All About Accounts Receivable

 

Accounts receivable information is updated for each client when a final statement is billed and updated. However, when adding a client, accounts receivable information can be entered on the A/R & Fund Balances tab of the Client file. Typically, this is only done when first starting to use Tabs3.

Aging of accounts receivable is calculated each time a report is run based on the report date and the date of each statement record in the client ledger file.

After the client has been added and a client ledger record has been created (either by adding an accounts receivable balance or by updating a statement), the accounts receivable fields on the A/R & Fund Balances tab of client information become read-only and cannot be edited.

Changes to accounts receivable can be made in one of the following ways:

1. Entering transactions (or credit transactions); running a final statement; and then updating the final statement.
2. Transferring accounts receivable balances using the Transfer A/R and Transactions program.

Adding a New Client with an A/R Balance

When a new client is added with balance due information on the A/R & Fund Balances tab, a client ledger record is automatically created for that client. Likewise, whenever an existing client who has never been billed is changed from a zero balance due to a non-zero balance due, a client ledger record is automatically created for that client.

This client ledger record is a statement record and includes all of the amounts entered on the A/R & Fund Balances tab.

• Any fees due entered are attributed to the designated R/A timekeeper. If an R/A Timekeeper is not designated, the fees due will be attributed to the primary timekeeper.
• Any expenses due are attributed to expense cost type 0.
• Any advances due are attributed to advance cost type 0.
• The Last Statement Date on the A/R & Fund Balances tab is used as the date of this client ledger record. If a Last Statement Date is not entered, the Date Opened from the Address tab of client information is used.
   

If you want to break down the attribution of fees to separate timekeepers and expense or advances to separate cost types, instead of using the method of entering balances in the client file, you will need to enter separate transactions for each timekeeper and cost type using the Fee Entry and Cost Entry program.

If you want to break down the balance that clients owe you into separate statement amounts for aging purposes, you can do this by final billing and updating transactions on separate statements with corresponding statement dates. However, this is a time consuming task.