Setting Up AR Customers

AR Customers is the customer master for Accounts Receivable. The record holds identity and addresses, status, payment terms, receivable type, tax defaults, statement type, and statement recipients. Accurate setup drives invoicing, payment application, and statement delivery.

Before you start

• Agree on a customer numbering scheme (up to 6 digits; + assigns the next sequential number, max 999999).
• Gather legal/display name, mailing and billing addresses, HQ payment terms, tax code, statement type, and statement recipients.
• HQ Payment Terms exist when you use terms (or Material Sales discounts that depend on terms).
• Review AR Company Parameters default receivable type and Allow Override behavior.
• Have permission to maintain AR customers.

Steps

Identity and addresses

1. Open AR Customers.
2. Add a customer number (or + for next sequential). Enter name and Sort Name (defaults to the first 15 characters, uppercased; drives lookups; duplicate sort names return the first match).
3. Enter mailing and billing address fields. Billing is its own set of fields on the Info tab.
4. Enter phone/fax and contact fields (extension, email, URL) as needed.

Status, terms, type, tax

5. On Add'l Info, set status:

   • Active: normal AR entry
   • Inactive: blocks new invoices; payments still allowed
   • On Hold: new invoices allowed with a warning

6. Set Payment Terms from HQ Payment Terms so invoice due and discount dates default correctly. Set terms before the first invoice when you use terms.

7. Set optional Receivable Type (defaults from Company Parameters). Entry-time override depends on Allow Override of Receivable Type on Company Parameters.

8. Set Tax Code for non-contract transactions. Contract invoice tax comes from the contract item.

Statement type and recipients

9. Set required statement type:

   • Open Item: statements show invoices with an open balance; cash receipts are typically applied to specific invoices (on-account still allowed). Finance charges can be calculated on account or on specific invoices.
   • Balance Forward: statements show the last statement balance plus current-period activity; cash receipts are typically applied on account (specific-invoice application still possible). Finance charges can only be calculated on account, not on selected invoices.

   Statement type also selects which statement report format Statement Delivery uses. Print Statements is a separate checkbox from statement type.

10. Before the first AR Statement Delivery run, open Add'l Info → Default Recipients and set each recipient:

    • Delivery method Email or Print
    • Email requires an email address
    • Print requires mailing address fields
    • All listed default recipients receive the same statement set

11. Optional: assign a default Misc Dist Code and invoice/payment auto-create flags when the company uses AR Misc Distribution Codes.

12. Optional: set Use Retainage when direct (non-contract) AR invoices for this customer may hold retainage. Contract retainage still comes from JC contract items.

Notes

• A new contract displays the customer billing address and you may override it on the contract. On invoice entry, billing address uses the contract override if present; otherwise the customer billing address. Get the customer billing address right before creating invoices.
• Inactive does not block payments by itself. On Hold does not block invoicing; it warns.
• Statement Delivery history for sent statements appears on the customer's Statement Delivery tab.
• Related: AR Company Parameters, AR Receivable Types, AR Invoice Entry, Processing AR Cash Receipts, AR Statement Delivery, Using AR Misc Distribution Codes.