Module of the Month - Accounts Receivable


Terminology


The Accounts Receivable (AR) module is used to record transactions related to revenue posting and cash receipting.  Within the Accounts Receivable module, your agency can create Interfunds, Direct Journal Deposits, Deposit Adjustments, and Receivables and manage customer information.

  • Customers:  Once customers are established, they can be billed and accounts receivable can be established. Customer information can be modified and also managed using effective dates to retain valuable customer history.

  • Interfund:  An interfund is the process of recording payment and receipt within or between state business units. 

  • Direct Journal Deposits:  Direct Journal Deposits are miscellaneous cash receipts that are directly journalled and do not correspond to pending items.

  • Deposit Adjustments:  Deposit Adjustments are deposits that move money from one funding string to another and can also correct previously posted deposits.

  • Receivables:  A receivable is an expectation to receive payment for goods or services. PeopleSoft Receivables distinguishes between pending items (entered into SMART, but not yet posted) and items (posted receivables). Pending items are amounts that are billed to a customer, but not paid.  Receivables items are maintained using maintenance worksheets. 

  • Posting of Receivables:  ARUPDATE is the hourly Receivables Update process that posts pending items. When items are posted, groups of pending items update a customer’s balance and create balanced, valid accounting entries. These accounting entries are passed to the General Ledger by the Journal Generator process nightly.