Cash Receipts

The Cash Receipts module allows you to recall an updated Bank Deposit which allows the user to attach payments against invoices if not attached automatically from the Bank Deposits which is covered in Section 1 below. The cash receipts allows you to attach a vendor credit memo to a specific invoice which is covered in Section 2 below.   The cash receipts allows you to attached a customer invoice or vendor invoice and send the amount to a specific General Ledger Account which is covered in Section 3 below.

Invoice Types in the statement tab under the customer maintenance.

INV = Invoice (invoices done through Point of Sales or Order entry)

COR = Correction (it means that the user went directly to cash receipts and did some corrections such as interest write-offs)

CRD = Cash Receipt Deposit (it means that the user entered all cheques received through the Bank Deposit module)

C/R = Cash Receipt (it means that the user attached the payments received through the bank deposit to some of the outstanding invoices on the customer's account)

Section 1: How to apply a payment to a customer invoice:

Deposit Number: The user must recall the Deposit Number that the system automatically in the Bank Deposit module.  If the user knows this number, the user can type it in and press enter or if not, the user can perform a search by pressing enter and the system will display the outstanding bank deposits which are not applied. The user must select the proper bank deposit number to apply these payments.

Please Note: The system will display all payments on account that was entered through Point of Sales by individually by Customer.

For this example, Bank Deposit 16 will be chosen:

Once the deposit was selected the system will display the following screen:

The user must select the first customer from the list to apply the payment to the invoices.  The system will ask you the following question:

The user must select “Unpaid” to see only the unpaid invoices and “All” to see all invoices.

In this example, Unpaid invoices has been chosen:

The system will suggest applying this partial payment to the oldest invoice since the option is set to yes to automatically attached payments to the old invoice. If not, the user will have to choose the invoices manually to apply the payment.  If the user agrees to apply this partial payment to the suggested invoice, the user can press F2 to accept this payment.

The user must select Yes to continue with this update is he agrees with payment.

If the user doesn’t want to pay the suggested invoice, the user must select the line (highlighted in purple) and press Do not pay or simply Pay Nothing from the options that are found on the left bottom side of the screen and the system will clear any suggested lines.

Pay – The system will apply the partial payment to the suggested invoice which is highlighted in yellow.

Do Not Pay – The system will not apply the partial payment to the suggested invoice which is highlighted in yellow.  Therefore, the user must select another invoice to apply this partial payment by selecting the line number by double clicking on it and the system will bring you to the discount field.

Pay Nothing – The system will pay nothing if this button is pressed. The system will clear any attachments that were made.

As you can see, no invoices has a paid amount after clearing the suggested invoice:

If the user selects not to pay the suggested invoice, the user must select another invoice to apply this partial payment by selecting the line number by double clicking on it and the system will bring you to the discount field.

Discount: Type in discount if customer is eligible for a discount and press enter

Paid: The user must type in the amount of the cheque and press enter.  In this example, the amount was $500.

As you will notice, the payment will be applied to the second invoice on the list and not the first one like the system suggested.

Once the payment is fully applied to the proper invoice, the user must press F2 to end this cash receipt and the system will ask you the following question:

Yes – The user must press Yes to proceed with this update

No – The user must press No if not ready to proceed with this update and these entries will be cancel.

Cancel – The user must press Cancel if not ready to proceed with this update but want to stay in this screen to modify some payments.

For this example, the user selected Yes to proceed with the update. The system will bring you back to Deposit Number so the user can recall another one. If so, please refer to the instructions above on how to apply a payment to an invoice.

If not, the user must press Alt-F4 to exit the cash receipts module.

The cash receipts update will affect the customer’s account in the sense that it will apply the payment to the invoices.

Statement for customer 12 after partial payment was applied to an invoice.

Note:  Since the payment was applied through cash receipts, you will notice that the system applied the cash receipt to the CRD payment as well as the Invoice. You will see this whenever a payment is attached with the cash receipt module.

It is different when system attached the payment automatically through the deposit.  You will see the invoice and payment with CRD type code.

Customer over paid his total amount:

Once the bank deposit is entered, recall it through cash receipts (follow instructions above to recall the bank deposit and display invoices for this this customer.

For this example, customer gave $2,500 payment on his account.

The system will suggest the invoices that you should pay, which are highlighted in yellow, if you do accept this, you can press Pay and you have nothing else to do with this payment.  If this is not the invoices that you want to pay, you must press on the button "Pay Nothing" and tell the system which invoices that you want to pay.  This amount is attached to the oldest invoices and since that the customer overpaid, the system will apply a partial amount to an invoice.  If you accept this the way it is, the user must press F2 and answer yes to the following question:

Customer under paid his total amount by a couple of pennies:

Once the bank deposit is entered, recall it through cash receipts (follow instructions above to recall the bank deposit and display invoices for this this customer.

For this example, customer gave $1,467.00 payment on his account.

At this time, the user has 2 choices since the customer under paid by 3 pennies.

