In the C/Books Accounts Receivable System the customer information is kept in the Customer master file. Within the Customer master file each customer is assigned an accounts receivable controlling account. This account is a balance sheet, asset account. In most cases, the account is titled Accounts Receivable or Trade Accounts Receivable. The balance of this account is the total of the individual balances of each of your customers. It is updated each time a transaction is posted to a customer (when the customer account is debited for $50.00, the controlling account is debited for $50.00).
The beginning balances for the Accounts Receivable System should be entered using invoices. The procedure for setting up the beginning balances is outlined below.
1. Set up General Ledger Balances.
2. Set up sales tax codes.
3. Set up payment terms.
4. Enter customer information and a controlling account for each customer into the Customer master file.
5. Set up a "beginning balance" product in the Inventory master file.
6. Enter one or more invoices for each customer's beginning balance.
7. Set up aging periods