When an account is transferred from an outside system into Flash AR, the account’s current balance needs to be recreated in Flash AR. There are two approaches that depend on the operator’s accounting team’s needs. Remember to use the “create but don’t send” option when creating these invoices/credits so your accounts don’t get emails about this activity.
- Recreate each outstanding invoice and credit. For debits, enter them as a one-time invoice with the description matching the invoice or debit adjustment ID from the previous system. For credits, go to record transactions and select “credit” with the description being an identifier of the credit from the previous system. Make sure dates match the debit/credit dates from the previous system. If you make a mistake you can reverse and re-record the transaction. The operator should generate the “account balance report” in your old system to find accounts with a non-zero balance. This process is complete when the balances in your old system match Flash AR’s “account balance report” when ran for the last day you used your old system.
- Record one invoice or one credit that represents the entire starting balance. If an account has a positive balance (debit), send one invoice with a charge type called “starting balance” which represents the amount they owe. If an account has a negative balance (credit), record a credit transaction on the account with the amount equal to their credit and the description being “Starting balance”. For this method, we advise dating your debits and credits in the month prior to launching Flash AR to make it easy to discern what balances were carried over from your old system. The operator should generate the “account balance report” in your old system to find accounts with a non-zero balance. This process is complete when the balances in your old system match Flash AR’s “account balance report” when ran for the last day you used your old system.
The operator may want to have “Rolling A/R” enabled for the entire operation so that the account’s first invoice will show their entire outstanding balance on account directly on their monthly invoices.