Navigation:  Chart of Accounts > Setting up AR and AP

Accounts receivable is an asset account that records amounts owed to a business by customers8. Accounts payable is a liability account that records amounts the business owes to suppliers. In MYBOS, both are control accounts, meaning they are built into the software and are made up of subaccounts for customers and suppliers, respectively. Normally, they should not be created in the chart of accounts.

 

CAUTION; If Accounts receivable or Accounts payable are created manually in the chart of accounts, many built-in functions will be lost. MYBOS will not be able to associate sales invoices or purchase invoices with specific customers or suppliers. And it will not be able to apply advances, deposits, or overpayments to invoices.

 

Activate Accounts receivable

 

To activate Accounts receivable, enable the Customers tab. Click Customize below the left navigation pane, check the box for Customers, and click Update below the list.

 

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Accounts receivable will automatically appear in the Balance Sheet and chart of accounts:

 

 

If making a transition to MYBOS from a previous accounting system, follow this Guide to set up starting balances.

Activate Accounts payable

 

To activate Accounts payable, enable the Suppliers tab. Click Customize below the left navigation pane, check the box for Suppliers, and click Update below the list.

 

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Accounts payable will automatically appear in the Balance Sheet and chart of accounts: