You are on page 1of 49

User Manual

Accounts Receivable

Course No:PCM02_0108

User Manual

For Accounts Receivable

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Confidentiality Disclosure Statement

This document contains product material proprietary to IFCA MSC Berhad and may be
protected by patents, trademarks, copyrights, and/or other relevant state, federal, and foreign
laws. Forwarding, reproducing, disclosing or using without specific written authorization of
IFCA MSC Berhad is strictly forbidden.

This material is for informational purposes only. IFCA disclaims all warranties and conditions
with regard to use of the material for other purposes. IFCA shall not, at any time, be liable for
any special, direct, indirect or consequential damages, whether in an action of contract,
negligence or other action arising out of or in connection with the use or performance of the
material. The software described is supplied under license and must be used and copied in
accordance with the enclosed license terms and conditions.

This material is subject to change without notice. Published by IFCA MSC Berhad, Malaysia

January 2005. Material Ref ID: PCM02_0108

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

INTRODUCTION

Accounts Receivable (AR) is one of the most important modules in the entire system. This is
also the most important module to the customer because all billings, collections and credit
control monitoring are handled here. Specialized processing like Advances and Deposit is
being handled.

If it is your company’s policy to charge interest on overdue account, the system


assists you in working out the chargeable amounts and generated the necessary
documents for onward transmission to the debtor.

You can also generate reminder letters to remind your debtors of their obligations.
Matching of billings and receipts is a standard feature of the module. The module
allows the timing of the matching process to be decided by the users.

To use the Accounts Receivable module, user must first define all the Master File Set-up
options.

What you need to know.

• Understand the Concept of Document Type & Transaction Type.

• Understand the Receipt Allocation Capability.

• Understand the Linking to G/L & Project Ledger.

• Understand the overall Enquiry Capability.

• Understand the Report Capability

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

ACCOUNTS RECEIVABLE FLOW CHART

Explanation

1. Accounts Receivable Master File Set-up is the most important and foremost process
for the Accounts Receivable. Without the Set-up, AR will not work at all. With an improper
Set-up, AR will not work functionally and logically. Thorough understanding of the concept
and the usefulness of each set-up in AR are needed in order to obtain the objective and
benefit of using IFCA Financial.

2. The second level of the Accounts Receivable process is mainly concerning the
transaction processing. They are mainly segregated into three groups of processes:-

Revenue Transaction

The revenue transaction in AR is the business process that generates profit for the business
entity. The Claim transaction, relating to any project, will be the main activity of a construction
entity. 0nly the issuance of a debit note or credit note allows users to perform an allocation at
the entry/generation level. The claim and invoice can be allocated at a later stage using the
allocation entry after posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Settlement Transaction

The settlement transaction refers to the activity whereby a debtor in AR context is settling the
debt due to the entity. Receipt issuance is for the settlement of certain revenue/debt
transactions. The option of allocation is also available separately if allocation is not done at
the Receipt option. Refund is seldom a desired business event; however, IFCA Financial
does cater for this type of transaction.

Preceding Transaction

At various early stages of business events, monetary transaction is carried out prior to the
actual materialisation of mutual benefit exchange. For example, a deposit needs to be issued
to a tendering process prior to any commitment of getting the contract. Thus, there will be a
need to account for such outflows or inflows of money. With IFCA Financial, the advance will
be referred to as the monies received from a debtor prior to any business events. Whereas,
Deposit is the payment to a debtor for securing a construction work.

Retention will be handled separately upon splitting from the claims made periodically.

4. Allocation can be done on a routine basis or carried out spontaneously upon issuing
any credit transactions.

5. Revaluation is the measurement of foreign currency differences upon allocation of


foreign currency documents (transactions). By including the provisional gain/loss in the
company’s account based on the current exchange rate, the system could present the
company’s Accounts Receivable on a more precise and accurate level. This process could be
done on a monthly basis before month end in the General Ledger or depending on the
company’s needs.

6. At the end of every process, the output will be referred to and printed for analysis and
management decision-making. Various reports will cater for different business needs and
searching criteria will also be handy for users to search a particular record. In addition, the
Audit Listing for all posted transactions can also be re-printed if provided with a known batch
number.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

To Set-up Accounts Receivable Master Files

The purpose of setting up the Accounts Receivable Master File is to enable user to configure
the AR module according to their transaction processing needs. AR Master File refers to the
preliminary setting that forms the main reference for most of the options in AR. For example,
the AR transaction type master file will be a main reference for the transactions processed in
AR. Therefore, the AR Master Files set-up is the first and foremost procedure to complete
before a user starts using the Accounts Receivable module. By following the sequence listed
below, set-up can be smoothed since all AR options are dependent on these set-ups.

