your company's needs.
To define the chart of accounts in the system, you have to perform the following tasks:

1. Plan account identifiers if they have not yet been defined for the configured company

2. Modify the ACCOUNT segmented key based on your planned structure, if necessary

3. Add accounts to the chart of accounts (including the Retained Earnings and YTD Net
Income accounts)
 | Part 1: Basic Company Configuration | 17

4. Optional: Restrict user access to accounts

Account Classes

For convenient grouping, sorting, and filtering of information associated with GL accounts
in reports and inquiries, you can assign accounts to account classes on the Chart of Accounts
(GL202500) form. Acumatica ERP provides predefined account classes, which can be
modified if needed, and you can add new account classes on the Account Classes (GL202000)
form. For details on how to create an account class in the system, see To Create an Account
Class.

Before you add accounts to the chart of accounts, you should review the predefined account
classes and learn about the capabilities of account classes, so you can determine which
classes to assign to accounts.

Entry of Chart of Accounts

In Acumatica ERP, you define the chart of accounts on the Chart of Accounts (GL202500)
form. When you define the chart of accounts, you assign to each account a name, a unique
identifier, and an account type. You can prepare the chart of accounts in an .xlsx or .csv file
and upload the file to the system. Alternatively, you can add accounts individually.

Mandatory Accounts

In Acumatica ERP, you must create two system-maintained accounts of the Liability type:
YTD (Year-to-Date) Net Income and Retained Earnings. Once you have created these
accounts, you need to specify them on the General Ledger Preferences (GL102000) form.

The YTD Net Income account tracks the net income that has been accumulated since the
beginning of the financial year—that is, the difference between the amounts that have
been posted to all income accounts and the amounts that have been posted to all expense
accounts. The system updates this account for every transaction posted to an income or
expense account. For a new financial year, the system resets the balance of the YTD Net
Income account to zero.

Users cannot post transactions directly to the YTD Net Income account. After any
transaction has been posted to an income or expense account, the selected YTD Net
Income account cannot be changed in the YTD Net Income Account box on the
General Ledger Preferences form.

When the system updates the balance of the YTD Net Income account, it also updates the
beginning balance of the Retained Earnings account in the next financial year for which
financial periods are defined. The Retained Earnings account accumulates the net income
or loss that is retained by the company. Retained earnings are summarized over all years,
starting with the first year of company operations in Acumatica ERP. Users can also post
direct transactions to this account, such as dividends paid to shareholders. This account is
normally reported in the Shareholders' Equity section of the balance sheet.
 | Part 1: Basic Company Configuration | 18

General Ledger: To Create a Chart of Accounts

In this activity, you will learn how to modify the ACCOUNT segmented key. You will also
define the chart of accounts by uploading a list of GL accounts to the system.

Story

Suppose that as an administrator, you need to add the chart of accounts of the SweetLife
Fruits & Jams company to Acumatica ERP. Further suppose that an accountant of the
company has provided a file that lists the GL accounts to be used and their settings
(including the account classes; you will use the predefined classes). You will review the
list of accounts, modify the ACCOUNT segmented key, and create the chart of accounts by
uploading the file provided by the accountant.

System Preparation

Before you start defining the chart of accounts in the system, make sure that the following
tasks have been performed in the system:

1. The company with an actual ledger has been created; see Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.

2. Download the Basic_Company_COA file with the chart of accounts of the SweetLife
company.

Step 1: Modifying the ACCOUNT Segmented Key

To modify the ACCOUNT segmented key, do the following:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Review the Basic_Company_COA file that you have downloaded. Notice that the account
identifiers consist of only one segment of six characters.

3. Open the Segmented Keys (CS202000) form.

4. In the Segmented Key ID box, select ACCOUNT.

5. For the only row in the table, in the Length column, specify 6.

6. On the form toolbar, click Save.

Users can use account identifiers that are no longer than the specified length for the
segmented key.

Step 2: Uploading the Company's GL Accounts

You can create the chart of GL accounts in any system by entering the accounts manually
or by uploading a file that lists them. In this activity, you will upload the file that SweetLife's
accountant has provided. Do the following to upload the chart of accounts:

1. Open the Chart of Accounts (GL202500) form.

 | Part 1: Basic Company Configuration | 19

2. On the form toolbar, click Load Records from File.

3. In the File Upload dialog box, which opens, select the file path to the
Basic_Company_COA file, and click Upload.

4. In the Common Settings dialog box, which opens, leave the default settings, and click
OK.

5. In the Columns dialog box, leave the current mapping, and click OK.

6. On the form toolbar, click Save.

You should review the chart of accounts, which now includes all the necessary accounts,
including two accounts that are required for Acumatica ERP: Year-to-Date Net (YTD) Income
(33000) and Retained Earnings (32000).

• 20000: The account to be used to record amounts owed to vendors for items and
services purchased on credit. This account will later be specified as the AP account.

• 11000: The account to be used to record amounts owed by customers for services
provided to them on credit. This account will later be specified as the AR account.

• 10500: The account to be used as the intermediate account for funds transfers. This
account will later be specified as the cash-in-transit account.

General Ledger: To Specify a General Ledger Preferences

In this activity, you will learn how to specify the basic settings to be used for general ledger
functionality.

Story

Suppose that a company with an actual ledger has been created and a chart of accounts
has been defined in Acumatica ERP. Acting as an administrator, you need to specify the
preference settings related to general ledger functionality. You will specify the accounts that
are mandatory for the system and other settings that make it easier for users to create
entities in the system.

System Preparation

Before you start specifying the general ledger preference settings, make sure that the
following tasks have been completed in the system:

1. The company has been created and its actual ledger has been specified; see Company
Without Branches: To Configure a Company Without Branches and General Ledger: To Create an
Actual Ledger.

2. The Year-to-Date (YTD) Net Income and Retained Earnings accounts have been added to
the chart of accounts, as described in General Ledger: To Create a Chart of Accounts.
 | Part 1: Basic Company Configuration | 20

Step: Specifying the General Ledger Preference Settings

You specify the basic settings related to processing general ledger transactions as follows:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the General Ledger Preferences (GL102000) form.

3. In the YTD Net Income Account box in the Chart of Accounts Settings section,
select 33000 - Net Income. This is a required setting for a company.

4. In the Retained Earnings Account box, select 32000 - Retained Earnings. This setting
is also required for a company.

5. On the form toolbar, click Save.

6. In the Posting Settings section, make sure the Automatically Post on Release check
box is selected.

All batches will be automatically posted to the general ledger after release. This setting
simplifies batch processing, because no batches with an Unposted status will be
generated.

7. In the Data Entry Settings section, clear the Hold Batches on Entry check box.

When new batches are saved, they have the Balanced status. This setting also simplifies
the processing of batches.

8. On the form toolbar, click Save.

General Ledger: Financial Years

In Acumatica ERP, transactions are posted to the financial periods that have been defined
in the system. Thus, before any transactions are posted, you have to define the structure
of the financial year in the system. Based on this structure of the financial year, you can
generate periods for any number of financial years and then open the periods.

Financial Year Setup

You define the financial year on the Financial Year (GL101000) form by doing the following:

1. You decide which year should be the first year, and specify it in the system. The first
financial year usually designates the year when the company starts processing its
operations in Acumatica ERP. However, we recommend that you define the first financial
year so that it includes the last period before the company started to use Acumatica ERP,
even if this means defining an extra financial year.

You can upload the ending balances of accounts to that period later, after periods have
been defined.

2. You define the structure of the financial year that your company will use—that is, you
define the periods of the year in the system.
 | Part 1: Basic Company Configuration | 21

3. If it is necessary to have a special period for posting adjustments at the end of the year,
you add an adjustment period.

After you have set up the financial year, you need to generate a master calendar.

Master Calendar Generation

You generate a master financial calendar on the Master Financial Calendar (GL201000) form for
any number of financial years by clicking Generate Calendar on the form toolbar.

After periods have been generated, you can modify them before any transactions have been
made. To do so, you select the User-Defined Periods check box.

After you have generated the master calendar, you open any number of periods for posting.

Period Opening

You have to open the periods to which users will post transactions and documents. To open
periods, on the Master Financial Calendar (GL201000) form, you first make sure the necessary
year is selected in the Financial Year box, and then click Actions > Open Periods on the
form toolbar.

After you have opened periods, they can be used in transactions and documents. At any
time, you can have multiple open periods; opening one period does not require you to close
the previous one.

General Ledger: To Define a Financial Year

In this activity, you will learn how to set up a financial year, generate periods for the first
year, and open the generated periods.

Story

Suppose that the SweetLife company starts its operations in January 2019, each of its
financial periods lasts one month, and an additional period for posting adjustments is
necessary. Acting as an administrator, you need to set up the financial year that meets these
criteria, generate periods for the financial year, and open them.

Initial Steps

Before you start defining the financial year, make sure that the company with an actual
ledger has been created, as described in Company Without Branches: To Configure a Company
Without Branches and General Ledger: To Create an Actual Ledger.

Step 1: Setting Up a Financial Year

To set up the first financial year, you do the following:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Financial Year (GL101000) form.

 | Part 1: Basic Company Configuration | 22

3. In the Financial Year Starts On box of the Summary area, select 1/1/2019.

4. In the Period Type box, make sure Month is selected.

5. Select the Has Adjustment Period check box.

6. On the form toolbar, click Create Periods.

7. Click Save to save the settings of the financial year.

Step 2: Generating Periods for the First Financial Year

To generate the financial periods for the first financial year, you do the following:

1. Open the Master Financial Calendar (GL201000) form.

2. In the Financial Year box of the Summary area, make sure 2019 is selected.

3. On the form toolbar, click Generate Calendar.

4. In the Generate GL Calendars dialog box, which opens, make sure that 2019 is
selected in the From Year and To Year box, and click OK.

The system generates periods for the 2019 financial year.

We do not recommend generating financial periods far into the future, because
this limits and complicates any changes to the configuration of the financial year
that may be needed due to organizational changes.

Step 3: Opening the Periods

To open the periods you have generated, you do the following:

1. While you are still on the Master Financial Calendar (GL201000) form, on the form toolbar,
click Actions > Open Periods.

The Manage Financial Periods (GL503000) form opens with the Open option selected in the
Action box of the Summary area.

2. On the form toolbar, click Process All.

The system opens the Processing dialog box and runs the process of opening periods.

3. Close the Processing dialog box.

Lesson 1.3: Configuration of Cash Management

 | Part 1: Basic Company Configuration | 23

Cash Management: To Specify Cash Management

Preferences
In this activity, you will learn how to specify the basic settings to be used for the cash
management functionality.

Story

Suppose that the SweetLife company with an actual ledger has been created and the
company's chart of accounts has been defined in Acumatica ERP. Acting as an administrator,
you need to specify the cash management preference settings. You will specify the cash-in-
transit account to be used, which is mandatory in the system, and the settings that make it
easier for users to create entities when using the cash management functionality.

System Preparation

Before you start specifying the cash management preference settings, make sure that the
following tasks have been performed in the system:

1. The company has been created and its actual ledger has been specified; see Company
Without Branches: To Configure a Company Without Branches and General Ledger: To Create an
Actual Ledger.

2. The account that you plan to specify as the cash-in-transit account, as described in
General Ledger: To Create a Chart of Accounts.

Step: Specifying the Cash Management Preferences

You specify the basic settings the system will use for the cash management functionality as
follows:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Cash Management Preferences (CA101000) form.

3. In the Cash-In-Transit Account box of the Reconciliation Settings section, select

the 10500 - Cash in Transit account.

This account is the only cash management setting that is required for a company.

4. In the Posting and Release Settings section, make sure the Automatically Post to
GL on Release check box is selected.

With this setting, all cash transactions will be automatically posted to the general ledger
after release.

5. In the Data Entry Settings section, clear the Hold Transactions on Entry check box.

With this setting, when new cash documents are saved, they have the Balanced status,
which simplifies the processing of these documents.
 | Part 1: Basic Company Configuration | 24

6. Clear the Require Document Ref. Nbr. on Entry check box.

This setting prevents users from having to specify a reference number for cash
transactions and deposits created in the system.

7. On the form toolbar, click Save.

Cash Management: Entry Types

In Acumatica ERP, you use entry types to classify cash transactions for correct processing
and to provide default values for transaction settings.

Entry Types

An entry type functions like a transaction template, providing default values for a transaction
and indicating how the transaction should be processed in the system. When you define an
entry type on the Entry Types (CA203000) form, you specify the type of transactions and
documents for which the entry type can be used in the Module column, selecting one of the
following options:

• CA (default option): The entry type that is used for creating cash entry transactions
(receipts and disbursements) or recording bank service charges on cash management,
accounts receivable, and accounts payable forms. These transactions affect the balances
of GL accounts only; that is, they do not affect customer or vendor balances.

• AP: The entry type that is used for creating cash management transactions for which the
system creates prepayments (for transactions that are disbursements) or vendor refunds
(for transactions that are receipts) in accounts payable, which affect vendor balances. AP
entry types are used only on cash management forms.

• AR: The entry type that is used for creating cash management transactions for which
the system creates payments (if the transaction is a receipt) or customer refunds (if the
transaction is a disbursement) in accounts receivable, which affect customer balances.
AR entry types are used only on cash management forms.

In general, the configuration of entry types consists of the following steps:

1. You determine which types of cash transactions the company usually generate.

2. You create the required entry types by using the Entry Types form.

3. On the Cash Accounts (CA202000) form, you associate each entry type you have created
with the cash account that is involved in the cash transactions of the entry type.

Cash Management: To Create an Entry Type

In this activity, you will learn how to define an entry type, which categorizes cash operations
in the system.
 | Part 1: Basic Company Configuration | 25

Story

Suppose that as an administrator, you need to define entry types for cash operations of the
SweetLife company. For now, an entry type for recording bank service charges is needed.

System Preparation

Before you start creating the entry type, make sure that the following tasks have been
performed in the system:

1. The company has been created, as has its actual ledger, as described in Company Without
Branches: Implementation Checklist and General Ledger: To Create an Actual Ledger.

2. The cash management preference settings have been defined, as described in Cash
Management: To Specify Cash Management Preferences.

Step: Defining an Entry Type

Perform the following instructions:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Entry Types (CA203000) form, and click Add Row.

3. In the Entry Type ID column, type BANKFEE.

4. In the Disb./Receipt column, select Disbursement.

5. In the Entry Type Description column, type Bank Fees.

6. In the Module column, make sure that CA (the default setting) is selected.

7. In the Default Offset Account column, select 61100.

8. Save the entry type.

When you create cash accounts, you can assign this entry type to the necessary cash
accounts. For details, see Cash Management: To Create Cash Accounts.

Cash Management: Cash Accounts

Cash accounts are used to keep records of the outgoing and incoming payments and cash.
You can create cash accounts that represent bank accounts, amounts of cash on hand, or
amounts of cash in transit. Each cash account is linked to a general ledger account.

Configuration of Cash Accounts

In general, the configuration process of a cash account involves the following steps:

1. You determine which existing GL account the cash transactions will be recorded to, or
you create a GL account designated for this purpose.
 | Part 1: Basic Company Configuration | 26

2. You create the cash account and link it to the GL account that you decided to use for this
purpose.

3. In case any transactions were posted to the GL account before you created the cash
account and linked it to the GL account, you run validation of the cash account balance.

This configuration is enough for you to start making funds transfers between your
cash accounts. To be able to record transactions other than funds transfers (cash entry
transactions and incoming and outgoing payments), you also need to perform the following
steps:

1. You configure the following entities:

• Entry types: You use entry types to classify cash transactions for correct processing.
For details on entry types, see Cash Management: Entry Types.

• Payment methods: You use payment methods to define the way the money is
transferred into and out of the organization. For details on payment methods, see
Cash Management: Payment Methods.

2. You associate entry types and payment methods with the appropriate cash accounts.

Cash Management: To Create Cash Accounts

In this activity, you will learn how to create cash accounts in the system.

Story

Suppose that as an administrator, you need to add cash accounts to the system, as
requested by the accountant of the SweetLife company. You will create cash accounts that
correspond to the following GL accounts: 10100-Petty Cash and 10200-Company Checking
Account.

System Preparation

Before you start creating the cash accounts, make sure that the following tasks have been
performed in the system:

1. The company and its actual ledger have been created, as described in Company Without
Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual
Ledger.

2. The cash management preference settings have been defined, as described in Cash
Management: To Specify Cash Management Preferences.

3. The entry types of cash operations has been defined in the system, as described in Cash
Management: To Create an Entry Type.

Step 1: Creating the Petty Cash Account

You perform the following instructions to configure Sweet Life's petty cash account:
 | Part 1: Basic Company Configuration | 27

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Cash Accounts (CA202000) form, and click Add New Record.

3. In the Summary area, specify the following settings:

• Cash Account: 10100

• Account: 10100 - Petty Cash

This box holds the GL account to which this cash account is linked, so that cash
transactions can be traced in the general ledger.

• Description: Petty Cash

4. On the table toolbar of the Payment Methods tab, click Add Row.

5. In the Payment Method column, select CASH.

6. On the form toolbar, click Save.

Step 2: Creating the Company Checking Account

You perform the following instructions to configure a cash account to be used with the
company checking account:

1. While you are still on the Cash Accounts (CA202000) form, click Add New Record.

2. In the Summary area, specify the following settings:

• Cash Account: 10200

• Account: 10200 - Company Checking Account

• Description: Checking Account

3. On the table toolbar of the Payment Methods tab, click Add Row.

4. In the Payment Method column of the added row, select CHECK.

5. On the table toolbar of the Entry Types tab, click Add Row.

6. In the Entry Type ID column of the new row, select BANKFEE.

7. On the form toolbar, click Save.

Cash Management: Payment Methods

In Acumatica ERP, you can configure the payment methods that your organization uses to
pay its vendors, as well as the payment methods that are used by customers to pay your
organization. The settings of the payment methods describe how the particular payment is
done and provide the default cash account to be used to record payments.
 | Part 1: Basic Company Configuration | 28

Acumatica ERP has predefined payment methods that can be adjusted to the business needs
of an organization.

Payment Method Setup

You use the Payment Methods (CA204000) form to review the predefined payment methods
and update them. (You can also define new payment methods on this form.)

On this form, you perform the following general steps to set up a payment method:

1. In the Summary area, you specify the identifier, the means of payment (Credit Card,
Cash/Check, or Direct Deposit), and the description.

2. You use the appropriate check boxes to specify how you want the payment method to be
used. If it will be used for customer payments, select the Use in AR check box. If the
payment method will be used for payments to vendors, select the Use in AP check box.

3. On the Allowed Cash Accounts tab, you add rows for each of the cash accounts to
be linked to this payment method, and you specifythe appropriate settings for each
listed account. The linked cash accounts can include regular cash accounts and clearing
accounts.

4. If necessary, you modify the settings on the Settings for Use in AR and Settings for
Use in AP tabs.

5. In the Summary area, you make sure the Active check box is selected so that the
payment method can be used.

Cash Management: To Modify a Payment Method

In this activity, you will learn how to set up a payment method for use with the accounts
receivable functionality.

Story

Suppose that customers of the SweetLife company use checks to pay for invoices. Acting as
an administrator, you will modify the CHECK payment method (which is predefined in the
system) so that it can be used with the accounts receivable functionality.

System Preparation

Before you start modifying any existing payment method, make sure that the following tasks
have been performed in the system:

1. The company and its actual ledger have been created, as described in Company Without
Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual
Ledger.

2. The cash management preference settings have been defined, as described in Cash
Management: To Specify Cash Management Preferences.
 | Part 1: Basic Company Configuration | 29

3. The cash accounts related to the payment method have been linked (in the cash account
settings) to the payment method, as described in Cash Management: To Create Cash
Accounts.

Step: Setup of the CHECK Payment Method for Use in AP and AR

To make the needed changes to the CHECK payment method, which will be used in accounts
payable and accounts receivable, do the following:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Payment Methods (CA204000) form, and select the CHECK payment method.

3. In the Summary area, select the Use in AR check box.

4. Make sure that the Use in AP check box is selected

5. On the Allowed Cash Accounts tab, for the 10200 cash account, select the AP
Default, Use in AR, and AR Default check boxes.

Payment methods are linked to cash accounts, and you have selected the 10200 cash
account as the default one for the payment method used in accounts payable and in the
accounts receivable.

6. On the form toolbar, click Save.

Lesson 1.4: Configuration of Credit Terms

Credit Terms: General Information

In Acumatica ERP, the credit terms that a company offers to customers and the terms
the company uses to pay vendors need to be defined. When users select credit terms in a
document, the credit terms provide automatic calculation of the due date and the end date
of the cash discount period, as well as the cash discount amount in the document. You can
define credit terms for payments as having a single installment or multiple installments.

Learning Objectives

In this chapter, you will learn how to define credit terms in the system.

Applicable Scenarios

You define credit terms before you start operations in the system, and when new credit
terms need to be defined for customers and vendors.

Creation of Credit Terms

These are the general steps you need to perform to create a set of credit terms on the Credit
Terms (CS206500) form:
 | Part 1: Basic Company Configuration | 30

1. You enter a descriptive identifier for the credit terms you want to configure.

2. You define the scope of the credit terms: whether they can be applied to only customer
documents, only vendor documents, or both types of documents.

3. You specify how a due date is calculated for a document.

4. Optional: You configure the cash discount conditions for single-installment credit terms.

5. Optional: If needed, you change the default installment type of credit terms, which
is Single, to Multiple; you then define the number of installments and their payment
schedule.

If the company has been operating for some time, it already has established its credit terms.
We recommend that you compare the credit terms the company offers to customers and the
credit terms offered to the company by vendors, looking for overlap, because in Acumatica
ERP, you can use the same credit terms for both customer payments and payments to
vendors.

Credit Terms: To Define Credit Terms

In this activity, you will learn how to define credit terms, which can be used by vendors in
their relations with the company and by the company in its relations with customers.

Story

Suppose that SweetLife has agreements with its customers and vendors stipulating that the
full amount of each document will be paid within 30 days; no cash discounts are provided.
Acting as an administrator, you have to define one set of credit terms, which indicate that
the full amount of each document must be paid within 30 days.

System Preparation

Before you start defining the credit terms, make sure that the company and its actual ledger
has been created, as described in Company Without Branches: To Configure a Company Without
Branches and General Ledger: To Create an Actual Ledger.

Step: Defining Credit Terms

Perform the following instructions to define the needed set of credit terms:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Credit Terms (CS206500) form.

3. On the form toolbar, click Add New Record.

4. In the General Settings section, specify the following settings:

• Terms ID: 30D

• Description: 30 Days
 | Part 1: Basic Company Configuration | 31

5. In the Due Day Settings section, specify the following settings:

• Due Day Type: Fixed Number of Days

• Due Day 1: 30

6. In the Installment Type box of the Installment Settings section, make sure Single is
selected.

7. On the form toolbar, click Save.

When the applicable credit terms have been defined in the system, vendor and customer
classes (and vendors and customers) can be created.

Lesson 1.5: Configuration of Accounts Payable

Accounts Payable: Vendor Classes

A vendor class groups vendors that have similar characteristics. Vendor classes can be
based on the types of goods or services you purchase from vendors of the class or on other
properties, such as the vendors' currency and payment methods. For instance, you might
find it useful to create one vendor class for tax agencies and another for 1099 vendors.

Creation of a Vendor Class

You define vendor classes and their settings on the Vendor Classes (AP201000) form. You
can then select the appropriate vendor class when you are creating a vendor account on the
Vendors (AP303000) form, which causes the system to fill in the values of the class for the
vendor. Any of these default values can be overridden.

During basic system configuration, you need to create only the vendor class to be used by
default; you then specify it as the default vendor class on the Accounts Payable Preferences
(AP101000) form. After you specify the default vendor class, when you create another
vendor class, the system automatically inserts the values of the default vendor class, any of
which can be overridden. When you create a new vendor account, the default vendor class is
initially specified as the vendor class, but you can change it to any other class.

Accounts Payable: To Create a Vendor Class

You will now define the default vendor class in the system, which will provide many of the
settings for newly created vendors and for other vendor classes you create, thus easing the
creation of these entities during the next phase of implementation. Among other settings for
the vendor class, you will specify the credit terms you have created.

Story

Suppose that most of the vendors of the SweetLife company use the same settings, such as
credit terms, payment method, cash account, AP account, and cash discount account. Acting
 | Part 1: Basic Company Configuration | 32

as an administrator, you will create a default vendor class with these settings so that it can
supply default settings when vendors and other vendor classes are created in the system.

System Preparation

Before you start creating the vendor class, make sure that the following tasks have been
performed in the system:

1. The company has been created and an actual ledger has been assigned to it; see
Company Without Branches: To Configure a Company Without Branches and General Ledger: To
Create an Actual Ledger.

2. The credit terms that are used by vendors have been created, as described in Credit
Terms: To Define Credit Terms.

Step: Creating the Default Vendor Class

To create the default vendor class, you perform the following instructions:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Vendor Classes (AP201000) form.

3. On the form toolbar, click Add New Record.

4. In the Summary area, specify the following settings:

• Class ID: DEFAULT

• Description: Default Vendor Class

5. In the Default General Settings section of the General Settings tab, select US -
United States of America in the Country box.

6. In the Default Financial Settings section of the General Settings tab, specify the
following settings:

• Terms: 30D - 30 Days

• Payment Method: CHECK - Check Payment

• Cash Account: 10200 - Checking Account

7. On the GL Accounts tab, specify the following accounts:

• AP Account: 20000 - Accounts Payable

• Cash Discount Account: 52600 - Cash Discount

8. On the form toolbar, click Save.

 | Part 1: Basic Company Configuration | 33

Accounts Payable: To Specify Accounts Payable

Preferences
In this activity, you will learn how to specify the basic settings to be used in accounts
payable.

Story

Suppose that as an administrator, you need to define preference settings for the accounts
payable functionality. You need to specify the default vendor class and other settings that
will make it easier for users to create AP documents.

System Preparation

Before you start specifying the accounts payable preference settings, make sure that the
following tasks have been performed in the system:

1. The company has been created and its actual ledger has been specified; Company Without
Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual
Ledger.

2. The credit terms that are used by vendors have been created, as described in Credit
Terms: To Define Credit Terms.

3. The default vendor class has been created, as described in Accounts Payable: To Create a
Vendor Class.

Step: Specifying the Accounts Payable Preferences

You specify the required and recommended settings that apply to accounts payable as
follows:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Accounts Payable Preferences (AP101000) form.

Note that all the required settings (that is, those marked with an asterisk) have already
been specified by default.

3. In the Posting Settings section of the General Settings tab, make sure the
Automatically Post on Release check box is selected. With this setting, transactions
related to AP documents will be automatically posted to the general ledger once they are
released.

4. In the Data Entry Settings section of the General Settings tab, specify the following
settings, which simplify the processing of AP documents:

• Default Vendor Class ID: DEFAULT

• Hold Documents on Entry: Cleared

 | Part 1: Basic Company Configuration | 34

• Require Approval of Bills Prior to Payment: Cleared

• Validate Document Totals on Entry: Cleared

• Require Vendor Reference: Cleared

5. On the form toolbar, click Save.

Lesson 1.6: Configuration of Accounts Receivable

Accounts Receivable: Statement Cycles

In Acumatica ERP, you can define any number of statement cycles to be used for collecting
payments from customers. At the end of each statement cycle, the company prepares
statements and sens them to its customers. Statements provide customers with records of
their financial activity for a specific period, including the ending balance.

Statement Cycle Setup

You use the Statement Cycles (AR202800) form to create new statement cycles and modify
existing ones. For each statement cycle, you define the following:

• The schedule according to which statements will be generated.

• The aging periods to be used. You can define five aging periods for each statement cycle,
to group the sums of the balances of open invoices, overdue charges, and debit memos
by the number of days they are past due. The system uses the aging period settings in
accounts receivable aging reports, which users can analyze to identify potential cash flow
problems.

• The statement processing options.

• The overdue charges.

You can assign a statement cycle to a customer class by using the Customer Classes
(AR201000) form and directly to a customer on the Customers (AR303000) form.

Accounts Receivable: To Create a Statement Cycle

In this activity, you will learn how to define a statement cycle in the system.

Story

Suppose that the SweetLife company informs its customers about their current balances and
outstanding documents by sending the customers statements at the end of every month.
In the statements, the outstanding customer documents should be broken down by the
following aging periods: 0 to 10 days, 11 to 20 days, 21 to 45 days, and more than 30 days.
The outstanding documents are aged based on their due dates. Acting as an administrator,
you need to define the statement cycle in the system.
 | Part 1: Basic Company Configuration | 35

System Preparation

Before you start defining statement cycles, make sure that the company has been created
and its an actual ledger has been specified; see Company Without Branches: To Configure a
Company Without Branches and General Ledger: To Create an Actual Ledger.

Step: Defining a Statement Cycle

You define the statement cycle as follows:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Statement Cycles (AR202800) form.

