Database Reference
In-Depth Information
debt that is more than 30 days past due but less than 60 days past due, debt that is 60 or
more days past due but less than 90 days past due, and debt that is 90 or more days past due.
The system updates the actual balance, the current invoice total, and the current payment
total when it produces a new invoice or receives a payment; however, the system updates
these aging figures only at the end of the month. The actual update process is as follows:
1. The system processes payments received within the last month and credits these pay-
ments to the past due amount for 90 or more days. The system then credits any addi-
tional payment to the 60 or more days past due amount, then to the more than 30 days
past due amount, and then to the current debt amount (less than 30 days).
2. The system
345
the amounts by adding the 60 or more days past due amount to the
90 or more days past due amount and by adding the more than 30 days past due
amount to the 60 or more days past due amount. The current amount becomes the new
more than 30 days past due amount. Finally, the current month
“
rolls
”
'
s invoice total becomes
the new current amount.
3. The system prints the statements and the aged trial balances.
4. The system sets the current invoice total to zero, sets the current payment total to zero,
and sets the previous balance to the current balance in preparation for the next month.
To illustrate, assume before the update begins that the amounts for customer 1354 are
as follows:
Current Balance: $2,375.20 Previous Balance: $2,138.70
Current Invoices: $1,686.50
Current:
$490.20
Current Payments: $1,500.00
Over 30:
$298.50
Over 60:
$710.00
Over 90:
$690.00
The system subtracts the current payments ($1,500.00) from the over 90 amount
($690.00), reduces the over 90 amount to zero, and calculates an excess payment of
$810.00. The system subtracts this excess payment from the over 60 amount ($710.00),
reduces the over 60 amount to zero, and calculates an excess payment of $100.00. The
system then subtracts the excess payment from the over 30 amount ($298.50) and
reduces this amount to $198.50. At this point, the system rolls the amounts and sets the
current amount to the current invoice total, producing the following:
Current Balance: $2,375.20 Previous Balance: $2,138.70
Current Invoices: $1,686.50
Current: $1,686.50
Current Payments: $1,500.00
Over 30:
$490.20
Over 60:
$198.50
Over 90:
$0.00
The system then produces statements and the aged trial balance and updates the Previ-
ous Balance, Current Invoices, and Current Payments amounts, yielding the following:
Current Balance:
$2,375.20 Previous Balance: $2,375.20
Current Invoices:
$0.00
Current: $1,686.50
Current Payments:
$0.00
Over 30:
$490.20
Over 60:
$198.50
Over 90:
$0.00
b. Print the monthly invoice register and the monthly cash receipts journal.
c. Print a monthly sales rep commission report.
d. Set all MTD fields to zero. If necessary, set all YTD fields to zero.
e. Remove all cash receipts and invoice summary records. (In practice, such records would be
moved to a historical type of database for future reference. For the purposes of this assign-
ment, you will omit this step.)