Accounts Receivable Transaction Type Master File

It is very important for you to understand transaction type. This is the important parameter to
decide whether you wish to debit or credit the debtor account. Certain transaction classes are
provided for you that correspond to the events in the AR module. A particular transaction type
can be either an account or project Account Type. Do remember that certain important
recurring transactions require a document type, which is auto-numbered. In the AR module,
you can decide whether such transaction types will include the record in a management
account in GL. The cash basis flag enables you to set whether you wish to update the cash
ledger in GL and PL. You can refer to the essential guide of the cash basis for better
understanding of the cash basis transaction.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
1 Trx. Type Create different code to denote different accounting transactions.
(2 characters - alphanumeric). E.g. PC - Progress Claim
2 Description Enter details pertaining to the code e.g. Progress Claim
3 Transaction Indicate the correct class this transaction will be listed under:-
Class Advance received from debtor.
A – Advance Credit Note receives or sends to debtor.
C - Credit Debit Note receives or sends to debtor.
Note Foreign Currency adjustment made ( realised or unrealised ).
D - Debit Invoice bill to debtor.
Note Payment made by debtor.
F - Forex Progress claim made to the developer.
I - Invoice Retention made by the debtor.
M – Deposit to debtor.
Payment
P - Progress
Claim
R -
Retention
S - Deposit

4 Account Each transaction is further divide into Account or Project Type. The
Type importance of this classification is that if the transaction has been
classified into Project Type, the transaction will relate to a Project
Number. The cost will be charged to that particular project and
capture in the Project Ledger. For example, if user raise debit note
of project type, system will charge the transaction amount into the
relevant Project by its Activity and Cost Code. However, if a
transaction is classified as Account Type, it will be charged into
relevant GL accounts without accounting for Project.
5 Mode Enter mode [Debit] or [Credit]. E.g. ‘Progress Claim’ will be debited
into Debtor’s Ledger.
6 Allocation Allocation Priority for this transaction i.e. will this transaction be
Priority given the 1st priority when doing automatic allocation or will it be
other transaction types which have a higher priority.
7 Interest Rate Enter the interest rate to be charged on the document amount which
is overdue.
8 Document Enter document type/prefix for which this transaction will use (zoom
Type for help list). E.g. For ‘Progress Billing’, user should select the
Document Type for Progress Billing. Do not select ‘Debit Note’ or
Official Receipt as the document number will give misleading
information with a prefix like ‘DNxxxx’ or ‘ORxxxx’
9 Management If user wish to link this type of transaction to Management Accounts
A/c enter/select the GL Account Code.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Accounts Receivable Specification

The AR Specification is for user to set the codes that will be used in the Account Receivable
and the GL/Cost Code that is linked to the transaction stated below. User must define the
ageing periods for printing ageing reports and reminder letters to debtors.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Field Explanation
1 GL Account
Forex Gain / Loss Enter the GL account for the Forex Gain or Loss, the system will
automatically calculate gain/loss upon Allocation on the foreign
currency holding debtor account.

Unrealised Forex Gain / Enter the GL account for Unrealised Forex Gain or Loss, the
Loss system will automatically calculate gain/loss base on the exchange
rates in the Master File upon Revaluation of debtors with
outstanding foreign currency transactions.

Clearance A/c Optional GL Clearance A/c.

2 Ageing Period
Age 1 , 2 , 3 ……6 The Ageing Period (days) will be used to tabulate the interval of
ageing presentation in AR Enquiry or listing.

3 Reminder Period
1, 2, 3, 4 The Reminder Period (days) for generating reminder to Debtors.
(Optional)

Transaction Type
Forex Gain/Loss Realised Gain/Losses on Foreign Currency upon Allocation of
transaction.

Unrealised Forex Gain / Unrealised Gain/Losses on Foreign Currency for Debtor


Loss Revaluation.

Schedule Billing Invoice Refer to Type with transaction class ‘Invoice’.

Claim Refer to Progress Claim Type with transaction class ‘Progress


Claim’.

Retention Refer to Retention Type with transaction class ‘Retention’.

Deduction Tax Refer to any type that created with transaction class ‘Payment’.

Advances to Payment will refer to the transaction type with


Advances to Payment Payment Class.

Note: The Transaction Type defines in the AR specification will


cross reference to the AR Transaction Type Master File Set-up with
the right Transaction Class.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Debtor Type Master File

Debtor type master file is commonly referred to as the debtor control setting. It will setup the
GL-AR interface. Every debtor is requires a debtor type. From a debtor type, you define the
control account that links with the GL. Hence, you should not change the debtor type once the
transactions for the debtor has been posted. Please seek advice before you change the
debtor type for a debtor account. In addition, the deposit, advance and accrual account is
setup here too to enable you to post these transactions to separate GL control accounts as
you wish to.

No Label Explanation
1 Type Create different code to denote different category of debtors.
(2 characters – alphanumeric).
2 Description Enter details pertaining to the code.
3 GL Account Code
- Debtor Enter the different GL Chart Of Account involves when data entry is
- Deposit done for the following different type of debtor transactions: deposit to
- Advance debtors & advance from debtors.
- Accrual

No deletion of a debtor type is


allowed once the transaction for
a debtor relating to this debtor
type has been posted.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Debtor Master File

The Debtor Master File is set to create, amend or delete the Debtor Account and to classify
the Debtor Type. Debtor Account is commonly shared among all Entities but the detailed
transactions within is confined to each Entity. For example, Entity B and C can use Debtor
Account A. When user uses entity B and retrieves debtor account A, only those transactions
posted in entity B will be retrieved. Therefore, a debtor account “exists” throughout the IFCA
Financial but the individual transaction will reside in each entity.