3. On the form toolbar, click Add New Record.

4. In the General Settings section, specify the following settings:

• Cycle ID: EOM

• Description: End of Month

• Schedule Type: End of Month

5. In the Aging Settings section, specify the following settings:

• Use Financial Periods for Aging: Cleared

• Aging Period (Days), 1 –: 10

Once you specify the first aging period, the system automatically specifies the other
aging periods, based on the assumption that all the aging periods will have the same
length. The system also automatically specifies the descriptions for aging periods.
If needed, you can change the automatically specified settings of aging periods to
custom ones.

• Age Based On: Due Date

This setting means that the system will use the due dates of the outstanding
documents to determine the appropriate aging period in customer statements
and accounts receivable aging reports for outstanding invoices, debit memos, and
overdue charges.

6. On the form toolbar, click Save.

Accounts Receivable: Customer Classes

A customer class groups customers that have similar characteristics. Customer classes can
be based on the types of goods or services the customers buy or on other properties, such
as each customer's currency and payment method.
 | Part 1: Basic Company Configuration | 36

Defining a Customer Class

You define customer classes and their settings on the Customer Classes (AR201000) form.
You specify a customer class when you create a customer account on the Customers
(AR303000) form, which causes the system to fill in the values of the class for the customer.
Any of these default values can be overridden.

During basic system configuration, you need to create only the customer class to be used
by default; you then specify it as the default customer class on the Accounts Receivable
Preferences (AR101000) form. When you create a customer class, the system automatically
inserts the values of the default customer class, any of which can be overridden. When
you create a new customer account, the default customer class is initially specified as the
customer class, but you can change it to any other class.

Accounts Receivable: To Create a Customer Class

In this activity, you will create a default customer class in the system. This class will provide
many of the settings for newly created customers and for other customer classes you create,
thus easing the creation of these entities during the next phase of implementation. Among
other settings for the customer class, you will specify the credit terms you have created.

Story

Suppose that most of the customers of the SweetLife company use the same settings, such
as credit terms, statement cycle, payment method, sales account, AR account, and cash
discount account. Acting as an administrator, you will create a default customer class with
these settings so that it can supply default settings when customers and other customer
classes are created in the system.

System Preparation

Before you start creating the default customer class, make sure that the following tasks have
been performed in the system:

1. The company has been created and an actual ledger has been specified for it; see
Company Without Branches: To Configure a Company Without Branches and General Ledger: To
Create an Actual Ledger.

2. The credit terms that are used by customers have been created, as described in Credit
Terms: To Define Credit Terms.

3. At least one statement cycle has been defined in the system, as described in Accounts
Receivable: To Create a Customer Class.

Step: Creating the Default Customer Class

To create the default customer class, perform the following instructions:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Customer Classes (AR201000) form.

 | Part 1: Basic Company Configuration | 37

3. On the form toolbar, click Add New Record.

4. In the Summary area, specify the following settings:

• Class ID: DEFAULT

• Description: Default Customer Class

5. In the Default General Settings section of the General Settings tab, select US -
United States of America in the Country box.

6. In the Default Financial Settings section of the General Settings tab, specify the
following settings:

• Terms: 30D - 30 Days

• Statement Cycle ID: EOM

• Payment Method: CHECK - Check Payment

7. On the GL Accounts tab, specify the following accounts:

• AR Account: 11000 - Accounts Receivable

• Sales Account: 40000 - Sales Revenue

• Cash Discount Account: 52600 - Cash Discount

8. On the form toolbar, click Save.

Accounts Receivable: To Specify Accounts Receivable

Preferences
In this activity, you will learn how to define the basic settings to be used for accounts
receivable functionality.

Story

Suppose that as an administrator, you need to define the preference settings for the
accounts receivable functionality. You need to specify the default customer class and other
settings that will make it easier for users to create AR documents.

System Preparation

Before you start specifying accounts receivable preference settings, make sure that the
following tasks have been performed in the system:

1. The company has been created and its actual ledger has been specified; see Company
Without Branches: To Configure a Company Without Branches and General Ledger: To Create an
Actual Ledger.
 | Part 1: Basic Company Configuration | 38

2. The credit terms that are used by customers have been created, as described in Credit
Terms: To Define Credit Terms.

3. The default customer class has been created, as described in Accounts Receivable: To
Create a Customer Class.

Step: Specifying the Accounts Receivable Preferences

You specify the basic settings that will apply to accounts receivable as follows:

1. Sign in to the company you have prepared with the admin login and !Q123456 password.

2. Open the Accounts Receivable Preferences (AR101000) form.

Note that all the required settings (that is, those marked with an asterisk) have already
been specified by default.

3. In the Posting Settings section of the General Settings tab, make sure the
Automatically Post on Release check box is selected. With this setting, AR
transactions will be automatically posted to the general ledger once they are released.

4. In the Data Entry Settings section of the General Settings tab, specify the following
settings, which simplify the processing of AR documents:

• Default Customer Class ID: DEFAULT

• Hold Documents on Entry: Cleared

• Validate Document Totals on Entry: Cleared

• Require Payment Reference on Entry: Cleared

5. On the form toolbar, click Save.

 | Part 2: General Ledger—Working with Batches | 39

Part 2: General Ledger—Working with Batches

This part of the training illustrates the basic operations in the general ledger and guides you
through the process of creating and posting GL batches.

For completing lessons of this part of the course, you will use a company with the U100
data set preloaded, which provides a fully configured company with sample data specially
designed for this course. Lessons of this part are independent: you can complete lesson
activities in any order.

Activities in this part are to be completed under users with specific access rights. Each
activity provides the credentials to use for sign in to the prepared U100 tenant in the Before
You Proceed section.

Lesson 2.1: Processing Transactions

Processing Transactions: General Information

In Acumatica ERP, all financial information is collected for analyzing, summarizing, and
reporting. Transactions, which can be viewed on the Journal Transactions (GL301000) form,
are generated on the release of various types of documents that affect the general ledger.

Transactions are organized into batches, which are posted to general ledger accounts.
A batch is a group of journal entries that together represent one transaction or multiple
transactions that can be posted to the general ledger. The batch must include at least two
journal entries. For each journal entry, the account and the debit or credit amount must be
specified.

Learning Objectives

You will learn how to create a GL batch, release and post the batch, and review the statuses
of the batch.

Applicable Scenarios

Batches are manually entered very rarely. Usually, you work with documents (such as
invoices), and Acumatica ERP automatically generates the appropriate GL batches. However,
you can enter transactions manually in the general ledger.

Batch Processing Overview

The following diagram illustrates the process of creating, releasing, and posting batches in
Acumatica ERP.
 | Part 2: General Ledger—Working with Batches | 40

Figure: General Ledger batch processing

 | Part 2: General Ledger—Working with Batches | 41

GL Batch Statuses

The status of a batch reflects the current processing state of the transactions in the system.
A batch can have one of the following statuses.

Status Description
On Hold The batch is being edited and can be saved without being balanced. A
batch with the On Hold status cannot be released or posted. You can
give a batch this status by selecting the Hold check box on the Journal
Transactions (GL301000) form.

If a batch that is on hold has total debits equal to total credits, you can
change its status to Balanced by clearing the Hold check box.
Balanced The batch is being edited and can be saved only if it is balanced (that is,
its debit total equals its credit total). The batch can be released or post-
ed. You can modify or delete a balanced batch, but you can save your
changes only if the batch's credit and debit totals remain equal.
Unposted The batch has been released but has not yet been posted. The unposted
batch is read-only.

You cannot edit or delete the batch with the Unposted status; you can
reverse it, reclassify it, or split it. For details, see Reversing Transactions:
General Information and Reclassifying Transactions: General Information.

If the batch is correct, you can post it to update General Ledger account
balances on the Post Transactions (GL502000) form.
Posted The batch has been posted, and the account balances have been updat-
ed with transaction amounts. The posted batch is read-only.

You cannot edit or delete the posted batch; you can reverse it, reclassify
it, or split it. For details, see Reversing Transactions: General Information and
Reclassifying Transactions: General Information.
Scheduled The batch is a template for generating recurring batches according to
the defined schedule. Based on the template, the system generates new
batches, which can be edited, released, and then posted. The scheduled
batch itself isn't released and posted and can be edited. For details, see
Recurring Transactions: General Information.

The status of a scheduled batch changes to Void if the batch is delet-

ed from the schedule. A scheduled batch can be fully deleted only if the
schedule was never executed and no ordinary General Ledger batches
were generated in accordance with it.
Void The scheduled batch has been canceled (that is, removed from the
schedule). The voided batch is read-only.
 | Part 2: General Ledger—Working with Batches | 42

Processing Transactions: Mass-Processing

This topic explains how to release and post multiple batches.

Mass-Releasing Batches

You can release multiple batches on the Release Transactions (GL501000) form. On this form,
you click Release All on the form toolbar and you select the unlabeled check box next to
the lines to be processed, and click Release to release batches.

The system releases the batches. Depending on the posting settings specified on the General
Ledger Preferences (GL102000) form, one of the following events occurs:

• If the Automatically Post on Release check box is cleared, the batch is released. The
batch is given the Unposted status.

• If the Automatically Post on Release check box is selected, the batch is posted to the
general ledger and is assigned the Posted status.

Mass-Posting Batches

On the Post Transactions (GL502000) form, you can also post released batches by selecting
them and clicking Post, or you can post all released batches by clicking Post All. The
system posts the batches and assigns the Posted status to them.

Processing Transactions: Process Activity

In this lesson, you will learn how to create a GL batch, release and post the batch, and
review the statuses of the batch.

Story

Suppose that in January 2019 the SweetLife Fruits & Jams company paid its employees
$15,600.

Acting as the SweetLife accountant, you need to enter a batch for a payment in the
amount of $15,600 for the 01-2019 financial period for the salaries of the employees of the
SweetLife Head Office and Wholesale Center (HEADOFFICE) branch.

Process Overview

You enter a batch directly on the Journal Transactions (GL301000) form, release and post the
batch, and note the status of the batch at each step. Then you review the batch details in
the GL Register Detailed (GL621000) report.

Before You Proceed

To prepare the system, do the following:

1. Launch the Acumatica ERP website with the U100 dataset. Sign in as an accountant by
using the johnson login and the 123 password.
 | Part 2: General Ledger—Working with Batches | 43

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/31/2019. If a different date
is displayed, click the Business Date menu button and select 1/31/2019. For simplicity,
in this lesson, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Batch of Transactions

To create a batch of GL transactions, do the following:

1. Open the Journal Transactions (GL301000) form, and on the form toolbar, click Add New
Record to create a document.

2. In the Summary area, specify the following settings:

• Transaction Date: 1/31/2019 (inserted by default)

• Post Period: 01-2019 (inserted by default)

• Description: Salary payment Jan 2019

3. On the table toolbar, click Add Row and specify the following settings in the row that
appears:

• Branch: HEADOFFICE

• Account: 10200 - Company Checking Account

• Credit Amount: 15600

4. Click Add Row again, and specify the following settings in the second row:

• Branch: HEADOFFICE

• Account: 69500 - Wages

• Debit Amount: 15600

5. Click Save on the form toolbar, and note that the status of the batch is On Hold.

6. Clear the Hold check box in the Summary area, and save the batch. The batch's status
has changed to Balanced.

Step 2: Release and Post the Batch

To release and post the GL batch, do the following:

1. On the form toolbar, click Release.

 | Part 2: General Ledger—Working with Batches | 44

2. Note that the batch's status has changed to Posted.

Step 3: Review the Batch Details

To review the batch details, do the following:

1. On the form toolbar, click Reports > Batch Register Details.

2. On the GL Register Detailed (GL621000) report, which is opened, review the details of the
posted batch.

Processing Transactions: Related Reports and Inquiries

This topic describes reports, inquiries and forms you may review to gather information about
batches.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form.

Finding a Batch on the Journal Transactions Form

To find and view a batch, you can use the Journal Transactions (GL301000) form. On this form,
you can click the lookup icon in the Batch Number box and locate the batch by doing one
of the following:

• Clicking any column header to arrange the items in ascending or descending order based
on the values in the column. You can navigate between pages to locate the specific
batch.

• Clicking the column header for any column you may want to search, and then type a
string in the search box at the bottom of the dialog box that pops up. As you type, the
system filters the listed batches to display only those containing the text you entered in
the selected column.

• Creating a filter to find the batch by its details. To do this, you click Filter Settings
on the table toolbar of the lookup window, and specify a condition based on the batch
details.

Viewing an Unreleased Batch

On the GL Edit Summary (GL611500) form, you can run a report for a particular ledger and
financial period, and then review the list of unreleased batches, find the necessary batch and
review it. You can navigate to the Journal Transactions (GL301000) form from the report to
view more details of the batch.

Similarly, you can find and view an unreleased transaction by using the GL Edit Detailed
(GL610500) and GL Edit Account Distribution (GL611000) reports.
 | Part 2: General Ledger—Working with Batches | 45

Viewing a Released Batch

On the GL Register (GL620500) form, you can run a report for a particular ledger and
financial period, and then review the list of released batches and find the necessary batch.
You can navigate to the Journal Transactions (GL301000) form from the report to view more
details of the batch.

Similarly, you can find and view a released transaction by using the GL Register Detailed
(GL621000) report.

Printing Transactions for a Particular Account

You can print transactions for a particular account by using the Transactions for Account
(GL633500) report. To run a report, you specify the ledger, the financial period, and the
account for which you want the system to generate the report with the list of transactions.

Printing Transactions for a Particular Period

You can print transactions for a particular period by using the Transactions for Period
(GL633000) report. To run a report, you specify the ledger and the financial period for which
you want the system to generate the report with the list of transactions.

Lesson 2.2: Reversing Transactions

Reversing Transactions: General Information

An incorrect batch with the On Hold or Balanced status, can be corrected or deleted in the
system. After a batch has been released, it cannot be corrected or deleted. If a batch with
the Unposted or Posted status is incorrect, you can reverse the batch and enter a correct
one.

If the batch was posted to the wrong GL account, subaccount, or branch, to correct it,
you can reclassify the batch on the Reclassify Transactions (GL506000) form. If a part
of the bath amount was posted to the wrong GL account, subaccount, or branch, you
can split the batch. For details, see Reclassifying Transactions: General Information.

Learning Objectives

You will learn how to reverse a GL batch in the system.

Applicable Scenarios

You reverse a batch if some of the details other than GL account, subaccount, or branch
were entered incorrectly and the batch has been released.

Reversing Batch Generation

To generate a reversing batch, on the Journal Transactions (GL301000) form, you select the
batch you want to reverse and click Actions > Reverse Batch. The system creates a batch
 | Part 2: General Ledger—Working with Batches | 46

with the transactions reversed—that is, a debit entry is reversed as a credit entry and vice-
versa.

For the reversing batches, the Reversing Entry check box is selected in the
Summary area of the Journal Transactions form.

Depending on the setting of the Hold Batches on Entry check box on the General Ledger
Preferences (GL102000) form, the reversing batch gets one of the following statuses:

• Balanced: If the Hold Batches on Entry check box is cleared.

• On Hold: If the Hold Batches on Entry check box is selected.

You can then release and post this batch. For details on processing batches, see Processing
Transactions: General Information.

While you are viewing the reversing batch on the Journal Transactions form, you can quickly
view the original batch by clicking the number in the Origin. Batch Number box in the
Summary area.

You can reverse a batch multiple times. To view the list of the related reversing batches,
you click the link in the in the Reversing Batches box of the Journal Transactions form. The
system opens the GL Reversing Batches (GL690010) report with the list of batches and their
details.

Overview of the Reversing Process

The typical processing workflow of reversing batches involves the actions and generated
batches shown in the following diagram.
| Part 2: General Ledger—Working with Batches | 47
 | Part 2: General Ledger—Working with Batches | 48

Reversing Transactions: Generated Transactions

On the Journal Transactions (GL301000) form, you can view the details of the reversing GL
batch and its original GL batch. For the following original GL batch recorded to the general
ledger, the reversing GL batch below will be recorded to the general ledger.

Table: The original GL batch

Account Debit Credit

62900 - Rent or Lease Ex- Amount 00.00
pense
23015 - Accrued Expense 00.00 Amount

Table: The reversing GL batch

Account Debit Credit

62900 - Rent or Lease Ex- 00.00 Amount
pense
23015 - Accrued Expense Amount 00.00

Reversing Transactions: Process Activity

You will learn how to reverse a GL batch.

Story

Suppose that in December 2018, a transaction was posted by mistake for the monthly office
rent expense that the SweetLife Fruits & Jams company pays to its landlord.

Acting as the SweetLife accountant, you need to reverse this transaction posted for the
SweetLife Head Office and Wholesale Center (HEADOFFICE) branch.

Process Overview

To reverse a batch, you search for the needed batch on the Journal Transactions (GL301000)
form, reverse it, and then check the ending balance on the Account Summary (GL401000)
form and drill down to the Account Details (GL404000) form to make sure that the account
balance is now correct.

Before You Proceed

To prepare the system, do the following:

1. Launch the Acumatica ERP website with the U100 dataset. Sign in as an accountant by
using the johnson login and the 123 password.

2. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
 | Part 2: General Ledger—Working with Batches | 49

selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Find the Batch to be Reversed

To find the batch to be reversed, do the following:

1. Open the Journal Transactions (GL3010PL) substitute form.

2. In the table, click the Transaction Date column, and in the dialog box that opens,
specify the following settings:

• Equals: Selected

• Value: 12/31/2018

3. Click OK. The system displays the batches dated 12/31/2018.

Step 2: Reverse the Batch

To reverse the batch, do the following:

1. While still on the Journal Transactions (GL3010PL) substitute form with the needed batch
listed, click the link in the Batch Number column to open the batch on the Journal
Transactions (GL301000) form.

2. On the form toolbar, click Actions > Reverse Batch.

The system generates and opens a reversing batch. In the Summary area, notice
that the number of the original batch is shown in the Orig. Batch Number box, the
Reversing Entry check box is selected, and the batch's status is On Hold, as shown in
the following screenshot.

3. Clear the Hold check box.

4. On the form toolbar, click Release.

Step 3: Review the Posted Transaction

To review the account balance and the posted transactions, do the following:

1. Open the Account Summary (GL401000) form.

2. In the Period box of the Summary area, select 12-2018.

3. In the table, locate the 62900 - Rent or Lease Expense account and review its ending
balance in the Ending Balance column.

4. Click the link in the Account column for the 62900 account, and on the Account Details
(GL404000) form, which opens, review the list of entries posted to this account.
 | Part 2: General Ledger—Working with Batches | 50

Reversing Transactions: Reports and Inquiries

In this topic, you can find the list of reports and inquiries related to reversing batches.

Finding Reversing Batches for an Original Batch

To view the list of reversing batches related to an original batch, you can use the GL
Reversing Batches (GL690010) report. On the report form, you run the report for the original
batch, and you then can view the list of reversing batches and their details.

You can also open this report by clicking the link in the in the Reversing Batches box of
the Journal Transactions (GL301000) form for the original batch. The system opens the GL
Reversing Batches (GL690010) report with the list of reversing batches and their details.

Lesson 2.3: Reclassifying Transactions

Reclassifying Transactions: General Information

If the batch was posted to the wrong GL account, subaccount, or branch to correct it, you
can reclassify the batch on the Reclassify Transactions (GL506000) form.

Learning Objectives

You will learn how to perform the reclassification process.

Applicable Scenarios

You reclassify a batch in the following cases:

• The batch has been posted to a wrong account.

• The batch has been posted to a wrong subaccount.

• The batch has been posted to a wrong branch.

Reclassification Process Overview

On the Reclassify Transactions (GL506000) form, before you perform the reclassification
process, you need to specify new details for each journal entry that you need to reclassify.
You can change an account, subaccount, and branch.

While reclassifying a transaction, you can also edit the transaction date and the
description of the reclassification transaction. If you edit the date, the new date has to
be in the range of the financial period of the original transaction.

You can change required parameters in each needed row manually, or perform mass
changing of parameters in multiple rows.

The following diagram shows the general process of reclassifying transactions.

 | Part 2: General Ledger—Working with Batches | 51

Figure: Batch Reclassification Process

 | Part 2: General Ledger—Working with Batches | 52

Modification of Selected Transactions Manually

To change the required parameters manually, in each needed row, you modify any of the
following boxes:

• To Account: The transaction amount will be moved from the originally specified GL
account (Account) to the account specified in this box.

• To Subaccount: The transaction amount will be moved from the originally specified
subaccount (Subaccount) to the subaccount specified in this box.

This box is available only if the Subaccounts feature is enabled on the Enable/
Disable Features (CS100000) form.

• To Branch: The transaction will be moved to the GL account or subaccount of the

branch specified in this box.

This box is available only if the Multi-Branch Support feature is enabled on the
Enable/Disable Features form.

By default, these boxes contain the values of the original journal entry. Once you have
changed any of the default values, the entry becomes available for reclassification.

To edit the date and description of a transaction, you need to enter new parameters in the
New Tran. Date and New Transaction Description boxes, respectively.

Modification of a Group of Transactions

To perform mass-changing of parameters in multiple rows, on the form toolbar of the

Reclassify Transactions (GL506000) form, click Replace. In the Find and Replace dialog box
that opens, specify the original and replacement transaction parameters. Then click Replace
to close the dialog box and replace the parameters in the needed rows.

To run the reclassification process, click Process on the form toolbar.

Transactions that Cannot Be Reclassified

The following transactions cannot be reclassified:

• Journal entries of transactions in which a control account is specified, such as entries

posted by accounts receivable and accounts payable documents to AR and AP accounts,
respectively, and to Tax Payable and Tax Claimable accounts. (A control account is
a general ledger account that accumulates the summary information of a subledger,
for example, AR or AP. The details of the control account balance are contained in a
subledger, so the balance of the control account should match the total of the related
subledger.)
 | Part 2: General Ledger—Working with Batches | 53

You can reclassify GL entries posted by AR and AP documents to income and

expense accounts.

• GL transactions generated in the general ledger when consolidation data has been
imported on the Import Consolidation Data (GL509000) form. For details, see General Ledger
Consolidation Process.

• GL transactions generated by a user invoking the run allocations process on the Run
Allocations (GL504500) form. For details, see Configuring Allocation Rules.

• All currency-related GL transactions, such as transactions generated by the currency

translation and revaluation processes.

• If the Project Accounting feature is enabled on the Enable/Disable Features (CS100000)

form, the GL transactions related to any project.

You can reclassify GL transactions in which the non-project code is specified.

• Entries that have already been reclassified.

Reclassifying Transactions: Generated Transactions

Suppose that by mistake you have specified the wrong account in the Accounts Payable bill.
Now you need to reclassify the wrong journal entry by creating a correcting transaction, so
that the amount will be moved to the correct account.

The following table shows the journal entries of the original General Ledger transaction of
the Normal type.

Account Debit Credit

Accounts Payable account 00.00 Amount
Expense account 1 Amount 00.00

The following table shows the journal entries of the correcting General Ledger transaction of
the Reclassification type.

Account Debit Credit

Expense account 1 00.00 Amount
Expense account 2 Amount 00.00

Reclassifying Transactions: Process Activity

In this activity, you will learn how to reclassify GL transactions.
 | Part 2: General Ledger—Working with Batches | 54

Story

Suppose that while reviewing the Transactions for Account (GL633500) report, CFO of
the SweetLife Fruits & Jams company found out that an office desk repair transaction was
mistakenly posted to the 62400 - Office Expense account.

Acting as the SweetLife accountant, you have to find this transaction, which was posted in
03-2018, and reclassify it to the 62950 - Repairs account.

Process Overview

To reclassify a GL transaction, you run the Transactions for Account (GL633500) report,
load a list of transactions, reclassify the needed transaction on the Reclassify Transactions
(GL506000) form, and release the batch. Then you run the Account Details (GL404000)
inquiry and review the transactions after the reclassification.

Before You Proceed

To prepare the system, do the following:

1. Launch the Acumatica ERP website with the U100 dataset. Sign in as an accountant by
using the johnson login and the 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this lesson, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Find the Transaction to be Reclassified

To find the transaction to be reclassified, do the following:

1. Open the Transactions for Account (GL633500) form.

2. On the Report Parameters tab, specify the following parameters:

• Company/Branch: HEADOFFICE (inserted by default)

• Ledger: ACTUAL

• From Period: 03-2018

• To Period: 03-2018

• Account: 62400

3. Click Run Report.

 | Part 2: General Ledger—Working with Batches | 55

The report displays the transaction that falls within the specified criteria.

Step 2: Reclassify the Transaction

To reclassify the transaction, do the following:

1. On the Transactions for Account report, click the link in the Batch Number column.

The batch is opened on the Journal Transactions (GL301000) form.

2. On the form toolbar, click Actions > Reclassify.

The batch is opened on the Reclassify Transactions (GL506000) form.

3. In the To Account column for the row with the 62400 account, change the value to
62950 (Repairs).

Notice that the unlabeled check box for this row is selected automatically. This is because
you have changed the value in the To Account box.

4. On the form toolbar, click Process.

Step 3: Release the Batch

To release the reclassification batch, do the following:

1. While still on the Transactions for Account (GL633500) form, in the Processing dialog box,
which is displayed, click the Processed tab.

2. Notice the batch number in the Reclass. Batch Number column (which the system
inserted when processing completed successfully). Click the link in this column and
review the reclassification batch on the Journal Transactions (GL301000) form, which
opens. Notice that the reclassification batch has not yet been released.

3. Clear the Hold check box in the Summary area, and click Release on the form toolbar.

Step 4: Review the Account Details

To review the details of the 62400 account, do the following:

1. Open the Account Details (GL404000) form.

2. In the Summary area, specify the following settings:

• From Period: 03-2018

• To Period: 03-2018

• Account: 62400

• Include Reclassified: Cleared

The table displays no transactions.

 | Part 2: General Ledger—Working with Batches | 56

3. Select the Include Reclassified check box in the Summary area, and review the two
batches listed in the table. Note that a message is displayed next to the original batch,
stating that the transaction has been reclassified. In the Reclass. Batch Number
column, you can view the number of the reclassification batch.

Reclassifying Transactions: Reports and Inquiries

In this topic, you can find the list of reports and inquiries related to reclassification batches.

Finding Reclassification Transactions for a Particular Account

On the Account Details (GL404000) form, to include in the list of entries the journal entries
that have been reclassified for a selected GL account within the specified period, select the
Include Reclassified check box in the Summary area. In the Reclass. Batch Number
column, each of the reclassified entries has a link to the appropriate Reclassification
transaction.

You can also view a list of transactions that includes the reclassified journal entries by
preparing the Transactions for Account (GL633500) or Transactions for Period (GL633000) report
with the Include Reclassified check box selected.

Viewing a Reclassification History of a Transaction

You can view the reclassification history for a transaction on the Reclassification History
(GL405000) form. You can open this form by clicking the Reclassification History button
in either of the following situations:

• On the form toolbar of the Account Details (GL404000) form for the transaction you have
selected (if it has been reclassified)

• On the table toolbar of the Journal Transactions (GL301000) form for the transaction you
have selected in the GL batch, which has the Reclassification type

You can reclassify only the last transaction in the list of transactions on the Reclassification
History form by clicking Reclassify on the form toolbar.

Lesson 2.4: Adjusting Transactions

Adjusting Transactions: General Information

At the end of the period, you may need to post some adjusting transactions to adjust income
and expense accounts. In Acumatica ERP, for this purpose, you create auto-reversing
batches that are reversed at the beginning of the next period.

Learning Objectives

You will learn how to create an auto-reversing batch in the system.

 | Part 2: General Ledger—Working with Batches | 57

Applicable Scenarios

You create an auto-reversing batch if you need to post a batch at the current period and
reverse these entries at the beginning of the next period. For example, you create auto-
reversing batches in the following cases:

• When you record accrual-type adjusting entries

• When you revalue in the base currency the accounts maintained in foreign currencies at
the end of the period, and the adjusting entries are posted to the unrealized gain and
loss accounts

Creation of Auto-Reversing Batches

You create an auto-reversing batch on the Journal Transactions (GL301000) form. At the
beginning of the next period, the system automatically creates the reversing batch as
follows:

• All transactions are reversed—that is, each debit entry is reversed as a credit entry and
each credit entry is reversed as a debit entry.

On the Journal Transactions form, the Reversing Entry check box is selected for
the reversing batches.

• The first day of the next financial period is set as the date of the reversing transactions.

• Each reversing transaction has the Posted status.

Adjusting Batch Processing Overview

The typical processing workflow of auto-reversing batches involves the actions and
generated batches shown in the following diagram.
 | Part 2: General Ledger—Working with Batches | 58

Figure: Processing an auto-reversing batch

 | Part 2: General Ledger—Working with Batches | 59

Adjusting Transactions: Generated Transactions

On the Journal Transactions (GL301000) form, you can view the details of the original GL
batch and its automatically created reversing batch. For the following GL batch recorded to
the general ledger, the system will create the auto-reversing GL batch below in the general
ledger at the end of the period next to the post period of the original transaction.

Table: The original GL batch

Account Debit Credit

62900 - Rent or Lease Ex- Amount 00.00
pense
23015 - Accrued Expense 00.00 Amount

Table: The auto-reversing GL batch

Account Debit Credit

62900 - Rent or Lease Ex- 00.00 Amount
pense
23015 - Accrued Expense Amount 00.00

Adjusting Transactions: Process Activity

You will learn how to process an auto-reversing batch.

