What are the 'AR accounts' and 'AP accounts' fields?

The 'AR account' and 'AP account' fields are used to associate GL accounts to the Accounts Payable and-or the Accounts Receivable. 

This association of GL accounts allows the software to complete the required steps of double-entry accounting when a cheque is printed, an invoice is issued or payment received.  

Here are the steps to enter the appropriate details in for  GL accounts.

Accounts Receivable

The 'Accounts Receivable' belongs to the GL account Type, asset.  The abbreviation used for the Accounts Receivable is, 'AR'.  

The 'Accounts Receivable' is impacted when an invoice is issued or payment received.  The 'AR' is associated with GL account Types, assets and Revenue.

The 'Accounts Receivable' is highlighted in the 'GL accounts' window in the slide below.  The GL account Number is 1100.  The 'AR' abbreviation appears in the code field.

The 'AR' abbreviation must be selected for all 'Accounts Receivable' accounts for them to be associated with other GL accounts.  Make sure that the 'AR' accounts have the code field selected.  Selecting 'AR' in the 'Code' field is one of two steps.

The second step requires identifying the appropriate 'AR' to the GL account Types, Assets and Revenue.  

First select a GL account Type Asset from the list located in the GL account window.  When the account is selected and is highlighted, the details for the GL account appears in the tab.  The 'AR account' field  become active.  

Next select the appropriate 'Account Receivable' GL account number.  In the following example, the team only has one 'AR' GL account.  There is only one possible selection.  The Accounts Receivable GL account Number appears in the 'AR account' field.

This slide shows the 'Asset' GL account Name, Office furniture.  The 'AR' account Number 1100 is selected.

GL accounts of the type, assets can be selected if they are not a bank or a Accounts Receivable GL account.  All the other GL accounts must have the correct 'AR' number chosen.

Once all the GL account Type, Assets have been selected, complete the same steps with all the GL account Type, Revenue.

The next slide illustrates the GL account Name, CUF Association is highlighted and the 'AR' GL account Number 1100 is highlighted in blue.

If you have more than one 'Accounts Receivable' make sure to enter the correct AR account Number for each GL account Type, Revenue and Asset.

Accounts Payable

The 'Accounts Payable is GL account Type, liability.  The abbreviation given for the Accounts Payable is 'AP'. 

The Accounts Payable is impacted when a cheque is printed.  The 'AP' account is associated with the GL account Types, Assets and Expenses.

First select the Accounts Payable from the list.  All the Accounts Payable must have the 'AP' code selected in the 'Code' field.

The next slide illustrates the Accounts Payable account.  The AP account Number is, 2100. 

The next step associates the GL accounts to the appropriate Accounts Payable.  Begin by selecting an Asset GL account.

Select the appropriate AP number in the field labelled, 'AP account.'  

An asset account is shown below.  The AP account Number, 2200 is selected.

Continue the same steps for all the Asset GL accounts.  Exclude the GL accounts, Bank and Accounts Payable.

Finally, begin highlighting the GL account Types, Expense.  Selected the appropriate Accounts Payable number in the 'AP accounts' field.

The slide below illustrates the expense account Name, 'Long distant phone service'.  The AP account Number is selected from the 'AP account' field.  The number entered is, 2200.

Enter the 'AP' account Number for each expense account.  If your team has more than one AP account, enter the appropriate AP account Number for each expense account.  

To print a cheque via the 'Cheque' window, the expense and-or asset account must have the appropriate AP account Number associated with it. 

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