To open or create a debtor account, a user must have an account code/number for the
particular debtor. A Business ID has to be created for the debtor as well, using the Business
Master File option as the Business ID field is a compulsory field. Thus, upon selecting the
relevant Business ID for the debtor, all the details from the Business Master file will be
retrieved and added into the Debtor Master file. Among the important features is that the
debtor account must be classify its debtor type that will ultimately link it to the General Ledger.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
1 Debtor A/c Specify a Debtor Account Code.
2 Start Date Enter the date of commencement of business relationship with this
debtor.
3 Debtor Type Enter the Debtor Type as what has been defined in the Debtor Type
Master File.
4 Business ID Select the relevant Business ID (defined in Business Master File) related
to the debtor.
5 Name The name is defaulted to the name specified based on the Business ID.
However, user is allowed to change the name here.
6 Address The address is defaulted to the address specified based on the
Business ID. However, user is allowed to change the address here.
7 Telephone No The no is defaulted to the no specified based on the Business ID.
However, user is allowed to change the no here.
8 Fax No The no is defaulted to the no specified based on the Business ID.
However, user is allowed to change the no here.
9 Contact Person The contact person is defaulted to the contact specified based on the
Business ID. However, user is allowed to change the contact person
here.
10 Mailing Address The mailing address is defaulted to the mailing address specified based
on the Business ID. However, user is allowed to change the mailing
address here.
11 Forex The transacting currency of the debtor as set-up in Currency Master
File.
12 Statement Define whether the debtor should have individual or combine statement
of account.
13 Credit Terns The credit terms are defaulted to the credit terms specified based on the
Business ID. However, user is allowed to change the credit terms here.
14 Credit Limit The user-defined Credit limit in monetary terms.
15 Tax Scheme The Taxation Scheme that would apply to the debtor as set-up in the
Tax Scheme Master File. This will be displayed as default tax scheme
for the debtor in all entry screens.
16 Tax Reg. No Enter the Taxation registration number for the debtor.
17 Remarks Additional information for the debtor.

To delete a debtor account, the debtor account must have no transactions at all in the
system throughout all entities. System will check if any transaction exists in the
debtor account for all entities including un-posted transactions before proceeding with
deletion. However, it is advisable to control or avoid deletion of any debtor account.
This activity should be configured to be only accessible by a higher level of authority
only.

! Caution
System disallows any deletion of a debtor
account, which has transactions in the Entity
in use or any other Entities in the IFCA
Financial system.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Debtor Access Authorization

The debtor account setup will be a common setup for the database. Debtor Access
Authorization option grants Entity Code accessibility to available Debtor Account.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Claim Entry

A claim is a progressive billing rose towards a debtor. IFCA Financial enables a user to
process the Progressive Claim towards a debtor whenever the project has reached a certain
completion stage. The Claim Entry must be linked with a Project No and the system will check
the Claim Amount against the Minimum Claim Amount and Contract Sum set in the Project
Master File.

Apart from the claim amount, users are allowed to key in material-on-site amounts, which are
to be included as part of the claim. Material on site are charges for material that are taken by
the contractor to the project site, in view of materials needed for construction works to be
carried out. These charges are taken up as part of the progress claims charged to the debtor.
A cumulative figure is maintained, as these charges could either be an addition or a deduction
to the total progress claim amount.

A deduction could come about if the total amount of materials taken on site were previously
billed to the debtor but in the next claim, it was found that not all of the materials billed to the
debtor in the previous claim, were going to be used. Therefore, in the next claim, a deduction
is made for the amount of materials not used.

The reason for the use of material on site is due to the fact that some construction companies
would like to bill their debtors separately on the materials used on site instead of including the
amount in the total amount of work done.

Any other miscellaneous charges like day works can also be keyed in but this will not be
taken up as part of the claim.

Upon posting, the system will do the following update: -

1. In Project Ledger:

• Credit Revenue Code

• Credit Retention Code

2. In General Ledger:

• Debit Debtor Control

• Debit Retention

• Credit Progress Billing

3. In Debtor Ledger:

• Debit Debtor Account

• Debit /Credit Taxation (if any).

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
st
1 Form
1 Batch No Auto numbering.
2 Doc Cnt The total number of claims in this batch.
3 Batch Total The total or summation of net claim amount for all claims entered.
4 Date The Transaction date for the Claim.
5 Status The batch status.
nd
2 Form
6 Claim No Enter the Transaction Type as defined in the AR Set-up. System will
accept only the transaction type, which has the Transaction Class of
Progress Claim.
7 Project No Enter a valid and defined Project Number. System will prompt to alarm
user of any un-posted batch related to the same project number. Users
are not allowed to process two claims for the same project at any
moment of time. Please post the first claim for the project before the
second claim to be made.
8 Claim Date Document Date for the Claim.
9 Reference No Reference number for the Claim. (Optional)
10 Forex The Currency Code and its Exchange Rate.
11 Tax Scheme The Tax Scheme where Set-up in Tax Scheme Master File.
12 ClaimTo-date Claim To-date Amount will be retrieved for all the posted claims
Amount accumulated for the project.
13 Claim Amount The Claim Amount that user wishes to make in this batch, which
inclusive of retention monies. System will give warning if the Claim
Amount of each document is less than the minimum claim amount
defined in Project Master File.
14 Net Claim Amount System will calculate the net claim amount from the deducting the claim
to-date from the Claim Amount
15 Retention Amount The Retention Amount is a calculated base on the Progressive retention
percentage set in the Project Master File set-up. Upon accepting the
claim amount, the system will prompt the retention amount and allocate
amount automatically. However, users could still overwrite this amount
according to their needs.
16 Tax Amount The description of Tax Label will be retrieved from Entity Maser File and
displayed like in this case - ‘VAT’.
17 Tax Invoice No. Document number for tax invoice (if any).
18 Allocate Amount This is a remark field to show how much the claim/revenue amount
could be distributed to different activities and cost code.
rd
3 Form
19 Activity Before users could start processing claim for any project, a work plan
must be properly set in the master file. The system will only retrieve all
the pre-set activity codes in the zoom file.
20 Cost Code The concept for activity codes also applies to cost codes that mean only
those cost codes that pre-defined in the revenue budget screen will be
displayed.
21 Description Detail description for the cost code.
22 Amount The distributed amount for the cost code. The total distributed amount
must tally with the allocate amount in the second form.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

