Receivable and Prepaid Liability Account Pairs

The accrual method requires that accounts receivable (AR) accounts and their corresponding prepayment liability accounts must be defined as pairs. This is the setup for all valid account pairs by company. They can then be used as the default accounts for a module during the product setup process. In order to facilitate reconciliation, it is recommended that a different receivable and prepaid liability account be set up for each module. The receivable account will contain a credit balance for overpayments.

Generally, order lines with an active line status are considered AR. Exceptions include inventoried, advertising, and exhibition products. Inventoried products must be shipped before they are considered AR. Advertising products must be fulfilled (i.e., have an active fulfill status) before they are considered AR. Exhibition booths must be assigned before they are considered AR.

In most situations, prepaid liability accounts will not carry a balance for an order line. Prepaid liability will carry a balance in the following situations:

• Money applied to an un-invoiced (not shipped for Inventoried product or not fulfilled for Advertising product) order line.
• Money not applied to any order line (i.e., unapplied).
• Short payments where the Short Pay field is “Reject.”
• Money applied to a waitlisted meeting order line.

From the Receivable and Prepaid Liability Account Pairs screen, you can add, view, edit, or delete receivable and prepaid liability account pairs.

To add a Receivable and Prepaid Liability Account Pair for an organization unit:

1. From the Accounting Setup section on the Organization Unit Settings page, click Receivable & Prepaid Liability Account Pairs.
   The Receivable & Prepaid Liability Account Pairs page will display, as shown below.
   
2. Click +New Account Pair. The Add New Account Pair screen displays, as shown below.
   
3. Select the Financial Company from the drop-down.
4. Select the Subsystem from the drop-down.
5. Enter the first three characters of a Receivable Account and click the search icon.
   Alternatively, click Advanced to browse for a Receivable Account.
6. Enter the first three characters of a Prepaid Liability Account and click the search icon.
   Alternatively, click Advanced to browse for a Prepaid Liability Account.
7. Enter a Purpose.
8. Click Save.  

To view or edit an account pair:                      

1. From the Accounting Setup section on the Organization Unit Settings page, click Receivable & Prepaid Liability Account Pairs.
   The Receivable & Prepaid Liability Account Pairs page will display, as shown below.
   
2. Search for a specific account pair using the Financial Company and Subsystem drop-downs at the top.
3. Click the pencil icon to edit an account pair. The Edit Receivable & Prepaid Liability Account Pair screen displays, as shown below.
   
4. The Financial Company and Subsystem automatically populate. Edit the Receivable Account, Prepaid Liability Account, and Purpose fields as desired.
5. Click Save.

To delete an account pair:

1. From the Accounting Setup section on the Organization Unit Settings page, click Receivable & Prepaid Liability Account Pairs.
   The Receivable & Prepaid Liability Account Pairs page will display, as shown below.
   
2. Click the contextual menu beside the account pair you want to delete.
3. Click Delete.

Screen Element	Description
Financial Company	Drop-down. The financial company associated with the AR-Prepaid Liability  account pair.
Subsystem	Drop-down. The subsystem associated with the AR-Prepaid Liability account pair.
Receivable Account	Search field. The receivable account used for sales and receipt transactions. This account must be an asset account within the same company as the prepayment account. This account will contain a credit balance for overpayments.
Prepaid Liability Account	Search field. Defaults based on the receivable account identified above. This is the account used to store payments prior to invoicing. This account must be a liability account within the same company as the prepayment account.
Purpose	Text box. The purpose of the AR-Prepaid Liability account pair.