Story

Suppose that by the end of January 2019, the electricity used by the SweetLife Head Office
and Wholesale Center in January has not yet been billed by the supplier. Acting as the
SweetLife accountant, you need to create an auto-reversing batch that will be posted on
January 31 and reversed at the beginning of the next financial period.

Process Overview

To process an auto-reversing batch, you create and release an auto-reversing batch on the
Journal Transactions (GL301000) form, and then check the ending balance the Account Details
(GL404000) form.

Before You Proceed

To prepare the system, do the following:

1. Launch the Acumatica ERP website with the U100 dataset. Sign in as an accountant by
using the johnson login and the 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/31/2019. If a different date
is displayed, click the Business Date menu button and select 1/31/2019. For simplicity,
 | Part 2: General Ledger—Working with Batches | 60

in this lesson, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create and Release an Auto-Reversing Batch

To process an auto-reversing batch, do the following:

1. Open the Journal Transactions (GL301000) form, and create a new record.

2. In the Summary area, specify the following settings :

• Transaction Date: 1/31/2019 (inserted by default)

• Post Period: 01-2019 (inserted by default)

• Description: Electricity expenses of $200

• Auto-Reversing: Selected

3. Click Add Row on the table toolbar, and add two rows with the following settings:

• Branch: HEADOFFICE

• Account: 23015 - Accrued Expenses

• Credit Amount: 1200

• Branch: HEADOFFICE

• Account: 63300 - Utilities

• Debit Amount: 200

4. Click Save on the form toolbar, and note that the status of the batch is On Hold.

5. Clear the Hold check box in the Summary area, and save the batch. The batch's status
has changed to Balanced.

6. On the form toolbar, click Release.

This causes the original batch to be posted. The system has also generated a new
batch with the next sequential number and posted the batch to the first day of the next
financial period.

7. In the Reversing Batches box of the Summary area, click 1 (the number of the
reversing batches).

The system opens the GL Reversing Batches (GL690010) report with the created reversing
batch and its details.
 | Part 2: General Ledger—Working with Batches | 61

Step 2: Review the Posted Transaction

To review the account balance and the posted transactions, do the following:

1. Open the Account Details (GL404000) form.

2. In the From Period box of the Summary area, select 01-2019.

3. In the To Period box, select 02-2019.

4. In the Account box, select 23015 - Accrued Expenses.

5. In the table, review account ending balance in the Ending Balance column for both
periods.

6. Perform Steps 2 through 5 for the 63300 - Utilities account.

Adjusting Transactions: Reports and Inquiries

In this topic, you can find the list of reports and inquiries related to reversing batches.

Finding Reversing Batches for an Original Batch

To view the list of reversing batches related to an original batch, you can use the GL
Reversing Batches (GL690010) report. On the report form, you run the report for the original
batch, and you then can view the list of reversing batches and their details.

You can also open this report by clicking the link in the in the Reversing Batches box of
the Journal Transactions (GL301000) form for the original batch. The system opens the GL
Reversing Batches (GL690010) report with the list of reversing batches and their details.

Lesson 2.5: Processing Recurring Transactions

Recurring Transactions: General Information

To automate the entry of recurring transactions, you create schedules for these transactions
in this system.

Learning Objectives

You will learn how to do the following:

• Create schedules for recurring transactions

• Generate the recurring transactions

 | Part 2: General Ledger—Working with Batches | 62

Applicable Scenarios

You need to create schedules for transactions that repeat regularly, such as loan payments
and depreciation-related transactions.

Recurring Transactions Entry Process

Generally, the process of entering of recurring transactions to the system consists of the
following steps:

1. Creating a recurring batch on the Journal Transactions (GL301000) form.

2. Prepare the batch to be scheduled—that is, save the batch in the Balanced status on the
Journal Transactions form.

3. Creating a schedule on the Recurring Transactions (GL203500) form for the batch.

4. Running the schedule to generate recurring batches.

5. Processing the generated batches.

The typical processing workflow processing recurring batches is shown in the following
diagram.
 | Part 2: General Ledger—Working with Batches | 63

Figure: Processing recurring batches

Schedule Creation

You create a schedule on the Recurring Transactions (GL203500) form. For the schedule, you
specify the date when it starts, and you can either specify a maximum number of times the
schedule should be repeated or set up unlimited schedule executions by selecting the No
Limit box.

You then select the appropriate option button to indicate how frequently the schedule
applies:

• Daily: The batches should be generated daily or every x days.

 | Part 2: General Ledger—Working with Batches | 64

• Weekly: The batches should be generated on specific days of the week each week or
every x weeks.

• Monthly: The batches should be generated once per month or every x months on a
specific day of the month.

• By Financial Period: The batches should be generated only once per financial period or
every x financial periods at the start, end of the financial period, or on a specific day of
the financial period.

Scheduled Batches

You can add General Ledger batches to a schedule immediately (if all the required batches
already exist) or later. Only batches with the Normal type and the Balanced status can be
scheduled. After you have assigned a batch to a schedule, the system changes the batch's
status to Scheduled.

On the Journal Transactions (GL301000) form, you can create a batch and then immediately
add it to a new schedule by clicking Actions > Add to Schedule on the form toolbar.

A batch can be included in only one schedule. If a batch has been added to a schedule and
you add it to a new schedule, the system removes it from the previous schedule.

Generation of Recurring Transactions

You use the Generate Recurring Transactions (GL504000) form to run a single schedule or
multiple schedules. You can also run a particular schedule on the Recurring Transactions
(GL203500) form by selecting the schedule in the Schedule ID box and clicking Run Now
on the form toolbar.

When you run a schedule, the system uses the included batches as template batches to
generate similar batches. The batches generated by a schedule can differ from the template
as follows:

• Date: The date of each batch is different, determined by the schedule you have
configured.

• Reference number: A new reference number is generated for each batch based on the
numbering sequence specified on the General Ledger Preferences (GL102000) form.

• Currency rate: If the currency of a batch differs from the base currency set in the
system, the system uses for conversion the currency exchange rate effective on the date
of the batch creation.

No matter how many times you run the schedule, batches will be generated only as required
by the schedule. The system determines whether it should generate the batches depending
on the current date, the schedule's start and expiration dates, the schedule type, and
the date when the batches were last generated. After the required batches have been
generated, the system updates the Last Executed On value. One batch is generated for
one run of the schedule.
 | Part 2: General Ledger—Working with Batches | 65

For example, suppose that you have scheduled a particular batch to be performed weekly on
each Tuesday, with no execution limit. If you run the schedule every week on Wednesday,
one batch will be generated each time. If you run this schedule every day, the batches will
be generated only on Tuesdays. If you want to run this schedule once in a month, on the last
Wednesday, you should run it four times to generate four batches.

Batches generated as a result of a user running a schedule appear in the system with the
Balanced status. They can be released or posted as any other batches can. You can change
the transaction amounts, if needed.

Recurring Transactions: Mass-Processing

This topic explains how to release and post multiple batches.

Mass-Running Schedules

You can run multiple schedules on the Generate Recurring Transactions (GL504000) form.
In the Execution Date box, you select the date that the system will use to select the
schedules to be loaded to the table. Those schedules whose Next Execution date is earlier
than or the same as the date specified in this box will be loaded.

You then specify the condition that the system will use to stop schedule executions by
selecting one of the following option buttons, and run the process:

• Stop on Execution Date: The system stops running schedules on the date that you
specify in the Execution Date box.

• Stop After Number of Executions: The system stops running schedules when the
specified number of schedule executions have been performed. If you select this option
button, specify the number of executions in the adjacent box.

Recurring Transactions: Process Activity

In this lesson, you will create a recurring batch to be used as a template, create a schedule
for the batch, and run the schedule to generate the batch.

Story

Suppose that the SweetLife Fruits & Jams company pays rent every month and receives
the rent bill for each month at the beginning of the next month. The company records the
accrual of rent expenses every month.

Acting as the SweetLife accountant, you have to create a recurring batch to schedule the
accrual of rent expenses for every month of 2019. You also need to generate the batch for
the 01-2019 financial period.

Process Overview

To use a recurring batch, you create a recurring batch to be used as a template on the
Journal Transactions (GL301000) form. You then create a schedule for the batch based on
 | Part 2: General Ledger—Working with Batches | 66

this template on the Recurring Transactions (GL203500) form. To generate a batch, you run
the schedule on the Generate Recurring Transactions (GL504000) form; the batch can then be
released and posted on the Release Transactions (GL501000) form.

Before You Proceed

To prepare the system, do the following:

1. Launch the Acumatica ERP website with the U100 dataset. Sign in as an accountant by
using the johnson login and the 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/31/2019. If a different date
is displayed, click the Business Date menu button and select 1/31/2019. For simplicity,
in this lesson, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Batch to Be Used as a Template

To create a recurring batch with the Balanced status to be used as a template, do the
following:

1. Open the Journal Transactions (GL301000) form.

2. On the form toolbar, click Add New Record and specify the following settings in the
Summary area:

• Transaction Date: 1/31/2019 (inserted by default)

• Hold: Cleared (causes the batch to have the Balanced status)

• Description: Rent Accrual

3. Click Add Row on the table toolbar, and add two rows with the following settings:

• Account: 23015 (Accrued Expenses)

• Credit Amount: 1000

• Account: 62900 (Rent or Lease Expense)

• Debit Amount: 1000

4. Save the batch you have created.

Step 2: Create a Schedule for the Batch

To create a schedule for the batch, do the following:

 | Part 2: General Ledger—Working with Batches | 67

1. While you are viewing the batch you have just created and saved on the Journal
Transactions (GL301000) form, on the form toolbar, click Actions > Add to Schedule.

The Recurring Transactions (GL203500) form is opened.

2. Configure a schedule to repeat the batch 12 times, on the last day of each month, by
specifying the following settings:

• Start Date: 1/31/2019 (or any date that is not after the first date when you need to
execute the schedule)

• Execution Limit (Times): 12

• Description: Rent Accrual

• Schedule Type: Monthly

• Every 1 Month(s)

• On Day: 31

3. Save the schedule.

Step 3: Run the Schedule and Generate a Batch

To run the schedule and generate a batch, do the following:

1. Open the Generate Recurring Transactions (GL504000) form, and in the Summary area,
specify the following settings:

• Execution Date: 1/31/2019

• Stop After Number of Executions: Selected, 1

2. In the table that displays recurring transaction schedules, select the unlabeled check box
in the row of the only schedule, and click Run on the table toolbar to generate the batch
according to the schedule.

3. In the Processing pop-up window, which opens, click the Processed tab and click
the link in the Schedule ID column to open the schedule in a separate window on the
Recurring Transactions (GL203500) form.

4. On the Generated Documents tab of this form, verify that a batch has been generated
by the template.

Step 4: Release the Generated Batch

To release the generated batch, do the following:

1. Open the Release Transactions (GL501000) form.

2. Select the unlabeled check box for the only transaction in the table, and click Release on
the form toolbar. In the Processing pop-up window, which opens, click Close.
 | Part 2: General Ledger—Working with Batches | 68

Recurring Transactions: Reports and Inquiries

In this topic, you can find the list of reports and inquiries related to recurring batches.

Finding Schedule Summary

By using the GL Recurring Transactions (GL641500) report, you can find schedules that have
been created in the system and review its brief details, including the details of the batch
that is used to generate recurring transactions. You can also run this report for a particular
schedule.

Finding Schedule Details

By using the GL Recurring Transactions Detailed (GL640500) report, you can find schedules
that have been created in the system and review its details, including the details of the
batch that is used to generate recurring transactions and batch entries. You can also run this
report for a particular schedule.

Viewing Generated Batches for a Particular Schedule

On the Recurring Transactions (GL203500) form, you can find the list of batches generated
for a particular schedule. On this form, in the Schedule ID box, you select the schedule for
which you want to view generated batches. On the Generated Documents tab, you can
review the list of the generated batches and find the batch number, the ledger to which it
will be posted, the transaction date, its status, the total amount, and the currency. You can
also click the number of the batch whose details you want to view in the Batch Number
column. The system will open the Journal Transactions (GL301000) form with the details of the
batch.

Viewing and Editing a Schedule for a Particular Batch

You can view the schedule to which the batch is added by opening the batch and clicking
Actions > Add to Schedule (which also gives you the ability to view and edit an already-
added schedule) on the Journal Transactions form. The Recurring Transactions (GL203500) form
opens with the schedule related to the batch.
 | Part 3: Accounts Payable Process | 69

Part 3: Accounts Payable Process

This part of the course deals with the accounts payable process and guides you through
creating AP bills, payments, prepayment, and checks.

For completing lessons of this part of the course, you will use a company with the U100
data set preloaded, which provides a fully configured company with sample data specially
designed for this course. Lessons of this part are independent: you can complete lesson
activities in any order.

Activities in this part are to be completed under users with specific access rights. Each
activity provides the credentials to use for sign in to the prepared U100 tenant in the Before
You Proceed section.

Lesson 3.1: Configuring a Vendor

Configuring a Vendor: General Information

In Acumatica ERP, each vendor account holds all vendor-related information you need to
conduct business with this vendor. This information includes addresses, locations, contacts,
and payment settings, as well as financial, purchase, and mailing settings. Acumatica ERP
provides you with different tools that ease the process of entering vendor data and help you
to organize this data on reports.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Create a new vendor based on the default vendor class

• Review the default settings that the system has inserted from the vendor class

Applicable Scenarios

You add vendor accounts in any of the following cases:

• When you initially configure Acumatica ERP and enter the vendor base into the system

• When you need to create an account for a new vendor of the company

Entities Needed for Vendor Account Setup

Before you start setting up vendor accounts in Acumatica ERP, you need to configure the
entities that will ease the processes of vendor account creation and maintenance.

The needed entities in Acumatica ERP may include the following:

 | Part 3: Accounts Payable Process | 70

• Vendor classes (required): You should ensure that at least one vendor class has been
set up on the Vendor Classes (AP201000) form. Vendor classes provide default values for
individual vendor accounts, so users can create vendor accounts more easily. Besides the
class ID and description, which are the required settings of a vendor class, it can contain
additional elements such as the credit terms, currency, rate type, country, tax zone, and
specific general ledger accounts. You can also enter a default cash account and payment
method for the class. For details, see Accounts Payable: To Create a Vendor Class.

• Vendor identifiers (optional): You should make sure that the segmented key used as a
template for identifiers of vendor accounts suits your needs, and adjust the BIZACCT
segmented key (or the VENDOR segmented key) on the Segmented Keys (CS202000)
form if needed.

• General Ledger accounts (required): On the Chart of Accounts (GL202500) form, you need
to create the general ledger accounts to be used to record purchases and cash discounts,
unless you plan to use the accounts that already exist. You will need to select these
accounts when you create vendor accounts. For details, see To Add an Account to the Chart
of Accounts.

• Payment methods (required): You need to ensure that at least one payment method to
be used for payments to vendors has been defined on the Payment Methods (CA204000)
form. For details, see Managing Payment Methods.

• Credit terms (optional): You should ensure that each needed set of credit terms that will
define the due dates of documents has been set up on the Credit Terms (CS206500) form.
When you set up vendor classes, you can assign the appropriate credit terms to classes,
which in turn will cause the credit terms to be assigned by default to all new vendors of
this class. For details, see Setup of Credit Terms.

• Mailings (optional): You can set up multiple mailings to notify vendors about their
balances, bills, purchase orders, and other information you want to send to vendors on a
regular basis. For details, see Predefined Mailings for Customers and Vendors.

• Vendor price lists (optional): You can set up vendor price lists on the Vendor Prices
(AP202000) form to maintain item prices that are specific for vendors, so that you can
later use promotional prices and volume-based offers when planning your purchases. For
details, see Maintaining Vendor Price Lists.

• Vendor discounts (optional): On the Vendor Discounts (AP205000) form, you can set up
and maintain vendor discounts based on information received from each vendor. For
details, see Managing Vendor Discounts.

• Tax zones (optional): On the Tax Zones (TX206000) form, you can set up various tax
zones that combine a group of taxes for a particular location, which you assign to
vendors and which are used by the system for calculation of taxes when you enter
vendor documents. For details, see Managing Tax Zones and Categories.

Configuring a Vendor: Implementation Activity

The following hands-on activity will walk you through the process of creating a new vendor.
 | Part 3: Accounts Payable Process | 71

Story

Suppose that SweetLife Fruits&Jams company has found a vendor, the CleanUp company
that provides cleaning services and that agreed to sell its services on credit, with payments
due in 30 days and a 3% discount if the services are paid within 10 days.

Acting as the SweetLife accountant, you need to create the new vendor in the system.

Process Overview

You create a new vendor on the Vendors (AP303000) form by clicking Add New Record
on the form toolbar. On the tabs of this form, you specify the vendor's address and contact
information. You then review the default settings, which the system inserted to the vendor
account when creating the vendor, and then change the credit terms for the vendor.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Vendor Account

1. Open the Vendors (AP303000) form.

2. On the form toolbar, click Add New Record.

3. In the Summary area, specify the following settings:

• Vendor ID: CLEANUP

• Vendor Name: CleanUp Co.

• Status: Active

4. Click Save.

Step 2: Specify Contact Information and Address

1. On the General Info tab, specify the following settings in the Main Contact section:

• Attention: Loretta W Glenn

• Email: lglenn@aol.com

• Phone 1: 315-719-5308

2. In the Main Address section of the General Info tab, specify the following main
address for the vendor:
 | Part 3: Accounts Payable Process | 72

• Address Line 1: 893 Confederate Drive

• City: Geneva

• State: NY

• Postal Code: 14456

Step 3: Specify Financial and Payment Settings

1. In the Financial Settings section of the General Info tab, in the Vendor Class box,
select DEFAULT.

2. In the Terms box, select 310N30.

By selecting this setting, you indicate that you will pay the net amount within 30 days or
will take a 3% discount if you choose to pay within 10 days.

3. In the Default Payment Settings section of the Payment Settings tab, make sure
that CHECK is selected in the Payment Method box and 10200WH cash account is
selected in the Cash Account box.

4. In the Default Payment Settings section, specify the following settings:

• Payment By: Discount Date

• Payment Lead Time (days): 3

• Pay Separately: Cleared

Step 4: Review Default GL Accounts

1. On the GL Accounts tab, review the GL accounts to be used for settlements with this
vendor.

2. On the form toolbar, click Save.

Configuring a Vendor: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about vendors.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing Vendor Documents

You can review the vendor's documents at any time on the Vendor Details (AP402000) form.
The form shows the selected vendor's documents and the balance calculated based on
the documents. By default, the form shows all the vendor's open documents. You can also
 | Part 3: Accounts Payable Process | 73

run this inquiry by clicking Inquiries > Vendor Details on the toolbar of the Vendors
(AP303000) form.

The Current Balance box shows the total balance of the vendor's open documents,
excluding prepayments. The total balance of open prepayments is shown separately in the
Prepayments Balance box. The outstanding balance of documents is displayed in the
Balance column of the table.

Balance by Documents is the total in the Balance column over all documents shown in
the table. If you select the Include Unreleased Documents check box, the documents
that have the On Hold or Balanced status will also appear, and the balance by documents
may differ from the current balance. By viewing the balance by documents, you can see the
total amount you will owe to the vendor after all documents are released.

Reviewing Vendor Documents and Balance

You can review the open documents, applications, and vendor balances at the end of a
period, grouped by vendor and AP account by running the AP Balance by Vendor (AP632500)
report. The Vendor Documents Total column of the report shows the total amount over all
open documents of the vendor. Document applications are listed under each document in the
report. The Applied column shows the period to which the application was posted.

Reviewing Vendor Balance

You can review the vendor balance, which you can further reconcile with the balance of the
accounts payable GL account, by running the AP Balance by GL Account (AP632000) report.
To reconcile the GL balance of the AP account with the vendor balance, you compare the
balance obtained in this report with the trial balance for the same period.

Reviewing Vendor Balance History

You can review the history of the vendor's balance over a specified date range by running
the Vendor History (AP652000) report.

Reviewing Vendor Documents in AP Register

To review the vendor documents that have been released (documents with the Open, Closed,
and Reserved statuses), you run the AP Register (AP621500) report.

Reviewing Vendor Profile

To review the database information for a particular vendor, you run the Vendor Profiles
(AR655500) report. You can also run this report by clicking Reports > Vendor Profile on
the toolbar of the Vendors (AP303000) form.

Reviewing Vendor Balances

To review a particular vendor with the balances, default currency, credit terms, tax zone,
and other basic information, you run the Vendor Summary (AP655000) report. To review the
vendor's outstanding balances, you use the Vendor Summary (AP401000) inquiry.
 | Part 3: Accounts Payable Process | 74

Lesson 3.2: Configuring a Non-Stock Item

Configuring a Non-Stock Item: General Information

For goods that you purchase from vendors or sell to customers but do not want to reflect
in your company's inventory, you can define non-stock items in the system. A non-stock
item can be a service, labor hour, charge, or physical entity for which you have decided
not to track the quantity in the warehouse. For each non-stock item, you can specify and
periodically update purchase prices and sales prices. Also, you can specify the standard cost
of a non-stock item, which can be used in purchase orders and accounts payable bills if the
vendor price is not specified. You can use the same non-stock items in accounts payable,
accounts receivable, inventory, purchase orders, service orders, and sales orders.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to create a new non-stock item of the Charge type, with standard cost.

Applicable Scenarios

You may need to create a non-stock item in any of the following cases:

• When you initially configure Acumatica ERP with the Inventory feature disabled on the
Enable/Disable Features (CS100000) form

• When you configure the Inventory module from scratch

• When you are going to sell or purchase new goods

Types of Non-Stock Items

Acumatica ERP supports the following types of non-stock items:

• Non-Stock Item: A general type of non-stock item generally bought for internal needs
or for using in sales but not for selling separately

• Labor: A non-stock item mostly used as a source of general ledger accounts for
recording sales of labor

• Service: A non-stock item to designate service fees

• Charge: A non-stock item that represents specific type of charges

• Expense: A non-stock item that represents specific type of expense

Settings for Non-Stock Items

You can maintain information about non-stock items and their properties by using the Non-
Stock Items (IN202000) form available in accounts receivable and accounts payable. The list
 | Part 3: Accounts Payable Process | 75

below describes some of the settings that you can provide for a non-stock item by using this
form:

• Inventory ID: Every non-stock item is assigned a unique identifier based on the
INVENTORY segmented key.

You can configure inventory IDs by specifying settings for the INVENTORY segmented
key on the Segmented Keys (CS202000) form. For the key, you can define how many
segments it is to have, what values may be used, whether these values should be
validated, and whether auto-numbering should be used in one of the segments.

If required, you can change the ID for any non-stock item manually by using the Non-
Stock Items (IN202000) form.

• Units of measure: For each non-stock item, you can select the unit of measure (UOM)
used as base unit for the item and specify conversion rules for them and for other UOMs
used for the item. You can select UOMs from the list of those available for the item class
or type new UOMs manually. Note that every conversion rule is specified with respect to
the UOM chosen as the item's base unit.

• General ledger accounts: The general ledger accounts used for non-stock items are
limited to sales accounts and expense accounts.

• Valuation method: Only the standard cost method applies to non-stock items.

• Price information: For non-stock items of all types, you can specify price classes and
assign prices that become effective on specific dates.

• Attributes: You can track additional information for non-stock items by using the
attributes functionality.

Labor Items

Non-stock items of the Labor type are processed in the system differently from non-stock
items of other types. They are used as a source of general ledger accounts for transactions
that the system generates as a result of contract and project billing. For labor items, you can
track costs, define prices, and maintain the price lists.

In Acumatica ERP, to account for work hours and overtime hours spent on projects and
contract servicing, employees use time cards. To calculate cost of labor, the system uses the
work hour rates specified for each employee on the Employee Cost tab of the Employees
(EP203000) form. The cost of overtime labor is calculated based on the employee work hour
rates multiplied by the factor specified in the Multiplier column of the Overtime earning type
on the Earning Types (EP102000) form.

For more information on non-stock items of the Labor type, see Labor Items.

Non-Stock Item Costs

To make it possible to enter the non-stock item cost and use it in the non-stock item price
calculation, Acumatica ERP enables you to maintain standard costs for non-stock items.
 | Part 3: Accounts Payable Process | 76

The standard costs are determined outside of the system by cost experts, and the values
should include some of the indirect and direct costs allocated. You can specify the standard
cost for a non-stock item as a pending cost by using the Price/Cost Information tab of
the Non-Stock Items (IN202000) form. Along with the pending cost, you can specify a date
when the cost will become effective. Standard costs are defined with respect to the base unit
of the stock item.

If you want to update standard costs for non-stock items, use the Price/Cost Information
tab of the Non-Stock Items form: Enter a pending cost and the date for the new cost and
select the Update Cost action. The system displays only the last cost and current cost. The
historical costs that were effective before the last cost are not stored in the database.

Prices for Non-Stock Items

The current price of an item is automatically inserted into the lines of sales orders and
invoices for which you select the item, which results in quicker and more accurate data
entry. If the item price has changed, you can automatically recalculate the document
amounts based on the updated price.

You can maintain default prices for non-stock items and specify them for the base units
in the base currency. You can enter default prices individually for each non-stock item by
using the Non-Stock Items (IN202000) form and update them at any time on a per-item basis.
Default prices have no expiration dates and cannot be specified as based on item quantity.
For more information, see Default Prices.

Configuring a Non-Stock Item: Implementation Activity

The following hands-on activity will walk you through the process of creating a new non-
stock item.

Story

Suppose that SweetLife Fruits&Jams company pays rent for its office facilities, which is a
fixed amount paid every month. The amount the company pays is $1,200 a month starting
from 1/30/2019. To make creation of documents easier for accountants, a new non-stock
item for rent should be available in the system.

Acting as the SweetLife accountant, you need to create the new non-stock item and specify
the needed settings.

Process Overview

You the non-stock item on the Non-Stock Items (IN202000) form by clicking Add New
Record on the form toolbar. On the tabs of this form, you specify the vendor's address and
contact information. You then review the default settings, which the system inserted to the
vendor account when creating the vendor, and then change the credit terms for the vendor.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.
 | Part 3: Accounts Payable Process | 77

2. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Non-Stock Item

1. Open the Non-Stock Items (IN202000) form.

2. On the form toolbar, click Add New Record and specify the following settings in the
Summary area:

• Inventory ID: RENT

• Description: Rent

3. On the General Settings tab, specify the following settings for the item:

• Type: Charge

• Posting Class: Non-Stock Items

• Tax Category: EXEMPT

• Require Receipt: Cleared

• Require Shipment: Cleared

4. In the Unit of Measure section of the General Settings tab, specify the following
settings:

• Base Unit: ITEM

• Sales Unit: ITEM

• Purchase Unit: ITEM

5. On the GL Accounts tab, in the Expense Account box, select 62900 - Rent or Lease
Expense.

6. On the form toolbar, click Save.

Step 2: Specify the Unit Cost for the Item

1. While still on the Non-Stock Items (IN202000) form, click the Price/Cost Information
tab and specify the following settings in the Standard Cost section:

• Pending Cost: 1200

• Pending Cost Date: 1/30/2019

2. On the form toolbar, click Save.

3. On the form toolbar, click Actions > Update Cost.

 | Part 3: Accounts Payable Process | 78

The cost you have specified is now effective and is displayed in the Current Cost box
and its effective date has been set to 1/30/2019.

Configuring a Non-Stock Item: Related Forms

This topic describes forms you may review to gather information about non-stock items.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing Sales Prices

You can review the sales prices of a non-stock item by clicking Inquiries > Sales Prices on
the toolbar of the Non-Stock Items (IN202000) form. The system navigates to the Sales Prices
(AR202000) form where you can review the sales prices, if any, for the selected non-stock
item.

You can also create a new sales price for the non-stock item on this form. For details of
managing sales prices, see Managing Sales Prices.

Reviewing Vendor Prices

You can review the vendor prices of a non-stock item by clicking Inquiries > Vendor
Prices on the toolbar of the Non-Stock Items (IN202000) form. The system navigates to
the Vendor Prices (AP202000) form where you can review the vendor prices, if any, for the
selected non-stock items.

You can also create a new vendor price for the non-stock item on this form. For details on
managing vendor prices, see Managing Vendor Prices.

Lesson 3.3: Processing AP Bills

Processing AP Bills: General Info

In Acumatica ERP, you create an accounts payable bill for each incoming invoice from a
vendor.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Create an AP bill

• Release the AP bill

• Review the GL batch that the system generates as a result

 | Part 3: Accounts Payable Process | 79

Applicable Scenarios

You create an AP bill manually when you receive an invoice from a vendor.

Entry of Bills

You enter a bill by using the Bills and Adjustments (AP301000) form. The summary of a bill
includes information about the vendor, the vendor location, payment terms, amount, the
currency used for the transaction, and other information.

A bill should contain at least one detail line. The bill can have any number of detail lines or it
can have a single line that summarizes all purchases.

We recommend that when you enter a document, you include all the details available
in the original vendor document.