The Posting Option


To select one or a group of batches by
holding down the ‘Ctrl’ key and click on the
desired batch number.
Hold down the ‘Shift’ key and press arrow key
to select a continuous number of batches.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Claim Reversal Entry

This option allows you to reverse claims made in the contract. The need to reverse claim
arises due to wrong claim(s) or unforeseen circumstances.

No Label Explanation
1 Debtor A/C Debtor’s Account Code
2 Claim Reversal No Document number pertaining to this transaction.
3 Retention Trx Select the transaction type for retention.
4 Doc. Date Enter the document date.
5 Trx Date Transaction date related to the financial period.
6 Description Detail description pertaining to the document.
7 Tax Invoice No. The document number for tax invoice (if any)

8 Reversal document Claim number pertaining to the claim.


9 Trx type-Claim Transaction type pertaining to reversal document.
10 Trx type-Reversal Transaction type pertaining to reversal retention
11 Reverse Doc.Date Document date of the reversal
12 Document Amount- Progress claim amount to be reversed (Automatically retrieve by the
Claim system)
13 Document Amount- Retention amount to be reversed (Automatically retrieve by the system).
Retention

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Invoice Entry

In the IFCA Financial system, Accounts Receivable module allows user to generate billing
other that the claim. The invoice entry is set for user to enter the AR billing transaction for the
miscellaneous billings without retention.

Post the claim if no error and accurate. The Posting will: -

• Update Debtor Ledger

• Update Project Ledger (If Related)

• Update Tax Ledger (If any tax involved).

• Update General Ledger

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
st
1 Form
1 Batch No Auto Numbering base on setting in Master File.
2 Doc Cnt The Document Count is the total number of document entered into
Second Form.
3 Batch Total The Batch Total is the total document amount in the second form.

4 Date This Refers as the Transaction Date of the batch. All the documents in
the batch will take this date as transaction date.
5 Status The Status is to show that whether there is no error in the batch.
nd
2 Form
6 Invoice No The first field is transaction type; the entering of number depends on
whether the setting is auto or manual entry. Please note that selecting
the Project Type will enable invoice to charge to Project Ledger and
General Ledger. Whereas the Account Transaction Type will allow
invoice to charge to General Ledger only.
7 Description Enter the detail description of the Invoice.
8 Project No The Project numbers as defined in the Project Master File. User is
required to enter this only if they selected Transaction with Project Type.
9 Debtor A/c The Debtor Account that the user wishes to bill.
10 Invoice date The Document Date for the Invoice. (For Ageing)
11 Amount The Document Amount for the Invoice.
12 Ref. No Reference for the users. (Optional)
13 Forex Foreign Currency exchange rate as defined in the Currency Master File.
3rd Form

The Third Form of the invoice entry is depends on the transaction type that the user selected. If
the transaction type that the user selected is of Account Type, then the invoice entry will be
posted to General Ledger. On the other hand, if the type is of Project Type, then the third form
would have activity and cost code distribution to post to Project Ledger.

(GL A/c) GL A/c The General Ledger Account.


Div. The Division code.
Dept. The Department code.
Description Description.
Amount The Document Amount
Tax The Tax Scheme defined in the Tax Scheme Master File
Tax Amount Tax Amount computed base on the Tax Scheme Set-up.
Total Amount Total Amount (After tax computation).
(Project) Act. Code Activity code Related to the Project and the billing.
Cost Code Cost Code as defined in the Entity and assigned to the project.
Description Description of the billing.
Amount Document Amount
Tax The Tax Scheme defined in the Tax Scheme Master File
Tax Amount Tax Amount computed base on the Tax Scheme Set-up.
Total Amount Total Amount (After tax computation).

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Invoice charge to GL Account

Please note that the third form is prompting the GL A/c for user entering Account Type
invoices.

Invoice charge to Project

Please note that the third form is prompting the Activity code and Cost Code for Project
Related invoices.

Post Invoice
The Post Invoice is to allow users to
post the pending invoice batches into
Accounts Receivable. The Invoice Audit
Trial Report will be generated upon
successful completion of the posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Debit Note Entry

Debit Note is a document to be issued in order to debit or charge a debtor a certain amount.
Debit Note also can be classified into different type via Transaction Type so as to identify
different type of debit note. Debit note is normally raised for miscellaneous item or non-trading
item. User can also do the allocation with a posted credit document while issuing the debit
note.

During posting (outward debit note)

• If the debit note is project-related,

Debit Debtor Control Account.

Credit Project Ledger (via Cost Code)/General Ledger

• If the debit note is Account related.

Debit Debtor Control Account.

