Hierarchy of the Default Accounts Receivable Account

There are two places where the Default Receivables Account can be set:

1. Customer record under the Financial tab; and
2. Setup > Accounting > Accounting Preferences > Items/Transactions tab

Accounts that can be selected in this drop-down list are Accounts Receivable types.  

Under the customer record, options available will be those A/R type accounts and Use System Preference.  By using this latter option, you can assign the Default Receivables Account to what is set on the Accounting Preferences page.

Here are the possible scenarios:

A. If an A/R account is selected on the customer record, this will be the default receivables account for that customer.


B. If Use System Preference is selected on the customer record, and the Default Receivables Account is entered on the Accounting Preferences page, then this will be the default receivables account.

C. If Use System Preference is selected on the customer record, and no Default Receivables Account is entered on the Accounting Preferences page, the last A/R account used in an accounts receivable transaction will be used, just like the sticky feature in the previous versions.


D. If Use System Preference is selected on the customer record, and the Default Receivables Account entered on the Accounting Preferences page is inactive, the last A/R account used in an accounts receivable transaction will be used, just like the sticky feature in the previous versions.

E. If an A/R account selected on the customer record or the Accounting Preferences page was inactivated at some point after being selected, this would still serve as the default account.  However, the account will not be an option when entering a transaction for the customer. The account pulled up on the transaction will be the A/R type account with the lowest Internal ID in the Chart of Accounts.