The system offers the facility of flexible aging buckets for debtors, that is, balances can be stored in 30, 60, 90 days and any other time frames. The number of aging buckets held on the system is user definable and is determined on a control file at the time of setup. The accounts receivable aging can thus be tailored according to the user’s needs. Debtors aged balance history is provided including Days Sales Outstanding (DSO)
This is useful when the customer indicates payment per age rather than specific transactions. The aged balances can be displayed and the amount paid offset against each applicable age. The account is still an open item account but the system offsets the payment against invoices within each age bucket, for example, $1000 against 30 days pays invoice 123456 and 456123 and $200 against 60 days pays invoice 875459, etc.
| Note | TMSAR/ARE005-5 has a switch to include or exclude claims in an auto allocation by age process. |
- In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry and then double-click Debtor Cash/Journal Entry. ARE005 Cash Entry payment selection panel appears.
- Select Payment function CSH and click OK.
- Enter the header details and click OK. ARE005 Cash Entry payment detail panel appears.
- Click function Aged. ARE005 Cash Entry by Age panel appears.
- Flag the Pay field to indicate the aged balances and click OK.
System defaults the amount to the aged balance. If only part of the outstanding balance is being paid, type in the amount to be offset against this aged balance. The payment amounts are now allocated against individual invoices within each aged balance.