If the Inventory feature is not enabled in your system, you can enter a bill in the Accounts
Payable module with only non-stock items. If the Inventory feature is enabled on the Enable/
Disable Features (CS100000) form, a bill may include lines with stock items and non-stock
items. Each line with a stock item must be linked to the appropriate line of a purchase
order or purchase receipt. When creating a bill, you can use the Add PO Receipt, Add
PO Receipt Line, and Add PO buttons on the table toolbar (the Document Details tab
of the Bills and Adjustments form) to add lines from purchase receipts and purchase orders
directly to a bill. If you have added a bill line with a stock item manually, you must link it to
the corresponding line of a purchase document by using the Link Line button on the table
toolbar of the Document Details tab.

When it is first saved, a bill is automatically assigned a unique identifier that lets you track
the bill through the system. The system generates this identifier according to the numbering
sequence assigned to bills on the Accounts Payable Preferences (AP101000) form.

Due dates and cash discount dates for each bill are calculated by the system automatically,
based on the vendor credit terms specified for the vendor on the Vendors (AP303000) form.

To facilitate auditing and user reference, you can attach to each bill an electronic version or a
scanned image of the original vendor document. Also, you can attach a related document to
each line of the document.

If bills contain a reference to the vendor's original document number, users can more easily
match any Accounts Payable document against the vendor document and avoid document
duplications. You can require this reference by selecting the Require Vendor Reference
check box on the Accounts Payable Preferences (AP101000) form. To prevent users from
entering duplicate documents (that is, entering the same document twice), select the Raise
an Error On Duplicate Vendor Reference Number check box on the same form, and the
system will display an error message each time a user attempts to enter a vendor reference
number that is already available in the system.

Processing of Bills

During processing, the bill can have the following statuses:

 | Part 3: Accounts Payable Process | 80

• On Hold: The bill is being edited and cannot be released. The system assigns this status
to each created bill by default because the Hold Documents on Entry check box is
selected on the Accounts Payable Preferences (AP101000) form by default.

• Pending Approval: The bill needs to be approved for release by the responsible person or
persons. The system assigns this status when the bill for which the approval is needed
is removed from hold. This status could be assigned to the bill only if the Approval
Workflow feature is enabled on the Enable/Disable Features (CS100000) form.

• Rejected: The bill was rejected by the responsible person. This status could be assigned
to the bill only if the Approval Workflow feature is enabled on the Enable/Disable Features
form.

• Balanced: The bill is ready and can be released or scheduled.

• Open: The bill has been released. A bill with this status has a non-zero outstanding
balance to be paid. If a bill is partially paid, it retains the Open status until the full
amount is paid.

• Closed: The bill has been paid in the full amount; the document balance is zero.

• Scheduled: The bill is a template for generating recurring bills according to a schedule.
Based on the template, the system generates recurring bills that can be edited and then
released. (The scheduled bill itself cannot be released and can be edited as a template.)

• Pre-Released: The bill has been released and requires expense reclassification. This
status can be assigned to the bill only if the Expense Reclassification feature is enabled
on the Enable/Disable Features form.

• Voided: The previously scheduled bill was voided and is no longer used as a template for
generating recurring bills.

Bill Processing Workflow

When you enter a bill on the Bills and Adjustments (AP301000) form (1 in the diagram below),
by default, the new bill has the On Hold status if the Hold Documents on Entry check
box is selected on the Accounts Payable Preferences (AP101000) form. If this is the case, you
need to clear the Hold check box (2) to be able to release the bill. If the Approval Workflow
feature is enabled on the Enable/Disable Features (CS100000) form and the approval process
for AP documents has been set up, the bill must be approved for release by the responsible
person (3). After that, the bill gets the Balanced status.

When you release the bill (4), the system assigns the bill the Open status and generates
the batch to credit the AP account and debit the expense accounts in the general ledger.
The system also updates the vendor balance in the amount of the bill. You cannot edit the
amount of the bill once it is open. If the balance of the bill needs to be corrected, you can
make a debit or credit adjustment (5). Once it has been released, the bill needs to be paid.
A payment document should be entered into the system, processed, and applied to the bill
(6). After the bill is paid in full, it is assigned the Closed status.

The following diagram illustrates the bill processing workflow.

| Part 3: Accounts Payable Process | 81
 | Part 3: Accounts Payable Process | 82

Processing AP Bills: Generated Transactions

When you release an AP bill, the system generates a batch of transactions to record the
liability to the general ledger. The AP bill includes all the information the system needs to
generate the batch.

The following two accounts are usually involved:

• The liability account specified in the AP Account box on the Financial Details tab

• The expense account specified for each line in the Account column on the Document
Details tab

You can view the details of the batch associated with the bill by clicking the link in the Batch
Nbr. box on the Financial Details tab of the Bills and Adjustments (AP301000) form.

For a one-line bill, the following transactions will be recorded to the general ledger when the
bill is released.

Account Debit Credit

Accounts Payable ac- 0.00 Amount
count
Expense account Amount 0.00

Processing AP Bills: Mass Processing and Document

Consolidation
This chapter explains how to release multiple AP bills and the rules that the system uses to
group the prepared documents.

Mass Release of AP Bills

Multiple bills can be released at the same time on the Release AP Documents (AP501000)
form. On this form, you select the unlabeled check boxes next to the documents to be
processed and click Release on the form toolbar to release the selected bills or click
Release All to release all the bills shown in the table.

The system creates a consolidated GL batch for all the released bills if the Generate
Consolidated Batches check box is selected on the General Ledger Preferences
(GL102000) form.

Processing AP Bills: Process Activity

The following hands-on exercise will walk you through the process of creating and releasing
an AP bill.
 | Part 3: Accounts Payable Process | 83

Story

Suppose that on February 2, 2019 SweetLife Fruit & Jam company purchased office supplies
on credit from the Spectra Stationery Office vendor for $79.

Acting as the SweetLife accountant, you need to create the AP bill for the vendor, release it,
and then review the GL batch generated by the system.

Process Overview

You create an AP bill on the Bills and Adjustments (AP301000) form. In the bill, you specify
the vendor in the Vendor box of the Summary area and the document details on the
Document Details tab. When the bill is ready, you release the document by clicking
Release on the form toolbar.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 2/7/2019. If a different date
is displayed, click the Business Date menu button and select 2/7/2019. For simplicity,
in this activity, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create an AP Bill

1. Open the Bills and Adjustments (AP301000) form.

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Bill

• Vendor: STATOFFICE

• Date: 2/7/2019 (the current business date, which is inserted by default)

• Post Period: 02-2019 (inserted by default based on the selected date)

• Description: Office supplies

3. On the Document Details tab, click Add Row and specify the following settings for the
added row:

• Branch: HEADOFFICE
 | Part 3: Accounts Payable Process | 84

• Transaction Descr.: Office supplies

• Ext. Price: 70

4. In the Summary area of the form, click Save.

When you save the bill, the system generates the bill's reference number based on the
numbering sequence applied to bills. The numbering sequence for bills is specified in the
Bill Numbering Sequence box on the Accounts Payable Preferences (AP101000) form.

Step 2: Release the AP Bill

1. While still on the Bills and Adjustments (AP301000) form, clear the Hold check box in the
Summary area.

This gives the bill the Balanced status. You can release only bills that have this status.

2. On the form toolbar, click Release.

This gives the bill the Open status.

Step 3: Review the GL Batch Generated on Bill Release

1. Open the Financial Details tab, and click the number in the Batch Nbr. box.

When you released the bill, the system generated and released this batch in the general
ledger. The batch gets the first number in the sequence specified in the GL Batch
Numbering Sequence box on the Accounts Receivable Preferences (AR101000) form,
which determines the numbers assigned to batches generated from the accounts payable
subledger.

2. On the Journal Transactions (GL301000) form, which is opened, review the transaction that
has been generated on the release of the bill.

The 20000 (Accounts Payable) AP account has been credited with $70, while the 62400
(Office Expense) expense account has been debited for the same amount. For details on
generated transactions, see Processing AP Bills: Generated Transactions.

Processing AP Bills: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about AP bills.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing Details of an Unreleased Bill

While a bill has not yet been released, you can review the details of the bill by running a
report on the AP Edit Detailed (AP610500) form. When you run this report from the Bills and
Adjustments (AP301000) form by clicking Reports > AP Edit Detailed, the report shows the
 | Part 3: Accounts Payable Process | 85

details of the bill opened on this form. You can review what GL batch the system will create
when you release the bill, which accounts will be updated by the transaction, and how the
vendor's balance will be affected.

Reviewing Details of a Released Bill

Once you have released a bill, you can review the details of the bill by running a report
on the AP Register Detailed (AP622000) form. When you run this report from the Bills and
Adjustments (AP301000) form by clicking Reports > AP Register Detailed, the report
shows the details of the bill opened on this form. You can review the GL batch the system
created when releasing the bill and which accounts have been updated by the transaction.

Reviewing Vendor Information

You can review the balances of a specific vendor on the Vendor Details (AP402000) form.
When you open this inquiry from the Bills and Adjustments (AP301000) form by clicking
Inquiries > Vendor Details, the Vendor Details form, which is opened, shows the
outstanding balances of the selected vendor and a list of documents of this vendor, which
have the Open status. You can select the Show All Documents and Include Unreleased
Documents check boxes in the Selection area of the form to include all documents and
unreleased documents to the inquiry.

Reviewing the Vendor's Balance

After the bill was released, you can review the vendor's balance on the AP Balance by Vendor
(AP632500) form. On this form, you select Open Documents in the Report Format box and
specify the needed financial period.

In the report, you can review open documents and vendor balances at the end of the period,
grouped by vendor and by AP account. When you release a bill or an adjustment, the system
updates the vendor balance. Vendor Documents Total is the total amount over all open
documents of the vendor.

Lesson 3.4: Paying AP Bills

Paying AP Bills: General Information

To pay an AP bill in Acumatica ERP, you have to create a payment: a document that
represents the payment in the system. You can create the payment manually by using the
Checks and Payments (AP302000) form.

In the payment, you specify the vendor, the payment method, the cash account, and the
amount to be paid. For each bill, you can pay the full balance or a partial one. One of the
types of payments you can create on this form is accounts payable checks—internal payment
documents you create to pay vendors.
 | Part 3: Accounts Payable Process | 86

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Manually create a payment document (a printed check)

• Process the payment by printing the check and releasing the payment

• (Optional): Reprinting the check

Applicable Scenarios

You create a payment in the system in each of the following cases:

• To pay an AP bill of a particular vendor

• To generate a payment from one bill or multiple bills of the same vendor

Processing an AP Payment

During processing, the payment can have the following statuses:

• On Hold: The payment is being edited and cannot be released. The system assigns this
status to each created payment by default because the Hold Documents on Entry
check box is selected on the Accounts Payable Preferences (AP101000) form by default.

• Pending Approval: The payment needs to be approved before it is processed by the

responsible person or persons. The system assigns this status to a payment to be
approved once it is removed from hold. This status can be assigned to the payment only
if the Approval Workflow feature is enabled on the Enable/Disable Features (CS100000)
form.

• Rejected: The payment has been rejected by at least one assigned approver.

• Pending Print: The payment must be printed or processed before it can be released.

• Printed: The payment is ready and can be released. The system assigns this status to
payments that have been processed (if the payment method requires that payments
undergo additional processing).

• Balanced: The payment is ready to be released. The system assigns this status to
payments whose payment method does not require the payments to undergo additional
processing. (An approved payment is assigned this status if its payment method does not
require the payment to undergo additional processing).

• Open: The payment has been released and still has an unapplied balance (meaning that
the application amount is less than the payment amount).

• Reserved: The payment has been released and then put on hold to be excluded from the
autoapplication process.

• Closed: The payment has been released and fully applied to the appropriate bill or bills.
 | Part 3: Accounts Payable Process | 87

• Voided: The payment has been voided.

Manual Creation of Accounts Payable Checks

You can create an accounts payable check by using the Checks and Payments (AP302000)
form. On this form, you specify the date, the vendor, and the vendor location, and you
select a payment method available for this vendor. On the Documents to Apply tab, you
can add bills and adjustments from this vendor to be paid by this check. Alternatively,
you can automatically load open bills and adjustments of the vendor, including open debit
adjustments, and select which of the documents will be paid by this accounts payable check.

The Unapplied Balance box in the Summary area displays the current unapplied balance
as you add bills or adjustments to the Documents to Apply list for the check. You
can take the check off hold only if it has an unapplied balance of zero (that is, if the
Payment Amount is equal to the Application Amount). If the Set Zero Payment
Amount to Application Amount check box is selected on the Accounts Payable Preferences
(AP101000) form, the system automatically specifies a Payment Amount that is equal to
the Application Amount when a user saves a check in which the payment amount has not
been specified.

If the payments of the selected payment method will be processed by a bank, the bank may
apply finance charges. On the Finance Charges tab, you can add these charges and specify
their particular amounts for the payment. For overview of this functionality, see Registration of
Finance Charges.

Accounts Payable Check Statuses

Each Accounts Payable check has one of the following statuses to indicate its stage in
processing:

• On Hold: Generally, this status is used for a check that is a draft. This is the default
status for new checks if the Hold Documents on Entry check box is selected on the
Accounts Payable Preferences (AP101000) form or if approvals have been configured for
checks. You cannot apply a check with the On Hold status to bills or adjustments. Also,
you cannot take a check off hold if the payment method requires the printing of the
check and it has not yet been printed.

• Pending Approval: If approvals have been configured for checks, the check is assigned
this status after you take it off hold; it needs to be approved by responsible approvers
assigned according to the approval map specified on the Approval tab of the Accounts
Payable Preferences form.

• Rejected: If approvals have been configured for checks, this status indicates that the
check has been rejected by at least one assigned approver. You can delete a document
with this status or select the On Hold check box, edit the document, and again submit it
for approval.

• Pending Print: If printing is required, the system assigns an Accounts Payable check this
status after it has been taken off hold or approved (if required); the status indicates that
the check has not been printed yet. You can print it on the Process Payments / Print Checks
(AP505000) form, which you open by clicking Actions > Print Check.
 | Part 3: Accounts Payable Process | 88

• Printed: If printing is required, after the check is taken off hold and the check has been
printed, the system changes the status of the Accounts Payable check to Printed. A check
with this status can be released.

• Balanced: If no additional processing is required (approval or printing), the system

assigns the check this status when it is taken off hold. If approval is required and
printing is not required, the system assigns the check this status when it is approved by
responsible approvers. A check with this status can be released.

• Closed: This status indicates that the check has been released.

• Voided: This status indicates that the check has been voided.

Printing of AP Checks

You print the physical checks for accounts payable checks by using the Process Payments /
Print Checks (AP505000) form.

Check printing is required for accounts payable checks if their payment methods have the
Print Checks check box selected on the Payment Methods (CA204000) form.

Reprinting of AP Checks

In some cases, you may need to reprint checks. To be able to print a check again, you first
need to cancel the Printed status for this check on the Release Payments (AP505200) form.
You can reprint a check by using one of the following numbers:

• The same check number:

You usually reprint a check with the same number if you have discovered that the check
contains incorrect details or there were no check blanks in the printer.

To reprint a check with the same check number, you select the Reprint command in the
Action box. When you select this action and invoke processing, for the checks included
in processing, the system changes the check status from Printed to Pending Print and
allows you to print the check again with the same number.

• A new check number:

To reprint a check with a new check number, you select the Reprint with New Number
command in the Action box. When you select this action and invoke processing, for
the checks included in processing, the system changes the check status from Printed to
Pending Print and voids the payment number so that you can print the check with a new
number.

Check Voiding

You can void an accounts payable check that was previously released in the accounts
payable subledger. Voiding the check will reverse the transactions on all accounts involved,
and reverse all postings to the general ledger.

The voided check for an accounts payable check has the same summary and details
information but with negative amounts. For details, see To Void an Accounts Payable Check.
 | Part 3: Accounts Payable Process | 89

Process Diagram

The following diagram illustrates the workflow of processing AP checks that need to be
printed.
| Part 3: Accounts Payable Process | 90
 | Part 3: Accounts Payable Process | 91

Paying AP Bills: Generated Transactions

When a check is released, a batch is created with transactions reducing the balances of the
cash account and the vendor's accounts payable account.

Releasing an accounts payable check creates a batch of the following accounting

transactions.

Account Debit Credit

Cash account 0.00 Amount
Accounts Payable ac- Amount 0.00
count

Paying AP Bills: Mass Processing of Documents

This chapter explains how to release and print multiple checks and the rules that the system
uses to group the prepared documents.

Mass Printing of Checks

To print checks in bulk, you use the Process Payments / Print Checks (AP505000) form. To print
multiple checks, you select check boxes next to the needed checks in the table and click
Process on the form toolbar or click Process All to print all the checks listed in the table.

Mass Processing of Checks

To pay multiple vendor bills, you use the Prepare Payments (AP503000) form where you
specify the CHECK payment method and select documents for payment by vendor, pay date,
due date, and cash discount date.

When you click Process or Process All on the form toolbar, the system prints the selected
checks, grouping the documents into a single check for each vendor unless the Pay
Separately option is selected for the vendor; for such vendors, a separate check will be
generated for each document.

Mass Release of Checks

You release multiple checks that have already been printed on the Release Payments
(AP505200) form. To release multiple checks, you select check boxes next to the needed
checks in the table and click Process on the form toolbar or click Process All to release all
the checks listed in the table.

Paying AP Bills: Process Activity

The following hands-on exercise will walk you through the process of creating a check
payment of an AP bill.
 | Part 3: Accounts Payable Process | 92

Story

Suppose that on 1/30/2019, SweetLife Fruit&Jam company has to pay an AP bill in the
amount of $177 for the purchase of office supplies from Spectra Stationery Office. The
company usually pays such bills by check and sends the check to the vendor.

Acting as the SweetLife accountant, you need to create a check payment in the system,
release it, and print the check to be sent to the vendor.

Process Overview

You create a check on the Checks and Payments (AP302000) form. You then print the check
on the Process Payments / Print Checks (AP505000) form and release the check on the Release
Payments (AP505200) form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this process activity, you will create and process all documents in the system on this
business date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Check

1. Open the Checks and Payments (AP302000) form.

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Check (inserted by default)

• Vendor: STATOFFICE

• Payment Method: CHECK (inserted automatically based on the selected vendor)

• Payment Amount: 177

• Application Date: 1/30/2019

• Description: Office supplies

3. On the Documents to Apply tab, click Add Row on the table toolbar and in the added
row, select the bill in the amount of $177.
 | Part 3: Accounts Payable Process | 93

4. In the Summary area, clear the Hold check box.

The status of the check has changed to Pending Print.

Step 2: Print the Check

1. While still on the Checks and Payments (AP302000) form, on the form toolbar, click
Actions > Print Check.

The system navigates to the Process Payments / Print Checks (AP505000) form.

2. Review the details of the check selected in the row with the unlabeled check box selected
for it.

3. On the form toolbar, click Process.

A separate browser tab is opened showing the printable version of the check.

4. Review the printable version of the check and close the browser tab. (For the purposes
of this activity, you do not need to actually print the check. In a production setting, you
would click Print on the form toolbar to print the check before closing the browser tab.)

Step 3: Release the Check

1. On the Release Payments (AP505200) form, which the system has opened, review the
details of the check you are going to release.

2. On the form toolbar, click Process.

3. Open the Checks and Payments (AP3020PL) form.

4. Open the check you have just released. (It should be the top record in the table and
have the Closed status.)

5. On the Application History tab, click the link in the Batch Number column to review
the batch generated by the system.

6. On the Journal Transactions (GL301000) form that the system opens, review the batch
details.

Paying AP Bills: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about AP checks.
 | Part 3: Accounts Payable Process | 94

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing Checks Pending Printing

You can use the Checks Pending Printing (AP404000) form to review which checks on the
specified pay date have not been printed yet. You can initiate check printing from this form
by clicking Print Checks on the form toolbar. The system navigates to the Process Payments /
Print Checks (AP505000) form, where you can print checks.

Running a Report of Checks Pending Printing

You can use the Checks Pending Printing (AP612500) form to review a report on checks that
have not yet been printed.

Reviewing Vendor Documents

You use the Vendor Details (AP402000) form to review the accounts payable documents (bills,
debit and credit adjustments, and checks) for a particular vendor.

By default, the form displays the list of open vendor documents (that is, those with the
Open status), but you can add to the list closed documents and unreleased documents by
selecting the Show All Documents and Include Unreleased Documents check boxes,
respectively.

Lesson 3.5: Correcting AP Bills

Processing Debit and Credit Adjustments: General

Information
Once it has been released, an accounts payable document cannot be edited or deleted; to
correct it, you can issue an adjustment. Debit adjustments decrease the accounts payable
balance, and credit adjustments increase the accounts payable balance (that is, they
increase your company's liabilities).

An open accounts payable bill can be reversed. When you reverse a bill, the system
automatically creates a debit adjustment with the same details. Before you save the
adjustment, you should type another Vendor Reference value if the Raise an Error On
Duplicate Vendor Reference Number check box is selected on the Accounts Payable
Preferences (AP101000) form.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Create and release a debit adjustment

 | Part 3: Accounts Payable Process | 95

• Apply the debit adjustment to an open AP bill

• Create and release a credit adjustment for a released AP bill

Applicable Scenarios

You create a debit adjustment to decrease the amount you owe to a vendor. You create a
credit adjustment to increase the amount you owe to a vendor.

Debit Adjustment Processing

You can create a debit adjustment to account for a vendor's credit memo, or you can use
it as a clearing document to correct errors on an existing bill or credit adjustment. A debit
adjustment may be created as a request for a vendor refund (for example, for damaged
items or an overpaid bill) or it can be directly applied against bills or credit adjustments.

You can enter a debit adjustment by using the Bills and Adjustments (AP301000) form. The
summary of a debit adjustment includes information about the vendor, the vendor location,
and the currency used for the transaction.

A debit adjustment should contain at least one line. The adjustment can have a summary
line or any number of detail lines.

We recommend that when you enter a document, you include all the details available
in the original vendor document.

When it is first saved, a debit adjustment is automatically assigned a unique identifier that
makes it possible to track the debit adjustment through the system. The system generates
this identifier according to the numbering sequence assigned to debit adjustments on the
Accounts Payable Preferences (AP101000) form.

To facilitate auditing and user reference, you can attach to each debit adjustment an
electronic version or a scanned image of the original vendor document or internal document.
Also, you can attach a related document to each line of the document.

Generally, a debit adjustment is not linked to a bill or other document that it is related
to. You may include a reference to the original document (bill or prepayment) in the
description of the adjustment and a reference to the related vendor document in the Vendor
Reference box. If the Raise an Error on Duplicate Vendor Reference Number check
box is cleared on the Accounts Payable Preferences (AP101000) form, then you can use the
same reference number (of the original vendor document) on both the bill and the related
debit adjustment; this will make it easier to find both the bill and the adjustment.

Each adjustment has one of the following statuses, which tells you its stage in processing:

• On Hold: Generally, this status is used for an adjustment that is a draft. This is the
default status for new documents if the Hold Documents on Entry check box is
selected on the Accounts Payable Preferences (AP101000) form. A credit adjustment with
the On Hold status can be edited.

• Balanced: After editing is completed, a Balanced adjustment may be saved only if it

remains balanced. If the Validate Document Totals on Entry check box is selected
 | Part 3: Accounts Payable Process | 96

on the Accounts Payable Preferences form, you can take an adjustment off hold only if you
correctly type the document control total.

• Pending Approval: If approvals are enabled in your system, after an adjustment (that is
subject to approval) is created, saved, and taken off hold, the system assigns this status
to the adjustment. The adjustment needs to be approved by responsible approvers
assigned according to the approval map specified on the Approval tab of the Accounts
Payable Preferences form.

• Rejected: If approvals are enabled in your system and at least one approver rejects
an adjustment, the system assigns this status to the adjustment. You can delete a
document with this status or select the On Hold check box, edit the document, and
submit it for the approval.

• Open: This status reflects that the document has been released and may be applied
against bills and credit adjustments. The status remains Open until the unapplied
balance becomes zero.

• Closed: This status means that the unapplied balance of the document is zero.

Released debit adjustments may be matched against any bills and credit adjustments of the
same vendor or may be used to offset vendor refunds.
Released debit adjustments appear on the Checks and Payments (AP302000) form and can be
applied against credit adjustments and bills.

When you create an accounts payable check and load the documents to be paid, the
debit adjustments appear at the top of the list so that you don't forget to apply them.

Credit Adjustment Processing

An accounts payable credit adjustment may be used to correct errors in an existing bill or
to account for a vendor's debit memo. Posting a credit adjustment increases the balance of
accounts payable.

You can enter a credit adjustment by using the Bills and Adjustments (AP301000) form. The
summary of a credit adjustment includes information about the vendor, the vendor location,
and the currency used for the transaction.

A credit adjustment should contain at least one line. The adjustment can have a summary
line or any number of detail lines.

We recommend that when you enter a document, you include all the details available
in the original vendor document.

To facilitate auditing and user reference, you can attach to each adjustment an electronic
version or a scanned image of the original vendor document. Also, you can attach a related
document to each line of the document.

When it is first saved, a credit adjustment is automatically assigned a unique identifier that
lets you track the credit adjustment through the system. The system generates this identifier
according to the numbering sequence assigned to credit adjustments on the Accounts Payable
Preferences (AP101000) form.
 | Part 3: Accounts Payable Process | 97

If automatic calculation of taxes is configured in your system, the system calculates the
applicable taxes for each credit adjustment and records the tax amounts to the document.
For details, see Tax Calculation. If your system is integrated with the AvaTax service of
Avalara or other specialized third-party software, the applicable taxes are calculated by this
service or software and recorded to the document when you save it. For an overview of this
integration, see Online Integration with Avalara AvaTax.

A credit adjustment has no reference to a bill that it is related to. You may include a
reference to the original document (bill or prepayment) in the description of the adjustment
and a reference to the related vendor document in the Vendor Reference box. If the
Raise Error On Invoice Number Duplicates option is not selected on the Accounts Payable
Preferences (AP101000) form, then you can use the reference number of the original vendor
document on both the bill and the related credit adjustment; this will make it easier to find
both the bill and the adjustment.

Each adjustment has one of the following statuses, which tells you its stage in processing:

• On Hold: Generally, this status is used for an adjustment that is a draft. This is the
default status for new documents if the Hold Documents on Entry check box is
selected on the Accounts Payable Preferences (AP101000) form. A credit adjustment with
the On Hold status can be edited.

• Balanced: After editing is completed, a Balanced adjustment may be saved only if it

remains balanced. If the Validate Document Totals on Entry option is selected on
the Accounts Payable Preferences form, you can take an adjustment off hold only if you
correctly type the document control total.

• Open: The document has been released (and approved, if required).

• Closed: The document has been paid.

Processing Debit and Credit Adjustments: Mass Processing

This chapter explains how to release multiple AP debit and credit adjustments and the rules
that the system uses to group the prepared documents.

You can release debit and credit adjustments in bulk by using the Release AP Documents
(AP501000) form.

Processing a Debit Adjustment: Process Activity

The following hands-on exercise will walk you through the process of creating and releasing
a debit adjustment and applying it to a bill.

Story

Suppose that on 2/11/2019, SweetLife Fruit & Jam received a credit memo from Spectra
Stationery Office, which gave them a $5 discount for the bill of $100.

Acting as the SweetLife accountant, you will need to process the vendor's credit memo as a
debit adjustment that reduces the outstanding balance of the bill.
 | Part 3: Accounts Payable Process | 98

Process Overview

You create a debit adjustment on the Bills and Adjustments (AP301000) form. You then release
the debit adjustment and apply it to the needed bill on the Checks and Payments (AP302000)
form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 2/11/2019. If a different date
is displayed, click the Business Date menu button and select 2/11/2019. For simplicity,
in this exercise, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Debit Adjustment

1. Open the Bills and Adjustments (AP301000) form.

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Debit Adj.

• Vendor: STATOFFICE

• Date: 2/11/2019

• Description: Discount from vendor

3. On the Document Details tab, click Add Row and specify the following settings for the
added row:

• Branch: HEADOFFICE

• Transaction Descr.: Discount from vendor

• Ext. Cost: 5.00

4. In the Summary area of the form, click Save.

When you save the debit adjustment, the system generates the document's reference
number based on the numbering sequence applied to debit adjustments. This numbering
sequence is specified in the Debit Adjustment Numbering Sequence box on the
Accounts Payable Preferences (AP101000) form.
 | Part 3: Accounts Payable Process | 99

Step 2: Release the Debit Adjustment

1. While still on the Bills and Adjustments (AP301000) form, clear the Hold check box in the
Summary area.

This gives the debit adjustment the Balanced status. You can release only documents
that have this status.

2. On the form toolbar, click Release.

This gives the debit adjustment the Open status.

3. On the Financial Details tab, click the batch number to review the batch that the
system has generated. Notice that the debit journal entry reduces the balance of the
20000 (Accounts Payable) account by $5.

Step 3: Apply the Debit Adjustment to the Bill

1. While still on the Bills and Adjustments (AP301000) form, on the form toolbar click Actions
> Pay Bill/Apply Adjustment.

