U-M Finance’s AR Module

The AR module enables U-M Finance to process customer invoices, payments, and accounts receivable adjustments. It also tracks bad checks and service charges.

AR is an important tool for improving cash flow. AR can also be used to sell outstanding invoices to third parties for a percentage of the original amount, bringing guaranteed funds to finance short-term cash flow needs.

Managing Accounts Receivables

Accounts receivables are a key factor in cash flow management. The ability to create customer invoices and capture payments in a timely manner is vital to the success of every business. Additionally, a clear understanding of a company’s cash position is vital to enabling strategic investment decisions such as capital equipment purchases, employee hires, and facility expansion.

Acumatica’s ar module delivers the capabilities you need for accounts receivable management, including customer invoicing, payments acceptance and verification, collection and application of payments, credit reporting, and more. The system also lets you generate and deliver customized customer statements that are delivered electronically or in printed form.

The system automatically posts customer transactions to the appropriate general ledger account based on location, sales reason code, or combination of the two. It also maintains the necessary posting templates to ensure proper postings of each type of transaction. This eliminates the need for suspense accounts.

Managing customer accounts in an effective and organized way leads to improved cash flow management, better service, and greater profitability. Thousands of businesses depend on OpenPro ERP software to maintain and control customer credit and sales information.

In addition to customer sales and payment history, the system also stores customer discount and account balance information. This data is essential for controlling bad debt write-offs and minimizing days sales outstanding.

AccuFund’s browser native accounts receivables module is ideal for governmental and nonprofit organizations that bill other organizations, agencies, and individuals for all or part of their revenue. It features a suite of valuable features to streamline workflows, including report formats that give managers immediate visibility into expected revenue, document ar module management capabilities, and a convenient repeat billing feature for receivables such as tenant rent.

On-screen functionality offers on-the-fly visibility into a customer’s activities balance, credit history, and credit status to reduce bad debt write-offs and minimize days sales outstanding. Other on-screen functions streamline cash receipts, apply cash and credit amounts, and perform bank reconciliations.

Accounts receivable information is also grouped in one central view, the Collections page, where collections agents can start the collections process using predefined criteria or from a list of customers. This helps you manage all collections related activities in one place, saving time and improving efficiency.

Managing Accounts Payables

Accounts payable is a vital part of the overall accounting process. It enables a business to pay vendors and creditors. A poor accounts payable process can lead to a variety of problems, such as fraud and damage to relationships with suppliers.

A successful accounts payable department takes the time to understand their customers and how they can better serve them. They also work with automation to speed up the entire process and improve efficiency.

The AP team is an important part of the accounting process because it is responsible for entering invoices and paying them. They also need to manage various reporting requirements.

Managing accounts payable is a high-stakes task, so you need to make sure you have the right software in place to help you do it properly. In addition, it’s important to choose a system that can be customized to your specific needs.

An ideal accounts payable module should be able to process multiple payment types and create multiple posting batches. It should also be able to match vendor invoices with purchase receipts, void payments and reverse them, and post transactions to multiple general ledger accounts.

When matched, the invoice and the purchase receipt can be updated to include inventory or work-in-process records. In addition, the invoice can be compared to quotes from subcontracts and purchase orders for control of costs.

Another feature that makes this module a great choice is its strong integration with JD Edwards World systems, such as the Job Cost and General Ledger modules, as well as the Subcontract Ledger, Purchase Order, Equipment Management (including Work Order processing), and Inventory modules.

The Accounts Payable module also has many user-defined features that allow you to adapt the system to your unique business environment. For example, if you have a Just-In-Time (JIT) system, you can use the AP module to match the invoice to a GLOVIA G2 Material Supply record and calculate the difference between the two.

The Accounts Payable module also offers a full range of cash management tools, including the ability to take discounts, hold retainage and analyze your cash requirements. It supports ACH and wire transfers, as well as one-step reversals for fast corrections. Moreover, the system can track and monitor aging information, discount opportunities and other financial indicators that affect your overall cash flow.

Managing Cash Flow

Accounts receivable (AR) is a critical part of the order to cash process. It requires tracking, monitoring, and correcting the status of outstanding invoices in real-time to ensure that your business is not impacted by overdue invoices. It also helps you determine whether you can get financing from banks or investors if necessary.

Keeping track of pending accounts payable (AP) is another important task that affects your company’s cash flow. It can indicate if you are struggling to make payments on time or if your business is in financial trouble. If your company has a lot of pending AP, this can be an indicator that you are going to be running into cash flow problems in the near future.

Effective cash flow management can help your business reach its long-term goals and fund growth plans, ensuring that you don’t need to seek external funding. A strong cash flow statement can make it easier for you to get loans and better terms.

The first step in managing your cash flow is to set up your liquidity accounts and define how they should be tracked in the cash flow forecasting workspace. The liquidity accounts you use in the forecasting setup are usually main accounts that are associated with the bank accounts your business uses to receive and disburse cash.

A new tab on the Cash flow forecasting setup page allows you to choose which financial dimensions should be used for filtering in the cash flow forecasting workspace. The system uses the financial dimension names you enter here to include budget register entries in cash flow forecasts. You can also include inventory supply and demand forecasts in the cash flow forecast.

Accounts receivable and accounts payable are the two most important components of a company’s cash flow management. By implementing best ar module practices for these processes, you can improve your company’s ability to generate and manage cash and avoid any short-term funding issues. A successful AR and AP management strategy can help your business maintain a healthy cash reserve, which can be a key factor in achieving long-term growth goals.

Managing Inventory

Inventory management is a vital part of any business, and it involves tracking the quantity and location of product in storage. It is critical to maintain inventory levels that match the demand and supply. This can be done through a variety of methods.

Many different companies have a unique set of inventory needs, so it is important to have a system that can accommodate those unique requirements. The inventory management methods and models that companies choose to implement depend on the type of products they produce and their business model.

Some companies use FIFO, or first in, first out, inventory planning. This method assumes that the inventory items purchased most recently will be sold first. This strategy can be beneficial for businesses with a high rate of sales, but it may not work well if a company has slow sales cycles or is dealing with large quantities of inventory.

Another common inventory management method is cycle counting. This allows for more frequent reconciliation of inventory and spreads out the stock take throughout the year.

This type of inventory planning is ideal for organizations with multiple warehouses and production sites. It also makes it easier to manage the movement of materials across the company.

When using a warehouse management system, it is essential to regularly audit inventory records and update them with fresh data. This can be done by performing physical inventory or spot checking.

In addition, it is vital to audit your suppliers’ performance on a regular basis. This can help you to identify areas where improvements can be made or when you should cut a supplier off entirely.

Inventory in SAP is a complex process, and it can be difficult to keep track of all the important metrics. However, SAP inventory software offers plenty of tools to simplify your efforts.

With a solid ERP solution, you can get the inventory management tools that your business needs without breaking the bank. This means that your company will have more money available for other essential functions of the operation.

The Inventory Control module in ar is designed to help you monitor the usage, costs, and maintenance of inventory at optimum levels. This is important because having too much cash tied up in slow or non-selling items can have a serious impact on your financial success. The module is easy to use and integrates with Job Cost, General Ledger, Purchase Order, Accounts Payable, and Equipment Control.