Posting (AR) Type Changes

With release 10.3.0 (March 2015), we no longer restrict changes between Balance Forward and Open Item account types. In past releases, it was only possible to modify an Open Item account to Balance Forward type, but not the reverse. Now, you can modify accounts from Balance Forward to Open Item.

To convert a balance forward customer to open item, we update the "AR Paid" amounts on existing invoice records linked with the account and/or job. The aged balances for the account (and job if "job" billing) are used to mark paid amounts on invoices for the corresponding billing periods (cycles). This is done in reverse order so that the older items are marked paid before any newer items (this is done for each billing period and by job if the account is job billing). Unapplied discounts, credit memos (returns), and finance charges are not affected. At the end, we compare the detailed invoice records to the balances for the customer and if they match, we allow the change to proceed.

Note: When converting a balance forward customer to open item, you have no control over which existing invoices are marked paid. This is done automatically by job and for the oldest items first. If all balances are zero, all prior invoices for the account will be marked paid.*

This will not work in all instances (see the listing below for exclusions and conditions). In cases where we are unable to convert an account, changes will be reversed and the account will remain as is. A message is shown if the software cannot convert the data.

• The automated Billing Cycle processing must not be in progress.

• No negative balances are allowed in Current or Past Due balances.

• Balances must have sufficient charges (invoices/debits) for each cycle (Current, Past Due).

• Changes aren't allowed to accounts that are currently locked for posting or while posting is currently in progress.

Paid date is not known and is not set on invoice records when oldest items are marked paid. This may be a factor if you use custom reports for pay-when-paid type reporting.

*Invoices for balance forward accounts are not usually marked paid otherwise.