Credit General Ledger (via GL Account)

(Note: For inward debit note, modes for posting will be changed from debit to credit and vice
versa)

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
1st Form
1 Batch No Auto numbering.
2 Doc Cnt The total number of Document for the batch.
3 Batch Total The total or summation of all documents amounts.
4 Date The transaction date for the batch.
5 Status The Error status for the batch.
2nd Form
6 Debit Note No The transaction type defined with debit note class in the transaction type
set-up.
7 Description The description for the debit note
8 Project No The Project Number field is compulsory for data entry if the transaction
type selected has been classified as Project.
9 Debtor A/c The debtor account.
10 Debit Note Date The Debit Note Date (Document Date – for ageing).
11 Amount The debit note amount
12 Ref. No Reference number for the debit note. (Optional)
13 Forex The currency mode and its exchange rate.
14 Tax Invoice No. Document number for tax invoice (if any).
15 Allocation The allocation preference (Manual/None)
rd
3 Form
16 Charge to The “ Charge to “ will depend on the transaction type entered in the
(First Folder) second form. If the transaction type is of account type, the charge to
portion will prompt the GL account, division and department for further
data entry. On the other hand, if the transaction is of project type,

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
system will prompt activity code, cost code and amount for data entry.
17 Allocation The allocation folder will depend on the allocation method defined in
(Second Folder) second form. The only changeable field is Allocated Amount.

Manual
This system will automatically prompt the user all the outstanding
debit/credit documents for manual allocation basis. User can enter a
lower or equal allocation amount but not an amount greater than the
document amount.

. None
System will not prompt any document for allocation if user has indicated
‘none’ for allocation in the second form.

Posting of Debit Note


The Post Debit Note Transaction is set to
post the correct batches into Accounts
Receivable. The Debit Note Audit Trial
Report will be generated upon successful
completion of the posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Credit Note Entry

Credit Note is a document to be issued in order to credit a debtor of a certain amount. Credit
Note also can be classified into different type via Transaction Type so as to identify different
type of credit note. User can customize the type of credit note into Credit Note Inward or
Outward. It is very important for user to set-up the transaction type correctly for Credit Note
inward or outward. Double Check the Transaction Type Master File in AR to ensure the
transaction mode is at the desirable mode. The Credit Note Entry option is set to allow user to
enter the Credit Note transaction into the Accounts Receivable module. Since a direct journal
in the Accounts Receivable is not available, user can pass a crediting entry using Credit Note
to rectify error in the debtor account.

During posting: -

• If the Credit Note is project-related,

Debit Project Ledger / General Ledger (via Cost Code)

Credit Debtor Control Account.

• If the Credit Note is Account related.

Debit General Ledger (via GL Account)

Credit Debtor Control Account

(Note: For inward credit note, modes for posting will be changed from debit to credit
and vice versa).

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
1st Form
1 Batch No Auto numbering.
2 Doc Cnt The total number of document in the batch.
3 Batch Total The total/summation of all documents amount
4 Date The transaction date for the batch.
5 Status The error status for the batch.
2nd Form
6 Credit Note No The transaction type defined as ‘credit note’ class in the transaction type
set-up.
7 Description The description for the credit note
8 Project No The Project Number field is compulsory to enter if the transaction type
selected has been classified as Project
9 Debtor A/c The debtor account.
10 Credit Note Date The Credit Note Date (Document Date for ageing).
11 Amount The credit note amount.
12 Ref. No Reference number for the credit note. (Optional)
13 Forex The currency mode and its exchange rate.
14 Tax Invoice No. The document number for tax invoice (if any).
15 Allocation User can have the option to do the allocation while raising a Credit Note.
The available methods are - Automatic, Manual or None. The selection
will affect the Allocation Folder in Third Form.
3rd Form
14 Charge to The “ Charge to “ will depend on the transaction type entered in the
(First Folder) second form. If the transaction is of account type, the charge to portion
will prompt the GL account, division and department. On the other hand,
if the transaction is of project type, system will prompt activity code, cost
code and amount for data entry.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
15 Allocation The allocation folder will depend on the allocation method selected in
(Second Folder) second form. The only changeable field is Allocated Amount.

2. Manual
This system will automatically prompt all the posted debit/credit
documents for user to do allocation. User can allocate an equal or lower
allocation amount but not an amount greater than the document amount.

3. None
System will not prompt any document for allocation if user has indicated
‘none’ for allocation in second form

Posting of Credit Note


The Post Credit Note Transaction is set to
allow user to post the correct credit note
to the Accounts Receivable. The Credit
Note Audit Trial Report will be generated
upon successful completion of the
posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Release Retention

The Retention Release Entry is the option to allow user to enter the retention, which has been
released by the debtor. Journals will be automatically generated by the system to debit the
debtor account and credit the retention account in General Ledger. The Retention Report will
be able to provide the retention history of a selected project. It has feature of both base and
foreign currency with detail progressive claim towards the project.

