Setting Up Accounts Receivable Options for the Firm

You can set up your firm's preferences for accounts receivable processes. Options you can set up include the following: 

• Default distribution method for transaction entry
• Auto-distribution of payments and credits
• Treatment of undistributed payments/credits on aging reports, invoices, and accounts receivable statements

Tip: You can expand areas in this window by clicking to the right of the section header.

To set up accounts receivable options for the firm, do the following: 

1. Open Dashboard, click Application Links on the navigation panel, and then click Settings and defaults under Firm.
2. Select Practice > Accounts Receivable Settings on the navigation panel.
3. Select the default distribution method for transaction entry.
4. Enter your firm's default preferences in the sections of the window.

Auto-distribute

Component	Description
Include invoices/charges from	Select the invoices or charges to be included in the auto-distribute process.
Order to distribute	Select an order in which the invoices will be distributed. Oldest first. This is the same as First In First Out, or FIFO, distribution. Latest first. This is the same as Last In First Out, or LIFO, distribution.
Auto-distribute payments in this order	Select an item in the list and click the up or down arrow to change the order in which each charge type will receive distribution of AR. The distribution of payments looks at the transaction date using the order selected in the Order to distribute option. If more than one item has the same date the distribution order is used for those items. Note: The Invoice option includes both principal and sales tax. Payments will be applied to sales tax and then to principal.

Undistributed payments and credits

Specify whether the undistributed payment or credit is to be associated with oldest unpaid invoices or alternately display based on the transaction date.

5. Click OK.