Before you can begin backloading Accounts Receivable, you'll want to setup a special billing code for backloaded balances, as well as open all Accounting Periods.
First, head to Sales → Enter Billing Codes and click the Add New button.
- You may assign any Code you wish to this new item (such as "BL" or "BACKLOAD").
- Set the Type to "Contract".
- For the Income Account, select the Invalid Account you created earlier during the setup.
- Check the Non Taxable box.
- Uncheck the Calculate Commissions box.
Once the 'Backloading' billing code has been created, head to Company → Select Open Accounting Period and select the oldest period created at the bottom of the list. This will allow items to be entered without getting a “Period is Closed” error.
Print either an AR Aging Report or an Open Invoice Report from your previous accounting package as of the cut-off date.
To create the invoice in ESC, locate the customer in your Customer Center. Right-click on their name in the list and select Add Invoice. Using the date of the original invoice, enter the amount of the invoice, including tax, using the Backloading billing code you just created. Enter outstanding late charges this way, also.
If you prefer, a single invoice can be entered for the total of all invoices owed by a customer. When that customer sends a payment, it will be entered as a partial payment for that invoice. This method may save time now, but the down side is you will not be able to tell how many invoices the customer has open and the entire total will age from the date entered on that one invoice.
If an invoice has been partially paid already, just enter the amount still due.
Backloading Outstanding Job Draws
If you wish to backload job draw requests for your outstanding jobs, you must handle this with Progressive Billing in ESC.
To backload outstanding draws, you'll need to create a quote in ESC for the entire amount of the job. Within the quote itself, you'll go to the Bill option and select Progressive Bill. Use the Progressive Billing screen to create an invoice for each draw.
After all open invoices are entered the AR Aging Report total from ESC should match the AR balance on the Trial Balance and/or the Aging Report from your previous accounting package. If the balances do not match, print an AR aging from both packages and compare them to find the discrepancy.
ESC's Aging Report can be found under Receivables → Reports → Aging Reports.