ARCB A/R Cash Basis

A/R Cash Basis (ARCB) transforms the standard Sage 100 ERP Accounts Receivable programs from an Accrual Basis to a Cash Basis system. Revenues are recognized only when cash is received. Sales Tax can continue to be handled on an accrual basis, even if cash basis receivable is activated. A new report prints Open Invoices by General Ledger revenue account.If a company is operating on a cash basis, General Ledger postings are not made when the Invoice Journal is updated. Instead, the detail is stored and posted when a cash payment is received. State sales tax is the only exception.*

Both Sales Order and Job Cost modules are fully integrated. There is also a utility feature built into the Accounts Receivable Sort Rebuild program that can be used to initialize the necessary Cash Basis files from existing Open Invoice information that were originally posted on an accrual basis.

Accounts Receivable Cash Basis does not modify any standard Sage 100 ERP reports, but there is a new Accounts Receivable Open Invoice General Ledger Account Detail Report that lists all of the General Ledger distribution detail for each open invoice. The invoice balance is compared to the sum total of the distribution detail and an **OUT OF BALANCE** flag is printed for any invoice whose detail does not match the invoice balance. Checking is only done when all General Ledger accounts are selected.

* The Accounts Receivable Cash Basis module has special considerations built-in for handling sales tax. They can be posted on either a cash or accrual basis. Sales taxes are handled in a special way:

  • If the system is cash basis, sales taxes can be defined to be on accrual basis.
  • If sales taxes are defined to be on a cash basis, they will be posted to the General Ledger when the cash is received.

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The A/R Cash Basis enhancement allows:

  • Enter Accounts Receivable transactions in the normal fashion. The A/R Cash Basis modifications are nearly transparent to the user performing data entry.
  • General Ledger postings are not made when the Invoice Journal is updated, instead, the detail is stored and posted when that cash is received. The only exception is State Sales Tax, which may continue to be posted on an accrual basis. The A/R Cash Basis module has special considerations built-in for handling sales tax.
  • There is full integration with both the Sales Order and Job Cost programs.
  • There is a utility feature built into the Accounts Receivable Sort Rebuild program that can be used to initialize the necessary A/R Cash Basis files, from existing Open Invoice information that was originally posted on an accrual basis.

IMPORTANT: ARCB cannot be used if there are any Balance Forward customers in the Customer database. All customers must be Open Invoice, or the Sort Rebuild will display an error message. Refer to the Accounts Receivable manual for the details of converting a customer to Open Invoice. In general, all balance forward invoices must be paid and cleared from the invoice history files in order to perform that conversion.

For this reason, the flag that determines whether to use Cash Basis or Accrual Basis is initially set to Accrual Basis. When the user sets this flag to Cash Basis, the system scans the A/R Customer Masterfile to make sure that no Balance Forward customers exist.