Accounts Receivable - Cash Receipts Entry
FunctionThe Cash Receipts Entry task allows entry of payments and adjustments to a customer's account and also permits entry of miscellaneous transactions to the general ledger accounts. If Bank Reconciliation is used, payments are grouped into user-defined deposits to facilitate the reconciliation process.
=> To access this task... Select Cash Receipts Entry from the Accounts Receivable main menu.
If the Bank Reconciliation? checkbox in the Accounts Receivable Application Parameters form is marked, the Bank Deposit Entry form is launched prior to the main Cash Receipts form. If not using Bank Reconciliation, the main Cash Receipts from launches and no deposit data is entered.
Bank Deposit Entry
About the Fields
In the Bank Deposit Number field...
NOTE: The button next to the Bank Deposit Number field provides a handy drilldown into the cash receipts that comprise an existing deposit record.
In the Transaction Date field...
In the Description field...
In the Cash Receipt Code field...
In the Deposit Amount field...
After calling up an existing deposit or entering and saving a new deposit, click the Select Deposit button to dismiss the Bank Deposit Entry form and carry the selected deposit number into the Cash Receipts form.
Cash Receipts Entry
The top of the Cash Receipts Entry form contains information common to this receipt, such as the customer, receipt date, and payment amount. If Bank Reconciliation is used, the Bank Deposit Number and description, Receipt Date, and Cash Receipt Code are pre-populated from the Bank Deposit Entry form. When saved, cash receipts become part of the Bank Deposit displayed on the form.
Once the key heading information has been entered, the detail grid populates with invoices for the given customer. The grid is sorted on Invoice number by default. Change the sort order by clicking in the desired column heading.
About the Fields
In the Receipt Date field...
The Receipt Date is used to determine whether or not a discount has expired for a particular invoice. Because the Receipt Date is also used to identify cash being applied on-account, only one on-account payment may be made per customer per receipt date. Change the Receipt Date field to make subsequent on-account payments for a customer.
In the Customer ID field...
The name of the customer whose number entered in the Customer ID field is displayed.
In the Cash Receipt Code field...
The description of the code is displayed. This code is used to determine the cash account in the general ledger and parameters that affect the processing. Refer to Cash Receipts Code Maintenance task for additional information.
In the Check Number field...
In the Reference Number field... Optional. This is included in the Cash Receipts Register and is helpful in preparing the deposit slip.
From the Cash or Check dropdown...
In the Customer Balance field... Display only. Displays the customer balance remaining to be paid.
In the Cash/Check Amount field...
Adjustments, credit memos and other transfer transactions may not require a cash amount, depending on how the cash receipts code is defined. (Refer to note for Cash Receipt Code.)
In the Remaining to Apply field... Display only. The balance of the invoice(s) remaining to apply.
In the Applied field... Display only. The amount of payment that has been applied to invoice(s).
Show On-Account and Credits? checkbox...
Show zero-balance invoices? checkbox...
Auto-select by Invoice? checkbox...
In the Comments field... Enter free-form comments about this cash receipts entry. These comments are useful in saving notes about specific details related to this specific entry.
GL Distribution buttonThe two common methods for writing off small balances are:
Apply On Acct buttonSelect the [Apply On Acct] button or click and select Apply On Acct. An on-account payment for the full amount of the check is created automatically. An on-account payment will be identified with this structure: OAymmdd, where "OA" stands for on-account, last number of the year (i.e. 3 for 2013), month and day of the payment. An on-account payment posted on October 15, 2013 would be labeled "OA31011". Only one on-account payment can be created for a specific day.
New Deposit buttonSelect the [New Deposit] button to launch the Bank Deposit Entry form and create a new or select an existing deposit. AR Distribution Information
In the Invoice field... Invoices are displayed with the invoice date, due date, current invoice amount and available payment terms discount. An invoice originally created with a terms discount is displayed if the cash receipts date is not after the discount due date. Select the checkbox to the left of the Invoice column to apply funds.
When selecting individual invoices for payment, entries may be made for each of the following fields:
In the Applied field ...
In the Disc Amt field...
NOTE: The discount amount for an invoice is shown only when the cash receipts date is earlier than the discount expiration date as determined by the terms code associated with the invoice.
In the End Balance field... Display only. The remaining invoice balance is automatically calculated and displayed.
In the Comments field... Enter free-form comments about this specific invoice.
When done making selections...
If the check is not fully distributed, the following prompt is issued: Correct or On Account?
Attempting to leave an unsaved Cash Receipts Entry or the closing window causes the module to issue the following confirmation box:
Save Changes
When leaving the Cash Receipts Entry task, the amount entered or accumulated in the Bank Deposit Entry form is compared with the total of receipts associated with the deposit. A warning displays if the amounts are not equal.
Applying a Previous On Account Balance to Open InvoicesWhen using an existing on-account amount to pay invoices and there are no external funds being received, you should enter zero for the Amount field in the heading. Proceed with data entry as follows:
An existing on-account amount normally appears as a negative number that indicates a credit to the customer's account. To use on-account, you apply a matching negative amount. As a result, the Balance field in the header is increased. Apply a positive amount to an invoice to pay it. Balance field changes to zero. Applying Credit Memos to Open InvoicesWhen using an existing credit memo amount to pay invoices external funds are not being received, you should enter zero for the Amount field in the heading. Proceed with data entry as follows:
Credit amounts normally appear as negative numbers indicating a credit to the customer's accounts. To use the credit, you apply the matching negative amount. The Balance field in the header is increased as a result.
In a cash receipts transaction where cash is not actually received, the general ledger postings normally created by the application of payment (i.e. Debit to Cash, Credit to Receivables) are offset by the postings created when the credit is applied as payment (i.e. Debit to Receivables, Credit to Cash). The net result is that general ledger postings are not created. This is the desired result as the credit to receivables (and debit to sales) was made at the time the credit memo was originally updated. ______________________________________________________________________________________ Copyright BASIS International Ltd. AddonSoftware® and Barista® Application Framework are registered trademarks. |