Enter Cash Receipts

Owned by Stephen Juliano (Unlicensed)
Last updated: Jul 06, 2022 by Colleen Juliano
4 min read

Table of Contents

Overview

In its simplest form, a cash receipt is posting the receipt of a check to pay an invoice on a customer’s account.  A cash receipt should be entered when you receive any money from a customer outside of a Sales Order deposit or the POS module.  If the customer has no balance or the check does not stipulate which invoices are to be paid, the cash receipt can still be entered and it will become a credit on the customer’s account in the form of unapplied cash.  The decision to accept unapplied cash from a customer will vary based on your business practices.  You will also use this screen to apply unused credit memos to outstanding invoices.  This is called a zero dollar check.  After entering cash receipts, they must be processed using the Process Cash Receipts screen.  If the amount of the check does not match the amount of the invoice(s) being paid, there are several options.  A payoff document can be created that generates either a credit or debit memo and uses the balance of the check.  If the check amount is less than the invoice(s) being paid, the difference can be applied as a discount or allowance.

Detail

AR > Cash Receipts > Enter Cash Receipts

To Receive a cash receipt

Go to AR > Cash Receipts > Enter Cash Receipts

Fill out the screen header information

  • Date - When the screen opens the cursor is in the Date field.  This is the date you are entering the transaction.  You can either enter the date or press the tab key to default in the current date and move to the next field.

  • Deposit Date - is the date of the deposit ticket this cash receipt will be made on.  You can either enter the date or press the tab key to default in the current date and move to the next field.

  • Customer number - for the customer receiving the adjustment or press the F9 key pull up the Find Customer screen.  Once you select the customer, all their open invoices and memos will populate into the open invoice detail screen at the bottom.

  • Check Date - Once the Customer is entered press the tab key to move to the Check Date field.  This will be the date of the cash receipt.  You can either enter the date or press the tab key to default in the current date and move to the next field.

    • Check number – The customers check number,

    • Check Amount - The amount of the cash receipt.

Note:  Contrary to the screen name most companies will not actually apply CASH through the AR module and this screen, However if you do we suggest putting CASH followed by the days date into the check number field.  (CASH042709) You will only be allowed to enter the word cash once before you get a duplicate check number error, different deposit dates will help you sort later.

  • Bank – This code will default in automatically from the customer record but can be changed if necessary.  Enter the bank code that is associated with the cash account that this transaction should be posted to.  If the bank code is not known press the F9 key to view a list of values to choose from.  Press the tab key to move to the next field.

  • Description - will default in with the data entered in the Check number field, but this can be changed if needed. 

  • Terms - will default in from the customer record but can be changed if necessary.  If the terms type is not known press F9 to view a list of values to choose from.

Cash Receipts Detail

  • Apply To - There will be a list of open documents that are on the bottom of the screen.  Double clicking on one of those documents will move it to the "apply to" field.  This is the document that the cash receipt will be applied to.

  • Balance Due – the balance due of the items that you have chosen to apply the cash to.

  • Due date – The system will supply this date, it is the date the invoice is due to be paid, it will control aging

  • Disc Date – The discount date from the invoice, this date is based off of the customers terms

  • Discount – amount that you can enter as a discount, this field will allow an invoice that more than the cash receipts to be cleared out by putting the difference in the discount filed

  • Allowance - amount you can enter as an allowance.  If the cash receipt is more than the invoice and you would like to just apply it and forget about it then you put the difference in the allowance field.

  • Cash applied – this is how much of the cash receipt that is being applied to the invoice, this can be changed by the user.

  • Total Applied – system field that calculates the line item total