Chapter 2. Setting Up
Accounts Receivable (A/R) & Accounts Payable (A/P) Control Accounts
Before you create a receivable or payable voucher, you must first define the receivable control account and the payable control account.
The A/R control account is an interface account between the General Ledger and the Accounts Receivable vouchers. The base amounts of a receivable voucher will be debited /credited to this account.
The A/P control account is an interface account between the General Ledger and the Accounts Payable vouchers . The base amounts (or the payable voucher amount) will be debited / credited to this account.
To set an A/R control account , select [Application Setting] , the Receivable Control Account.
Please ensure that the A/R control account has been created in the Chart of Accounts and that the account type is “A” (asset/liability account).
If the base amount of a receivable voucher is a debit , it will be debited to the A/R control account , and the distribution account will hold the credit amount of the voucher . On the contrary , if the base amount of a receivable voucher is a credit , it will be credited to the A/R control account , and the distribution account will hold the debit amount of the voucher. This will be the same for payable voucher, except that the amount will be posted to the A/P control account.
The user can preset the distribution percentage of the voucher base amount into any number of accounts as long as the total distribution percentage adds up to 100. in this way, the debit and credit figures are balance.
The accounts to which the base amount is distributed must be selected from the Chart of Accounts.
By not selecting any accounts, the default distribution can be bypassed. This means that the distribution of the voucher base amount can be manually input for each transaction.
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