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Configuring AR Receivable Types

AR Receivable Types map AR postings to GL accounts and support aging/reporting breakouts. One type can be enough when each account category shares one GL. Multiple types can share the same GLs when you need separate aging or reporting buckets (for example branch, region, PM, or sales type).

Before you start​

  • Know how receivables should group for aging and reporting. Soft recommendation: start with one company-wide type unless aging must break out by branch/region/PM; then add types even if they share the same GL accounts.
  • Have GL accounts ready in the GL company used by AR: Accts Rec (required), plus Revenue, Retainage, Discount, WriteOff, and finance-charge accounts as the company will use them.
  • Review AR Company Parameters default Receivable Type and Allow Override of Receivable Type.

Steps​

Create the type​

  1. Open AR Receivable Types.

  2. Create a type:

    • Type number 0-255
    • Description at most 30 characters
    • Optional abbreviation at most 5 characters

    Use clear names and abbreviations so aging filters stay readable.

GL accounts on the type​

  1. Set Accts Rec (always required). This is the current Accounts Receivable asset account debited for ordinary receivables.
  2. Set Revenue as the default revenue account for non-contract invoices entered in AR Invoice Entry. This is not limited to "miscellaneous" types.
  3. Set Retainage before the first retainage invoice on that type. May match Accts Rec or be a separate retainage asset. Release uses this account (credit retainage / debit Accts Rec when Company Parameters releases to current AR and the accounts differ).
  4. Set Discount and WriteOff before those processes go live.
  5. If the company uses AR finance/service charges, set:
    • FinChg Rev: credited when finance/service charges are calculated
    • FinChg Rec: debited for finance/service charge receivables
    • FC WriteOff: used when writing off finance charges (batch validation shows the FC WriteOff account on the GL distribution even when the invoice audit list still shows the line account)

Material Sales discount note​

  1. For Material Sales invoices with an IN location: the type's Discount account is used only when the location has no AR Discount account. Prefer confirming location vs type discount accounts before the first MS invoice that takes discounts.

Save and assign​

  1. Save the type. Assignment is context-specific (see Notes); do not assume a single flat cascade.

Notes​

Assignment (context-specific)​

  • AR Company Parameters Info tab: default for invoices and payments when the customer has no type. Finance Charges tab: default for finance/service charges.
  • Customer: overrides company for AR transactions (invoices, receipts, finance charges) when set.
  • Job Billing: contract JB Info, then customer, then company.
  • Material Sales: IN location/category, then customer, then company.
  • Allow Override of Receivable Type on Company Parameters: when unchecked, Rec Type is disabled on entry forms and the assigned default is enforced. When checked, operators may override at entry (subject to form rules such as Rec Type locking once invoice lines exist, and Adj/CM/WO never allowing Rec Type change).

Starter recommendation​

Hard recommend one company-wide type unless aging/reporting must break out by branch, region, or PM. Multiple types may share the same GL accounts solely to split aging and filters.