A/R Aging
The A/R Aging routine provides the means for aging your accounts receivable and applying finance charges to all or selected customers who are authorized to charge invoices. A/R Aging is performed once a month. You can perform the A/R Aging on any day.
Because HITS allow for multiple store days to remain open, it is not necessary to hold up regular operations, such as invoicing, just to age your accounts receivable. For example, if you typically age your A/R on the last day of the month, but for some reason, you cannot do so, perhaps because of being short staffed or due to an illness, your sales staff can continue with invoicing on the 1st day of the new month, and beyond.
You can age your A/R using an earlier store date, such as the 30th or 31st, even if the actual day is the 1st, 2nd, 3rd, etc. day of the next month. Finance charges and statements will print (or email) as of the 30th or 31st, depending on which date you used as your aging date.
When you run the A/R Aging routine, you enter the date you wish to choose as your A/R Aging date, which will be used to determine which open A/R transactions are past due and subject to finance charges. When you click the "OK" to age your A/R, BPOS will check for two conditions...
- That the store date (such as the 30th or 31st) is still be "open".
- That The store date you enter to age on is the oldest "open" store date in your system.
The ability to age your A/R on other than the current day is a very powerful capability that provides flexibility for you and your bookkeeping staff.
When the aging is performed, any transactions older than the aging date entered will have finance charges calculated on them, provided the customer is set for finance charges. Each customer can technically have a different finance charge rate, though most states require you charge the same rate for everyone. Selected or all customers can be set for no finance charges in their customer master record.
Any finance charges computed are added to the customers' accounts immediately. There is no "review and (selectively) post" capability. The only way to "roll back" A/R Aging is by restoring your backup to a prior day, which is rarely done since it requires rekeying of all data entered from the point of the backup.
A/R Aging is performed using the option under Bookkeeping --> Post --> A/R Aging - Open Items Accounts or by clicking the A/R Aging icon on the Bookkeeping toolbar.
To view a document on the steps to perform A/R Aging, click the link below...
To view a video on A/R Aging, click the link below...
A/R Aging - Open Item Accounts
To view a document on the steps to print A/R Statements, click the link below...
A final note: Many dealers feel they have to age their A/R before the next business day so that invoices for the next billing period use the correct Next Due Date. HITS provides a configuration option that can automatically set the Next Due Date so you do not have manually set it each month. This one-time configuration option is set under Administration & Utilities --> Store --> View/Edit Defaults --> A/R.