No Label Explanation
1st Form
1 Project No Project number that the retention monies are held against.
2 Debtor A/C Debtor Account in respect of the retention that is held by the principal.
3 Due Date Maturity date for the retention.
4 Trx Date Transaction date for the retention release.
5 Release Date Actual release date (document date) for the retention release.
6 Forex Currency code for the retention.
7 Release Amount Amount to be release from the Debtor if release by lump sum.
8 Tax Invoice No The document number for tax invoice (if any).
2nd Form
9 Doc.Date Document date for the retention
10 Doc No Document number for the retention
11 Description Description for the retention.
12 Forex Currency code for the retention.
13 Retention Amt Outstanding amount of retention held against for this document.
14 Release Amt Amount to be release as per document. User is requested to select only
one method for retention release i.e. either from 1st Form Release
nd
Amount or 2 Form Release Amount.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Official Receipt Entry (Issuing A Receipt Note)

Receipt can be classified into different type via Transaction Type set-up; this will be useful for
analysis purposes. Notice that there is two dates namely transaction date and receipt date to
be entered. Use dates in current financial period as transaction date and actual receipt date
for document date. Transaction date is used for updating to G/L and receipt date is used for
A/R Ledger. This feature is useful in the event that transaction date and receipt date falls into
different financial period or year. The Official Receipt Entry is set to allow user to enter the
Receipt transactions in the Accounts Receivable.

During posting: the official entry will:

• Debit Bank Account (via Bank Code).

• Credit Debtor Control Account.

• Receipt amount is added to Actual Inflow for Cash Flow purposes.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
st
1 Form
1 Batch No The Batch number is auto-generated base on the Batch Document
Control in system Administration.
2 Doc Cnt The total number of document entered into second form.
3 Batch Total The batch total is the total document amount in second form.
4 Date This refers as the Transaction Date of the batch.
5 Status The Status is to indicate whether error is found in the batch.
nd
2 Form
6 Receipt No The Transaction Type selected and Document Number.
7 Description The description of the receipt
8 Debtor A/c The debtor Account
9 Receipt Date The receipt date (document date)
10 Bank Code The Receiving bank, make sure the bank code has been created in the
Cast Book Account in GL Set-up.
11 Ref. No. Reference number for the receipt, compulsory for bank reconciliation
purpose.
12 Forex Currency Code and its exchange rate.
13 Amount The Receipt amount.
14 Comm.Absorbed Commission absorbed for bank charges.
15 Bank Base Amount Bank Control Amount.
16 Tax Invoice The document number for tax invoice (if any).
17 Allocation The method of allocation for this transaction;
Manual
None
This will decide whether Third Form would retrieve any document.

3rd Form
18 Allocated Amount Allocation amount for the transaction.

Manual
This system will automatically prompt all the debit documents for
allocation. User can allocate an equal or lower amount but not an
amount greater than the document amount.

. None
System will not prompt any document for allocation if user has indicated
none for allocation in second form

Posting of Official Receipt


The Post Official Receipt is set to post the
official receipt into the Accounts Receivable.
The Official Receipt Audit Trial Report will be
generated upon successful completion of the
posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Post-Dated Cheque Entry

Post-dated cheque will be unavoidable but sometimes debtors do make such payment due to
cash flow planning. However, IFCA Financial caters such transaction by monitoring its
matured date and proceeds with the issuance of receipt upon clearance of bank. All Post-
Dated Cheque entered are stored in the Post-Dated Cheque File. This information is useful
for credit control purposes. During printing of Statement of Account, Post-Dated Cheque
information will be printed for information. Matured Cheque can be selected to post and
official receipts to be printed. The Post-Dated Cheque Entry is the option for user to keep
track of the post-dated cheque that they receive from the debtor. The Submit Matured cheque
is the option for user to submit the matured cheque to the bank. Upon successful completion
of the process, system will generate the Post-Dated cheque Audit Trail Report. At the same
time, debtor account is also updated with a receipt entry. The Purge submitted cheque is the
option, which reorganize or remove the post-dated cheque information form the system. The
Purging or “removing” is executed by bank code.

No Label Explanation
1 Debtor A/c The Debtor Account that makes the post-dated cheque.
2 Transaction Type The Transaction Type defined as official receipt,
3 Transaction Date The Transaction Date for the Official Receipt generated.
4 Description The Description for the Post-Dated Cheque. This description will be
printed at the “ IN PAYMENT OF “ when the official receipt is generated.
5 Forex Foreign currency code and Exchange rate.
6 Cheque No The post-dated cheque number.
7 Cheque Date The cheque date, which must be later than transaction date.
8 Reference No The Reference number for the post-dated cheque. (Optional)
9 Bank Code The bank code for receiving bank.
10 Cheque Amount The Amount of the Post dated Cheque.
11 Bank Commission The commission that the bank charge for processing post-dated
cheque.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Refund Entry

Refund is an undesired transaction but it is unavoidable. Refund is usually a controlled


function and only authorized personnel are allowed to do this. In Refund entry, Refund
transaction has to be allocated to any credit transaction. Refund is not allowed if there is no
existing credit transaction to be allocated.

During posting, the Refund transaction will:

• Debit Debtor Control Account

• Credit Bank Account (via Bank Code)

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
st
1 Form
1 Batch No Auto numbering.
2 Doc Cnt The total number of Refund for the batch.
3 Batch Total The total/summation of all Refund amount for the batch.
4 Date The transaction date for Refund.
5 Status The error status of the batch.
nd
2 Form
6 Voucher No The Transaction Type which has the Payment Class.
7 Description The description detail for the Refund.
8 Debtor A/c The debtor account.
9 Voucher Date Document date for the Refund.
10 Bank Code The bank code denotes the bank account, which will be credited.
11 Ref. No Reference number for the Refund, user should enter cheque no. for
bank reconciliation purpose.
12 Forex The Foreign Currency and it exchange rate.
13 Amount The Refund amount.
14 Comm. Absorbed Commission absorbed for bank charges.
15 Tax Invoice The document number for tax invoice (if any).
16 Bank Base Amt The Bank Control Amount (inclusive of bank charges).
17 Allocation The preference on allocation method (None, Manual,)
3rd Form
18 Allocated Amt. The only changeable field in this form is Allocated Amount and the
format will depend on the allocation method selected in the second form.

