AR Sub-ledger Management Implementation, Technical Notes

To implement multiple accounts receivable subledgers, the following steps are required.

1.  Install the correct revision of the software.

2.  Load the AR_AUTOPOST field of the existing accounts receivable invoices with 120.  This autopost is the default used by the new software and was normally the only autopost used prior to this feature being implemented.  Existing invoices are usually loaded with 120 using loader programs when the newer code revision is installed.

3.  Create the General Ledger accounts receivable control accounts to be maintained on the system.  Each AR autopost or subledger to be maintained must have a corresponding accounts receivable control account in the General Ledger.  These general ledger accounts should be created and have the correct autopost numbers assigned to them before you begin using multiple subledgers.  For more information on autopost numbers and general ledger account setup, please see the General Ledger Application Overview and Procedures Guide.

4.  If the accounts receivable subledgers will be maintained based on the company type, create a Gencode Table to define the valid AR autopost numbers and to ensure that one of these numbers is used as each company is created or edited.  Please see the System Administrators documentation for more information about Generic Code Table setup.

5.  Assign the correct AR Autopost number to each Company Master record.  This can be done manually or using loader programs.

6.  Use the Invoice Inquiry program to move the open invoices for each company to the AR autopost number that the company was assigned to in step 5.  A journal entry will be made automatically by the system to update the accounts receivable control accounts as required.

Note: Once an invoice has been assigned to a specific accounts receivable subledger, all activity for the invoice will be posted to the control account for that subledger.  You should keep this in mind in any situations in which you need to reverse and rerun the sales posting procedure.  If you post sales, then transfer an invoice from one sub-ledger to another and then need to reverse and re-post sales, the reversal of the original sales posting journal entry will update the control account that the invoice was assigned to when it was posted.  When you re-post the sales using the Sales Posting programs, the system will post each invoice to the sub-ledger specified in the invoice at the time the sales posting programs are run.  In this example, a journal entry would need to be made between the two control accounts to ensure that they balance with the sub-ledger detail.

More:

Posting Sales to the GL