1st Choice: The user accept the payment the the way it is, if so, the user can press F2 to continue to update the cash receipts and the system will keep 3 pennies outstanding on this invoice to be paid.

2nd Choice: The user do not accept the payment the way it is since you do not want to leave 3 pennies outstanding on this invoice.  The user will double click on the line and add a discount of .03 pennies, which will affect the discount general ledger account and will pay this invoice in full and nothing will be outstanding on this invoice.

Once the user is happy with the payment, the user will press F2 and say yes to the following question:

Section 2: How to apply a vendor credit memo to a vendor invoice

To do this step, the user doesn't have to start with the Bank Deposit since there's no cheque amount to enter. The user can go directly to cash receipts module.

Deposit Number: The user can press enter and answer yes to make corrections.

Deposit Date: The user can press enter to accept today's date.

Bank: The user must select a bank from the pull-down list.

Once this information is entered, the user will double click on Vendor which is located in the tab in the middle of the screen:

Vendor Number: The user can enter the vendor account number and press enter or can perform a search to look up for a vendor by pressing F1.

Vendor Name: The vendor name will appear automatically when the vendor number is entered.

Document Number: The user must type in the document number and press enter if the user knows the document number or can press F1 to perform a search.  The user must press enter twice and the system will display a list of all the outstanding invoices on this vendor's account:

The user can select the line by using the mouse and double clicking on the line or can use arrows up and down to highlight the line and press enter. For this example, I will select the credit of 25.43 which is document number 619880CR-37.

The cursor will be under the Paid column once the document has been selected.

Paid: The user can accept this amount by pressing enter of can change the amount by typing over the amount displayed by the system.  In this example, I pressed enter to accept the whole credit.

The user will notice that the distribution amount is now sitting as a credit of 25.43.

Next step: 

The user must attach this credit to a vendor's invoice. To do this follow the same instructions as above starting by entering a vendor number which is usually the same as previously entered.  Once the vendor displayed, the user must type in the document number to attach the credit memo to.  Once the document displayed, the user must accept or change the paid amount depending if the invoice amount is the same amount or different from the credit memo.

For this example, the amount of the invoice is different from the credit so the paid amount must be changed to reflect the same amount as the credit.  The user must type in the credit amount but with no negative sign in the front so it will be entered as a positive amount but with no plus sign. In this example, the user must type in 25.43 and press enter to accept the amount paid.

The user will notice that both entries balances with the same amount but one is with a credit amount and the other is with a positive amount. Please notice that the amount to distribute is at zero again and this means that everything balances.

The user can attach more credit to a vendor invoice by following the steps in section 2 or can accept this the way it is an update the cash receipts when done and the system will attach the credit to the invoice.

Cash Receipts Closing:

Once the user is happy with the entries, the user must press Alt-F4 to update the cash receipt entries and the following window will pop-up:

The user can click on No and this will cancel all the entries that were pending or click on yes to update these entries. Once updated, the system will bring you back to the cash receipt menu.

Copy of the statement before the credit was applied to an invoice:

Copy of the statement after the credit was applied to an invoice:

The user will notice that the credit is attached to an invoice and the invoice is attached to the credit. The user will also noticed that the statement total is the same since we only attached a credit to an invoice so no cheques were involved in this transaction.

Section 3: How to apply an amount to a General Ledger

This section will apply when you want to write-off the interest that was calculated on a customer account and the customer didn't pay it.

To do this step, the user doesn't have to start with the Bank Deposit since there's no cheque amount to enter. The user can go directly to cash receipts module.

Deposit Number: The user can press enter and answer yes to make corrections.

Deposit Date: The user can press enter to accept today's date.

Bank: The user must select a bank from the pull-down list.

Customer: The user must type in the customer number or press F1 to perform a search to look up for the customer's account.

Document number: The user must type in the document number or press F1 and press enter twice to display the outstanding invoices on his account:

The user must select the invoice to write-off by double clicking on it.  The user must confirm the amount by pressing enter or the user can change the amount to a lower one if necessary.

Once the amount confirm, the user will double click on Account Number:

The user can type in the General Ledger account number or press F1 to perform a search.

The user must type in some information to search and press enter and the system will display the accounts based on the information.

For this example, the interest earned account will be chosen. The user must double click on the account.

Warehouse:  The user must enter his warehouse number and press enter

Reference: The use can enter a reference or slight explanation why is is posting to this account such as "Interest Write-Off".

Amount: The user must type in the amount to write-off. Please note that it is very important that you check the amount to distribute on the top right hand side since it has to be entered the same way that you see in this field.  If the amount to distribute is a negative, than the user must type in a negative followed by the amount in the amount.  Please refer to the screen below: In this example, the amount to distribute is -20.89 so the user entered -20.89 in the amount in the General Ledger portion.

Once the user entered the amount based on the distribution amount and press enter. The user will notice that the amount to distribute will drop to zero.

This means that the transaction entered is in balance and the user can close this one by pressing F2 and say yes to the following question:

In Customer Maintenance, Statement Tab, you will see that the Interest invoice was corrected and now is at zero: