Overview

Project: Convert their miscellaneous Accounts Receivable from a variety of Excel spreadsheets to the Lawson Account Receivable module.
Industry: Energy

 

Challenge

Our energy client has a variety of Accounts Receivable that are ancillary to their doing business as an electricity service provider.  These receivables were being billed and maintained using Microsoft Excel spreadsheets and Word mail merge applications.

Lawson Accounts Receivable Implementation: Challenge

Payments received were posted to a paid column for the Invoice on the spreadsheet.  Journal entries were being posted manually to the Lawson General Ledger.  Selected receivables were subject to manual finance charge calculations if unpaid.  There was no ability to generate aging reports for management review.

 

Results

The client purchased the Lawson Accounts Receivable (AR) module when they bought the Lawson Financial Suite.  However, they were not using it.  We reviewed their miscellaneous receivables and determined that they could use the Lawson AR module to manage, track and report on their miscellaneous receivables.  We also determined that they did not need to buy the Lawson Billing module to create invoices.  We determined they could generate their invoices from the data stored in various AR Tables using Crystal Reports, which they already had.

Lawson Accounts Receivable Implementation: Solution

Business/Technical Solution Details:

  • Set up a GL Code for each GL AR account in order to get the journal entries for invoices posted to correct AR account.
  • Coupled each GL Code to its own unique Process Level.  Invoices in the Lawson AR system were assigned a Process Level.  With this approach, we accomplished three objectives – (1) identified the AR Control Account to be posted in GL for an Invoice, (2) created the ability for management to group and report on open/unpaid Invoices by GL AR Control and (3) setup the structure by which each GL AR Control Account could be reconciled/balanced to its portion of the Lawson AR database.
  • Major and Minor Class Code combinations were created for each type of miscellaneous receivable.  Major and Minor Class Codes are entered on the AR Customer record.  This approach allows management to generate AR reports for just those customers having a certain type miscellaneous receivables.
  • The facilities to assess Finance Charges were setup and the Customers subject to Finance Charges were identified and their Lawson Customer records were updated to have Finance Charges assessed.
  • The client allows employees with certain types of miscellaneous receivables to make payments via Payroll Deductions.  We set up the Lawson Cash Ledger to have a Bank for Payroll Deductions, so the Payroll Deductions could be processed and applied to the employee’s unpaid Invoice just as if they had mailed in a check payment.
  • Created an automated interface from their customer service payment processing system to Lawson for payments received for posting to their miscellaneous receivables.  The program develops interfaces with the Lawson Invoice Tables to identify unpaid invoices for a customer, lets the person processing the payment select the Invoices being paid, and then creates an output file with the check information and Invoice paid information for payments processed that day.  This file is then converted into Lawson Payment and Invoice Remittance records that can be processed by the AR575 Payment Interface job and automatically applied by the Lawson AR130 Automatic Cash Application Audit job.  Accounts receivable personnel then review the results of the AR130 job and work any items that were not posted.
  • Employees in various departments use the Lawson Transaction Entry form to enter the basic information for a miscellaneous receivable from a sale transaction worksheet.  They use the Customer PO #, Invoice Header Description, Invoice Header User Fields and the Invoice Distribution fields to enter the information they want to appear on the printed Invoice.  Once done, they use a Crystal Report program to generate a draft Invoice for review and make corrections as needed.  Once satisfied with the printed Invoice image, they print the final version of the invoice and send it to the customer.  The Crystal Report invoice has a tear off remittance document at the bottom of the invoice for the customer to return with their payment.
  • Automatically generated second notices for invoices not paid by their due date.  Lawson refers to this process as generating Dunning Letters.  Set the system up so that as customers are added, they are set up for automatic dunning.  Set the Dunning Letter Selection and Dunning Letter Print jobs up to run automatically.