What is the difference between balance forward and open item accounts receivable accounting.
Balance Forward
The Balance Forward method allows you to post sales and payments to maintain a balance for the current period. At the end of the period, statements are printed and the period is closed. All period transactions are summarized and posted as the balance forward for the next period.
Open Item
The Open Item method allows you to maintain all unpaid invoices on the customer account. The invoice detail of the Open Item method is beneficial for collection purposes, but it requires a higher level of maintenance.
If you wish to globally change, contact Basic Software for a program that will perform this function.
If you wish to change just a few customers then do the following:
Change the flag after the monthly statements have been generated.
Customer Manager>>File Update>>Master Customer information
Access the customer record and change the Open Item/Bal Fwd field to B for balance forward to O for Open Item.
(You must have employee permissions to modify this field)
If you change a customer from balance forward to open item and there is a balance on the customer account , you will need to create an invoice or invoices that total to the balance.
You will need to create this invoice or invoices in payment manager by working in un-post mode. Un-post mode will only create the invoice and do no accounting.
Customer Manager>>Processing>>Payment Manager
Enter in the customer number, CF5, Enter in your AR Password.
Create an invoice or invoices that total to the customers balance. This step is necessary to meet the open item requirement, but does not affect the customer's account balance.