TAG LINE
SMALL TITLE

Accounts Receivable Configuration Example

Last Updated: Nov 30, 2020

Summary

Accounts receivable (AR) terms determine when payment is due (using configured payment terms) and what actions are executed when payment has not been received (using dunning rules). Multiple AR terms can be setup to handle the account types you have defined (partner, customer, etc.). The AR terms you configure on this screen are selectable when creating new accounts and adjustable on existing accounts from the account settings screen.

In this example we will add a sample AR terms that is configured with payment terms to set the invoice due date and define the dunning rules that will apply to accounts that are setup with the AR Term.

For additional details on the fields presented on the AR Terms screen see the Accounts Receivable Terms screen help article.

Prerequisites

  • Payment terms are required to setup AR terms and must be configured beforehand

  • Dunning rules are not required but need to be configured if you wish to add them to AR terms

Sample Configuration

Adding an AR term

  1. Log into the LogiSense Billing application

  2. Click on the Setup menu, Finance and then Dunning Process

  3. Under the Accounts Receivable Terms heading click the (emoji) button to add an AR Term

  4. Under the Add Accounts Receivable Term heading populate the fields provided (described below):

    1. Give the AR Term a Name

    2. If desired enable the Default option. When enabled this AR term will be automatically selected in the AR Term dropdown field when creating a new account

    3. Select the Payment Term (e.g. NET30). This payment term will set the account invoice due date as 30 days after the invoice render date/account bill date (the starting date used is determined by the bill group setting 'Invoice Due Date Based On'). Refer to the Payment Terms Configuration Example article for instructions on how to configure this payment term

    4. Select the Dunning Rule (e.g. 'Consumer'). This rule will apply a late fee on accounts that are past their invoice due date. Refer to the Dunning Rules Configuration Example article for instructions on how to configure this dunning rule

  5. Click Save to add the AR Term

Result

The AR Term 30AR is now available to be selected from the AR Terms dropdown when creating a new accounts and adjustable on existing accounts from the account settings screen. The payment terms and dunning rules setup on the AR Term will now apply to the account.

Account / Settings / Billing

Next Steps