Accounts Receivable Training Video

Video Transcript

Welcome to the AR Basics training video for VMX. In this session, we'll cover the essentials of managing accounts receivable in our software.

Let's begin by creating a customer who can charge on account. To do this, navigate to the Customers tab and click on the Add New Customer button. Fill in the customer's basic information and remember, Remember, to allow charging on account, ensure they have a valid address and a credit limit set in their profile. You can control these permissions in the user settings.

Next, let's practice charging a transaction to a customer's house account. Add the customer to the sale and include the items they wish to purchase. On the right side of the page, you'll find the "House Charge" button. If the customer is not permitted to charge on account, has reached their credit limit, or if the account credit status is set as Hold, Charge Off, or Closed, they won't be able to complete the transaction using the charge tender.

Depending on your company's receipt configuration settings, the credit card machine may prompt for a customer's digital signature, or VMX will print both a customer receipt and a merchant receipt for physical signing.

Here we see Luxury Landscape's New Balance. To view or send statements, go to Reports and choose the type of statement you want to view. Then either print or email.

Accepting a payment on the customer's account is simple:

• Add the customer to the sale at the register.

• Enter the amount the customer will be paying on their account.

• Click the Payment button.

• In the Payment Application table, indicate which invoices and amounts the customer is paying. You can also direct the payment to "Open Credit" to be applied later or if there are no open invoices to be paid.

• Click Save to return to the register, then complete the transaction by accepting the payment using cash, check, or credit card.

To view the customer's full AR history, select the customer and go to the AR tab on their profile. Here you can see the account credits and debits.

If you need to return a payment to a customer, follow the same steps as accepting a payment but toggle the "Return Item" button before clicking "Payment" at the register. The payment amounts in the application table will need to be negative.

To reapply payments to different invoices, leave the register input field blank and click Payment. Then use the application table to move funds between invoices using positive and negative amounts.

To write off an invoice as bad debt, leave the register input field blank and click Payment. In the application table, change the drop-down next to the invoice you'd like to write off from "Payment" to "Write Off." If you can't find this write-off option, please let us know, and we'll be happy to assist you.

Congratulations! You now have a solid understanding of tracking accounts receivable in VMX. We hope this video has been helpful and that you feel more confident using VMX for managing accounts receivable. Thank you for watching, and happy accounting!