Financial Reporting in AR Module

The Accounts Receivable (AR) module is a sub-module of the General Ledger (GL). It handles customer invoices, payments and credit control. It also tracks bad debts and maintains a credit diary. It also interfaces with the Sales and Distribution and Real Estate modules.

A module is a homomorphism between a ring and its vector space. Like a vector space, it has scalar multiplication and an identity element.

Accounts receivable

Accounts receivable are the amounts owed to a business by customers for goods and services provided. These balances are recorded in the current assets section of a company’s balance sheet. Companies typically have a strict set of rules that dictate creditworthiness, discount terms and record keeping. These rules ensure that a business is able to collect payments as they come due, and prevent overdue accounts from becoming bad debts. The AR process can vary from one company to another, and it is important to understand how each method works before implementing it.

The Accounts Receivable (AR) module consists of programs to handle setup, invoices, transactions, service charges, period end and aging. It also enables businesses to receive deposits and on account cash, apply them against invoices and post them to the general ledger automatically. It can also handle discount and service charge entries, bad check tracking and a detailed log of all AR activity.

Other features include divisional accounting, the ability to use multiple bank accounts, a detailed audit trail, the ability to add new customers and codes “on the fly,” and extensive reporting capabilities. It can also support a variety of aging analysis options, free-format stationery design for statements and recurring invoices, consolidated statement printing for groups of customers, and international currency support. In addition, it supports sales tax on a customer-by-customer basis and allows users to define their own sales tax code systems.

Accounts payable

The accounts payable (AP) module keeps track of a company’s obligations to vendors and suppliers for goods and services that have been received but not paid for. The AP balances are ar module recorded on a firm’s balance sheet and booked as current liabilities. It is important to have efficient AP processes and practices in order to manage cash flow and improve supplier relationships.

Using the AP module, you can automate invoice processing and payment collections for a better cash management experience. It helps you reduce DSO, control costs and maximize early payment discounts. It also offers a full suite of features including e-invoicing, payment processing and credit risk management.

In addition, AP modules help you create a detailed log of all payments received by your organization. In some cases, a simple mistake can lead to a large overpayment. For example, a vendor may call to inquire about the status of an overdue invoice and mistakenly believes that it has been paid. To avoid such mistakes, it is essential to establish and maintain clear guidelines for approving and monitoring AP transactions.

The AR and AP modules must be interfaced with the General Ledger (GL) Module. This is accomplished by using program SPAP, System Accounting Parameters. This includes defining the chart of accounts for linking to GL (Control account, discount account, advance receipts, and unallocated receipts). It also defines default data for taxes at the transaction and sales reason code levels.

Inventory management

The Inventory Management module enables users to create an inventory system for each stage of the production-distribution process. This is done by creating a set of rules that define the status of inventory at each location in the company. The system can be configured to support a variety of inventory types including pipeline, organizational, and decoupling inventories. In addition, the system also supports a variety of inventory tracking methods.

The module is integrated with the CYMA General Ledger, Job Costing, Sales Order, Purchase Order, and Manufacturing modules and enhances their functionality. It is a powerful, yet easy-to-use inventory accounting system that is ideal for mid-sized companies. It includes features that are often found in more expensive packages such as custom units of measure, included Bill of Materials, inventory specification, kitting, and lot and serial tracking.

CYMA Inventory Control provides the core warehouse management capabilities of the Oracle Supply Chain Management suite. This includes a comprehensive warehouse management system, mobile inventory tracking applications, and an embedded credit module. It supports a full range of business types and inventory tracking methods, including FIFO, LIFO, FEFO, and a configurable combination thereof.

The system tracks inventory at the item or sub-inventory level, providing a flexible, real-time solution. Inventory can be tracked by quantity, unit of measure, and cost. It also supports a variety of inventory statuses such as Available, Committed, and Reserved. Physical inventory integrity is managed through cycle counting, either visible verification or blind / double-blind counts, and a variety of replenishment strategies.

Financial reporting

The financial reporting in ar module provides a comprehensive view of outstanding amounts owed by your customers. It gathers information from the accounts receivable ledger, categorizes the accounts by age, and prepares a report that summarizes the amount outstanding for each account. Using this information, you can take action to collect payments and manage outstanding balances. You can also use reports to track the productivity of your team, such as error handling productivity, user productivity based on time spent, collection effectiveness index reports, and payment committed vs. payment collected by collector reports.

The AR module also supports client billing, which allows departments to bill external agencies and individuals ar module for all or part of their services. It includes a feature to import invoices from external systems and automatically calculate sales taxes, as well as a feature for recording repeating invoices. Other features include a receipt register portal and the ability to track service charges.

The AR module opens on 7 August for the new financial year. Departments should continue to bank all cash and cheques received up to 31 July. However, they should not raise internal trading AR invoices until after the module has opened. This will ensure that all monies identified and applied to outstanding invoices are recorded in relation to the correct accounting period. Also, it will prevent the inadvertent creation of new invoices for monies received before the opening of the AR module.