Changing A/R balance method from O to B

[johnmofb]

Our company would like to change the A/R balance method from O-open item to B-balance forward. Is this as simple as changing the customer records from O to B? What happens to existing invoices and credits, do we need to do manual reapply to clean up the accounts?

Thanks,

John

 

[dgillz]

Why would you want to do this? Just curious I have never had a customer use this aging method.

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[kscheeler]

I also don't / didn't have anyone use the balance forward method. I would say you should set up a simple test company, enter a few transactions on a new customer set up with the B flag and see how it responds with the aging report. That for one will let you know if it's something you really want and also what the differences are so you can determine what to change.

Kevin Scheeler

 

[johnmofb]

This is the customer service departments idea to simplify the statements. They seem to think that a basic, here are your charges and here is your payment, is better than seeing each invoice and payment. Apparently this proposed change is a result of a survey of our customers. I am not so sure they know what they are asking for. When we implimented Macola 9.5 years ago they (same people) were adamant that we provide 3 months of payment and credit history one each statement, then complained that some statements were 7-10 pages long. Gee what a suprise.

John

 

[kscheeler]

Really, the bigger question is how do your customers pay you. If you send everyone a statment and they simply pay the balance, just like a credit card statement then it could work. However, if the customers are paying based on the invoices received and are detailing that on the remittances then you should keep it set up the way it is.

Kevin Scheeler

 

[johnmofb]

It's a really mixed. Some pay the balance in full every month other pay by the invoice and only with an invoice. I checked with the person who prints the statements and they have been printing using a date range and not checking the "print open items only" check box, so there would be detail. That box may solve the problem with one mouse click.

Thanks for the responses. I agree that balance forward is not the way to go.

John