Add a New Receivable Account / Customer and set up default fields.
Overview
In the Receivables module, you can manage the sales and invoices to your customers, track their payments and manage overdue balances. There are several standard monthly reports and performance reports available.
You can add a record for a new customer that you can then use for any sales, or for a new Payment Claim. There are many fields where you can set up the requirements for the individual customer, e.g. do they need a packing slip, what are their payment terms, email addresses and contact people. Setting these criteria make creating quotes and orders more efficient as these fields will then be pre-filled from the defaults for the customer.
There are multiple tabs in this screen, so it may seem a little daunting at first. However, most screens do not need to be changed once set up, and others may be used by different departments such as your accounts team.
Add a Receivable Account
To add a new Receivable Account:
- Start at Receivables > Receivable Accounts.
- Click New Receivable account.
In the Create Receivable Account screen:
Accounts section:
- Receivable Account Type: Enter the Receivable Account Type, e.g. Debtors.
- Branch: Select the Branch for this Receivable Account.
- Company: Select your Company that this Receivable Account will be associated with.
- Currency: Select your currency from the dropdown list.
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Ordered by required: Check this box if you require the Ordered by field to be completed Purchase Orders for this Receivable Account.
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Taken by required: Check this box if you require the Taken by field to be completed for Purchases by this Receivable Account.
- Reference required: Check this box if you require a reference for invoices for this Receivable Account.
Entity section:
- Entity Code: Enter the Code for this Receivable Account.
- Entity Description: Enter the name for this Receivable Account.
- Invoice and claim delivery email: Enter the email address for invoices and claims to be sent to
- Statement delivery email: Enter the email address for statements to be sent to.
- Send invoice to xero: Check this box if invoices should be sent to Zero for this Receivable Account. Note: Xero must be turned on in your system settings for this field to be set.
Entity Postal address section:
- Enter the address details for this Receivable Account.
- Click Confirm to save your details.
This takes you to the Details screen, where you can add or edit any further details.
Details screen
This screen has sections for Account details, Associations, Entity and Account History.
Much of this data has been brought through from the first screen where you set up the record. If you need to change the Entity details, you can do that here by clicking Edit Entity.
The Account History section shows summary information about the account transactions.
Credit / financial details
In this screen you can determine Payment terms for this customer, e.g. 20 days, 7 days, etc.
You can also establish credit limits and a general discount %.
Account Stopped if Credit Limit Exceeded
In the Credit/Financial Details tab of a receivable account, you'll find a setting called Account stopped if credit limit exceeded. When this option is ticked, no new sales orders can be created for the account once the customer has exceeded their credit limit.
This setting only takes effect once the customer goes over their limit. For example, if the limit is $5000 and their current balance is $4999, they can still create an order for $100, bringing their balance to $5099. However, with this balance above the limit, they won't be able to create further orders until they reduce their balance below the limit.
Note that this setting applies only to the specific receivable account where it's turned on - other accounts won't be affected.
Options
In the Options screen, you can set the requirements for Accounts, Sales quotes, Sales Orders, Packing slips, Invoicing and Statements.
Once you have set these options, several of these settings can be used to pre-fill fields on sales quotes and orders.
If you are adding a new Receivable Account that has not yet been added in Xero, you should now set up the Invoice and claim delivery contact point to tell the system that this will be a Xero client. If the Receivable Account has already been set up in Xero, it could be pulled in, though if you set it up in Lentune first, you should add this step now in the Invoicing options section of this screen.
Set up Invoice and claim delivery contact point
In the Invoicing options section:
- Click the plus icon
to the right of the field.
In the New Contact Point window:
- Contact point type: Select Other from the dropdown list.
- Description: Enter Xero.
- Contact point delivery specifications: Enter Xero.
- Click Save & close.
The field will now display like this:
- Click Save & Close again.
Contracts and Contract Groups
You can set up Receivable Contracts for your customer, to establish the pricing agreements with this customer. Please refer to Creating and Managing Receivable Contracts and Receivable Contracts: A detailed view to read about Receivable Contracts.
Monthly Analysis, Transactions and Overdue
These screens show you details of the transactions by month and the history of all transactions for your customer.
In the Overdue tab, you can manage the overdue reminder letters that you might want to send to this customer. Read about Sending Overdue Letters.
Client Interface
In this screen you can select the formats for exporting a stock file and sales quotes. There are also sections where you may set up interface details for your accounting or job cost systems.
Points
Lentune has a customer loyalty points system that can be set up for any customer. You can read about it here: Loyalty points for your Receivable accounts.
Statements
On the Statements tab, you can send or reprint any past statement for your customer.
People and Communications
In the People tab, you can add the contact people who are associated with this Receivable account.
In the Communications tab, you can view a history of all outbound communications that have been emailed to this customer.
Hints to create a Cash Sale Account, or a second Receivable Account for Cash Sales for an existing Receivable Account
You can create a customer account that is flagged as cash sales only, or you can create a second account for an existing customer if they want to process cash sales separately from their usual invoiced sales. The difference when you are setting up a cash sales account is to either add a new entity or use an existing entity.
Where you have an existing customer who would usually be invoiced for their purchases, they might want a second receivable account for cash sales only. To set this up, you can create a new Receivable Account and attach it to the same Entity.
- Start at Receivables > Receivable Accounts and click New receivable account.
In the Entity section:
- Click Use existing entity, and select the code for the same Receivable Account that you want and click Confirm. E.g. in our example, we have selected Fred's Contracting Ltd, who already has an account.
| TIP: If this is a new Receivable Account that will be Cash Sales Only, then you'll create a new Entity, instead of selecting an existing Entity. |
This creates a new Receivable account record with a different number and takes you to the Receivable Account screen. The Name will be the same as the original account name because this is taken from the Entity. To be able to differentiate the cash sales account from the original account, you should update the Account description field, e.g. Cash sales for Fred's Contracting Ltd. This field is usually left blank unless you have two accounts for one entity and you want a way to distinguish them.
Now, you can search in the Receivable account screen by keyword, e.g. Fred, and you will see the original Receivable account and the new Cash Sales Receivable account.
Options Screen
There are some useful settings in the Options screen that you need to set.
- Click to the Options screen for the new cash Receivable Account record.
Cash Sale Account: In the Account options section, tick the field Cash Sale Account.
Create Invoice with Packing Slip: If you want to enforce that an invoice is created when the packing slip is added, tick this field. Scroll down to the Packing Slip options section to locate this field.
You can select the option to email consolidated invoices. This allows multiple invoices to be combined into a single PDF and sent to the customer. Please note this only works in conjunction with scheduled tasks which create and send invoices and will not apply to manually emailed invoices.
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