The system navigates to the Checks and Payments (AP302000) form.

2. On the Checks and Payments form, in the Application Date box, select 2/11/2019.

3. On the table toolbar of the Documents to Apply tab, click Add Row and in the
Reference Nbr. column select the $100 bill.

By default, the system applies the full amount of the debit adjustment ($5) to the bill.
After you apply the debit adjustment, $95 ($100 – $5) remains on the balance of the bill,
which is displayed in the Balance column.

4. On the form toolbar, click Release to release the application.

The debit adjustment gets the Closed status because the full balance of the debit
adjustment has been applied.

Processing a Credit Adjustment: Process Activity

The following hands-on exercise will walk you through the process of creating and releasing
a credit adjustment.

Story

Suppose that on 2/11/2019, SweetLife Fruit & Jam received a debit memo from Wingman
Printing Company. The document charges SweetLife an additional $20 for the delayed
payment of bill.

Acting as the SweetLife accountant, you need to process the vendor's debit memo by
creating a credit adjustment in the system.
 | Part 3: Accounts Payable Process | 100

Process Overview

You create and release a credit adjustment on the Bills and Adjustments (AP301000) form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 2/11/2019. If a different date
is displayed, click the Business Date menu button and select 2/11/2019. For simplicity,
in this exercise, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Credit Adjustment

1. Open the Bills and Adjustments (AP301000) form.

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Credit Adj.

• Vendor: PRINTICO

• Date: 2/11/2019 (the current business date, which is inserted by default)

• Description: Charge for delayed payment

3. On the Document Details tab, click Add Row and specify the following settings for the
added row:

• Branch: HEADOFFICE

• Transaction Descr.: Charge for delayed payment

• Ext. Cost: 20.00

4. In the Summary area of the form, click Save.

When you save the credit adjustment, the system generates the document's reference
number based on the numbering sequence applied to credit adjustments. This numbering
sequence is specified in the Credit Adjustment Numbering Sequence box on the
Accounts Payable Preferences (AP101000) form.
 | Part 3: Accounts Payable Process | 101

Step 2: Release the Credit Adjustment

1. While still on the Bills and Adjustments (AP301000) form, clear the Hold check box in the
Summary area.

This gives the credit adjustment the Balanced status. You can release only documents
that have this status.

2. On the form toolbar, click Release.

This gives the credit adjustment the Open status.

3. On the Financial Details tab, click the number of the batch that was generated
on release of the credit adjustment and review the batch on the Journal Transactions
(GL301000) form, which is opened.

Processing Debit and Credit Adjustments: Related Reports

and Inquiries
This topic describes reports, inquiries, and forms you may review to gather information
about debit and credit adjustments and how they affect vendor balances.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing the Vendor's Outstanding Balance

You use the Vendor Details (AP402000) form to review the outstanding balance of a particular
vendor. The debit adjustments you create in the system decrease the outstanding balance of
the vendor, and the credit adjustments increase the outstanding balance.

Reviewing the Vendor's Balance and Documents

You run the AP Balance by Vendor (AP632500) report to review the balance and documents of
a particular vendor for a particular period.

Lesson 3.6: Paying Multiple Bills

Paying Multiple Bills: General Information

You can initiate the process of paying multiple bills automatically on the Prepare Payments
(AP503000) form. You can select bills for payment by payment date, cash account, payment
method, vendor, and discount availability. Accounts payable checks will be created for the
selected bills and grouped by vendor. For a specific bill, you may require a separate check if
the Pay Separately option was selected for this bill. Also, if the Pay Separately option is
selected for the vendor on the Vendors form, each bill or credit adjustment of the vendor will
be paid by a separate accounts payable check.
 | Part 3: Accounts Payable Process | 102

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Select the bills to be paid

• Prepare and release payments for multiple bills

Applicable Scenarios

You prepare a payment to pay multiple bills when you have multiple bills from the same
vendor, which are due within the same date.

Payment Processing

To pay multiple bills, you have to create a payment: a document that represents the
payment in the system. You use the Prepare Payments (AP503000) form to generate a
payment for multiple bills of the same vendor.

During processing, a payment can have the following statuses.

Table: AP payment statuses

Status Description
On Hold The payment is being edited and cannot be released. The
system assigns this status to each created payment by
default if the Hold Documents on Entry check box is
selected on the Accounts Payable Preferences (AP101000)
form.
Pending Approval The payment needs to be approved before it is processed
by the responsible person or persons. The system can
assign this status to a payment to be approved once it is
removed from hold or when the payment is created if the
Hold Documents on Entry check box is cleared on the
Accounts Payable Preferencesform. This status can be as-
signed to the payment only if the Approval Workflow fea-
ture is enabled on the Enable/Disable Features (CS100000)
form.
Rejected The payment has been rejected by at least one assigned
approver. The system can assign this status to the bill
only if the Approval Workflow feature is enabled on the
Enable/Disable Features form.
Pending Print The payment must be printed or processed before it can
be released.
Printed The payment is ready and can be released. The sys-
tem assigns this status to payments that have been
processed (if the payment method requires that pay-
ments undergo additional processing).
 | Part 3: Accounts Payable Process | 103

Status Description
Balanced The payment is ready to be released. The system assigns
this status to payments whose payment method does not
require the payments to undergo additional processing.
(An approved payment is assigned this status if its pay-
ment method does not require the payment to undergo
additional processing.)
Open The payment has been released and still has an unap-
plied balance (meaning that the application amount is
less than the payment amount).
Reserved The payment has been released and then put on hold to
be excluded from the auto-application process.
Closed The payment has been released and fully applied to the
appropriate bill or bills.
Voided The payment has been voided.

Process Diagram

The following diagram illustrates the payment processing workflow.

 | Part 3: Accounts Payable Process | 104

Paying Multiple Bills: Generated Transactions

When a payment is released, a batch is created with transactions reducing the balances of
the cash account and the vendor's accounts payable account.
 | Part 3: Accounts Payable Process | 105

If the payment is released at the proper time, before the cash discount date, a cash
discount can be earned (and deducted from the check amount). This business process
does not cover cash discounts.

Releasing an accounts payable check creates a batch of the following accounting

transactions.

Account Debit Credit

Cash account 0.00 Amount
Accounts Payable ac- Amount 0.00
count

Paying Multiple Bills: Process Activity

The following hands-on exercise will walk you through the process of creating and releasing
a payment of multiple bills.

Story

Suppose that the SweetLife Fruits & Jams company occasionally buys glass jars and
packaging for its products from the Jar Co. company (JARCO). Several bills for Jar Co.
were entered in the system and the company wants to pay all of them by one payment.
Also, another vendor, Frontsource Ltd. (FRONTSRC) asked SweetLife to pay their bills in
separate payments and there are two bills in the amount of $153 and $62 that should be
paid together with the Jar Co. bills.

Acting as the SweetLife accountant, you need to prepare a payment to pay bills in the
amount of $45.50, $207, and $173.50 for the JARCO vendor and the two $153 and $62 bills
for the FRONTSRC vendor.

Process Overview

You use the Prepare Payments (AP503000) form to prepare one payment for multiple bills for
each vendor and review the available balance of the bank account. You then print the checks
on the Process Payments / Print Checks (AP505000) form and release the payments on the
Release Payments (AP505200) form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 2/1/2019. If a different date
is displayed, click the Business Date menu button and select 2/1/2019. For simplicity,
in this process activity, you will create and process all documents in the system on this
business date.
 | Part 3: Accounts Payable Process | 106

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Select the Bills to be Paid

1. Open the Prepare Payments (AP503000) form.

2. In the Summary area of the form, specify the following selection criteria to filter the data
shown in the table:

• Branch: HEADOFFICE (inserted by default based on the selected branch)

• Payment Method: CHECK

• Cash Account: 10200WH - Wholesale Checking

• Payment Date: 2/1/2019 (the current business date, which is inserted by default)

• Vendor: Empty

• Pay Date Within: Cleared

3. In the table, review the three AP bills of the JARCO vendor for the amount of $45.50,
$207, and $173.50 and the two bills for the FRONTSRC vendor in the amount of $153
and $62. Notice that these two bills have the check box selected in the Pay Separately
column.

4. Click the unlabeled check box in the row of each of the bills, and review the informational
Selection Total, Number of Rows Selected, and Available Balance boxes in the
Summary area. This information shows that there are 5 rows selected to be paid in the
total amount of $641, as shown on the following screenshot.
 | Part 3: Accounts Payable Process | 107

Figure: Payments for multiple bills

Step 2: Prepare the Payments

1. While still on the Prepare Payments (AP503000) form, click Process on the form toolbar.

2. On the Process Payments / Print Checks (AP505000) form, which is opened with the checks
listed in the table and selected, click Process.

A separate browser tab is opened showing the printable version of the checks. Notice
that the JARCO bills are paid with one check and the bills for FRONTSRC are paid by two
separate checks.

3. Review the printable version of the checks, and close the browser tab. (For the purposes
of this process activity, you do not need to actually print the checks. In a production
setting, you would click Print on the form toolbar to print the checks before closing the
browser tab.)

Step 3: Release the Payments and Review the Batches

1. On the Release Payments (AP505200) form, which the system has opened, notice that the
system has added a row with the payments and selected the unlabeled check boxes for
them. On the form toolbar, click Process.

2. In the Processing pop-up window, which is opened, click the Processed tab and click
the link in the Reference Nbr. column for the JARCO check to open the check on the
Checks and Payments (AP302000) form.

3. On the Application History tab of the Checks and Payments form, make sure the three
bills to which the payment has been applied are listed in the table.
 | Part 3: Accounts Payable Process | 108

4. On the Financial Details tab, click the link in the Batch Nbr. box to review the
consolidated batch generated by the system, which is opened on the Journal Transactions
(GL301000) form.

5. In the Processing pop-up window, click the link in the Reference Nbr. column for one
of the FRONTSRC checks.

6. On the Application History tab of the Checks and Payments form, notice that the
payment has been applied to one bill.

Paying Multiple Bills: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about vendor documents.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing Checks Pending Printing

You can use the Checks Pending Printing (AP404000) form to review which checks on the
specified pay date have not been printed yet. You can initiate check printing from this form
by clicking Print Checks on the form toolbar. The system navigates to the Process Payments /
Print Checks (AP505000) form, where you can print checks.

Reviewing Vendor Documents

You use the Vendor Details (AP402000) form to review the accounts payable documents (bills,
debit and credit adjustments, and checks) for a particular vendor.

By default, the form displays the list of open vendor documents (that is, those with the
Open status), but you can add to the list closed documents and unreleased documents by
selecting the Show All Documents and Include Unreleased Documents check boxes,
respectively.

Reviewing Vendor Balances

You use the Vendor Summary (AP401000) form to review the balances of all vendors for a
specified financial period and the total balance due to vendors.

Lesson 3.7: Processing Prepayments

Processing Prepayments: General Information

A prepayment is a type of accounts payable document that you create to record advance
payments or down payments to vendors. You can create a prepayment in one of the
following ways:
 | Part 3: Accounts Payable Process | 109

• Standard way: First, you enter the vendor’s prepayment request on the Bills and
Adjustments (AP301000) form as an internal accounts payable document of the
Prepayment type. You then create a check to pay for this prepayment request on the
Checks and Payments (AP302000) form. After you release the check, you can apply the
prepayment against bills.

• Simplified way: You create and release a prepayment directly by using the Checks and
Payments (AP302000) form. This method has some restrictions.

To process a prepayment in the system, you have to first create and release the prepayment
request, which denotes the vendor's request for prepayment in the system. A prepayment
request is not a financial document; it is an internal document that can be approved
(if required in your system) before the prepayment is actually paid to the vendor. The
prepayment created through the request can be then applied to outstanding bills and credit
adjustments.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Process a prepayment in the standard way

• Apply the prepayment to a bill

• Enter a vendor refund for a prepayment

Applicable Scenarios

You create a prepayment in the system when you need to pay a vendor for goods and
services before they are provided. You apply a prepayment to a bill or multiple bills of this
vendor and if an amount of the prepayment was not used by the vendor, you create a refund
for the prepayment.

Creating Prepayments in the Standard Way

The standard way of creating prepayments involves the following stages:

1. On the Bills and Adjustments (AP301000) form, you enter a vendor prepayment request
as a document of the Prepayment type. You can specify line details (non-stock items or
services). If the prepayment is intended for stock items, specify this in the description.
When you save the prepayment, the system assigns it a reference number based on the
numbering sequence assigned to bills on the Accounts Payable Preferences (AP101000)
form.

A prepayment may have one summary line or any number of detail lines. You
cannot apply or withhold taxes on prepayments, but you can add tax amounts to the
prepayment amount for easier calculations.
 | Part 3: Accounts Payable Process | 110

To facilitate auditing and user reference, you can attach to each prepayment an
electronic version or a scanned image of the original vendor document. Also, you
can attach a related document to each line of the document.

2. You can release the prepayment requests one by one by using the Bills and Adjustments
form, or along with other accounts payable documents by using the Release AP Documents
(AP501000) form.

A prepayment request, when released, does not change the vendor balance and tax
obligations because it generates no transactions.

3. If approval is required in your system, the prepayment request must be approved on the
Approve Bills for Payment (AP502000) form before it can be actually paid.

4. You pay the prepayment by creating an accounts payable check, as you would to pay any
other bill, by using the Checks and Payments (AP302000) form. The check should be in the
same currency and amount as the prepayment request.

Cash discounts do not apply to prepayments.

5. You release the accounts payable check. When you do, the system changes the status of
this check to Closed and changes the status of the original prepayment to Open, so that
you can apply this prepayment to bills and credit adjustments. For details, see Processing
Prepayments: Process Activity.

Prepayments created in this way can be paid by any payment method allowed for the
particular vendor.

Creating Prepayments in the Simplified Way

Alternatively, you can create a prepayment more simply, by using the Checks and Payments
(AP302000) form. Such prepayments also may have line details or just one summary line,
and you can attach all the related files.

Even if approval of documents is required in your system, prepayments created in this

way are not subject to approval.

Also, prepayments created in this way cannot be paid by a payment method

that requires the printing of checks, so when you are deciding how to create
a prepayment, make sure at least one payment method can be used for this
prepayment.

For details, see To Enter a Prepayment in the Simplified Way.

Applying the Prepayments

You can apply the Open prepayment to bills and adjustments. A prepayment may have
a balance after it is applied to bills and credit adjustments, and it can be released with
balance. When the prepayment application is released, appropriate journal entries to the
General Ledger are made automatically, and the links to appropriate batches are displayed
on the Application History tab of the Checks and Payments (AP302000) form.
 | Part 3: Accounts Payable Process | 111

If a prepayment was incorrectly applied to bills and adjustments and released, you can
reverse the application if needed. To do this, click the Reverse Application action on
the Application History tab of the Checks and Payments form. You can then apply the
prepayment to other bills and adjustments.

Correcting Errors

The way you can correct errors in prepayments depends on the way you entered it.

If you need to correct errors in a prepayment that you created in the standard way, you
have the following options:

• If the prepayment has not been paid, you can void it at any time by clicking Void on the
form toolbar of the Bills and Adjustments (AP301000) form for the selected prepayment.

• If there were errors detected for a paid prepayment, you should create an adjustment
instead of voiding the prepayment.

• If the prepayment has been paid, you void the associated accounts payable check.

If you need to void a prepayment that you created in the simplified way, you select the
prepayment on the Checks and Payments (AP302000) form and click Void on the form toolbar.

If the prepayment to be voided has been applied, first unapply the prepayment, and
then void it.

If a vendor did not use the prepayment or used it only partially, you can enter a refund and
apply it against the prepayment. For details, see Processing a Refund for a Prepayment: Process
Activity.

Process Diagram

The following diagram illustrates the workflow of prepayment processing.

| Part 3: Accounts Payable Process | 112
 | Part 3: Accounts Payable Process | 113

Processing Prepayments: Generated Transactions

When the prepayment is released, the system generates a batch of the following
transactions.

Account Debit Credit

Cash account 0.00 Amount
Vendor AP account or Prepayment Amount 0.00
account

If you do not specify a separate account for prepayments, the vendor prepayments will be
debited to the vendor AP account.

When a prepayment application is released, the system creates a batch of the following
accounting transactions.

Account Debit Credit

Prepayment account 0.00 Amount
Accounts Payable account Amount 0.00

Processing Prepayments: Mass Processing of Documents

This chapter explains how to release multiple prepayments and the rules that the system
uses to group the prepared documents.

Mass Printing of Checks

To print checks in bulk, you use the Process Payments / Print Checks (AP505000) form. To print
multiple checks, you select check boxes next to the needed checks in the table and click
Process on the form toolbar or click Process All to print all the checks listed in the table.

Mass Release of Prepayments

You release multiple prepayments on the Release AP Documents (AP501000) form. To release
multiple prepayments (checks), you select check boxes next to the needed checks in the
table and click Process on the form toolbar or click Process All to release all the checks
listed in the table.

Processing Prepayments: Process Activity

The following hands-on exercise will walk you through the process of creating a prepayment
request, making a payment based on the prepayment request, and applying the prepayment
to a bill.
 | Part 3: Accounts Payable Process | 114

Story

Suppose that the SweetLife Fruits & Jams company has ordered a new design for the
company's printed labels and paper bags from Wingman Printing Company. They requested
an advance payment of $425 for these services. Further suppose that the prepayment that
SweetLife made on January 18, 2019 has to be applied to an AP bill from Wingman Printing
Company.

Acting as the SweetLife accountant, you have to record a request for an advance payment of
$425 to the PRINTICO vendor. You then need to make a payment by check for the request,
and then apply this prepayment to the bill.

Process Overview

To create a prepayment request and a payment, you enter the vendor's prepayment request
on the Bills and Adjustments (AP301000) form. Then you create a payment for this prepayment
request on the Checks and Payments (AP302000) form, and release the check on the Release
Payments (AP505200) form. You apply the prepayment to an AP bill on the Checks and
Payments form and release the application.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/18/2019. If a different date
is displayed, click the Business Date menu button and select 1/18/2019. For simplicity,
in Step 1 and Step 2 of this process activity, you will create and process all documents in
the system on this business date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Prepayment Request

1. Open the Bills and Adjustments (AP301000) form.

2. On the form toolbar, click Add New Record and specify the following settings in the
Summary area:

• Type: Prepayment

• Vendor: PRINTICO

• Due Date: 1/18/2019 (the current business date, which is inserted by default)

• Post Period: 01-2019 (inserted by default based on the selected date)

• Description: Prepayment for label design

 | Part 3: Accounts Payable Process | 115

3. On the Document Details tab, click Add Row on the table toolbar and specify the
following settings for the added row:

• Branch: HEADOFFICE (inserted by default based on the selected branch)

• Transaction Descr.: Label design

• Ext. Cost: 425

• Account: 13200

4. Clear the Hold check box in the Summary area, and click Release on the form toolbar.

You have created a prepayment request to make the prepayment to the vendor.

Step 2: Create a Check to Pay for the Prepayment Request

1. While you are still viewing the prepayment request on the Bills and Adjustments
(AP301000) form, on the form toolbar, click Actions > Pay Bill/Apply Adjustment.

2. On the Checks and Payments (AP302000) form, which is opened, review the check and
verify that it has the following settings in the Summary area:

• Type: Check

• Vendor: PRINTICO

• Payment Method: CHECK

• Payment Amount: 425

• Application Date: 1/18/2019

• Description: Prepayment for label design

3. On the Documents to Apply tab, verify that there is only one row with the following
settings:

• Document Type: Prepayment

• Reference Nbr.: the reference number of the document you created in Step 1.

• Amount Paid: 425

4. Clear the Hold check box in the Summary area, and click Save on the form toolbar. The
following screenshot illustrates the check prepared to pay the prepayment request.
 | Part 3: Accounts Payable Process | 116

Figure: The check prepared to pay the prepayment request

5. On the form toolbar, click Actions > Print Check.

6. On the Process Payments / Print Checks (AP505000) form, which is opened, notice that the
system has added a row with the check and selected the unlabeled check box for it. On
the form toolbar, click Process.

A separate browser tab has opened showing a printable version of the selected check.

7. Review the printable version of the printed check. In a production setting, you would
click Print on the form toolbar to print the check. Close the browser tab.

8. On the Release Payments (AP505200) form, which is opened, click Process. In the
Processing pop-up window, which is opened, click Close.

You have created a check to pay the prepayment request you created earlier, and printed
and released this check. In the next step, you can apply the prepayment to a vendor's bill.

Step 3: Apply the Prepayment to a Bill

1. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
click the Business Date menu button and change the business date in your system to
1/30/2019.

2. Open the Checks and Payments (AP3020PL) form.

3. Select the prepayment with an amount of $425 and a date of 1/18/2019 as follows:

a. Click the Filter Settings button on the form toolbar.

b. In the Filter Settings dialog box which opens, click Add Row and specify the
following settings:

• Property: Type

• Condition: Equals

• Value: Prepayment
 | Part 3: Accounts Payable Process | 117

c. Click Apply and close the dialog box.

4. Click the link in the Reference Nbr. column to open the prepayment on the Checks and
Payments (AP302000) form.

5. On the Documents to Apply tab, click Add Row and specify the following settings in
the table:

• Document Type: Bill

• Reference Nbr.: Click the magnifier button and in the dialog box that displays,
select the bill with an amount of $425 and dated 1/18/2019.

• Amount Paid: 425 (filled in automatically)

The following screenshot shows the prepayment that has been applied to a bill, but not
yet released.

Figure: The prepayment applied to the AP bill

6. On the form toolbar, click Save, and then click Release to save and release the
prepayment application to the bill.

You have applied the prepayment you made to the vendor to one of the vendor's bills and
released the application.

Processing a Refund for a Prepayment: Process Activity

The following hands-on exercise will walk you through the process of creating a refund for a
prepayment.

Story

Suppose that on 1/30/2019, the SweetLife Fruits & Jams company received a refund of $25
from Compulink and Co. for the unused amount of the $190 prepayment. Acting as the
SweetLife accountant, you need to process this refund in the system.
 | Part 3: Accounts Payable Process | 118

Process Overview

You create and release a vendor refund on the Checks and Payments (AP302000) form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this process activity, you will create and process the document in the system on this
business date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create the Refund for the Prepayment

1. Open the Checks and Payments (AP302000) form.

2. On the form toolbar, click Add New Record and specify the following settings in the
Summary area:

• Type: Vendor Refund

• Vendor: COMPULINK

• Date: 1/30/2019 (the current business date, which is inserted by default)

• Payment Ref.: 1152019PrepRef

• Description: $25 refund for unused prepayment

• Payment Amount: 25

3. On the Document Details tab, click Add Row on the table toolbar and specify the
following settings for the added row:

• Document Type: Prepayment

• Reference Nbr.: Click the magnifier button and in the dialog box that displays,
select the prepayment with an amount of $190 and dated 1/15/2019.

• Amount Paid: 25

4. On the form toolbar, click Save.

You have created the $25 vendor refund for the unused amount of the $190 prepayment,
reducing the balance of the prepayment to $165.
 | Part 3: Accounts Payable Process | 119

Step 2: Release the Vendor Refund

1. While still on the Checks and Payments (AP302000) form, clear the Hold check box in the
Summary area to give the vendor refund the Balanced status.

2. On the form toolbar, click Release to release the vendor refund.

The following screenshot shows the released vendor refund applied to the prepayment,
the Amount Paid column showing the amount of the vendor refund and the Balance
column showing the balance of the prepayment.

Figure: The Application Detail tab of the Checks and Payments form

You have released the $25 vendor refund and applied it to the original $190 prepayment.

Processing Prepayments: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about prepayments and their balances.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to the particular form.
Sign in as the admin user, or contact your system administrator.

Reviewing Prepayment Balances

You use the Vendor Summary (AP401000) form to review the total prepayment balance of all
vendors. The table of this form shows the prepayment balances of the listed vendors.

Reviewing a Vendor's Prepayments

You use the Vendor Details (AP402000) form to review the prepayments and the prepayment
balance of a particular vendor.

Reviewing All Prepayments

You run the AP Balance by GL Account (AP632000) report to view all prepayments collected
on the prepayment account. To review the balance of the prepayment account, you select
 | Part 3: Accounts Payable Process | 120

Account Summary in the Report Format box on the Report Parameters tab of the report
form.
 | Part 4: Accounts Receivable Process | 121

Part 4: Accounts Receivable Process

This part of the course deals with the accounts receivable process and guides you through
creating AR invoices, credit memos, illustrates how to prepare customer statements and
reconcile AR and GL balances.

For completing lessons of this part of the course, you will use a company with the U100
data set preloaded, which provides a fully configured company with sample data specially
designed for this course. Lessons of this part are independent: you can complete lesson
activities in any order.

Activities in this part are to be completed under users with specific access rights. Each
activity provides the credentials to use for sign in to the prepared U100 tenant in the Before
You Proceed section.

Lesson 4.1: Configuring a Customer

Configuring a Customer: General Information

In Acumatica ERP, each customer account stores all customer-related information you need
to conduct business with your company’s customers. This information includes addresses,
locations, contacts, and payment methods, as well as financial, billing, delivery, and mailing
settings. Acumatica ERP provides you with different tools that ease the process of entering
customer data and help you to organize this data on reports.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Create a new customer based on the default customer class

• Review the default settings that the system has inserted from the customer class

Applicable Scenarios

You add customer accounts in any of the following cases:

• When you initially configure Acumatica ERP and enter the customer base into the system

• When you need to create an account for a new customer of the company

Entities Needed for Customer Account Setup

Before you start setting up customer accounts in Acumatica ERP, you need to configure the
entities that will ease the processes of customer account creation and maintenance.

The needed entities in Acumatica ERP may include the following:

 | Part 4: Accounts Receivable Process | 122

• Customer classes (required): You should ensure that at least one customer class has
been set up on the Customer Classes (AR201000) form. Customer classes provide
default values for individual customer accounts, so users can create customer accounts
more easily. Besides the class ID and description, which are the required settings of a
customer class, it can contain additional elements, such as general settings, delivery
elements, credit verification settings, financial settings, print and email details, general
ledger accounts, and mailings. For details, see Accounts Receivable: Customer Classes.

• Customer identifiers (optional): You should make sure that the segmented key used as a
template for identifiers of customer accounts suits your needs, and adjust the BIZACCT
segmented key (or the CUSTOMER key) on the Segmented Keys (CS202000) form if
needed.

• General Ledger accounts (required): On the Chart of Accounts (GL202500) form, you need
to create the general ledger accounts to be used to record sales and cash discounts,
unless you plan to use the accounts that already exist. You will need to select these
already-defined accounts when you create customer accounts. For details, see To Add an
Account to the Chart of Accounts.

• Statement cycle (required): You need to ensure that at least one statement cycle
has been set up on the Statement Cycles (AR202800) form, which will be assigned to
a customer class (and therefore to all customers that are assigned to this class). For
details, see Configuring a Customer: Implementation Activity.

• Payment methods (required): You need to ensure that at least one payment method to
be used for customer payments has been defined on the Payment Methods (CA204000)
form. For details, see Managing Payment Methods.

• Credit terms (optional): You should ensure that each needed set of credit terms that
will define the due dates of documents has been set up on the Credit Terms (CS206500)
form. When you set up customer classes, you can assign the appropriate credit terms
to classes, which in turn will cause the credit terms to be assigned by default to all new
customers of this class. For details, see Setup of Credit Terms.

• Overdue charges (optional): You can set up overdue charges on the Overdue Charges
(AR204500) form, which define additional charges that customers will incur for open
documents that are past due and assign the charges to a customer class (which causes
them to be assigned by default to all new customers of this class). For details, see
Overdue Charges.

• Mailings (optional): You can set up multiple mailings to notify customers about their
balances, invoices, sales orders, and other information you want to send to customers on
a regular basis. For details, see Mailings for Customers.

Configuring a Customer: Implementation Activity

The following hands-on activity will walk you through the process of creating a new
customer.
 | Part 4: Accounts Receivable Process | 123

Story

Suppose that SweetLife Fruits&Jams company wants to create a customer account for one
of the local cafes, Prime Cafe, to enable them to buy the SweetLife products on credit, with
payments due in 30 days.

Acting as the SweetLife accountant, you need to create the needed customer account in the
system.

Process Overview

You create a new customer on the Customers (AR303000) form by clicking Add New Record
on the form toolbar. On the tabs of this form, you specify the customer's address and
contact information. You then review the default settings, which the system inserted to the
customer account when creating the customer, and then review the credit terms for the
customer.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Customer Account

1. Open the Customers (AR303000) form.

2. On the form toolbar, click Add New Record.

3. In the Summary area, specify the following settings:

• Customer ID: PRIME

• Customer Name: Prime Cafe

• Status: Active

4. Click Save.

Step 2: Specify Contact Information and Address

1. On the General Info tab, specify the following settings in the Main Contact section:

• Attention: Scott L Kennedy

• Email: primecafe@aol.com

• Phone 1: 973-345-7083
 | Part 4: Accounts Receivable Process | 124

2. In the Main Address section of the General Info tab, specify the following main
address for the customer:

• Address Line 1: 2720 Jadewood Farms

• City: Paterson

• State: NJ

• Postal Code: 07501

Step 3: Review the Statement Cycle Settings

1. In the Financial Settings section on the General Info tab, in the Terms box, make
sure that 30D is selected.

2. In the Credit Verification Rules section, in the Credit Verification box, select
Disabled.

3. Click Save.

Step 4: Review the Default Customer Information

1. On the Billing Settings tab, review the customer's bill-to contact and address.

Because the Same as Main check box is selected for both the bill-to contact and bill-
to address, the system has inserted the information from the Main Contact and Main
Address sections on the General Info tab.

