Question

What classes and associations would be included in a model that describes the information needed for a query that calculates the accounts receivable balance for each customer?

Answer 1

Open-Invoice Method

Method for maintaining accounts receivable in which customers typically pay according to each invoice.

Remittance Advice

A copy of the sales invoice returned with a customer's payment that indicates the invoices, statements, or other items being paid.

Balance-Forward Method

Method of maintaining accounts receivable in which customers typically pay according to the amount shown on a monthly statement, rather than by individual invoices. Remittances are applied against the total account balance, rather than specific invoices.

Monthly Statement

A document listing all transactions that occurred during the past month and informing customers of their current account balance.

Cycle Billing

Producing monthly statements for subsets of customers at different times.

Credit Memo

A document, approved by the credit manager, authorizing the billing department to credit a customer's account.

Remittance List

A document listing names and amounts of all customer payments received in the mail.

Lock box

A postal address to which customers send their remittances.

Electronic Lock box

A lock box arrangement in which the bank electronically send the company information about the customers account number and the amount remitted as soon as it received payments.

Electronic Funds Transfer The transfer of funds through use of online banking software.