User Guide: AR Clerk

For: Accounts Receivable Clerks and Credit Managers Role: AR Clerk Last Updated: January 27, 2026

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Table of Contents

1. Role Overview
2. Daily Checklist
3. Invoice Management
4. Receipting (Cash App)
5. Allocations
6. Reports & Collections
7. Troubleshooting

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Role Overview

As an AR Clerk, you manage the "Money In" process. You are responsible for invoicing corporate clients (City Ledger), collecting debts, and applying payments accurately. Your goal is to minimize "Days Sales Outstanding" (DSO).

Key Responsibilities

• Invoicing: Billing Travel Agents and Companies for guest stays.
• Receipting: Recording wires, checks, and transfers.
• Collections: Chasing overdue debts.
• Allocations: Matching money received to specific invoices.

Module Access

• ✅ Accounts Receivable (AR) - Full access.
• ✅ Front Desk - View Folios / City Ledger transfers.
• ✅ Accounting - View Revenue Journals.

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Daily Checklist

Morning

• [ ] Bank Statement: Check online banking for incoming wires.
• [ ] City Ledger: Review guests checked out to "Bill to Company" yesterday. Generate their invoices.

Mid-Day

• [ ] Post Receipts: Record payments received.
• [ ] Allocations: Match receipts to invoices.

End of Day

• [ ] Reconciliation: Ensure Total Receipts in System == Total Bank Deposits.

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Invoice Management

1. Generating Invoices from Front Desk

Most invoices come from Guest Stays.

1. Navigate to AR > Invoices.
2. Filter Status: Draft (System auto-creates drafts when Front Desk selects "Direct Bill").
3. Review:
   • Check Room Rate accuracy.
   • Ensure "Extras" (Meals etc.) are authorized by the company.
4. Post:
   • Click Post Invoice.
   • System Action: Dr AR, Cr Revenue. Customer Balance Increases.
5. Send: Email PDF to the Company contact.

2. Creating Manual Invoices

For things like Banquet Events or Sponsorships.

1. Navigate to AR > Invoices > Create.
2. Customer: Select Company (e.g., "UN Mission").
3. Terms: Net 30.
4. Lines:
   • Item: "Conference Hall Rental".
   • Qty: 2 Days.
   • Price: $500.
5. Post.

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Receipting (Cash Application)

When money arrives in the bank.

Recording a Receipt

1. Navigate to AR > Receipts > Create.
2. Customer: "UN Mission".
3. Amount: $1,000.
4. Method: "Bank Transfer".
5. Dest Account: "Equity Bank - USD".
6. Reference: Enter Wire Ref #.
7. Confirm.
   • System Action: Dr Bank, Cr AR. Customer Balance Decreases.

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Allocations

Money must be matched to a debt.

Allocating a Receipt

1. Open the Receipt you just created.
2. Scroll to Allocations.
3. System shows all Open Invoices for this customer.
4. Match:
   • Invoice #101 ($500) -> Allocate $500.
   • Invoice #102 ($500) -> Allocate $500.
5. Save.
   • System Action: Invoices marked PAID.

Partial Payments

If customer pays $800 of a $1,000 invoice:

• Allocate $800.
• Invoice Status becomes PARTIAL.
• Remaining Balance: $200.

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Reports & Collections

AR Aging Report

Your primary tool for collections.

• 0-30 Days: Good. Send Statements.
• 31-60 Days: Overdue. Send Reminder Email.
• 61-90 Days: Problem. Call the Customer.
• 90+ Days: Bad Debt Risk. Notify Controller to stop credit.

Customer Statements

1. Navigate to Customer Profile > Statement.
2. Generate PDF.
3. Shows "Opening Balance + Invoices - Payments = Closing Balance".
4. Send to customer monthly.

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Troubleshooting

Issue	Solution
Unknown Payment	Receipt it as "Unallocated" (Customer: Unknown or Suspense). Do not leave it off the books.
Overpayment	Receipt full amount. Leave excess as Unallocated Credit. Apply to future invoice.
Invoice Error	If posted wrong, issue a Credit Memo (Negative Invoice) to zero it out. Create new correct invoice.
Bounced Check	Void the receipt. Invoices reopen automatically. Charge a penalty fee via new Invoice.

TIP

Credit Protocol: Never post an invoice to a company without an approved "Credit Application" on file. Front Desk should collect Cash unless the company is on the "Approved List".