Installation

The BasicBooks Accounts Receivable program must be located in your path, preferably in the same directory as BasicBooks General Ledger, which should already be installed in the /usr/local/bin directory. The installation script (INSTALBBAR) will automatically accomplish this. To install the Accounts Receivable program complete the following steps:

1. Open a terminal window.
2. Login as root (or change to root).
3. Make sure you are located in the same directory in which you unpacked the BasicBooks Accounts Receivable zip file.
4. Enter the command, ``INSTALBBAR'' and press the Enter key.

The Accounts Receivable Program and associated documents are now installed in the proper locations. Next, you must use the BasicBooks General Ledger program to set up your company (if you have not already done so) and create the accounts that are required for use in the Accounts Receivable program. (See Set Up in next section.)

Set Up

Before you can use the Accounts Receivable system you must set up certain general ledger accounts. This can only be done using the BasicBooks General Ledger program. After creating these initial general ledger accounts you may add additional accounts at any time if needed. Because AR depends on general ledger accounts you must have the BasicBooks General Ledger installed and running before using AR.

Follow these steps to create the required initial accounts.

1. Open the BasicBooks General Ledger program (BBGL) and sign in using your company code. (See the General Ledger manual for instructions on using the General Ledger program.)
2. From the General Ledger Main Menu select:
   Ledger Accounts -> Create New Account.
   The first account you must create is an account in which you will record the receivable amounts for invoices you have issued to customers. Supply whatever account name and number you want to use which is consistent with your account numbering scheme. (Example: ``Account Receivable - Trade'', ``Accounts Receivable - Retail'', etc.). For the Account Type select, ``Account Receivable''. You must create at least one such receivable account but may create as many as you need to conform to your bookkeeping needs.
3. Next, you must create at least one sales account and one bank account (if you have not already done so). You may create as many different sales and bank accounts as you need. Name the sales accounts and bank accounts as may be appropriate for your business.
   Since all sales are either for goods or for services, for the sales Account Type you may select either, ``Product Sales'' or ``Service Sales'', which ever is appropriate for your business. The sales accounts will be used in setting up customers and entering invoices for customers.
   For the bank Account Type select either, ``Bank Checking Account'' or ``Bank Savings Account''. The bank accounts will be used for entering and depositing payments you receive for invoices.
4. Next, you may create up to two Optional (additional) sales accounts. This is not required but is an convenience option provided if you frequently use more than one sales account. If you enter a number for either Optional account this number and account title will be automatically inserted into the invoice entry window when entering invoices.
5. Next, you may create a liability account to record sales taxes you collect from customers. If you bill customers for sales tax on your invoices you will want to record the tax amount in separate sales tax payable accounts when you enter the invoice into AR. Account name examples: ``Sales Tax Payable - State'', or ``Sales Tax Payable - City'', etc. For the Account Type you should select either ``Account Payable'', ``Debt Payable'', or ``Liability (Other)''. (You may also select ``Long Term Liability''; however, sales tax payable is usually a short term liability.) This account is not required.
6. Next, you may want to create at least one freight expense account. Example: ``Shipping Expense'', or ``Air Freight'', etc. For the Account Type select ``Expense Account''. When entering invoices you will use this account to record shipping expense you pay to shippers and then charge back to customers. This account is not required.
7. If you offer some special discounts to customers and want to track those discounts separately you should create an account for recording the discount amount of each invoice amounts. If so, while in Create New Account create an additional account in which you will record the discounts you allow customers to take (Example: ``Discount for Prompt Payment'', or ``Volume Discount Earned''). For the Account Type select, ``Discounts Allowed''. Discounts Allowed are a form of expense against sales and will appear on the Income statement as an expense item. When you record new invoices or apply credits in the Accounts Receivable program you may enter any discount you allow for posting in this account.

When you have created these accounts you are ready to start using Accounts Receivable.

Steps for Running Accounts Receivable

The Accounts Receivable program uses the same company data files and chart of accounts that you created in the BasicBooks General Ledger. To run BasicBooks Accounts Receivable you must first set up the General Ledger. You must be located in the same directory (Folder) as you are when you run the BasicBooks General Ledger since Accounts Receivable needs to access the company data and report folders stored in the codata.d directory. Follow these steps to run Accounts Receivable.

1. Open a terminal window.
2. Change to the directory where you normally run the BasicBooks General Ledger. (The directory where codata.d is located.)
3. Enter the command, -> BBAR.
4. Enter the same Company Code you use when setting up and running the BasicBooks General Ledger. This will load the company data files and chart of accounts for your company. You may see and/or print the company data by selecting Company File from the main menu. (Note: Changes to the company data file can only be made from within the BasicBooks General Ledger program.) If this is the first time running AR for a new company the PostgreSQL database files will be automatically created for this company.
5. The Accounts Receivable main menu will appear (Figure 1). If this is the first time you have run Accounts Receivable for a company the Accounts Receivable Control File window will pop up. You must then create the Accounts Receivable Control File before proceeding with other Accounts Receivable functions (see next section).

Note Regarding Journal Entries

Journal entries cause the transactions created from the Accounts Receivable invoices, payments, and credit memos to be added into the BasicBooks General Ledger Journals for posting to the general ledger accounts. Invoices and Credits Applied are not entered into the BasicBooks General Ledger until you want them entered. This allows you to enter invoices and apply credits anytime while still controlling when they are advanced into the journals and General Ledger.

• Journalizing Invoices and Credit Memos - Data from the Accounts Receivable program must be ``Journalized'' before it can be reflected in the General Ledger. Journalizing invoices is done by selecting Journalize Invoices from the Invoice Selections menu. Journalizing credits is done by selecting Journalize Credit Memos from the Credit Selections menu. These options cause the invoice and credit transactions to be entered into the General Ledger's General Journal.
  
  You will not be able to change these entries after they have been placed into the General Journal. To view these entries in the BasicBooks General Ledger select the view menu item for the General Journal. To post these entries to the respective ledger accounts you must use the Post General Journal to Ledger option selection from the General Journal menu in the General Ledger.
  
  You may do this a often as there is data available to forward to the journal. The program will not allow duplicate data to be forwarded to the journal. All entries will be made for the proper accounting periods (months) based on the date when the invoice or credit was entered into Accounts Receivable.
• Journalizing Payments - You do not need to do anything to journalize payments. Every Payment entered is considered to be a bank deposit as soon as it is entered. Payments you receive and enter into accounts receivable are automatically sent to the BasicBooks General Ledger Deposit Journal as they are entered. Deposits (i.e., Payments) will be Journalized under the bank account number you use when you enter the Payment into Accounts Receivable. (Note: the AR program assumes that you are depositing the payments into the bank on the same date you make the entry.) As the Payment is entered into the Deposit Journal the accounts receivable account is also automatically credited.
  Payments are not entered into the Deposit Journal until you save the entry by clicking the Save button. You may cancel the entry by clicking the Cancel button and no journal entry will be created.