2. On the Delivery Settings tab, review the customer's shipping information.

Because the Same as Main check box is selected for both the shipping contact and
shipping address, the system has inserted the information from the Main Contact and
Main Address sections on the General Info tab.

3. On the Payment Methods tab, review the customer's payment methods and notice that
the CHECK payment method default for the customer (the check box in the Is Default
column is selected).

4. On the GL Accounts tab, review the GL accounts to be used for settlements with this
customer.

Configuring a Customer: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about customers.
 | Part 4: Accounts Receivable Process | 125

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing Customer Documents

You can review the customer's documents at any time on the Customer Profiles (AR402000)
form. The form shows the detailed balance and the list of documents for the particular
customer. By default, the form shows all the customer's open documents.

You can also run this inquiry by clicking Inquiries > Customer Details on the toolbar of
the Customers (AR303000) form.

Reviewing Customer Documents and Balance

You can review the open documents, applications, and customer balances at the end of
a period, grouped by customer and AR account by running the AR Balance by Customer
(AR632500) report. The Customer Documents Total column of the report shows the total
amount over all open documents of the customer. Document applications are listed under
each document in the report. The Applied column shows the period to which the application
was posted.

Reviewing Customer Balance

You can review the customer balance, which you can further reconcile with the balance of
the accounts receivable GL account, by running the AR Balance by GL Account (AR632000)
report. To reconcile the GL balance of the AR account with the customer balance, you
compare the balance obtained in this report with the trial balance for the same period.

Reviewing Customer Balance History

You can review the history of the customer's balance over a specified date range by running
the Customer History (AR652000) report.

Reviewing Customer Documents

To review the customer documents that have been released (documents with the Open,
Closed, and Reserved statuses), you run the AR Register (AR621500) report.

Reviewing Customer Profile

To review the database information for a particular customer, you run the Customer Profiles
(AR651000) report. You can also run this report by clicking Reports > Customer Profile on
the toolbar of the Customers (AR303000) form.

Lesson 4.2: Working with AR Invoices

 | Part 4: Accounts Receivable Process | 126

Working with AR Invoices: General Information

An invoice is a request for payment for goods sold or services rendered. In Acumatica ERP,
an accounts receivable invoice contains the quantities and costs of the products or services
that have been provided by your company, as well as the due date by which the customer
should send payment for the goods or services that have been purchased.

In this chapter, you will read about the processes that result in invoice creation, the groups
of settings that make up an AR invoice, and the way the system uses the settings of the
related entities to automatically fill in settings for the invoice, thus saving you time. You
will also learn how to release invoices and how to review the GL batches that the system
generates on invoice release.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Create an AR invoice

• Release the AR invoice

• Review the GL batch that the system generates as a result of the invoice being released

Applicable Scenarios

You create an invoice manually when you need to enter an AR invoice for a particular
customer into the system; the system can create invoices automatically as a result of other
processes as well. You then release the invoice that you have created and complete its
processing in the system.

Ways an Invoice Can Be Created

In Acumatica ERP, a user can manually enter an accounts receivable invoice by using the
Invoices and Memos (AR301000) form. For step-by-step instructions on recording an invoice
manually, see Working with AR Invoices: Process Activity.

An invoice can also be generated by the system (and is available for editing and processing
on the same form) as a result of the following processes:

• Billing of a contract, as described in Contract Billing

• Billing of a project, as described in Project Billing

• Processing of an SO invoice, as described in Processing Sales of Stock Items.

• Scheduling of a recurring invoice, as described in Schedules for Recurring Documents

• Uploading the details of invoices from an Excel file, as described in To Import Data from a
Local File to a Table.
 | Part 4: Accounts Receivable Process | 127

Settings of an AR Invoice

On the Invoices and Memos form, most primary settings of an AR invoice fit into the following
categories:

• Summary settings: The settings that are located in the Summary area of the form define
the general information used when the invoice is processed. When you create a new
document, the system inserts the current business date and the corresponding post
period automatically.

• Processing settings: This group of settings, which are found on all tabs of the form
except Document Details, define how the invoice is to be processed further and how
the taxes and sales commissions are to be calculated. The system fills in the values
for these settings automatically when you select a customer account, but most default
settings can be overridden before the invoice is released.

• Document details: Each product or service that you sell to the customer is specified in
a separate line of the Document Details tab. An invoice may have one line or multiple
lines. Each line includes settings that define the item to be sold, the sales account used
for the transaction, the tax category, and the line discount.

When you add a line, the system uses the values from the customer account to
automatically fill in the default sales account, tax category, and salesperson. For each
line, you can specify a non-stock item or stock item and the quantity to be sold. If
you select an item, the system automatically fills in the unit price of the item and then
calculates the total price and the applicable taxes and discounts.

Statuses of AR Invoices During Processing

During processing, an invoice can have the following statuses:

• On Hold: The invoice is being edited and cannot be released.

• Balanced: The invoice is ready to be released or scheduled.

• Pending Print: The invoice is ready and must be printed before it can be released.
You can schedule an invoice that has the Pending Print status, if needed. You should
print invoices to send them to the customer before release if the Require Invoice/
Memo Printing Before Release check box is selected on the Accounts Receivable
Preferences (AR101000) form and the settings of the customer require the printing of
these documents—that is, the Print Invoices check box is selected on the Customers
(AR303000) form. For customers with this check box selected, each invoice that is
created and is not on hold is assigned the Pending Print status. After you have printed
the document, its status is changed to Balanced, and you can release it.

• Pending Email: The invoice is ready and must be sent by email before it can be released.
You can schedule an invoice that has the Pending Email status, if needed. You should
email invoices to the customer before release if the Require Invoice/Memo Emailing
Before Release check box is selected on the Accounts Receivable Preferences form and
the settings of the customer require emailing of these documents—that is, the Send
Invoices by Email check box is selected on the Customers (AR303000) form. For
customers with this check box selected, each invoice that is created and is not on hold
 | Part 4: Accounts Receivable Process | 128

is assigned the Pending Email status. After you have emailed the document, its status is
changed to Balanced, and you can release it.

• Open: The invoice has been released. This status indicates that the document has an
outstanding balance to be paid by the customer. The invoice retains the Open status until
the customer has paid the full balance of the invoice.

• Closed: The full balance of the invoice has been paid, and the document balance is zero.

• Scheduled: The invoice is a template for generating recurring invoices according to a

schedule. Based on the template, the system generates recurring invoices that can be
edited and then released. The scheduled invoice itself cannot be released; it can be
edited as a template.

• Voided: The previously scheduled invoice is no longer being used as a template for
generating recurring invoices.

Release of an Invoice

In Acumatica ERP, when you release an invoice, the system does the following:

• Changes the status of the invoice to Open, so it appears in the list of the customer's
outstanding documents. In the open invoice, you can edit the cash discount date and the
due date until the document is settled.

• Increases the outstanding balance to be paid by the customer.

• Generates a GL batch of transactions to update the asset and income accounts.

An invoice with the Credit Memo type can be also released manually on the Invoices
and Memos form, but the release of a credit memo affects the balances of General
Ledger accounts and customers differently. For details, see Correcting AR Invoices:
General Information.

You can release an invoice only if it has the Balanced status.

Invoice Processing Overview

This section provides an overview of the processing of an AR invoice in Acumatica ERP. The
diagram below shows the processing actions, the employees who generally perform them,
and the involved forms and documents.

When a data entry clerk creates a new invoice (see 1 on the diagram below), the invoice
has the On Hold status if the Hold Documents on Entry check box is selected on the
Accounts Receivable Preferences (AR101000) form. When the invoice is ready, the clerk has
to clear the Hold check box to give the invoice the Balanced status (2 on the diagram) so
that it can be released. When the accountant releases the invoice (3), the system assigns it
the Open status (pending customer payment) and generates a batch to debit the accounts
receivable account and credit the income account in the amount of the invoice. The system
also updates the customer balance by this amount. The accountant can print the open
document (4) and can send it to the customer by email (5) if the settings in the system
require this. The amount of the invoice cannot be edited once it is open. If the accountant
 | Part 4: Accounts Receivable Process | 129

needs to correct the balance of the open invoice, this employee can make an adjustment (6)
or reverse the invoice.

The following diagram illustrates the invoice processing workflow.

| Part 4: Accounts Receivable Process | 130
 | Part 4: Accounts Receivable Process | 131

Working with AR Invoices: Generated Transactions

When you release an invoice, the system generates a batch of transactions to reflect the sale
in the general ledger. The invoice includes all the information the system needs to generate
the batch.

You can view the details of the batch associated with the release of an invoice by clicking
the link in the Batch Nbr. box on the Financial Details tab of the Invoices and Memos
(AR301000) form.

The following accounts are usually involved:

• The asset account, which is specified in the AR Account box on the Financial Details
tab

• The income account specified for each line in the Account column on the Document
Details tab

For a one-line invoice, the following transactions will be recorded to the general ledger when
the invoice is released.

Account Debit Credit

Accounts Receivable ac- Amount 0.00
count
Sales account 0.00 Amount

Working with AR Invoices: Process Activity

The following hands-on exercise will walk you through the process of creating and releasing
an AR invoice.

Story

Suppose that today the GoodFood One Restaurant purchased four hours of on-site training
from SweetLife Fruits&Jams company for the amount of $248. Acting as the SweetLife
accountant, you need to create an AR invoice for the customer, release the invoice, and then
review the GL batch generated by the system.

Process Overview

When a customer purchases services or goods, you create an invoice for the purchase on
the Invoices and Memos (AR301000) form. In the invoice, you specify all relevant settings
including the customer and the credit terms in the Terms box of the Summary area (if you
want to use different terms than those specified for the customer and inserted by default
based on the customer settings), and the document details on the Document Details
tab. When the invoice is ready, you release the document by clicking Release on the form
toolbar.
 | Part 4: Accounts Receivable Process | 132

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this process activity, you will create and process all documents in the system on this
business date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create an AR Invoice

1. Open the Invoices and Memos (AR301000) form.

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Invoice

• Customer: GOODFOOD

• Terms: 30D (inserted by default based on the selected customer)

• Date: 1/30/2019 (the current business date, which is inserted by default)

• Post Period: 01-2019 (inserted by default based on the selected date)

• Description: On-site training 4 hours

3. On the Document Details tab, click Add Row, and specify the following settings for the
added row:

• Branch: HEADOFFICE

• Transaction Descr.: On-site training 4 hours

• Ext. Price: 248

4. In the Summary area of the form, click Save.

When you save the invoice, the system generates its reference number based on the
numbering sequence applied to invoices, which is specified in the Invoice Numbering
Sequence box on the Accounts Receivable Preferences (AR101000) form.
 | Part 4: Accounts Receivable Process | 133

Step 2: Release the AR Invoice

1. While still on the Invoices and Memos (AR301000) form, clear the Hold check box in the
Summary area.

The system changes the status of the invoice to Balanced. You can release the invoice
only if it has this status.

2. On the form toolbar, click Release.

The system changes the status of the invoice to Open.

Step 3: Review the GL Batch Generated when the Invoice Is Released

1. Open the Financial Details tab, and click the link in the Batch Nbr. box.

When you released the invoice, the system generated and released this batch in the
general ledger. The system assigned the batch the next number in the sequence
specified in the GL Batch Numbering Sequence box on the Accounts Receivable
Preferences (AR101000) form, which determines the numbers assigned to batches
generated from the accounts receivable subledger.

2. On the Journal Transactions (GL301000) form, which is opened, review the transaction that
has been generated on the release of the invoice.

The 11000 (Accounts Receivable) AR account specified in the invoice has been debited
with $248, while the 40000 (Sales Revenue) income account has been credited in the
same amount. For details on the transactions generated when you release an invoice,
see Working with AR Invoices: Generated Transactions.

Working with AR Invoices: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may want to review to gather
information about AR invoices.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing the Details of an Unreleased Invoice

When an invoice has not yet been released, you can review the details of the invoice by
running the AR Edit Detailed (AR610500) report. When you run this report from the Invoices
and Memos (AR301000) form by clicking Reports > AR Edit Detailed, the report shows the
details of the invoice opened on this form. You can review what GL batch the system will
create when you release the invoice, which accounts will be updated by the transaction, and
how the customer's balance will be affected.

When you run this report directly from the report form, you specify the needed report
parameters and can view a list of unreleased invoices based on these parameters.
 | Part 4: Accounts Receivable Process | 134

Reviewing Details of a Released Invoice

Once you have released an invoice, you can review the details of the invoice by running the
AR Register Detailed (AR622000) report. When you run this report from the Invoices and Memos
(AR301000) form by clicking Reports > AR Register Detailed, the report shows the
details of the invoice opened on this form. You can review the GL batch the system created
when releasing the invoice and the accounts that have been updated by the transaction.

When you run this report directly from the report form, you specify the needed report
parameters and can view a list of released invoices based on these parameters.

Reviewing the Customer's Balance

After an invoice has been released, you can review the customer's balance on the AR Balance
by Customer (AR632500) report. On this report form, you select Open Documents in the
Report Format box and specify the needed financial period.

In the report, you can review open documents and customer balances at the end of the
period, grouped by customer and by AR account. When you release an invoice or credit
memo, the system updates the customer balance. Customer Documents Total is the total
amount over all open documents for the customer.

Reviewing the Customer Information

You can review the balances of a specific customer on the Customer Details (AR402000)
form. When you open this inquiry from the Invoices and Memos (AR301000) form by clicking
Inquiries > Customer Details, the Customer Details form, which is opened, shows
the outstanding balances of the selected customer and a list of the documents of this
customer that have the Open status. You can select the Show All Documents and Include
Unreleased Documents check boxes in the Selection area of the form to include all
documents and unreleased documents in the inquiry.

Printing an Invoice

You can use the Invoice/Memo (AR641000) report to generate a ready-to-print version of a
particular invoice; you then click Print on the report toolbar to print the invoice.

To quickly run this report when you are processing a particular invoice on the Invoices and
Memos (AR301000) form, click Reports > Print Invoice/Memo on the form toolbar.

Lesson 4.3: Paying AR Invoices

Paying AR Invoices: General Information

In Acumatica ERP, when you receive a customer payment for the invoice, you enter the
payment document by using the Payments and Applications (AR302000) form. In the payment,
you specify the customer from which you have received the payment, the cash account to
which the payment amount should be recorded, the payment method, and the payment
 | Part 4: Accounts Receivable Process | 135

amount. The payment method denotes the actual means of payment: cash, printed check, or
wire transfer.

When you are entering the payment, you can specify the documents to which the payment
applies and then release the payment and the application at once.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Enter a payment

• Apply the payment to an AR invoice

• Release the payment and the payment application to the AR invoice

Applicable Scenarios

Payments can be created in the following cases:

• Manually by the user on the Payments and Applications (AR302000) form.

• By the system when the user clicks Actions > Enter Payment/Apply Memo. In this
case, the system creates a document with the Payment type automatically.

• On the Generate Payments (AR511000) form when the user initiates creation of payment
documents for customers with the Credit Card default payment method.

Payment Processing Stages

The main stages of payment processing are the following:

1. Recording: In this stage, you create a payment—that is, provide all the necessary
information to the system. By default, the system assigns to the payment the Balanced
status when you save it for the first time. This status indicates that the user has finished
editing the payment and it is ready to be released, although you still can edit a payment
with this status. Alternatively, if you select the Hold check box to indicate to the system
that this payment is not ready to be released, the system changes the payment status to
On Hold.

2. Application: In this stage, you specify the list of the outstanding documents to which the
system should apply the payment. You can do this while you record the payment or after
you have released the payment. You can fully or partially apply the payment amount to
an outstanding document, or distribute the payment amount among multiple outstanding
documents. The system creates application records, which include the paid amount, for
each included outstanding document. The system does not change the payment status
during this stage; it remains Balanced, On Hold (if Hold is selected), or Open (if the
payment has been released). For details, see Manual Payment Application.

3. Releasing a payment: You can release a payment only if it has the Balanced status.
When you release the payment, the system checks the available payment balance and
processes the payment accordingly. If the available payment balance is zero (that is, if
 | Part 4: Accounts Receivable Process | 136

the payment has been fully applied to an outstanding document), the system changes
the statuses of both the payment and the paid document to Closed. If the available
payment balance is nonzero, the system changes the payment status to Open. This
status indicates to users and to the system that the payment is ready to be applied to
the outstanding documents of a customer. For details, see Release of Payments.

4. Releasing application records: If you specify a list of outstanding documents for a

payment with the Open status, you should release the application records after you have
finished distributing the payment amount between the outstanding documents. You can
fully or partially apply the payment amount to outstanding documents. When you release
the application,s the system checks the available payment balance. Based on this data,
the system processes the payment differently, in one of the following ways:

• If the payment amount is fully applied to an outstanding document, the system does
the following: releases application records; changes the statuses of the payment and
the paid document to Closed; and decreases the balances of the paid document and
the payment. The system may change the balance of the customer, if documents with
different currencies are involved.

• If the payment amount is partially applied, the system leaves the payment status as
Open; it also decreases the balances of the paid document, the payment, and the
customer. If some outstanding documents were fully paid with the applied amount,
the system changes the status of the paid document to Closed.

Document Structure

Regardless of how a payment document is created, it has the same groups of settings, which
are described in this section:

• Summary: Settings that are located in the Summary area of the form define the general
information required for issuing the payment. When you create a new document,
the system inserts the current business date as the date of application and the
corresponding post period. When you select the identifier of the customer account, the
system uses the customer as a source to automatically fill in most settings needed for
processing the payment. All settings filled in by the system can be manually overridden.

• Financial details: This group of settings, located on the Financial Details tab, defines
the General Ledger accounts where the payment transactions are recorded after a user
releases the payment. The system fills in the values for these settings automatically
when you select a customer account, but they can be manually overridden. When
you create a new document, the system also inserts the current business date as the
payment date and the corresponding post period.

• Application details: Each outstanding document that you want to pay with the payment is
specified in a separate line of the table on the Documents to Apply tab. The payment
document can be applied to multiple outstanding documents. For each line, you specify
the amount to be paid in the Amount Paid column. For details, see Manual Payment
Application.

• Balance details: Read-only elements in the Summary area of the form display how the
amount of the payment document has been distributed and currently available balance
(the amount that is not applied). The system updates the values of these elements when
you modify application details.
 | Part 4: Accounts Receivable Process | 137

When you save the document for the first time, the system generates a unique reference
number for the payment document in accordance with the numbering sequence assigned to
corresponding payment document on the General Settings tab of the Accounts Receivable
Preferences (AR101000) form.

Payment Recording

In Acumatica ERP, you can create the following types of payment documents: Payment,
Prepayment, and Customer Refund. The information in this topic applies to documents of all
these types.

In Acumatica ERP, a user can manually enter an Accounts Receivable payment from the
following forms:

• The Invoices and Memos form (AR301000) form, by using the Enter Payment/Apply
Memo action. The system opens the Payments and Applications (AR302000) form where a
payment document with the Payment type is created automatically: The elements of the
form are filled in with the customer information, the invoice amount is specified as the
document amount, and the application record of the invoice is added. You simply release
the payment the system has created, and the system releases the application record as
well and closes both documents.

• The Payments and Applications form. You create a payment document here from scratch.
For step-by-step instructions, see To Enter a Payment Document.

Invoice Payment Workflow

An open payment can be applied to customer documents, for example an invoice. To apply
the payment to an invoice (see 6 on the diagram below), you specify the invoice and the
amount to apply by using the Payments and Applications (AR302000) form. After that, you
release the payment application (6), and the system decreases the balances of the invoice
and the payment by the application amount. The invoice appears in the application history
of the payment. Once the invoice is settled, it has a balance of zero and becomes closed.
The payment becomes closed once the full payment amount is applied to documents. If you
have applied the payment to an invoice incorrectly, you can reverse the application (7) and
reapply the payment to the appropriate invoice.

The following diagram illustrates the invoice payment workflow.

| Part 4: Accounts Receivable Process | 138
 | Part 4: Accounts Receivable Process | 139

Paying AR Invoices: Generated Transactions

When you release a payment and its application, the system generates a general ledger
batch to update the involved asset accounts with the payment transactions. The payment
includes all the information the system needs to generate the batch. The following two
accounts are usually involved:

• The asset account specified in the AR Account box on the Financial Details tab

• The cash account specified in the Cash Account box in the Summary area

The following payment transactions will be recorded to the general ledger when the payment
is released.

Account Debit Credit

Cash account Payment amount 0.00
Accounts Receivable ac- 0.00 Payment amount
count

You can view the batch details by clicking the link in the Batch Nbr. box on the Financial
Details tab of the Payments and Applications form.

Paying AR Invoices: Mass Processing

This topic explains the way you can release multiple payment applications, the application of
a payment to multiple AR documents, and the application of multiple payments to a single
AR document.

Mass Release of Payments and Payment Applications

Multiple payments can be released at the same time on the Release AR Documents
(AR501000) form. On this form, you select the unlabeled check boxes next to the payments
to be processed and click Release on the form toolbar to release the selected payments
and their applications to documents or click Release All to release all the payments and
applications shown in the table.

The system creates a consolidated GL batch for all the released invoices and credit
memos if the Generate Consolidated Batches check box is selected on the General
Ledger Preferences (GL102000) form.

Application of a Payment to Multiple AR Documents

You can apply a single payment to multiple documents at once on the Payments and
Applications (AR302000) form by performing the following general steps:

1. On the Documents to Apply tab, you add the AR documents to be paid.

When you create a new payment of the Payment or Prepayment type on the Payments
and Applications (AR302000) form, as soon as you select the customer in the Summary
 | Part 4: Accounts Receivable Process | 140

area, the system automatically loads to the Documents to Apply tab the AR documents
to which this payment can be applied—that is, the customer's open AR documents of
the Invoice, Debit Memo, Credit Memo, and Overdue Charge type that do not have
unreleased applications.

If more than 100 eligible documents exist for the selected customer, the system does not
load any documents; it suggests that the user should load documents by clicking Load
Documents on the table toolbar.

You can add documents to the Documents to Apply tab manually in one of the
following ways:

• On the table toolbar, you click Add Row to add a new row to the table, and in the
row, you select the document.

• On the table toolbar, you click Load Documents. In the Load Options dialog box,
which opens, you specify the criteria of the documents to be loaded (and if needed,
the maximum number of documents you want to load), and you click the Load
or Reloadbutton. The Load button adds the documents that match the selected
criteria to any documents that have already been added to the table, whereas the
Reload button first removes any documents from the table and then loads only the
documents that match the selected criteria.

The criteria that you can select in the Load Options dialog box include the company
and branch, the range of the document dates, and the range of the document
numbers. You can also select the order in which the documents loaded to the table
should be displayed by using the following option buttons in the Sort Order section:

• Due Date, Reference Nbr.: To display the documents in ascending order, sorted
first by due date and then by reference number

• Doc. Date, Reference Nbr.: To display the documents in ascending order,

sorted first by document date and then by reference number

• Reference Nbr.: To display the documents in ascending order, sorted by

reference number

You can also select or clear the Automatically Apply Amount Paid check box to
indicate whether the payment should be immediately applied to the documents on
loading. (If it is selected, when loading the documents, the system fills the Amount
Paid column with the appropriate values. You can override these values, if needed.)
This check box is selected by default.

2. You specify the payment amounts to be applied to particular listed AR documents.

Now that the documents to which you want to apply the payment have been added to
the table on the Documents to Apply tab, you specify the amounts to be applied to
each of the documents in one of the following ways:

• In the row for each document, you specify the payment amount to be applied in the
Amount Paid column.
 | Part 4: Accounts Receivable Process | 141

• On the table toolbar, you click Auto Apply, and the system applies the payment
amount to the added documents, starting from the first document displayed in the
list (even if the list has been sorted or filtered) until the payment is applied to all
documents or until the payment's available balance (Available Balance in the
Summary area for the payment) becomes zero.

3. You save or release the payment.

Once you have specified the amount to be applied to each document that you want to
pay, you can release or save the payment. When the payment is released or saved with
the On Hold or Balanced status, the system removes from the table the documents that
were added to the Documents to Apply tab but to which the payment has not been
applied; only documents to which the payment has been applied are kept.

Application of Multiple Payments to a Single AR Document

When you are working with a particular AR document on the Invoices and Memos (AR301000)
form, you can apply multiple payments to it on the Applications tab by performing the
following general steps:

1. You add the payments to be applied to the Applications tab.

For an unreleased invoice that you have created or opened on the Invoices and Memos
form, you can form the list of payments that can be applied to the invoice by clicking
Load Documents on the toolbar of the Applications tab. The system loads all open
payments for the customer selected in the invoice except for the payments that have
unreleased applications. If more than 100 payments can be applied to the document, the
list of payment documents is split into pages, with 100 payment documents per page.

2. You apply payment amounts to the AR document.

On the Applications tab, you can specify the amount of each payment to be applied to
the AR document in one of the following ways:

• You specify the amount to be applied in the Amount Paid column for each listed
payment that you want to apply.

• You click Auto Apply on the table toolbar. The system then applies the loaded
payments to the document starting with the first payment displayed in the table
(even if the rows have been sorted or filtered) until the document balance is paid in
full or until there is no more payment balance available.

3. You save or release the invoice.

Once you have applied payments to the invoice, you can save or release it. When the
invoice is released or saved, the system removes from the table the payments that were
loaded to the Applications tab but have not been applied to the invoice; only payments
that were applied are kept.
 | Part 4: Accounts Receivable Process | 142

Paying AR Invoices: Process Activity

The following hands-on exercise will walk you through the process of creating a payment and
applying it to an invoice.

Story

Suppose that on 1/30/2019, the SweetLife Fruits & Jams company received a check for $300
from one of its customers that had purchased an offline training course on 1/9/2019.

Acting as a SweetLife accountant, you need to create the payment in the system and apply it
to the $300 invoice dated 1/9/2019.

Process Overview

When a customer pays an invoice, you find the needed invoice on the Invoices and Memos
(AR301000) form and use the Enter Payment/Apply Memo action to create a payment
on the Payments and Applications (AR302000) form and apply this payment to the invoice. You
then release the payment along with its application to the invoice.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this exercise, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create a Payment for a Specific Invoice

1. Open Invoices and Memos (AR301000) form.

2. Find the $300 invoice for the COFFEESHOP customer, which is dated 1/9/2019, and open
it.

3. On the form toolbar, click Actions > Enter Payment/Apply Memo.

The system navigates to the Payments and Applications (AR302000) form and inserts the
information from the invoice into the payment. You can change this default payment
information in the payment before release.

4. In the Summary area, make sure the following information is displayed:

• Application Date: 1/30/2019

 | Part 4: Accounts Receivable Process | 143

• Application Period: 01-2019

• Description: Offline training

• Payment Amount: 300 (the amount you have received from the customer)

5. On the Documents to Apply tab, in the Amount Paid column for the invoice, leave the
full amount to be applied, $300.

6. In the Summary area, clear the Hold check box and save the document.

When you save the new payment, the payment amount becomes the Applied to
Documents amount, indicating that it has been applied to the invoice.

Step 2: Release the Payment and Its Application to the Invoice

1. While still on the Payments and Applications (AR302000) form, click Release on the form
toolbar.

2. On the Application History tab, review the row that the system has added and click the
link in the Batch Number column.

3. The system opens the Journal Transactions (GL301000) form with the GL batch generated
after the release of the payment application.

Paying AR Invoices: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about credit memos.

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing the Customer Balance

You can review the balance of a specific customer by running the AR Balance by Customer
(AR632500) report. To review payment applications along with documents, select the Open
+ Current Period report format and select the Include Applications check box on the
Report Parameters tab. Document applications are listed under each document in the
report. The Applied column shows the period to which the application was posted. The
Closed column displays the period in which the document was closed. For open documents,
the Closed column is empty.

For the COFFEESHOP customer, the report would show the payment applied to the invoice in
the 01-2019 period.

If all the documents have been paid within a financial period, the customer's balance will be
zero at the end of this period.
 | Part 4: Accounts Receivable Process | 144

Reviewing Payment Details

Once you have released a payment and its application to an invoice, you can review the
details of the payment by running the AR Register Detailed (AR622000) form. When you
run this report from the Payments and Applications (AR302000) form by clicking Reports >
AR Register Detailed, the report shows the details of the payment opened on this form.
You can review the GL batch the system created when releasing the payment and which
accounts have been updated by the transaction.

Lesson 4.4: Correcting AR Invoices

Correcting AR Invoices: General Information

In Acumatica ERP, the amount of a released invoice, which increases a customer’s debt,
cannot be changed directly in the released document. In the open (released) invoice, you
can edit only the cash discount date and the due date until the document is settled. The
closed invoice cannot be edited at all.

