The Customer Ledger (sometimes also known as trade debtors ledger or accounts receivable ledger) is where the accounting aspects of the relationship with customers comes together and can be referred to. Each customer, once set up, will have a Customer Account in which all transactions from invoices, credit notes, and receipts to other miscellaneous items can be seen. A balance should represent the true amount of money owed to you by your customer; exceptionally it could represent an amount you need to repay to your customer.
Where to find a Customers Account?
A customer account is found under the Accounts menu.
Accounts - Customers
In the actions box adjacent to the relevant customer click VIEW. The screen will display the details of all transactions that have impacted and the balance on that Customer Account between the selected dates.
What appears in the Customers Account?
Essentially any transaction recorded as between the Customer and your organisation will be shown in the Customer Account. Transactions are entered in the usual way as described in the topics or screen help.
|Transaction Type||More Information|
|Sales Invoices||Creating Sales Invoices||Sales Credit Notes||Credit Notes||Receiving payments||Receiving Payments||Miscellaneous Deposits||Miscellaneous Deposits and Miscellaneous Income||Payments||Payment|
|Transaction Type||More Information|
|Journals||Add Journal Entry|
In simple terms you can use these transactions to manage the accounting relationship with your customer.
In the context of a Customer Account in the Customer ledger, payments and journal entries are unusual transactions and care is required in their handling and understanding the implications. If you are in doubt please consult your accountant or advisor. Note that a journal entry transaction is not available to be consumed in the receiving payments screen, unlike all the other cash type transactions mentioned above.
It is good practice to regularly review the balances on Customer Accounts to ensure that the figures do represent the actual situation of what is owed to you (or you owe) and will be collectable from your customer. To help you do this you can both look at the situation on the screen, as described above, or print out a hard copy report as described below.
Note: It is not considered good practice to post an transaction directly to the Customer Ledger Control Account (The Parent account of all the Customer accounts) so in any transaction screen where an account can be selected the control account will not be visible only the individual Customer Accounts.
Allocations of cash received to invoices
When cash is received from Customers it is allocated to sales invoices in the receive payments screen. The details of the amounts allocated for any transaction can be viewed by clicking the manage allocations icon. A dialogue box is presented displaying the invoice and allocated receipts
The linked transactions may be de-allocated by ticking the box and clicking Submit. The Cancel button returns the user to the previous screen. Note a hard copy a Receipts Allocations report is also available.
Reports - Customers - Receipts Allocations
Getting a Customer Account Transactions Report
A report showing all transactions, including the non-cash journal entry is available under the Reports menu.
Reports - Customers - Customer Account Listing
Enter the date range required and select the Customer or Customers required. The report can be output either as a hard copy PDF or exportable Excel or CSV file by licking the appropriate button and then GENERATE For Excel or CSV subsequently click the DOWNLOAD button.