Accounts Receivable Procedures
The purpose of this user’s guide is to outline The Way (our suggested workflow) for utilizing the AR portion of the Accounting module in Workamajig.
This guide will cover your AR Procedures in Workamajig including:
- How to enter Client Receipts and apply the funds to your Client Invoices.
- Run reports to monitor your AR procedures.
Accounts Receivable Procedures:
This portion of the Accounting User Guide will cover how to create a Client Receipt and apply it to a Client Invoice. Reports to run to help you monitor the AR process will also be covered (AR Aging Report, etc.).
Entering Client Receipts:
When a client sends you money you will enter it into the system as a Receipt. When entering a Receipt into Workamajig, you have the option to apply the full amount or a portion to an open Client Invoice, or you can designate a Sales Account to apply to or finally, you can choose to leave the funds unapplied so you can apply it later on to a future Client Invoice.
Go to Menu > Billing > Receipts >Video: Receipt Entry Screen
- Company: used only if you have setup GL Companies. The default is Blank. This field will only be visible if you have “Show GL Companies” enabled in your GL Tracking Options menu.
- Cash Account: enter the GL Account the Receipt will be deposited to. The default Cash Account that you have set up in the “Default GL Accounts” section of the GL Tracking Options menu will automatically be selected here.
- Client: enter the Client ID that this receipt is from. Put your mouse cursor in the Client search box and select your space key or start typing the first few letters of the Client name or Client ID to make your search and selection easier.
- Check Amount: enter the total amount of the Receipt.
- Posting Date: enter the date you want the receipt posted to the GL account. Today’s date will default here.
- Receipt Date: enter the date the check was received. Like the Posting Date, this too will default to Today’s date. This date is used for the AR Aging report.
- Reference Number: enter the check or reference number of the receipt. If this was an ACH or another form of direct deposit, enter the bank reference number.
- Deposit ID: enter the date the receipt will be deposited to your bank account. The default for this is today’s date. This is so all receipts marked with the chosen date will be grouped together and easily viewable via Menu>Billing>Deposits.
Applying Funds to Invoices:
Once you enter the Client on the Receipt, the lower portion of the screen will refresh with a list of all the open invoices you may have in the system for that Client (if there are any).
Auto Apply: clicking on this button will allocate the Check amount to the individual invoices. Workamajig will apply the funds by starting with the oldest invoice. It will apply the Check Amount towards the full Open Amount of the first invoice. If there are funds left over, the system will apply to the next invoice, and so on.
The Amount applied to each invoice can be manually adjusted by clicking into the grid under the “Amount” column.
Another option for applying funds to an invoice or invoices is to:
Select the check boxes next to the invoice you want to apply the Check Amount. By default, it will apply the entire open amount.
Done: click Done to close and return to the main entry layout.
Cancel: This will cancel the entries made and return you to the main entry layout.
Refresh: this will refresh the grid entries.
Applying Receipt to Sales:
This area allows you to enter a receipt amount directly to a Sales account. If you do not have an open invoice in the system for the selected client, you will be automatically brought to the Sales tab when entering a receipt.
Click the '+' icon to add a line.
GL Account: In the GL Account column select a GL account for the transaction to post to.
Description: enter a description for the line
Amount: enter the amount to apply to the GL account. The full amount of the check will be applied by default but you can change that by simply clicking into the Amount column and making your changes.
The Prepayments tab allows you to view any Client Invoices that have been applied toward the Receipt. This tab is for listing Invoices applied and is a view only area of the Receipt entry screen.
The Settings tab of the Receipt entry screen is where you will view and manage the general settings of your Receipt in Workamajig. The options available on this tab are:
Status: This will show the status of the Receipt.
Opening Transaction: This option should only be checked if the receipt you are entering is part of your Opening Balance transfers from your old accounting system.
Post Unapplied Amount To: enter the GL account that any unapplied balance should post to temporarily. This account default is set up in the Default GL Accounts section of your GL Tracking Options menu.
Description: enter text regarding the receipt.
How to Void a Receipt:
Once a receipt has been posted, it may become necessary to void the receipt. This is done by simply opening the receipt and clicking the VOID button in the upper right corner of the screen.
When you Void a Receipt, the system will reopen any invoices that were applied to the receipt. The Voided Receipt will have the original receipt number followed by - VOID (Ex. 1234-VOID).
Monitoring your AR Procedures
The most typical method of monitoring your AR in Workamajig is via the AR Aging report and the Client Invoice listing screen.
AR Aging Report: This report allows you to look at the aging of all open invoices in the system. You are able to differentiate between Advance Billing Invoices, standard client invoices, and unapplied receipts. This report is designed to tie out to the GL Account: Accounts Receivable that has been set up in your system.
Menu > Reports > AR Reports > AR Aging
On the left side panel of the report, you’ll find the list of Search Options. This is where you will enter your preferences and guidelines for the report to run.
Age Receivables As Of: This is used to set the aging periods. It is not used to exclude or include open invoices. Defaults to Today's date. NOTE: This always looks at the POSTING Date of the Client Invoice
Using: Select Invoice Date, the Due Date, or the Posting Date. This determines what date will be used to "bucket" the aging of the invoices.
Client: Allows you to restrict the report to a single client. Leave blank for All Clients.
Company: Allows you to restrict the report to a single GL Company. Leave blank for All GL Companies.
Posted Transactions Only: Allows you to restrict the report to transactions that have been posted to the GL. This option should be enabled if you are trying to balance your AR Aging to the General Ledger.
Report Source: Select whether you would like to use Client Invoices, Advance Billings, or Unapplied Receipts as the source of this report.
Use Client Invoices option for running a standard AR Aging report.
Use Advance Billings option to see a listing of unapplied advance bills. This report can be run as part of your month-end procedures to tie to the Advance Bill Liability account as defined in the GL Tracking Options.
Use Unapplied Receipts options to see a listing of unapplied receipts.
Include Sales Taxes on Advance Billings: Select this box if you would like the report to include sales tax on advance billing invoices.
AE View: Select this option if you would like the report to separate the data out by Account Manager.
AE View Page Break: Select this option if you would like the report to insert a page break between Account Managers.
Summary View: Select this box if you would like the report to run in summary form – showing only one line per client.
Hide Multiple Projects: Select this option to have the report group like project numbers.
Group By Office: If you are using Offices to organize and group your information in the system select this option to have the report run with information grouped by Office name.
Only Invoices Older Than: If this is left blank or a 0 is entered, the report will not restrict the aging based on the number of days old.
First/Second/Third Period: Allows you to customize the bucket periods for the aging. The default is 30/60/90.
To run the AR Aging report, enter your preferred selections in the left side panel and then select PDF, Excel, or Email at the top left corner of the AR Aging report screen.
Client Invoices Listing Screen:
The Client Invoice listing allows you to view all client invoices in the system. You are also able to customize the layout and filters to provide information that is important to the user. It has the added benefit of allowing you to double click on the results to view/edit the invoice. There are a number of pre-designed listings for you to use: All Invoices, Open AR, and Open Credits.
Menu > Billing > Client Invoices.
The dropdown menu allows you to select the appropriate listing. To view results on screen click the Search button. To print any of these listings you can select PDF, Excel, or Email.
Depending on your security rights in the system, you may have access to the “Modify” and “Memorize” buttons at the top right corner of the listing screen. This will allow you to create the layout and filters you need.
For further assistance do not hesitate to contact Support@Workamajig.com