You may need to decrease the outstanding amount of an invoice when the invoice
overcharged the customer or the customer reported receiving damaged goods. On the other
hand, you may need to increase the amount of an invoice due to additional expenses being
incurred during delivery of the goods or services listed in the original invoice. Also, you may
need to reverse an invoice.

Thus, the correction of an invoice can be performed only by issuing an additional document
(credit or debit memo) that affects the customer’s balance (credit or debit memo).

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Create and release a credit memo

• Apply the credit memo to an open invoice

• Create and release a debit memo

• Apply the debit memo to a payment

Applicable Scenarios

You create a credit or debit memo in the following cases:

• You need to adjust the balance of a particular invoice

• You need to decrease the amount owed to you by a particular customer (credit memo) or
to increase the amount owed to you by a particular customer (debit memo)
 | Part 4: Accounts Receivable Process | 145

Decreasing the Amount of an Invoice

You issue a credit memo, which will be used to decrease a customer’s debt, by using Invoices
and Memos (AR301000) form—the same form you use to create an invoice. The credit memo
is independent from the original invoice, with no direct reference to it. Processing a credit
memo includes applying this credit memo to an invoice, which establishes a link between
these two documents. A credit memo may have multiple lines or one summary line. Credit
memos do not have due dates and may be numbered differently from invoices.

The release of a credit memo decreases the customer's balance. The application of a
released credit memo against invoices, debit memos, and overdue charges decreases the
outstanding amount of these documents by the amount of the credit memo.

Increasing the Amount of an Invoice

It is not possible to increase the outstanding amount of an open invoice (which has been
released) or the paid amount of a closed one. You instead issue a debit memo by using the
Invoices and Memos (AR301000) form. When you release this document, it increases the debt
of the customer; the debit memo does not change the balance of any invoice and should
be paid as a separate document. The debit memo doesn't contain a direct reference to any
original invoice. Processing a debit memo includes applying this debit memo to an invoice,
which establishes a link between these two documents or applying this debit memo to a
payment. For details, see Creating a Debit Memo: Process Activity.

Debit memos may be numbered differently from invoices. For details on the recording and
release of a debit memo, see Invoice and Memo Processing Flow.

Reversing an Invoice

When you reverse a released invoice, its status and outstanding amount do not change. You
can reverse an invoice on the Invoices and Memos (AR301000) form in one of the following
ways:

• By clicking the Reverse action for the invoice. The system automatically generates a
credit memo with details similar to those of the invoice; you then need to release and
apply the credit memo to the original invoice. You can change the document amount, if
needed, before releasing the credit memo.

• By clicking the Reverse and Apply to Memo action for the invoice. The system
automatically generates a credit memo with details similar to those of the invoice and
creates a respective application; you then need to release the credit memo. You can
change the document amount and application amount, if needed, before releasing the
credit memo.

If you do not release the credit memo immediately and instead only save it, you
cannot apply any other document to the reversed invoice (for example, in case of
partial reversal) until you release the credit memo and its application.

• By manually creating a credit memo for the full balance of the invoice and then applying
the credit memo to the invoice.
 | Part 4: Accounts Receivable Process | 146

If you are reversing a closed invoice, before applying a credit memo, you need to
reverse the application of the document used to close this invoice, thus causing the
invoice to again be assigned the Open status.

If you use an action on the Invoices and Memos form to automatically reverse an invoice,
the system will display the invoice number for the created credit memo in the Original
Document box on the Financial Details tab of the form.

Process Diagram

The following diagram illustrates the invoice correction workflow, which is a part of the
invoice processing workflow.

Correcting AR Invoices: Generated Transactions

When you release a credit memo, the system generates a batch of general ledger
transactions that update the asset and income accounts. For details on the general ledger
accounts involved, see Invoice Releasing.

The following transactions will be posted to the general ledger when a one-line credit memo
with a tax is released.
 | Part 4: Accounts Receivable Process | 147

Account Debit Credit

Accounts Receivable ac- 0.00 Amount + Tax amount
count
Sales account Amount 0.00
Tax Payable account Tax amount 0.00

The following transactions will be posted to the general ledger when a one-line credit memo
without a tax is released.

Account Debit Credit

Accounts Receivable ac- 0.00 Amount
count
Sales account Amount 0.00

The following transactions will be posted to the general ledger when a one-line debit memo
with a tax is released.

Account Debit Credit

Accounts Receivable ac- Amount + Tax amount 0.00
count
Sales account 0.00 Amount
Tax Payable account 0.00 Tax amount

The following transactions will be posted to the general ledger when a one-line debit memo
without a tax is released.

Account Debit Credit

Accounts Receivable ac- Amount 0.00
count
Sales account 0.00 Amount

Tax accounting is outside the scope of the current business process, so the
transactions generated later will involve only the Accounts Receivable and Sales
accounts.

When you release an application of a credit memo to an invoice, the system does not
generate a batch. A batch is generated in only the following cases:

• You have written off some balance along with the application. In this case, the system
generates a batch to update the asset account specified for the outstanding document
in the AR Account box on the Financial Details tab of Invoices and Memos and the
expense account specified in the Account box on the Reason Codes (CS211000) form for
the reason code you have used to write off the balance. For more details, see Types of AR
Documents.
 | Part 4: Accounts Receivable Process | 148

• The credit memo or the outstanding document to which you want to apply the credit
memo is in a foreign currency. The system generates a batch to update the balance of
the realized gain or loss (RGOL) account by the amount resulting from the difference in
the exchange rate on the outstanding document date and the credit memo date. The
RGOL account is specified for each currency on the Currencies (CM202000) form.

Currency management is outside the scope of the current business process.

Creating a Credit Memo: Process Activity

The following hands-on exercise will walk you through the process of creating a credit memo
and applying it to an invoice.

Story

Suppose that on 1/16/2019, the SweetLife Fruits & Jams company sold five days of online
training to one of its customers, GoodFood One Restaurant in the amount of $225. An AR
clerk created an invoice for five days of training for GoodFood One Restaurant. The actual
number of training days turned out to be four, and now SweetLife needs to reduce the
customer balance of GoodFood One Restaurant by $45.

Acting as the SweetLife accountant, you have to create a credit memo and apply it to the
open invoice to reduce the customer balance by $45.

Process Overview

You create and release a credit memo on the Invoices and Memos (AR301000) form and apply
it to an open invoice on the Payments and Applications (AR302000) form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this exercise, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create and Release a Credit Memo

1. Open the Invoices and Memos (AR301000) form.

 | Part 4: Accounts Receivable Process | 149

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Credit Memo

• Customer: GOODFOOD

• Date: 1/30/2019 (the current business date, which is inserted by default)

• Post Period: 01-2019

• Description: Service undelivered by invoice 000079

3. On the Document Details tab, click Add Row and specify the following settings for the
added row:

• Branch: HEADOFFICE

• Transaction Descr.: Service undelivered by invoice 000079

• Ext. Price: 45

4. Clear the Hold check box in the Summary area and on the form toolbar, click Release to
release the credit memo.

The system gives the credit memo a reference number based on the ARINVOICE
numbering sequence, which is specified in the Credit Memo Numbering Sequence box
on the Accounts Receivable Preferences (AR101000) form. After the document is released,
the credit memo becomes open; you can apply the credit memo to an invoice or a debit
memo. On release of the credit memo, the system updates the current balance of the
customer and generates a batch.

Step 2: Apply the Credit Memo to the Invoice

1. While still on the Invoices and Memos (AR301000) form, on the form toolbar click Actions
> Enter Payment/Apply Memo.

The system navigates to the Payments and Applications (AR302000) form where you can
apply the credit memo to the invoice.

2. In the Application Date box, make sure that 1/30/2019 is displayed and make sure
01-2019 is selected as the Application Period.

3. On the Documents to Apply tab, click Add Row and in the Reference Nbr. column,
select the invoice with the 000079 reference number for the row.

4. In the Amount Paid column, leave the value of 45.

5. On the form toolbar, click Release to release the credit memo application to the invoice.

6. On the Application History tab, make sure that a row containing the invoice has
appeared.
 | Part 4: Accounts Receivable Process | 150

Creating a Debit Memo: Process Activity

The following hands-on exercise will walk you through the process of creating a debit memo
and applying it to a payment.

Story

Suppose that an invoice sent by SweetLife Fruits & Jams company to FourStar
Coffee&Sweets Shop for a three-day training in the amount of $135 undercharged the
customer, as the number of trainees was higher than agreed. The amount to be additionally
charged from the customer for this training is $67.50.

Acting as the SweetLife accountant, you need to create a debit memo in the amount of
$67.50 and process the customer's payment of the debit memo.

Process Overview

You create and release a debit memo on the Invoices and Memos (AR301000) form and apply
it to a payment on the Payments and Applications (AR302000) form.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this exercise, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Create and Release a Debit Memo

1. Open the Invoices and Memos (AR301000) form.

2. Click Add New Record on the form toolbar, and specify the following settings in the
Summary area:

• Type: Debit Memo

• Customer: COFFEESHOP

• Date: 1/30/2019 (the current business date, which is inserted by default)

• Post Period: 01-2019

• Description: Additional charge for offline training

 | Part 4: Accounts Receivable Process | 151

3. On the Document Details tab, click Add Row and specify the following settings for the
added row:

• Branch: HEADOFFICE

• Transaction Descr.: Additional charge for offline training

• Ext. Price: 67.50

4. Clear the Hold check box in the Summary area and on the form toolbar, click Release to
release the debit memo.

The system gives the credit memo a reference number based on the ARINVOICE
numbering sequence, which is specified in the Debit Memo Numbering Sequence box
on the Accounts Receivable Preferences (AR101000) form. After the document is released,
the debit memo becomes open; you can apply a payment to it. On release of the debit
memo, the system updates the current balance of the customer and generates a batch.

Step 2: Apply a Payment to the Debit Memo

1. While still on the Invoices and Memos (AR301000) form, on the form toolbar click Actions
> Enter Payment/Apply Memo.

The system navigates to the Payments and Applications (AR302000) form where you can
apply the debit memo to a payment.

2. In the Application Date box, make sure that 1/30/2019 is displayed and make sure
01-2019 is selected as the Application Period.

3. In the Summary area, review the value in the Payment Method box and make sure
that the Payment Amount is 67.50.

4. On the Documents to Apply tab, make sure that the debit memo you have created is
shown.

5. Clear the Hold check box in the Summary area and on the form toolbar, click Release to
release the payment.

6. On the Application History tab, click the link in the Batch Number column to review
the batch that the system has created.

Correcting AR Invoices: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may review to gather information
about credit and debit memos.
 | Part 4: Accounts Receivable Process | 152

If you do not see a report or inquiry, this could mean that you have signed in to the
system with a user account that does not have access rights to a form. Sign in as the
admin user, or contact your system administrator.

Reviewing the Customer Information

You can review the balances of a specific customer on the Customer Profiles (AR402000)
form. When you open this inquiry from the Invoices and Memos (AR301000) form by clicking
Inquiries > Customer Details, the Customer Profiles form, which is opened, shows the
outstanding balances of the selected customer and a list of documents of this customer,
which have the Open status. You can select the Show All Documents and Include
Unreleased Documents check boxes in the Selection area of the form to include all
documents and unreleased documents to the inquiry.

The released credit memos decrease and debit memos increase the customer's balance.

Preparing a Printable Credit Memo or Debit Memo Form

You can use the Print Invoices and Memos (AR508000) form to prepare the printable form of a
credit memo or debit memo, review it, and print. To quickly run this report when processing
a particular credit or debit memo, use the Reports > Print Invoice/Memo action on the
Invoices and Memos (AR301000) form.
 | Part 5: Cash Transactions and Bank Reconciliation | 153

Part 5: Cash Transactions and Bank

Reconciliation
This part of the course illustrates the processing of cash transactions, such as a cash entry
and a funds transfer. It also describes the process of reconciling a cash account with a bank
statement, which is a preparation step for period-end procedures.

For completing lessons of this part of the course, you will use a company with the U100
data set preloaded, which provides a fully configured company with sample data specially
designed for this course. Lessons of this part are independent: you can complete lesson
activities in any order.

Activities in this part are to be completed under users with specific access rights. Each
activity provides the credentials to use for sign in to the prepared U100 tenant in the Before
You Proceed section.

Lesson 5.1: Processing a Cash Entry

Cash Entries: General Information

In Acumatica ERP, you can record cash entries—that is, cash transactions that affect cash
but do not involve customers or vendors. Transactions of this type affect only the balances of
general ledger accounts.

Learning Objectives

You will learn how to create a cash entry in Acumatica ERP.

Applicable Scenarios

You create a transaction of the Cash Entry type to record a cash operation, such as a bank
charge, interest income, or an unknown payment.

Types of Cash Entries

Cash entries are used to record cash transactions, such as charges for transfers, bank
service charges, or amounts earned on interest-bearing bank accounts or other investments.
Cash entries can be of two types:

• Receipt—which increases the balance of a cash account ("money in"). Entries of this
type can include recording amounts earned on interest-bearing bank accounts or other
investments.

• Disbursement—which decreases the balance of a cash account ("money out"). This entry
type includes, among others, charges for transfers, bank service charges.
 | Part 5: Cash Transactions and Bank Reconciliation | 154

Processing of a Cash Entry

To process a cash entry, you first create it on any of the following forms:

• Transactions (CA304000). On this form, you select a cash account and an entry type, and
change the transaction date and financial period, if needed. Then you add the transaction
details. For each transaction detail, you can change the offset account if any default
values are provided by the selected entry type, or select an offset account from the list
of accounts if no default values are provided.

• Cash Account Details (CA303000). On this form, you select a cash account for the
transaction and click Create Transaction on the table toolbar. In the Quick
Transaction dialog box, which opens, you enter the transaction details.

• Reconciliation Statements (CA302000). You can quickly record a cash transaction during the
bank statement reconciliation by using the Reconciliation Statements form. To do this, you
click Create Adjustment on the table toolbar, which invokes the Quick Transaction
dialog box. Then you specify the transaction details in this dialog box.

When a cash entry is ready for release, you release it in any of the following ways:

• On the Transactions form, you make sure that the cash entry is balanced (remove it from
hold, if necessary by clearing the Hold check box), and on the form toolbar, you click
Release to release the cash entry.

• You can release balanced cash entries on the Cash Account Details (CA303000) form. On
this form, you select the unlabeled check box for the needed cash entry and then click
Release on the form toolbar. If the cash entry has the On Hold status, you can click the
link in the Orig. Doc. Number column for this cash entry. This brings up the Transactions
form in a popup window where you can clear the Hold check box to take the cash entry
off hold and then click Actions > Release in the form toolbar to release the cash entry.

During processing, a cash entry can have the statuses listed in the following table.

Table: Statuses of Cash Entries

Status Description
On Hold The cash entry is being edited and cannot be
released.
Pending Approval The cash entry requires approval. This sta-
tus is only used if the Approval Workflow
feature is enabled and approvals are config-
ured for cash transactions.
Balanced The cash entry is balanced and ready to be
released.
Released The cash entry has been released and the
respective general ledger batch has been
generated.
 | Part 5: Cash Transactions and Bank Reconciliation | 155

Process Diagram

The following diagram illustrates the workflow of cash entry processing.

Cash Entries: To Create a Disbursement Cash Entry

In this activity, you will create a cash entry of the Disbursement type.

Story

As the SweetLife accountant, you need to register a $15 service fee charged by your bank,
Key Bank, for the checking account in January, 2019.
 | Part 5: Cash Transactions and Bank Reconciliation | 156

Process Overview

As the SweetLife accountant, you create the disbursement cash entry for the bank service
fee on the Transactions (CA304000) form. Then you release the cash entry and review the
generated GL transactions on the Journal Transactions (GL301000) form.

System Preparation

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/31/2019. If a different date
is displayed, click the Business Date menu button and select 1/31/2019. For simplicity,
in this activity, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

4. On the Cash Management Preferences (CA101000) form, in the Posting and Release
Settings section, make sure that the Automatically Post to GL on Release check box
is cleared.

Step 1. Create and Release a Disbursement Cash Entry for Bank Service
Charge

To create a disbursement cash entry for $15 bank service fee charged from the Checking
Account account on January 31, 2019, do the following:

1. Open the Transactions (CA304000) form.

2. In the Summary area of the form, create a new document with the following settings:

• Cash Account: 10200WH (KeyBank Checking)

• Entry Type: BANKFEE (Bank Fees)

• Document Ref.: 20190131

• Tran. Date: 1/31/2019

• Fin. Period: 01-2019

• Description: $15 Bank Service Fee Paid for Checking Account in January

• Hold: Cleared

3. On the Transaction Details tab, specify the following settings:

• Branch: HEADOFFICE
 | Part 5: Cash Transactions and Bank Reconciliation | 157

• Amount: 15.00

• Offset Account: 61100 (Bank Service Charges)

4. Save your changes.

5. On the form toolbar, click Actions > Release to release the cash entry. The system
creates a batch to be posted to the general ledger.

Step 2. Review the Generated GL Batch

Review the general ledger transactions generated when you released the cash entry created
in Step 1 as follows:

1. While still on the Transactions (CA304000) form, go to the Financial Details tab and click
the batch number to open the batch for review.

2. On the Journal Transactions (GL301000) form, which opens, review the batch that the
system has generated in the general ledger.

The batch contains two journal entries that update GL accounts: a credit entry for the
10200 (Company Checking Account) GL account and the debit entry for the 61100 (Bank
Service Charges) GL account.

Because the Automatically Post to GL on Release check box is cleared in the Posting
and Release Settings section of the Cash Management Preferences (CA101000) form, the
GL batch was released but not posted and now has the Unposted status. In this activity,
you will not post this batch to the general ledger so as not to update the balances of the
accounts that might be used in other activities. However, in a production environment,
you will post it by selecting the generated batch on the Post Transactions (GL502000) form
and clicking Post on the form toolbar.

Lesson 5.2: Performing a Funds Transfer

Funds Transfers: General Information

In Acumatica ERP, you can record cash transfers from one bank account to another, or
between cash accounts that are linked to the same GL account and represent the same bank
account. When you record a funds transfer, you can also register an expense associated
with it. For example, when you move funds between different bank accounts, you can
immediately record a service fee associated with it.

Learning Objectives

You will learn how to record a funds transfer between cash accounts.
 | Part 5: Cash Transactions and Bank Reconciliation | 158

Applicable Scenarios

You record a funds transfer when you need to redistribute funds between different
companies or branches of your organization. You can also move funds from one bank
account to another, for example, when you want to deposit funds from your checking
account to you savings account.

Processing of a Funds Transfer

To process a funds transfer, you first create it on the Funds Transfers (CA301000) form. Then
you release the transfer on any of the following forms:

• Funds Transfers (CA301000): You release the funds transfer you are viewing by clicking
Release on the form toolbar.

• Release Cash Transactions (CA502000): You use this form to release a particular funds
transfer or multiple funds transfers. On this form, funds transfers have the Transfer
type, and transactions that correspond to the same transfer have the same transaction
number. To release all transactions of the funds transfer, you need to select only one
transaction by selecting the unlabeled check box in the row of the transaction and
release it by clicking Release on the form toolbar; the system releases the other
transactions automatically.

• Cash Account Details (CA303000): You can use this form to release a particular funds
transfer or multiple funds transfers. On this form, you first select a cash account, which
can be a source account or a destination account for your funds transfer, then the system
displays a list of transactions that includes the funds transfer transaction of the Transfer
Out or Transfer In type, depending on whether the account you selected is a source or
destination account. To release all transactions of the funds transfer, you need to select
only one transaction by selecting the unlabeled check box in the row of the transaction
and release it by clicking Release on the form toolbar; the system releases the other
transactions automatically.

During processing, a funds transfer can have the following statuses:

Table: Statuses of Funds Transfers

Status Description
On Hold The transfer is being edited and cannot be
released.
Balanced The transfer is balanced and can be re-
leased.
Released The transfer has been released.

Process Diagram

The following diagram illustrates the workflow of funds transfer processing.

 | Part 5: Cash Transactions and Bank Reconciliation | 159

Funds Transfers: To Record a Funds Transfer

In this activity, you will record a funds transfer from one checking account to another.

Story

In February 2019, one of SweetLife's branches, Service and Equipment Sales Center, is
planning on purchasing additional juicer equipment and parts. As the SweetLife accountant,
you have approved the expenditures in the amount of $70,000, which is roughly $25,000
over the amount available in the 10200EQ - Equipment Checking cash account. To increase
the available balance of the 10200EQ cash account, you need to transfer $25,000 from the
10200WH - Wholesale Checking account.
 | Part 5: Cash Transactions and Bank Reconciliation | 160

Process Overview

As the SweetLife accountant, you first review the available balances of the 10200WH and
10200EQ cash accounts on the Cash Account Summary (CA633000) report form. Then you
record a funds transfer in the amount of $25,000 from the 10200WH cash account to the
10200EQ cash account on the Funds Transfers (CA301000) form. Finally, you want to review
the balances of both accounts on the Cash Account Details (CA303000) form to make sure the
transfer is recorded correctly.

System Preparation

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 2/1/2019. If a different date
is displayed, click the Business Date menu button and select 2/1/2019. For simplicity,
in this activity, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Review the Balances of the Source and Destination Cash Accounts

To review the balances of the cash accounts, do the following:

1. Open the Cash Account Summary (CA633000) report form.

2. On the Report Parameters tab, specify the following settings:

• Company/Branch: SWEETLIFE

• From Date: 1/1/2019

• To Date: 2/1/2019

• Include Non-Cleared Transactions: Selected

• Hide Details: Selected

3. On the form toolbar, click Run Report.

4. In the report, review the ending balances of the cash accounts. Notice the ending
balance of the 10200WH cash account, which is $193,366.67, and the ending balance of
the 10200EQ cash account, which is $44,550.

Step 2: Record a Funds Transfer

To process a funds transfer from the 10200WH cash account to the 10200EQ cash account,
do the following:
 | Part 5: Cash Transactions and Bank Reconciliation | 161

1. Open the Funds Transfers (CA301000) form.

2. On the form toolbar, click Add New Record, and in the Description box of the
Summary area, type Transferring $25,000 to SWEETEQUIP.

3. In the Source Account section, specify the following settings:

• Account: 10200WH - Wholesale Checking

• Transfer Date: 2/1/2019

• Amount: 25,000

These settings indicate that $25,000 will be transferred from the 10200WH - Wholesale
Checking account on February 1, 2019.

Because this is an internal funds transfer that does not affect bank accounts, we have
not indicated a reference number of the source document.

4. In the Destination Account section, specify the following settings:

• Account: 10200EQ - Equipment Checking

• Receipt Date: 2/1/2019

These settings indicate that the funds will be transferred to the 10200EQ account, which
is defined as the checking account for SweetLife Service and Equipment Sales Center.

5. On the form toolbar, click Save to save the funds transfer.

6. Clear the Hold check box in the Summary area, and click Release on the form toolbar.

7. Click the link in the Batch Number box, and review the batch, which the system has
opened on the Journal Transactions (GL301000) form.

In the Module box, CA means that the batch was generated from the Cash Management
module. Notice that the batch contains a credit entry for the HEADOFFICE branch and
the debit entry for SWEETEQUIP whereas the GL account for both branches is the same,
10200.

The system posted the batch to the general ledger on release of the funds transfer
because the Automatically Post to GL on Release check box is selected on the Cash
Management Preferences (CA101000) form.

Step 3: Review the Balances of the Cash Accounts

To see how the funds transfer is reflected in the cash accounts, do the following:

1. Open the Cash Account Details (CA303000) form.

2. In the Selection area, specify the following settings:

• Cash Account: 10200EQ

 | Part 5: Cash Transactions and Bank Reconciliation | 162

• Start Date: 2/1/2019

• End Date: 2/1/2019

3. In the Details area, notice the transaction of the Transfer In type. This means that the
cash account balance was increased for the amount displayed in the Receipt column.

4. In the Selection area, change the Cash Account to 10200WH.

5. In the Details area, notice the transaction of the Transfer Out type. This type means that
the cash discount balance was decreased for the amount displayed in the Disbursement
column.

Lesson 5.3: Reconciling a Cash Account

Bank Reconciliation: General Information

One way you can maintain internal control over the company's cash is by performing regular
account reconciliations. Generally, the goal of reconciliation is to find discrepancies between
account balances tracked by different means (in your company and by a third party), identify
any errors, and make needed corrections or adjustments.

If you are reconciling your cash accounts, you need quick and accurate tools to track
third-party records and ensure that they match the transactions recorded in your system.
Acumatica ERP offers you capabilities that ease the processes of importing, tracking, and
matching the transactions tracked by other means.

Learning Objectives

You will learn how to reconcile a cash account with a bank statement.

Applicable Scenarios

If you are reconciling a bank account, you use a bank statement for the comparison.
Because financial institutions offer a variety of online banking services, you do not need
to wait for a monthly bank statement to track your banking transactions. You can instead
download a list of recent banking transactions in a suitable format when you need them.
Regular reconciliations can reduce the number of errors on accounts and make it easier to
find overlooked transactions, such as missing sales invoices or checks that have been lost in
transit.

If you are reconciling a cash account other than a bank account (for instance, a petty cash
account), you can upload the list of amounts confirmed with the cash register receipts or
point-of-sale reports and similar reports.

Steps of the Reconciliation Process

In general, you perform the following steps when you reconcile a cash account:
 | Part 5: Cash Transactions and Bank Reconciliation | 163

1. Preparing for the reconciliation: Optionally, during each financial period, you clear
transactions (cash transactions, payments to vendors, quick checks, incoming payments
form customers, and cash sales) as you receive information that the transactions have
passed through. See Bank Reconciliation: Uploading and Processing Bank Transactions.

2. Verifying the cash account beginning balance: At the end of the period, you verify the
beginning balance for each cash account. On the Reconciliation Statements (CA302000)
form, you verify that the beginning balance of the cash account in the system (per
your books) matches the beginning balance on the bank statement (or your record of
the petty cash account); if they do not match, void the earlier statement and fix all
errors. Also, you can review the older transactions for the account that had not yet been
reconciled and see which of them were preliminarily cleared.

If a transaction has been matched to one on a bank statement on the Process

Bank Transactions (CA306000) form, the transaction has the Cleared check box
selected on the Reconciliation Statements form. Also, a transaction is cleared if a
user has selected the Cleared check box for it on the form where the transaction
was entered.

3. Creating the reconciliation statement: You create a new reconciliation statement for the
cash account on the Reconciliation Statements form and enter the statement balance—for
instance, the ending balance from the bank statement.

4. Clearing the transactions: If you have used the Process Bank Transactions (CA306000)
form to clear bank transactions, you click the Reconcile Processed button on the table
toolbar, the system selects the Reconciled check boxes in the table for all released
documents that were processed on the Process Bank Transactions form.

If you have been manually clearing transactions during the financial period for which
you have created the reconciliation statement and are sure that the clearing is valid, you
select the Reconciled check box (to the left of the Cleared check box) for each cleared
transaction.

If there are no cleared transactions, you can use a bank statement or other paper
documents confirming transactions; compare the transactions to lines of the bank
statement by using transaction identifiers, dates, and amounts; and select the
Reconciled check box in the first column for the confirmed transactions.

You can perform reconciliation in as many sessions as you need. You can save
the reconciliation statement (with the On Hold or Balanced status) at any time to
continue to work with it later.

5. Adjusting the cash account balance: As you progress through the list, you can view the
updated value of the difference between the reconciled balance of the cash account
and the balance of the statement you have entered. You can create cash adjustments
for transactions (such as bank interest or service charges) that occurred but were not
recorded to the account. The reconciliation is finished when the difference between the
reconciled balance of the cash account and the balance of the statement is zero.

6. Confirming the reconciliation results: When you have finished comparing the cash
account transactions to a bank statement or other paper documents confirming
transactions and the difference between the reconciled balance of the cash account and
 | Part 5: Cash Transactions and Bank Reconciliation | 164

the balance of the statement is zero, you save and release the reconciliation statement.
Thus, you have confirmed that the cash account balance is reconciled for the selected
period.

Process Diagram

The following diagram illustrates the process of bank statement reconciliation.

Figure: Bank statement reconciliation workflow

 | Part 5: Cash Transactions and Bank Reconciliation | 165

Bank Reconciliation: Uploading and Processing Bank

Transactions
If your bank provides bank statements in OFX, QBO, QFX, or Excel format, you process
these statements by completing the steps described in the following sections.

Uploading Bank Transactions

In Acumatica ERP, you can use the following forms to upload transactions:

• Import Bank Transactions (CA306500): You use this form to upload and view transactions
for each bank statement that the system has created. When you use the form to upload
a file with transactions for one cash account, the system displays the created statement
on the form right away. When you use the form to upload a file with transactions for
multiple cash accounts, the system does not display any of the created statements.
To view one of the statements, you need to select the needed cash account and the
reference number of the statement (the last uploaded statement will have the highest
reference number).