2. Manual
System will automatically prompt the user for the outstanding credit
documents for manual allocation.

3. None
System will not prompt any document for allocation if user has indicated
none for allocation in second form.

Posting Refund
All error free Refund entries will be posted
into the Accounts Receivable using this
option. The Refund Audit Trial Report will be
generated upon successful completion of the
posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Advances Entry

An Advance defined in the IFCA Financial Accounts receivable module is the amount
received prior to the commencement of a project made by a debtor. The advance is normally
accounted separately from the debtor control account in the General Ledger. The Advance
Entry is set to allow user to enter the advance transaction into the Accounts Receivable
module.

During the Advance Posting, system will:

• Debit Bank Account (via Bank Code)

• Credit Advance Control Account

No Label Explanation
1st Form
1 Batch No Auto-numbering.
2 Doc Cnt The total number of Document for the batch.
3 Batch Total The total/summation of all documents amount for the batch.
4 Date The transaction date for the advance.
5 Status The error status for the batch.
2nd Form
6 Receipt No The transaction type, which has the class of Advances.
7 Description The Description for the advances.
8 Project No The Project number will be available for data entry only if the transaction
type selected has been classified as Project Type.
9 Debtor A/c The debtor account that the advances received from.
10 Receipt Date The receipt date (Document date).
11 Amount The Advance Amount
12 Reference No Reference number for the advance. (Optional)
13 Bank Code The bank code where the receipting money will bank in
14 Forex The foreign currency code and exchange rate.
15 Total Amount Grand total (generated by the system).
16 Tax Invoice No. The document number for tax invoice (if any)

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Posting of Advance
The Advances Posting is the posting option
for advances to update into Accounts
Receivable. The Advances Audit Trial Report
will be generated upon successful completion
of the posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Deposit Entry

A Deposit defined in the IFCA Financial Accounts receivable module is the amount (usually
called tender deposit) paid to debtor prior to the confirmation of securing the project and it is
totally refundable. Deposit can be classified into different type via Transaction Type set-up
and this is useful for analysis purposes. Notice that there are two dates namely transaction
date and receipt date to be entered. Transaction date refers to dates within the current
financial period whereas the document date is the actual date of deposit. Transaction date is
used for updating into G/L and receipt date is used for A/R Ledger. This feature is useful in
the event that transaction date and receipt date falls into different financial period or year. The
Deposit Entry is set to allow user to enter the deposit they make to their debtor.

During posting of Deposit, the system: -

• Debit Deposit Control Account.

• Credit Bank Account (via Bank Code)

No Label Explanation
1 Batch No Auto-numbered by the system.

2 Doc Cnt The total number of document for the batch.


3 Batch Total The total for all the deposits entered in this batch.
4 Date The transaction date for the deposit.
5 Status The error status for the batch.
nd
2 Form
6 Deposit No The transaction type, which has the class of Deposit.
7 Description The Description for the deposit.

8 Project No The Project number will be available for data entry only if the transaction
type selected has been classified as Project Type.
9 Debtor A/c The debtor account whom the deposit is paid.

10 Deposit Date The Deposit date (document date).


11 Amount The Deposit Amount
12 Reference No Reference number. (Optional)
13 Bank Code The bank, which the payment has made from.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Label Explanation
14 Forex The foreign currency code and exchange rate.
15 Total Amount Grand total (generated by the system).
16 Tax Invoice No. The document amount for tax invoice (if any).

Posting of Deposit
All the deposit batches entered that without
error will be able to be posted into Accounts
Receivable using this option. The Deposit
Audit Trial Report will be generated upon
successful completion of the posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Release Retention

Retention held by debtors during progressive claims are temporary stored in the retention
control and will be released when it was due. Users are to make use of this option to release
retention monies and reverse it from the temporary storage back to the Accounts Receivable
in terms of claims amount.

Upon successful of saving the entry, the system will generate the following journals:

• Debit Debtor Control Account

• Credit Retention Control Account

No Label Explanation
1 Project No Project number that the retention is held against.
2 Debtor A/c Debtor account that the retention is being held with.
3 Due Date Provisional Due / maturity date for the retention.
4 Trx. Date Transaction Date for the retention release.
5 Release Date Actual Release date (document date) for the retention release.
6 Forex Foreign Currency code for the retention.
7 Release Amount Amount to be released from the debtor.
2nd Form
8 Doc No Document number for the outstanding retention.
9 Doc Date Document date for the retention.
10 Description Description for the retention.
11 Forex Foreign currency code for the retention document.
12 Amount Outstanding amount of retention held on this document.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Allocation Entry

Allocation or the offsetting of a credit transaction to debit transactions can be done in various
parts of the system i.e. in the Receipt Entry, Credit Note Entry and Debit Note Entry.
However, if at the point of entry, it is not known exactly which is the correct transaction to
offset, user may choose to allocate transactions on a later stage and proceeds with posting
first. Allocating transactions can also be done manually or automatically by the system. The
system allocates transactions automatically through pre-defined allocation priorities via
transaction type definitions. If the priority of the transaction is the same, the system then
allocates through the document date on a first in first out basis. The Allocation Entry is the
option to allow users to do the offsetting (knock-off) between a credits document with the
debit document. Credit document such as receipt or credit note will be prompted and pointing
by a cursor/hand-shaped icon. The debit document such as progress claim, invoice or debit
note will also be listed in the third form.

