--- title: "Accounts Receivable Terminology" canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31101219/Accounts%20Receivable%20Terminology" format: markdown --- Accommodation Charge Interest added to an invoice just in case the customer does not pay on time. If the Accommodation Charge flag is set to ' Yes ' for the customer, the ProStix system automatically calculates the amount of charge applicable for each invoice based on the percentage value set in system tailoring decimal 'SOPAccChg'. When payment is received, you can choose whether or not to subtract the charge as a discount if the customer has not paid within his trading terms. Bad Debt Part of a debt for which the debtor defaults payment. This amount must be transferred from the debtors account to a Bad Debt Account. Balance Forward Accounting Only maintains the amount actually owing at any one point in time, only recording the current month's transactions while keeping previous month's transactions as a balance total. This amount increases when sales are made to the debtor and decreases when payment is received from that debtor. The alternate form of customer accounting is Open Item. Balance Sheet Discloses the financial position in terms of proprietorship, assets and liabilities at a particular point of time. Batch Processing A way of streamlining the process of posting from subledgers to the General Ledger. Subledger items are batched for entry, combining several entries into one posted entry. Cash Sale Docket Records the receipt of monies and information relating to what was sold and not concerned as to who paid the money. Cash Sale Receipt Records the receipt of monies and information relating to what the cash was for and who paid the money because the initial debt to the business has already been recorded in the book of accounts.  Credit Note Is issued by sellers when goods bought on credit by customers are returned by mutual agreement, or a price adjustment is necessary because of damage, overcharging, short delivery and so on. Credit Status One of three valid codes that can be attached to a customer record to evoke specific action if a transaction is keyed for that customer. These codes are: · ' A' Active - the customer is permitted to trade within the agreed limits · ' S' Suspended - if a user tries to create or invoice for a suspended customer, the system issues a warning. This warning, however, may be ignored and the order can be created. However, the order has to be authorised by a POS Supervisor before it can be printed or released to invoice · ' H' Hold - if a customer is held, you are not able to create or action an order or invoice  Credit Grace A $ amount. The customers may trade up to this $ amount if they have exceeded their number of credit days before orders are stopped. Debtor Customers (debtors) that have been granted credit to trade with your organisation. This area is vital to the functioning of an organisation as failure to manage debtors credit can cause substantial losses.  Debtors Account Types Are used internally by an organisation to validate transactions made by that debtor. In ProStix, a debtor account may be set up as: Debtors Control Book A manual record of the balance in the debtors ledger at the beginning of the accounting period as per Aged Trial Balance plus the totals for all cash and invoices posted to the ledger on a daily basis that should be reconciled with the Aged Trial Balance report at least once a week and especially before performing the Month End close. All sites should keep a Debtor Control Book for the purpose of manually checking that all transactions have been correctly processed through ProStix. Errors which can occur may include a batch being missed, a batch being keyed twice, transactions being omitted from batches and power failures or system breakdowns that can result in the loss of data. Dishonoured Cheque A cheque received from a customer that is not paid when it is presented to the customer's bank for payment because, for example: Edit List A list that is printed before the option to post the batches that shows transactions that are ready for posting, that is,  Completed  batches. The report is in the same format as the transaction post register but is used to report on what  will  happen rather than what  has  happened. Therefore it can be used as a check to ensure that the batch has been keyed correctly. General Ledger A centralised listing of all financial transactions of a business. It includes all transactions that have been listed in more specialised subledgers devoted to particular types of transactions. Invoice A record of the detail of goods sold on credit to individual purchasers, originated by the seller of the goods. Open Item Accounting Keeps details of all invoices sent to a debtor and, when that debtor makes a payment, it is applied specifically to a particular unpaid invoice. Unpaid invoices are called  open items  and the total of the open items per debtor is the balance owed to the business. The alternative form of customer accounting is Balance Forward accounting. POS Docket A counter sale docket (receipt) that is used when goods are sold over the counter, both for cash and account transactions. Post The process of entering a transaction in a Sub Ledger and the General Ledger to provide a permanent record that anyone can refer to in order to understand the transaction. Sales Tax Is a tax imposed at rates varying according to the nature of the goods, levied as a percentage of the sale price of the goods when sold by manufacturers or wholesalers. Settlement Discount Is applied when an account is paid and is  conditional  upon the buyer paying for goods within a prescribed time. If payment is late, the discount is not allowed. Statement Provides details in respect of unpaid amounts from the last period, purchases for this period, credit notes issued and payments received. Tax Exempt Goods used for specific purposes may not be subject to sales tax by their very nature if, for example, they are raw materials, they are aids to manufacture or they are certain containers for sale with goods.  Tax Exemption Certificate Is a declaration in an approved form of the nature of the exemption from being charged sales tax as claimed by a purchaser. Trade Discount Is  unconditional  and is given at the time of sale usually to good customers or to customers buying in quantity. Unallocated Payment Payments that have been typed through the Cash Receipts option in the Point of Sale program that have not yet been allocated to an invoice or an accounting period for the customer.