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Use the Accounts Receivable tab to specify the preferred settings for processing accounts receivable activity for the client, including the accounting method, reference numbers, general ledger accounts, for processing preferences, and more.

Choose Setup > Clients and then click the Accounts Receivable tab.

Fields & buttons

Choose the accounting method to use when processing AR transactions for this client. Note that you can choose a different accounting method for AP processing, if applicable.

  • Accrual basis. (Default) The application posts payments, invoices, finance charges, and credit memos when they are entered.
  • Cash basis. The application posts payments when they are entered. It does not post invoices, finance charges, write offs, or credit memos. The application recognizes revenues and costs by the payment application transaction that is created when the two are applied together.

You can choose to have the application automatically apply payments and credit memos to invoices.

  • None. The application does not automatically apply any invoices, payments, checks, or credit memos together.
  • Balance forward. The application applies transactions to the AR transaction with the oldest due date first. If a payment amount is greater than the open amount of the oldest invoice, the application applies the remaining payment amount to the invoice with the next oldest due date until the payment amount has been completely applied.

    Note: The application first compares the due dates. If the transaction does not have a due date or if multiple transactions have the same due date, the application then compares the transaction date. If multiple transactions have the same transaction date, the application then compares the date that the transaction was entered in the application.

  • Balance matching. The application applies together two AR transactions that have matching open amounts. If any discounts are available, the application takes those into account when determining the amount to match. If there are no transactions with matching amounts, the application does not automatically apply any.

    Note: If multiple transactions have matching amounts, the application compares the due dates. If multiple transactions have the same open amount and due date, the application then compares the date that the transaction was entered in the application.

  • Balance matching then balance forward. The application applies the rules for balance matching first and then the rules for balance forward.


    • If you enter a payment and there are two open invoices but the payment amount does not match either of the invoices, the application applies the payment to the invoice with the oldest due date first.
    • If you enter a payment and there are two open invoices and the payment amount matches one of the invoice amounts, the application applies it to the matching invoice first, regardless of the dates.
  • Next reference number. Enter the reference number to use for the next invoice, finance charge, or credit memo transaction. The application updates this number for subsequent transactions (based on the options you select below) when you create a transaction in the Actions > Enter Invoices screen, assess a finance charge, or print an accounts receivable form for which the reference number is blank.

    Note: If you select a number that is not consecutive, the application does not update the reference number on the transaction.


    The reference number for the next transaction should be 10162, but you override the reference number with 10200. The application will not increment the reference number. When the next reference number reaches 10200, the application skips that number, so the application uses 10201 as the reference number instead.

  • Prompt when using duplicate reference numbers. Mark this checkbox to display a prompt when you attempt to save a transaction with a reference number that has been used on another transaction.
  • Disable auto increment reference number. Mark this checkbox to prevent the application from automatically entering the reference number in the Enter Invoices screen.
  • Offer payment discount. Mark this checkbox to enable discount calculations for this client's customers. When you mark this checkbox, you must also select a GL account to use for discount tracking from the drop-down list in the Discounts field in the General Ledger Accounts section of this tabbed page.
  • Decimal places for quantity/pricing. Specify the number of decimal places (between 0 and 4) to use for the quantity and the price when calculating the total amount for an invoice item (by multiplying the quantity by price).

Specify the GL account number for the application to use as the default account for each of the following. It is important that you specify an account for each field to ensure that the journal entries are posted to the correct accounts.

  • Accounts receivable - default account for invoices and new customers
  • Discounts - default account for discounts on invoices
  • Unearned revenue - default account in the Actions > Manage Customer Payments screen for unapplied payment amounts
  • Undeposited payments - default account in the Actions > Manage Customer Payments screen for cash, check, or credit card payment methods
  • Bad debt expense - default account in the Manage Customer Payments screen for write-off payment methods
  • Finance charge revenue - default account in the Setup > Finance Charges screen

Select the default layouts and sort orders to use when printing invoices and statements for this client. The application automatically enters these selections in the Invoices and Statements tabs of the Print Accounts Receivable Forms screen, but you can select different layouts and sort orders for at print time.

Click the Ellipsis button button to browse to the image file to use on invoices for this client.

Related topics

Accounts Receivable service, overview

Setting up clients for accounts receivable processing

How Accounting CS posts accounts receivable journal entries

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