Guide to Accounts Payable and Receivable

This page will teach you how to use the two main features in Steelhead Native Accounting. Accounts Receivable (AR) is the system used for Invoices, and Accounts Payable (AP) is what is used for tracking Bills.

This Guide includes instructions for:
Accounts Receivable
Automatic Journal Entries
Manual Journal Entries
Account Balance
Accounts Payable
Tie-In with Bills
Final Payment

Steelhead Accounting video:

Steelhead Accounting Walkthrough

Accounts Receivable

You can refer to this step-by-step guide for a more in-depth guide to using Accounts Receivable.

Accounts Receivable is the Steelhead Accounting feature used for Invoices. It's the place to review payments due from your customers, send them statements, enter payments received, and deposit funds to your bank accounts.

1. To start using A/R, follow the procedures for creating Sales Orders, Work Orders, etc., to get orders and parts into invoicing.
2. Follow the steps to create an Invoice.
3. The A/R Sync Icon can be selected to send invoices to A/R.

Automatic Journal Entries

Once an invoice is created, it can be finalized, and journal entries will automatically be created in Steelhead Accounting.

1. Click on the A/R Sync Icon.
2. Adjust Journal Entry Date as needed.
3. Select an A/R Account for the Journal Entries to be routed to and an Income Account for each Line Item on the Invoice.
   
4. Click Finalize.

The invoice will then show in Journal Entries as well as the A/R section of Steelhead Native Accounting.

Manual Journal Entries

When journal entries must be made manually, you can copy and paste them from Excel:

1. Ensure the columns in Excel to be copied are ordered, as they are in Steelhead, from left to right: Account Number, Debit amount, and Credit amount.
2. Click on +NEW JOURNAL ENTRY in the Journal Entries page of Steelhead Accounting.
3. In your Excel sheet, select your data to be transferred in the three columns; copy it (CTL/CMD + C).
4. In Steelhead, click on PASTE FROM EXCEL. Your copied data will populate the journal entry. If an Account Number you've pasted does not match any account in Steelhead, the entry will be highlighted in red and include the warning, "UNKNOWN." Choose the correct account from the drop-down list to clear the warning.

Account Balance

Once invoices are finalized, you can see any outstanding balances for customers per invoice in the A/R tab of Accounting.

You can also see the total balance in your A/R Account from the Accounts tab.

Account Balances for a specific Invoice will also appear on the Invoice page under Journal Entry Lines on the Invoice Line Items.

You can Receive Payment from the A/R tab as well.
You can:

• Set Destination Account
• Enter Journal Entry Date
• Receive Partial or Full Payments.

If you have received a credit memo from a customer and applied it to an income account, you can pay multiple invoices from the memo balance. Similarly, an invoice can be paid with multiple credit memos.

You can see all Payments made in the Payments section of the A/R tab.

Within a specific Payment, you can see all connected information for that Payment such as:

• Reference Number
• Any Deposits made
• Each Line ID
• Invoice #
• Invoice Line #
• Journal Entries

The interconnectedness of everything in Steelhead Native Accounting helps to track everything from the Sales Order all the way to Invoicing and Accounting.

Accounts Payable

You can refer to this step-by-step guide for a more in-depth guide to using Accounts Payable.

Accounts Payable is the Steelhead Accounting feature to track and pay Bills due to your vendors. It also gives you the ability to connect those Payments to Inventory Items received and stored.

1. To start using A/P, follow the steps to create a Purchase Order and move it through the stages to Receive a Bill.
2. Create Bill then navigate to the Bills Page.
3. Similarly to A/R, the A/P Sync Icon can be selected to send Bills to A/P.

Tie-in with Bills

Similarly to invoicing, once Bills are created they can be finalized and Journal Entries will be automatically created while it gets entered into A/P.

1. Click on the A/P Sync Icon.

2. Select the correct Expense/Asset Accounts and A/P Accounts for the Bill Line Items.
3. Click Save.

The bill will now show in A/P as well as the Journal Entries page of Accounting. You can also see the Journal Entries from the Bill page. And you can now see the Outstanding Balance on the bill if it is yet to be payed.

Final Payment

Once bills are finalized and in A/P, payments can be made.

1. Select Make Payment.
   

2. Adjust Vendor, Source Account, Payment Method, and Payment Amount as needed.
   

3. Click Save.

The bill will no longer be a part of A/P.

You can see payments made in the Payments section of the A/P tab in Native Accounting.

With each specific payment you can see information such as:

• Payment Method
  • (If Check) Check Number
• Line ID
• Bill #
• Bill Line #
• Journal Entries

From the Bill itself you can now see the payment on the Journal Entry.

You can verify that the amount ordered matches the amount received and paid for and that there is no more Outstanding Balance to be paid.

In case you have paid more than necessary to a Vendor, memos will be saved in A/P and may be applied in the same way as in A/R, including applying a memo payment to multiple Bills or multiple memo payments to one Bill.

• Clicking the back-arrow VOID CHECK icon on the Checks screen creates a journal entry reversing the check. Checks can be un-voided to return the sum to Accounting.
• Check numbers can be edited from the Checks page. Simply click the pencil edit icon on the line of the Check number that needs to be changed, type in the correct Check number, and SAVE.
• Bills can also be voided/archived to reverse journal entries, unless they have already been paid. Bills cannot be un-voided. Once they are archived they will not appear on the A/P list.

You can view and organize Bills, Payments, Purchases, and Memos per Vendor by clicking on Vendor Transactions in the drop-down menu.

--