Can anyone help a newcomer truly understand AR in FE7? We are configuring our FE and getting ready to make the switch from our old accounting system. I got through AP fine - but AR is making my head swirl - what with invoices, charges, credits, adjustments, reversals, refunds, applications (??? what exactly is this??), payments, deposits....

What exactly is the process for invoicing a client, and then in turn applying their payment? The records guide for AR has me very very confused. Do you need to first enter a deposit - then apply each payment within the deposit to either an invoice or a charge?

Help!

Dana - Don't let the manuals get you down. AR may apprear overwhelming but it truly isn't. Remember, AR is just that...Accounts Receivable. You create invoices for the client/customer for services and/or products sold. An invoice will typically contain charges, but could also contain credits. Generally credits (credit memos and payments) would appear along side invoices on an account statement. Your process will be to invoice the client. When the payment arrives, you create a new deposit (as you would with the physical checks to take to the bank) and add the payment as a receipt to the deposit. At the time of adding it, you can opt to apply it to the customer's account against the invoice you are being paid for - (the Application aspect - it is the applying of a payment against an open invoice). Unapplied payments will be credited to a SUSPENSE account to be held there until it is finally applied to a client account. What sets Blackbaud's AR apart from so many others is that it can handle true 3rd party billing...think medical billing as an example. If your organization provides services to individuals that are paid for by other organizations and/or individuals, that is 3rd party billing. Also in the example of medical billing, you can add adjustments and refunds to an account. A reversal is just that...a reversing entry that AR creates in the event that you void/delete an invoice. The system is smart enough to know that a reversing entry must be made in the GL in order to maintain GL and a balanced AR. Finally, I hope you have had an opportunity to receive training, not only on AR, but on all of FE. These programs are VERY comprehensive by design and training may help you wade through some of the finer aspects of setup and utilization of the software. I hope this was helpful to you. - George