Lesson 3.2: Accounts Receivable Setup

While many basic accounting systems limit organizations to a single Accounts Receivable (AR) control account, FastFund Online offers the flexibility to link up to four different AR control accounts to your clients. This capability is essential for nonprofits that need to segregate receivables by revenue source—such as distinguishing between program service fees, grants, and tuition. This lesson covers the strategic setup of these accounts and how to configure default billing messages.

The Power of Multiple AR Control Accounts

FastFund allows you to link up to four different accounts receivable control accounts to your clients. By labeling and setting up different control accounts, each one will maintain its own:

• Subsidiary Ledger: Detailed tracking of specific receivables.

• Aging Report: Separate tracking for overdue amounts by revenue type.

• Client Detail Posting Activity: Clear audit trails for specific revenue streams.

Example: An organization like “Oak Ridge Child Care and School” might need to separate billings for “Tuition” from “Room & Board,” while also tracking “Grants” from government agencies. By setting up distinct labels, they can run separate aging reports for each revenue stream.

Setting AR Preferences

To define these categories, you must configure the Accounts Receivable Preferences located within the Company Setup.

1. Navigate to Preferences: Click the Gear icon in the Main Menu to access Company Administration. Select Company Setup and then click the Preferences tab.

2. Locate AR Settings: Scroll to the Accounts Receivable Preferences section.

3. Define Labels: You will see fields for AR Account Label 1 through AR Account Label 4.

    ◦ Enter a specific name for each type of receivable you intend to track (e.g., “Grant Receivables,” “Tuition,” or “Client Fees”).

    ◦ If you only track one type of receivable, enter a label only in AR Account Label 1.

    ◦ Note: These labels will appear later when you set up your Chart of Accounts (Object Code Definitions) and when you configure individual Client records to assign the correct receivable type.

Default Billing Messages

To streamline your billing process, you can set a global default message that will appear on your client bills.

• Default Client Bill Message: In the same Preferences window, enter your standard text in this field (e.g., “Thank you for supporting our mission”). This message will automatically populate on new bills.