Accounts Receivable Process Guide
Overview
This article will walk you through various accounts receivable processes. Below you will find instructions on how the following topics are handled in the NetLessor software:
- Pre-Commencement Transactions
- Monthly Lease Payments - either manual or automated
- Accounts Receivable Reconciliations Reports
Prerequisites:
1. NetLessor Lease Types have been set up and the Chart of Accounts has been established.
2. Customer Invoice & Items customization and configuration.
Pre-Commencement Transactions
When Accounts Receivable records initial direct costs and lease prepayments, the transaction must debit/credit the Lease Receivable Clearing account and tag the related lease.
Step By Step Process
- Navigate to your preferred customer invoice form
- Enter all the desired primary information
- Enter the item on the invoice
- Tag the NetLessor Lease on the item line
- The invoice will now be tagged to the related records subtab of the lease
- Navigate to the lease record and select the Related Records subtab
Monthly Lease Payments
The Accounts Receivable process as it relates to leases, can be completed in two ways: (1) invoices can be generated through the existing accounts receivable process and tagged to the applicable accounts and leases or (2) the creation of invoices can be automated in the NetLessor software based on lease data. The first method is described below. The second method is covered in the Automated Invoicing article.
Step By Step Process - Existing AR Process
When Accounts Receivable records monthly lease payments, the transaction must debit the Lease Receivable Clearing account and tag the related lease.
- Navigate to your preferred invoice form
- Enter all the desired primary information
- Enter the item on the invoice
- Tag the NetLessor Lease on the item line
- The invoice will now be tagged to the related records subtab of the lease
- Navigate to the lease record and select the Related Records subtab
Accounts Receivable Reconciliation Reports
NetLessor has two reconciliation reports related to the lease clearing accounts: the Lease Capitalized Initial Direct Cost Clearing Reconciliation and the Lease Receivable Clearing Reconciliation.