Here, too, if you import a file in OFX, QBO, or QFX format, the system imports the values
of the Statement Date, Start Balance Date, End Balance Date, and the Ending
Balance boxes from the file. The system validates the value of Start Balance Date
which should be equal to the end balance date of the previously imported statement.

These formats (OFX, QBO, and QFX) do not provide the beginning balance in bank
statements. The system uses as the value of Beginning Balance the ending balance of
the previous bank statement. Also, the system checks whether the beginning balance
plus the total imported receipts minus the total imported disbursements agrees with the
imported ending balance of the bank statement.

If you import bank transactions in Excel format, you need to manually enter the
statement date, end balance date, and ending balance. The system uses as the
beginning balance the ending balance of the previous bank statement. Similarly, as the
start balance, it uses the end balance date of the previous bank statement.

After upload, you can manually edit bank transaction details before continuing to process
the transactions in the system (matching and clearing them).

• Process Bank Transactions (CA306000): You use this form primarily to process transactions
from all the created statements for the selected cash account, but you can upload
statements on this form as well. When you upload a file, the system does not display
the transactions, regardless of the number of cash accounts in the file. To view the
uploaded transactions, you need to select a cash account; the system then displays all
the transactions uploaded for this cash account that have not been processed (matched
and cleared) yet.

When you import transactions for the first time, the system creates the first bank
statement. If you import a file in OFX, QBO, or QFX format, the values for Statement
Date, Start Balance Date, End Balance Date, and Ending Balance boxes on
 | Part 5: Cash Transactions and Bank Reconciliation | 166

the Import Bank Transactions (CA306500) form are imported from the file. You have to
specify the beginning balance of the first statement manually.

If you import transactions from Excel or enter them manually, you have to enter all
these values manually.

Matching the Bank Transactions to Existing Documents or Transactions in

the System

You match transactions for the account to which the bank statement is uploaded on the
Process Bank Transactions form. The left pane displays the not-yet-processed transactions
imported from bank statements; you need to review these transactions. The tabs on the
right pane show the possible matches for bank transactions. By clicking Auto-Match on the
form toolbar, you run the auto-matching process for the bank transactions so the system
searches for possible matching payments and for documents to which the payment could
apply.

Creating Documents in the System Based on the Bank Transactions

On the Process Bank Transactions form, for the bank transactions that have no matches to
any transaction that exists in the system, you can specify details of documents that will be
created during processing of transactions. To do so, you select a transaction that is marked
as not matched (as shown in the left pane below), and create a document on the Create
Payment tab.

Processing the Bank Transactions

You initiate the processing of the matched transactions on the Process Bank Transactions
form by clicking Process on the form toolbar. For the bank transactions that had no match
and for which you have specified information, the system creates the documents and
transactions based on the specified information, releases them, and selects the read-only
Cleared check box for every created document and transaction.

On the Import Bank Transactions (CA306500) form, the Processed check box is selected for
the transactions that were processed.

Process Diagram

The following diagram illustrates the process of uploading and processing bank transactions.
 | Part 5: Cash Transactions and Bank Reconciliation | 167

Figure: Uploading and processing bank transactions

Bank Reconciliation: To Process a Bank Statement in OFX

Format and Reconcile a Cash Account
In this activity, you will learn how to upload a bank statement and match uploaded
transactions to the existing documents or transactions in the system.
 | Part 5: Cash Transactions and Bank Reconciliation | 168

Story

Suppose that on January 31, 2019, the accounting department of SweetLife Fruits & Jams
company received a bank statement (in OFX format) from KeyBank for the amount of
$4,525.

Acting as the SweetLife accountant, you need to perform bank statement reconciliation for
January 2019 when preparing to close the 01-2019 financial period in the general ledger.
During reconciliation, you will match the records in the system (the book balance) and in the
statement for the bank account (the bank balance).

Process Overview

You review the system settings on the Cash Management Preferences (CA101000) form and the
account settings for the cash account whose balance you will reconcile on the Cash Accounts
(CA202000) form. Then you upload the OFX bank statement on the Import Bank Transactions
(CA306500) form and match the uploaded transactions with the existing transactions in the
system on the Process Bank Transactions (CA306000) form. On this form, you enter a quick
transaction for the amount included in the bank statement which has not been entered in
the system. After that, you prepare a reconciliation statement on the Reconciliation Statements
(CA302000) form and review the transactions that have been reconciled.

System Preparation

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 2/1/2019. If a different date
is displayed, click the Business Date menu button and select 2/1/2019. For simplicity,
in this activity, you will create and process all documents in the system on this business
date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Prepare the Cash Account for Uploading Bank Statements

To configure a cash account so that a bank statement for it can be uploaded, you must
specify the identifier of the account in the bank statement and specify the bank statement
upload settings as follows:

1. Open the Cash Management Preferences (CA101000) form.

2. On the Bank Statement Settings tab, review the following settings in the Import
Settings section:

• Import Bank Statement to Single Cash Account: Selected

 | Part 5: Cash Transactions and Bank Reconciliation | 169

This check box indicates whether the system should import a bank statement to
a specific cash account. When it is selected, you can import the data only after
selecting the cash account on the Import Bank Transactions.

• Statement Import Service: PX.Objects.CA.OFXStatementReader

The statement import service is the application service that reads the data being
imported. PX.Objects.CA.OFXStatementReader is the service for importing bank
statements from OFX files.

You can import bank statements from Open Financial Exchange (OFX), QBO,
QFX, and Excel files..

3. On the Cash Accounts (CA202000) form, select the 10210WH - KeyBank Checking cash
account, and specify the following settings, which are required for import of bank
statements from OFX:

• External Ref. Number: 001-204-00289-01 (the bank account number that is

specified in <ACCTID> in the OFX file)

• Statement Import Service: PX.Objects.CA.OFXStatementReader

4. Save your changes.

Step 2: Upload the Bank Statement for the Cash Account

Upload the 1/31/2019 bank statement for the 10210WH - KeyBank Checking cash account
as follows:

1. On the Import Bank Transactions (CA306500) form, select 10210WH - KeyBank Checking in
the Cash Account box.

2. On the form toolbar, click Upload File and select the BankStatement_KeyBank_01312019.ofx
file. The system uploads the transactions from the file to the bank statement in the
system. The OFX file contains the 1/31/2019 bank statement with transactions in the
KeyBank bank account from 1/1/2019 to 1/31/2019.

The uploaded OFX file is attached to the form, and you can download the file by
using Files on the form title bar.

The Statement Date, Start Balance Date, End Balance Date, and the Ending
Balance have been imported from the file. The OFX format does not provide the
beginning balance in bank statements, so for the first imported bank statement, you
have to manually specify the beginning balance of the statement. In the subsequent
statements, the system uses the Ending Balance of the previous bank statement as
the Beginning Balance. In this activity, leave the Beginning Balance box as is (0.00)
because you have just started using this bank account.

Step 3: Process the Imported Bank Transactions

1. On the Process Bank Transactions (CA306000) form, select the 10210WH - KeyBank
Checking cash account.
 | Part 5: Cash Transactions and Bank Reconciliation | 170

On this form, you perform clearing of the documents. The left pane displays transactions
imported from bank statements that have not been processed yet. You need to
review these transactions. The tabs on the right pane show possible matches for bank
transactions; you can create documents based on the bank transactions. The Match
to Payments tab shows the payments that the system has evaluated as matching the
transaction selected in the table on the left pane. The Match to Invoices tab shows the
invoices that the system has evaluated as matching the transaction selected in the table
on the left pane. On the Create Payment tab, you can create a new document of the
appropriate type for transactions with no match.

2. On the form toolbar, click Auto-Match to run the auto-matching process for the bank
transactions. When you run the auto-matching process, the system searches for possible
matching payments and for documents to which the payment could apply. If no possible
matching payments or documents to apply are found in the system, the system suggests
that you create a payment.

To find the matching payments for a bank transaction, the system filters the cash
account transactions by the specified match settings and calculates the match relevance
for the possible candidates. The relevance shows how similar the bank transaction is to
one cash account transaction or multiple transactions in the system. The transactions are
compared by three factors: the reference number, the transaction date (document date),
and the payee name (if any). The candidates with high relevance are recognized as the
best candidates and matched automatically.

After the auto-matching process is done, the matched transactions become

excluded from the next run of the auto-matching process. If you need to re-run
the auto-matching process for these transactions, click Unmatch for a certain
transaction or click Unmatch All to clear matches for all transaction at the same
time, and then click Auto Match again.

3. In the left pane, click the row with the $5,000 transaction, and on the right pane, review
the Match to Payments tab. Notice that for the $5,000 transaction, the system has
found only one matching GL batch.

4. In the left pane, click the row with the $225 transaction. On the right pane, review the
Match to Payments tab. The system has found one AR payment that matches the
receipt transaction. On the Match to Invoices tab, notice that the system has also
found an outstanding invoice for the same amount, but to a different customer.

Apart from the matching payments, the system searches for outstanding documents. To
find a document to which the payment could apply, the system compares the payment
amount with the amount of any outstanding documents with the same transaction sign
(receipt or disbursement).

Notice that the payment on the Match to Payments tab has a higher match relevance
(0.896) than the invoice on the Match to Invoices tab (0.003125) so the system has
selected the payment as the best match.

5. In the left pane, select the $15 transaction.

The bank transactions that have no matches in the system are marked with the
explanation point. For these transactions, the system suggests that you create the
 | Part 5: Cash Transactions and Bank Reconciliation | 171

payment, so on the Create Payment tab of the right pane, the Create check box is
selected.

6. Process the bank fee as a disbursement cash transaction:

a. Click the $15 bank service fee transaction in the left pane.

b. On the Create Payment tab of the right pane, specify the following settings to
create the cash transaction in the system:

• Create: Selected

• Module: CA

• Entry Type ID: BANKFEE

c. Save your changes. The $15 bank service fee transaction is no longer marked with
the exclamation point because you have specified the information from which the
system will create the document when you run the processing of transactions.

7. On the form toolbar, click Process to process the bank transactions in preparation for
reconciliation. The system creates cash transactions, as well as AR and AP payments with
applications (if any), based on the specified information.

The system creates the documents and transactions based on the bank transactions
for which you have specified the information, releases them, and selects the read-only
Cleared check box for every created document and transaction. The results of the bank
transaction processing cannot be reverted or changed.

8. Press ESC to refresh the information on the Process Bank Transactions (CA306000) form,
and notice that no transactions are shown on the form now. Once processed, the bank
transactions are excluded from future processing of matched lines and no longer appear
on the Process Bank Transactions form.

9. On the Import Bank Transactions (CA306500) form, open the bank statement for the
10210WH - KeyBank Checking cash account, and review the transactions. Notice that all
transactions have been processed; for these transactions, the Processed check box is
selected.

10.On the Transactions (CA304000) form, open the cash entry created from the $15 bank fee
transaction, and make sure this transaction has been released.

11.On the Bank Transactions History (CA402000) form, specify the following settings, and
review the bank transactions that appear in the table (as shown in the screenshot
below):

• Cash Account: 10210WH

• From Date: 1/1/2019

• To Date: 1/31/2019
 | Part 5: Cash Transactions and Bank Reconciliation | 172

In the Reference Nbr. column, you can find the reference numbers of the
documents to which the bank transactions have been matched.

Step 4: Prepare the Reconciliation Statement

Prepare the reconciliation statement for January 2019 as follows:

1. On the Reconciliation Statements (CA302000) form, select the 10210WH cash account.

2. Specify the following settings and save the reconciliation statement:

• Reconciliation Date: 1/31/2019

• Statement Balance: 4420.00

3. Select the Reconciled check box for the transactions that have the Cleared check box
selected.

You can select and clear the Cleared check box for transactions until they
are involved in bank transaction processing on the Process Bank Transactions
(CA306000) form. After you have processed a bank transaction, the Cleared
check box is selected and read-only for the corresponding document or
transaction in the system. Therefore, once you have processed all transactions
from a bank statement, reconciliation with the bank statement becomes easy:
You select the Reconciled check box for all transactions that have the Cleared
check box selected in the reconciliation statement, and the bank reconciliation is
complete.

The cash account balance in the system is not affected by the result of the
processing of bank transactions.

The Reconciled Balance is equal to the Statement Balance; now you can release the
reconciliation statement.

4. Save the reconciliation statement, remove it from hold, and release it.

As soon as you release the reconciliation statement, the system updates the last
reconciliation date, from which the next reconciliation statement will be calculated. The
released reconciliation statement contains only transactions selected for the statement,
and these transactions do not show up for reconciliation in the next reconciliation
statements. The cash account balance in the system is not affected by reconciliation
statements.

You can void a reconciliation statement that is incorrect. However, you can void
and correct only the last reconciliation statement in a sequence. To correct an
old reconciliation statement, you have to void all reconciliation statements that
have been released after the needed one. For example, if it is necessary to correct
the March reconciliation statement after the April reconciliation statement has
been released, you have to void both the March and April statements, correct
and release the March reconciliation, and redo the April reconciliation. When you
void a reconciliation statement, the transactions still have the Cleared check box
 | Part 5: Cash Transactions and Bank Reconciliation | 173

selected. You can review the history of reconciliations for a certain cash account
on the Reconciliation Statement History (CA302010) form.
 | Part 6: General Ledger—Period-End and Year-End Procedures | 174

Part 6: General Ledger—Period-End and Year-

End Procedures
This part of the course explains how to close, lock, unlock, and reopen financial periods and
illustrates how to generate a financial calendar for a new financial year.

For completing lessons of this part of the course, you will use a company with the U100
data set preloaded, which provides a fully configured company with sample data specially
designed for this course. Lessons of this part are independent: you can complete lesson
activities in any order.

Activities in this part are to be completed under users with specific access rights. Each
activity provides the credentials to use for sign in to the prepared U100 tenant in the Before
You Proceed section.

Lesson 6.1: Closing Financial Periods

Closing Financial Periods: General Information

After all the needed transactions have been posted to a financial period and all figures have
been verified, you can close the financial period in the system to prevent users from posting
new transactions to the period. Financial periods can be closed starting from the first one of
the first financial year. (You cannot close a financial period if the previous one has not been
closed yet.) You can close multiple periods at once (for instance, all periods of a year). Once
closed, a period can later be reopened; also, you can allow users to enter documents and
post transactions to the closed period.

Learning Objectives

From reading the topics in this chapter and completing the process activity, you will learn
how to do the following:

• Closing a financial period in a subledger

• Closing a financial period in all the subledgers and in the general ledger at the same time

Statuses of Financial Periods

Every financial period belongs to a range of periods that have a particular status. The system
can contain four period ranges, each with a different status. The following table shows the
statuses, describes them, and lists the actions you can perform on the Manage Financial
Periods (GL503000) form for a particular range of periods.
 | Part 6: General Ledger—Period-End and Year-End Procedures | 175

Status Description of a Period with This Status System Actions

Inactive An inactive period has been generated in the system, but Open
has not yet been opened. Transactions cannot be posted
to the period.
Open An open period can be selected in documents and transac- Close, Deacti-
tions can be posted to it. vate
Closed Transactions can be posted to a closed period by only the Lock, Reopen
users assigned to the Financial Supervisor role if the Re-
strict Access to Closed Periods check box is selected
on the General Ledger Preferences (GL102000) form. If this
check box is cleared, any user can post to closed periods.
Locked A locked period cannot be used by a validation process, Unlock
for data entry, or for posting in any modules.

You lock a period to prevent changes to the data that has

been verified and disclosed in reports.

The following diagram illustrates the states of financial periods in the system.

Figure: Financial period states in the system

Closing a Period in Subledgers

Although you can close periods in subledgers and in the general ledger at the same time,
you may decide to close periods in subledgers (accounts payable, accounts receivable, cash
management, inventory, and fixed assets) separately in your system. On the Manage Financial
Periods (GL503000) form, you can find information about the status of periods.

Before you close a period in these subledgers, you should make sure that there are no
unreleased documents that are to be posted to this period. (For the fixed assets subledger,
the system also checks whether all assets have been depreciated in the period.) To close
periods, you use the following forms:

• In the accounts payable subledger, the Close Financial Periods (AP506000) form

• In the accounts receivable subledger, the Close Financial Periods (AR509000) form

• In the cash management subledger, the Close Financial Periods (CA506000) form

• In the inventory subledger, the Close Financial Periods (IN509000) form

• In the fixed assets subledger, the Close Financial Periods (FA509000) form

When you close a given financial period in a subledger on any of these forms, all preceding
open periods will be closed in the subledger as well.
 | Part 6: General Ledger—Period-End and Year-End Procedures | 176

Closing a Period in the General Ledger

A period is assigned the Closed status only after it has been closed in the general ledger on
the Manage Financial Periods (GL503000) form. For instructions on how to close periods, see
Closing Financial Periods in Subledgers and GL: Process Activity.

Before you close periods, check whether there are unposted documents for the periods that
you want to close. To do that, on the Manage Financial Periods form, you select the periods
you want to close and click Unposted Documents on the form toolbar. In the Unposted
Documents report, which opens, you can review the list of documents that have not been
posted to the selected periods.

Closing a period in the general ledger initiates the generation of auto-reversing batches if
the Generate Auto-Reversing Entries on Period Closing check box is selected on the
General Ledger Preferences (GL102000) form and these batches have been prepared on the
Journal Transactions (GL301000) form. If auto-reversing entries should be generated when the
applicable period is closed, you should not close the last financial period that was opened;
you should always open at least one financial period before you close the last period.

You can view closed periods for a particular year on the Master Financial Calendar (GL201000)
form if the Centralized Period Management feature is enabled on the Enable/Disable Features
(CS100000) form or on the Company Financial Calendar (GL201100) form if the Centralized
Period Management feature is disabled. For the closed periods, the Status column contains
Closed and the check boxes are selected in the Closed in AP, Closed in AR, Closed in IN,
Closed in CA, and Closed in FA columns.

If a period was closed by mistake, you can reopen it on the Manage Financial Periods
(GL503000) form. For more information, see To Reopen Financial Periods.

Posting Transactions to Closed Periods

In some cases, you may find additional transactions to be processed in a period that was
closed. To accommodate such situations, you can allow posting transactions to closed
periods by assigning appropriate users to the Financial Supervisor role on the User Roles
(SM201005) form. Only users assigned to this role can post to closed periods, regardless of
whether the Restrict Access to Closed Periods check box is selected on the General Ledger
Preferences (GL102000) form.

If you want to prevent all users from posting to closed periods, you lock periods (that is, you
assign the periods the Locked status) on the Manage Financial Periods (GL503000) form. For
instructions, see To Lock Financial Periods.

Locking Periods

Once a period has been closed and the data from this period has been verified and disclosed
in financial reports, you need to secure this data from changes. To do this, you need to
lock this period—that is, to change its status from Closed to Locked on the Manage Financial
Periods (GL503000) form. For details, see To Lock Financial Periods.

If necessary, you can unlock a locked period. For details, see To Unlock Financial Periods.
 | Part 6: General Ledger—Period-End and Year-End Procedures | 177

Period-End Closing Overview

The process of closing a period consists of the following steps:

1. Optional: Closing the period in the subledgers. (You can also close the period in
subledgers along with the general ledger after performing period-end activities.) For
details, see Closing Financial Periods in a Subledger: Process Activity.

2. Generating and posting any recurring transactions. For details, see Recurring Transactions:
Process Activity.

3. Performing period-end adjustments—that is, posting adjustment transactions (some of

which should be reversed at the beginning of the next period). For details, see Adjusting
Transactions: Process Activity.

4. Revaluing general ledger accounts so that the balances of the accounts in foreign
currencies are revalued using the end-period exchange rate. For details, see General
Ledger Revaluations.

5. Reviewing the trial balance and the list of transactions.

6. Reclassifying transactions if there are errors. For details, see Splitting a Transaction.

7. Running allocations if distribution of amounts between branches, accounts, and

subaccounts is needed. For details, see Configuring Allocation Rules.

8. Closing the period in the general ledger. For details, see Closing Financial Periods in
Subledgers and GL: Process Activity.

The overall process of closing a period in the system is shown in the following diagram. The
steps marked with a star are described later in the process activity.
| Part 6: General Ledger—Period-End and Year-End Procedures | 178
 | Part 6: General Ledger—Period-End and Year-End Procedures | 179

Closing Financial Periods in a Subledger: Process Activity

The following hands-on exercise will walk you through the process of closing a period in the
accounts receivable subledger.

Story

Suppose that as an accountant of SweetLife Fruits & Jams company, you have to close the
03-2018 financial period and the preceding periods in the accounts receivable subledger for
the SweetLife Head Office and Wholesale Center company to prevent users from posting to
these periods.

Process Overview

You close financial periods in the accounts receivable subledger on the Close Financial Periods
(AR509000) form.

Before You Proceed

Make sure that the following conditions are met:

• There are no batches with a status of On Hold, Balanced, or Unposted in the period or
periods.

• At least one financial period will remain open after you close the needed period or
periods.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this process activity, you will create and process all documents in the system on this
business date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Prepare the Financial Periods for Closing

1. Open the Close Financial Periods (AR509000) form.

2. In the Selection area, specify the following parameters:

• Company: SWEETLIFE (inserted by default)

• Action: Close (selected by default)

 | Part 6: General Ledger—Period-End and Year-End Procedures | 180

• To Year: 2018

3. Select the unlabeled check box for the 03-2018 period. Notice that all the preceding
periods are selected automatically.

4. On the form toolbar, click Unreleased Documents to verify that no unreleased

documents exist for these periods.

5. In the information message that displays, click OK.

Step 2: Close the Financial Periods

1. On the form toolbar of the Close Financial Periods (AR509000) form, click Process.

2. Open the Manage Financial Periods (GL503000) form to review the statuses of financial
periods.

3. In the Selection area, specify the following parameters:

• Company: SWEETLIFE (inserted by default)

• Action: Close

• To Year: 2018

4. In the table, review the statuses of the financial periods that you closed in Step 1.

The periods retain the Open status (as they are still open in the subledgers and in the
general ledger), but the Closed in AR check box is selected for all the periods, meaning
that these periods have been closed in the accounts receivable subledger.

Closing Financial Periods in Subledgers and GL: Process

Activity
The following hands-on exercise will walk you through the process of closing a period in all
the subledgers and in the general ledger at the same time.

Story

Suppose that as an accountant of SweetLife Fruits & Jams company, you have to close the
04-2018 financial period in all the subledgers and in the general ledger at the same time.
The periods should be closed for the SweetLife Head Office and Wholesale Center company
to prevent users from posting to these periods.

Process Overview

You review the statuses of financial periods on the Company Financial Calendar (GL201100)
form and close the financial periods on the Manage Financial Periods (GL503000) form.

Before You Proceed

Make sure that the following conditions are met:

 | Part 6: General Ledger—Period-End and Year-End Procedures | 181

• Depending on your organization's policies, it may be required that you first close the
period or periods in the following subledgers: accounts payable, accounts receivable,
cash management, inventory, and fixed assets.

• There are no batches with a status of On Hold, Balanced, or Unposted in the period or
periods.

• At least one financial period will remain open after you close the needed period or
periods.

Initial Steps

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset
preloaded. To sign in as an accountant, use the johnson login and 123 password.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen,
make sure that the business date in your system is set to 1/30/2019. If a different date
is displayed, click the Business Date menu button and select 1/30/2019. For simplicity,
in this process activity, you will create and process all documents in the system on this
business date.

3. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Review the Financial Period Statuses

1. Open the Company Financial Calendar (GL201100) form.

2. In the Selection area, specify the following parameters:

• Company: SWEETLIFE (inserted by default)

• Financial Year: 2018

The displayed periods have the Open status in the subledgers (AP, AR, IN, and CA) and
in the general ledger, except for three periods (January, February, and March) that were
closed in the AR subledger in the previous process activity.

Step 2: Close Financial Periods

1. On the form toolbar of the Company Financial Calendar (GL201100) form, click Actions >
Close Periods.

2. On the Manage Financial Periods (GL503000) form that opens, select the unlabeled check
box for the 04-2018 period. The check boxes for the preceding periods are automatically
selected.

3. On the form toolbar, click Unposted Documents to verify that no unposted documents
exist for these periods.

4. In the information message that displays, click OK.

 | Part 6: General Ledger—Period-End and Year-End Procedures | 182

5. On the form toolbar, click Process.

6. In the information message that informs you that the selected periods will be closed in
the subledgers and in the general ledger, click OK.

Closing Financial Periods: Related Reports and Inquiries

This topic describes reports, inquiries, and forms you may want to review to gather
information about possible discrepancies in subledgers, which should be corrected before
closing financial periods.

Reviewing the Trial Balance

Before closing financial periods, you may want to review the company's trial balance to
ensure that the total value of all debit entries equals the total value of the credit entries and
that the data is accurate. You can use one of the following forms to review the trial balance:
the Account Summary (GL401000) inquiry form, the Trial Balance Summary (GL632000) report,
and the Trial Balance Detailed (GL632500) report.

Reviewing Balance Discrepancies

You can use the Discrepancy by Account (AP409010) and Discrepancy by Account (AR409010)
forms to find discrepancies between the balances of AP accounts and AR accounts in the
GL and in a subledger (AP or AR) with the accounts listed for a particular range of financial
periods.

If discrepancy is found in either of the forms, you can click the needed links in the
Discrepancy column to open the Discrepancy by Vendor (AP409020) or Discrepancy by
Customer (AR409020) form and view the discrepancies listed by vendor or customer. From
either of these forms, you can click the needed links in the Discrepancy column to open the
Discrepancy by Document (AP409030) or Discrepancy by Document (AR409030) form to view the
specific documents causing the discrepancies.

Lesson 6.2: Generating Financial Calendar for a New

Financial Year

Financial Calendar for a New Financial Year: General

Information
In Acumatica ERP, you add a new year and generate financial periods for each new year to
which transactions and documents are going to be posted.
 | Part 6: General Ledger—Period-End and Year-End Procedures | 183

In this chapter, financial periods are managed on the tenant level—that is, the
Centralized Period Management feature is enabled n the Enable/Disable Features
(CS100000) form.

Learning Objectives

You will learn how to generate financial periods for a new financial year in the system and
review the period statuses.

Applicable Scenarios

You generate financial periods at the end of a year for the upcoming year so that you can
open periods and post transactions in the upcoming year.

Generating the Master Calendar

In Acumatica ERP, you can post transactions to periods that are open or to both open and
closed periods (depending on the settings on the General Ledger Preferences (GL102000)
form). You generate financial periods on the Master Financial Calendar (GL201000) form.

If the Centralized Period Management feature is disabled on the Enable/Disable Features

(CS100000) form, you have to generate financial periods separately in each company
on the Company Financial Calendar (GL201100) form.

When periods have been generated, you can modify them before any transactions have been
made. To do so, you select the User-Defined Periods check box.

After you have generated the master calendar, you open any number of periods for posting
on the Manage Financial Periods (GL503000) form. (On this form, you can process periods with
the selected action to change their statuses.)

Opening Periods

You have to open the periods to which users will post transactions and documents, otherwise
the periods are not appear for selection on the forms. To open periods, on the Master
Financial Calendar (GL201000) form, you first make sure the necessary year is selected in the
Financial Year box, and then click Actions > Open Periods on the form toolbar.

If the Centralized Period Management feature is disabled on the Enable/Disable Features

(CS100000) form, you have to open financial periods separately in each company on
the Company Financial Calendar (GL201100) form.

After you have opened periods, they can be used for posting documents and transactions in
Acumatica ERP. At any time, you can have multiple open periods. Opening one period does
not require you to close the previous one.

Financial Calendar for a New Financial Year: Process

Activity
In this activity, you will learn how to perform operations required to generate a financial
calendar for a new month-based financial year.
 | Part 6: General Ledger—Period-End and Year-End Procedures | 184

Story

Suppose that at the end of 2019, acting as the accountant of the SweetLife Fruits & Jams
company, you must generate a financial calendar for the 2020 year in the system.

Process Overview

You generate periods for a new year on the Master Financial Calendar (GL201000) form.
You can then review and change the period statuses for this year on the Company Financial
Calendar (GL201100) form.

Before You Proceed

To prepare the system, do the following:

1. Launch the Acumatica ERP website with the U100 dataset. Sign in as an accountant by
using the johnson login and the 123 password.

2. On the company and branch selection menu, also on the top pane of the Acumatica
ERP screen, make sure that the SweetLife Head Office and Wholesale Center branch is
selected. If it is not selected, click the selection menu to view the list of branches that
you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Generate a Calendar for a New Financial Year

To generate a calendar for a new financial year, do the following:

1. Open the Master Financial Calendar (GL201000) form.

2. On the form toolbar, click Generate Calendar.

3. In the Generate GL Calendars dialog box that opens, verify that 2020 is displayed in
the From Year and To Year boxes and click OK.

The generated periods are displayed in the table.

Step 2: Review the Periods for 2020

To review the financial periods in generated for 2020 in the SWEETLIFE company, do the
following:

1. Open the Company Financial Calendar (GL201100).

2. In the Selection area, specify the following parameters:

• Company: SWEETLIFE (inserted by default)

• Financial Year: 2020

3. In the table, review the periods generated for 2020.

Note that all the periods in the new 2020 financial year have the Inactive status.