I use the Accounts Receivable invoicing for Preschool tuition. We have a couple of students who are on scholarship. So when i do the invoicing, I credit preschool tuition, and offset it with the scholarship fund. This makes the invoice a 0 balance. However, it looks like it is not posting to Fund Accounting when I post the invoice. When I run reports in fund accounting by account number, the charges and credits do not show up. Any assistance you can give me will be greatly appreciated.
Thanks
Accounts Receivable Invoicing
Moderators: Moderators, Tech Support
-
office@hopelutheranelca.org
- Posts: 3
- Joined: Fri Sep 17, 2010 10:37 am
-
Matt
- Authorized Teaching Consultant
- Posts: 733
- Joined: Fri Dec 05, 2003 4:04 pm
- Location: Jacksonville, AL
Re: Accounts Receivable Invoicing
In order to post the invoice to Fund Accounting there has to be some amount of balance due (even if it's just $.01) so that you can create a payment against that invoice. So you'll need to do a bit of creative accounting in order to get this to work.
One way you could get this to work is to make the credit to the preschool tuition on the invoice $.01 more than the scholarship amount. This would create a $.01 balance due. Then, when you create the payment, instead of debiting the normal checking account, you debit the preschool tuition account. This will clear the balance due and allow you to post. Once you post it the extra $.01 credit to the preschool tuition account on the invoice will be offset by the $.01 debit to the preschool tuition account on the payment so the net will be the correct amount of tuition. One drawback of doing this is that when you run an individual account statement the invoice and payment amounts for the preschool tuition will show the extra $.01. However, chances are the person receiving the statement won't mind, as long as they can see they don't owe anything.
Another alternative would be to not put it in Accounts Receivable at all and just make an entry in Fund Accounting to debit the Scholarship fund and credit the preschool tuition account. This method is cleaner because you can input the correct amounts. However, the drawback is that there's no record created in the Accounts Receivable module. As a result, the tuition and scholarship won't show when you run an individual account statement.
You'll need to decide which alternative will work best for your situation, all things considered.
One way you could get this to work is to make the credit to the preschool tuition on the invoice $.01 more than the scholarship amount. This would create a $.01 balance due. Then, when you create the payment, instead of debiting the normal checking account, you debit the preschool tuition account. This will clear the balance due and allow you to post. Once you post it the extra $.01 credit to the preschool tuition account on the invoice will be offset by the $.01 debit to the preschool tuition account on the payment so the net will be the correct amount of tuition. One drawback of doing this is that when you run an individual account statement the invoice and payment amounts for the preschool tuition will show the extra $.01. However, chances are the person receiving the statement won't mind, as long as they can see they don't owe anything.
Another alternative would be to not put it in Accounts Receivable at all and just make an entry in Fund Accounting to debit the Scholarship fund and credit the preschool tuition account. This method is cleaner because you can input the correct amounts. However, the drawback is that there's no record created in the Accounts Receivable module. As a result, the tuition and scholarship won't show when you run an individual account statement.
You'll need to decide which alternative will work best for your situation, all things considered.