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Use Division Maintenance to organize your customer and invoice information by divisions. You can define up to 100 divisions by department, branch, or profit center. Additionally, each division can maintain its own Accounts Receivable and Discounts Allowed account numbers for posting to the general ledger. Amounts posted to each account reflect the activities for only that division. If you integrate the General Ledger module with Accounts Receivable, you can print the accounts receivable ending balance amounts for each profit center on your financial statements and other General Ledger reports.
Divisions affect the numbering of your customers. The division number precedes the customer number entered in Customer Maintenance and determines which general ledger accounts are posted to when an invoice or cash receipt is processed. Additionally, all reports containing customer invoice and payment information provide subtotals by division. The accounts posted to are based on the accounts specified in Division Maintenance.
If the Accounts Receivable Divisions check box is selected in the Accounts Receivable Options window, use Division Maintenance to assign a two-digit number and description to each division of your company. You also record the general ledger account numbers transactions to post when invoices or cash receipts are processed for a customer within a specific division.
If the Accounts Receivable Divisions check box is cleared in the Accounts Receivable Options window, enter information for division 00 only. Division 00 cannot be deleted. You cannot post invoices, cash receipts, or finance charges if any general ledger account numbers are blank.
Note When an invoice with retention is first entered, the net invoice amount (invoice balance minus retention) is debited to the Accounts Receivable account, and the retention amount is debited to the Retention Receivable account. You must specify the Retention Receivable account to use in Division Maintenance. If you do not want to post retention separately, use the same general ledger account for both the Accounts Receivable and Retention Receivable accounts.
When a payment for an invoice is received, it is assumed that the Accounts Receivable balance is applied before any payment is applied to the retention balance. This means that any partial payment that does not fully pay the invoice is first applied against the Accounts Receivable account until the invoice balance is equal to the retention amount. Any additional payment is applied to the Retention Receivable account.
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