The posting will perform the following updates:-

If Allocation involves a foreign currency transaction, which the forex rates for the allocated
documents are different, the system will auto-adjust the forex gain/loss;

If Gain is made,

• Debit Debtor Control Account

• Credit Realised Forex Gain/Loss Account

If Loss is incurred,

• Debit Realised Forex Gain/Loss Account

• Credit Debtor Control Account

If a deposit transaction is allocated to a debit transaction,

• Credit Deposit Control Account

• Debit Debtor Control Account

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Form Explanation
1 First (Batch This is the normal batch header which user will find it similar to any
Header) other data entry screen. For the allocation, user must make sure the
batch total will eventually tally with all the document amounts.

2 Second User can browse, Zoom or Query into help file to get the debtor that allocation
(Debtor A/c) needs to be done. System will prompt the Unallocated Credit Documents and
Debit Documents in the 3rd form for allocation.

3 Third Unallocated Credit Documents


System will prompt the unallocated credit documents for user to do the
selection. Base on the pointing of a document, go to the unallocated debit
documents and enter the allocated amount.

Unallocated Debit Documents


User can choose one/more debit documents to allocate by entering the
desired allocation amount provided the total allocated amount tally with the
batch total.

If the matching and allocation is correct, proceed with saving of the batch.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Posting of Allocation
The Allocation Posting is set to allow user to
post the allocation into the Accounts
Receivable. The Allocation Audit Trail Report
will be printed upon successful completion of
the posting.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

To Compute Exchange Gain / Loss

Foreign exchange gain or loses will arise due to the fluctuation of currency rates. Thus, these
are applicable only to foreign currency transactions. There are two types of foreign currency
adjustment handle by IFCA Financial: -

• Realised forex gain and loss is calculated at the time of allocating/offsetting a credit
transaction to a debit transaction.

• Unrealised forex gain and loss is calculated once a month (period of time will be
decided by users) through the debtor revaluation option i.e. re-calculates the debtor
control amount based on the current forex rates. This exchange gain or loss is
accrued at month end to reflect a true and fair financial position. The reversal of the
accruals is done automatically on the following period upon month end closing.

The process will perform the following updates: -

(a) Update General Ledger

* If Gain is Made,
• Debit Unrealised Control Account

• Credit Realised Forex Gain/Loss Account

* If Loss is Made,
Credit Unrealised Control Account

Debit Realised Forex Gain/Loss Account

(b) The Reversing Journals are generated for the following month.

Debtor Revaluation
The Debtor Revaluation is the option to do a
revaluation on all the foreign currency holding
account for the unrealized forex gain or loss
computation.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

Output

The Output event allows users to do enquiry and printing out reports. Below is a list of the
enquiry and all printing options in the ‘Accounts Receivable’ module. There are statistic
reports or analysis reports available for users to print. The Output options also allow users to
preview data on screen first before sending to print.

The Debtor Enquiry option will provide on line information on the Debtor Account. In addition,
user can print the relevant folder information without exiting to other option. There are five
folders, which contain important information relating to the debtor account. For faster search
function, user can zoom (search) into the desired debtor account and retrieve it without
having to browse through all the debtor accounts in the Entity.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

No Folder Explanation
1 Profile The profile will provide correspondence detail and relevant information
enter in the Business ID and Debtor Master File.

2 Account The Account Folder will provide account summary by transaction type. It
will show on accumulated basis of the transaction type regardless of the
settlement of each transaction. This will show the performance of the
debtor according to the Transaction Type. User can double-click on the
summarized amount to browse the details.

3 Ageing Ageing will only show the outstanding transactions. It is base on the
comparison of document date and system date.

4 Overdue Overdue folder has taken into consideration of credit terms given to
debtor.
5 Transaction Type This folder is showing accumulation of transaction amount by type.

IFCA MSC Berhad Jan 2005


User Manual
Accounts Receivable

REPORTS

1. Debtor Balance By Project

2. Debtor Aging Detail Report – Trx. Date

3. Debtor Aging Summary Report – Trx. Date

4. Debtor Aging Detail Report

5. Debtor Aging Summary Report

6. Debtor Control Detail Report

7. Debtor Control Summary Report

8. Debtor Ledger Report

9. Debtor Ledger (Foreign) Report

10. Overdue Receivable Report

11. Projected Collection Report

12. Debtor Status Report

13. Consolidated Debtor Status Report

14. Debtor allocation Report

15. Project Retention History

16. Advance Ledger Report

17. Deposit Ledger Report

18. Retention Ledger Report

19. Cash Journal Report

20. GL Interface Report

21. Statement of Account

22. Debtor Control Monthly Summary Report

23. Debtor Summary Report

IFCA MSC Berhad Jan 2005

You might also like