Introduction

Generally, when a T/R invoice is posted, the G/L account# for accounts receivable is debited and the G/L acct# used in the invoice is credited. In the case of the balance forward invoices posted to a client, the full amount is debited to the accounts receivable asset while the offset goes to the equity account "retained earnings".

At this point, the delinquency report would show the total balance of these unpaid invoices and the asset would show the same value; thus the T/R (subsidiary A/R balance) would equal the G/L accounts receivable account# balance. As time goes by, people pay these invoices. When they do, cash is debited and the accounts receivable asset is credited. When all of these invoices are paid off, there will be nothing due in the T/R, and the total value will reduce the asset account until they still balance at zero (no T/R and no G/L). This perspective is strictly limited to the "set" of balance forward invoices initially created.

So, to setup client values we are going to "trick" the system. We have to create pre-paid items for appropriate units. Normally we would create a credit on the account of the unit and assign the G/L account# for retained earnings. Consequently the accounts receivable asset would be reduced and the retained earnings equity account would be reduced (the client has already received the money). However, sometimes one wants the G/L to reflect the prepaid amount in the prepaid dues liability, for the units that have advanced payments on them.

A Video Example

The following is a simple example of the upload process:

The video