Working With Accounts Receivable in Counterpoint (A/R)

This comprehensive video tutorial on “Accounts Receivable in Counterpoint” is an essential resource for businesses looking to streamline their financial operations. This detailed guide provides step-by-step instructions on various aspects of managing accounts receivable (A/R) within Counterpoint, ensuring you can efficiently handle customer accounts and improve cash flow. Below is an in-depth exploration of the key topics covered in the video, including customer setup, customer control, touchscreen operations, A/R documents, statements, finance charges, aging reports, and the distinction between layaway and A/R.

Customer Setup in Counterpoint

One of the foundational elements of managing accounts receivable in Counterpoint is the customer setup process. This involves setting up customers as either cash or A/R customers based on their payment preferences and credit terms. Key fields to focus on during the setup include:

Credit Limit: Setting a credit limit helps control the maximum amount of credit extended to a customer.
Terms Code: Defining the terms code establishes the payment terms agreed upon with the customer, such as net 30 or net 60.
Finance Charge Code: This code determines whether finance charges will be applied to overdue accounts.
A/R Account: Linking the customer to the appropriate A/R account ensures accurate financial reporting.

The ability to charge on A/R can be restricted by unchecking the “Allow A/R Charges” box, giving businesses greater control over which customers are permitted to make purchases on credit.

Customer Control Settings

The Customer Control window in Counterpoint plays a crucial role in managing company-wide A/R settings. These settings include:

Aging Periods: Configuring aging periods helps in categorizing outstanding balances based on how long they have been overdue.
Dunning Statements: These are reminders sent to customers about overdue payments. Setting up dunning statements ensures timely follow-ups on unpaid invoices.
Write-Off Limits: Establishing write-off limits allows businesses to define the maximum amount that can be written off as uncollectible.

By fine-tuning these settings, businesses can maintain better control over their accounts receivable in Counterpoint, reducing the risk of bad debt.

Touchscreen Operations

Counterpoint’s touchscreen functionality makes it easy for businesses to handle A/R transactions at the point of sale. The video tutorial demonstrates how to:

Select an A/R Customer: Quickly locate and select the appropriate A/R customer from the touchscreen interface.
Make a Sale: Process sales transactions seamlessly, whether the customer is paying in cash or on credit.
Process Payments: Accept payments against outstanding A/R balances directly from the touchscreen, making it convenient for both staff and customers.

This user-friendly interface simplifies the accounts receivable process in Counterpoint, enhancing the overall customer experience.

Managing A/R Documents

Accounts receivable in Counterpoint also involves the effective management of A/R documents, such as invoices and payments. The tutorial covers how to:

View Invoices: Access detailed information about invoices issued to customers.
Manage Payments: Record and apply payments against open invoices, ensuring accurate account balances.
Document Retrieval: Quickly retrieve historical A/R documents for review or audit purposes.

Proper management of these documents is vital for maintaining accurate financial records and ensuring timely collection of receivables.

Customer Statements

Generating and delivering customer statements is a key function in accounts receivable management. The video explains how to:

Preview Statements: Review customer statements before sending them to ensure accuracy.
Print and Email Delivery: Offer multiple delivery options, including printing hard copies or emailing statements directly to customers.

Providing clear and concise statements helps customers understand their account status, promoting timely payments and reducing confusion.

Calculating Finance Charges

Applying finance charges to overdue accounts is an effective way to encourage timely payments. The tutorial guides users through:

Setting Up Finance Charges: Define the criteria and rates for applying finance charges to delinquent accounts.
Calculating Charges: Automatically calculate finance charges based on the outstanding balance and overdue period.
Applying Charges: Add calculated finance charges to the customer’s account, making them visible on their next statement.

By implementing finance charges, businesses can incentivize customers to pay their invoices on time, thereby improving cash flow.

Running Aging Reports

Aging reports are a critical tool for monitoring the health of accounts receivable. The video demonstrates how to:

Run Aging Reports: Generate reports that categorize outstanding balances by age, such as 30, 60, or 90 days past due.
Analyze Customer Balances: Identify which customers have overdue balances and take appropriate action to follow up on those accounts.
Track Trends: Monitor trends in accounts receivable to identify potential issues before they become significant problems.

Regularly reviewing aging reports helps businesses stay on top of their receivables, ensuring that overdue accounts are addressed promptly.

Layaway vs. A/R

Understanding the difference between layaway and accounts receivable in Counterpoint is essential for businesses that offer both options. The tutorial outlines:

Layaway: A service where customers pay for products in installments before taking possession. It is not recorded as a receivable until fully paid.
Accounts Receivable: In contrast, A/R involves extending credit to customers who receive the product upfront and pay later.

By clearly distinguishing between these two options, businesses can offer flexible payment solutions that cater to different customer needs while accurately managing their financial records.

Mastering accounts receivable in Counterpoint is crucial for businesses aiming to enhance their financial management and customer service. This comprehensive video tutorial covers all aspects of A/R management, from customer setup and control settings to managing documents and generating reports. By following these best practices, businesses can ensure efficient operations, reduce the risk of bad debt, and improve overall cash flow. For any business using Counterpoint, understanding and optimizing accounts receivable processes is a critical step towards financial success.

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