A cash receipt is used to record inbound cash received from a customer, investor or vendor. When a cash receipt is initially created and saved, it is automatically posted. It can then be applied to one or more Billing records.
Do you want to:
Enter a Cash Receipt
1. Navigate to Accounting Home and under Cash In, click Cash Receipts.
2. Click New Cash Receipt, enter the following fields as needed, and click Save.
- Customer (Account): Select the account the payment is from in this field.
- Receipt Date: Enter the date the cash receipt was received in this field.
- Amount: Enter the total amount of the receipt.
- Payment Reference: This is mostly used to enter the check number or wire information.
- Type: This field is optional and can help in filtering reports and list views for the Customer Receipts, Customer Prepayments, Vendor refunds, and Other receipts transactions.
- Accounting Period: Used to specify the accounting period for financial reporting. This field can be left blank and will automatically populate with the accounting period that the receipt date resides in.
- Posting Status: A status of In Process indicates the receipt has not been posted or finalized. A status of Posted indicates the debits and credits have been recorded in the ledger, and the Cash Receipt cannot be edited unless it is first unposted.
- Bank Account: Select the bank account for the deposit. The GL Account here will be debited with this transaction. If left blank it will default to the default Bank Account set on the Accounting Settings tab.
- Credit GL Account: If left blank this will default to the Unapplied ARGL Account set on the Accounting Settings tab. This GL Account is a contra-asset suspense account that will be credited with this transaction, and then debited when the Cash Receipt is applied to a Billing.
- Cash Flow Category: If cash flow functionality is being used, select the appropriate Cash Flow Category for the Cash Receipt.
- Additional Accounting Fields: GL Variables, Projects, Products, and Project Tasks can also be tagged. If populated, the information will post to the transaction.
- System Fields: Bank Deposit, Bank Reconciliation, and Cleared Date will be automatically populated as the Cash Receipt moves through the accounting cycle. Leave these fields blank.
Apply a Cash Receipt
Once a cash receipt has been entered and posted, it is now ready to be applied to the account that was billed.
- Navigate to Accounting Home and under Cash In, click Cash Receipts.
- Open the Cash Receipt you want to apply and click the Apply button. The Cash Receipt Apply page will show all posted, open Billings for the associated account.
- Enter the amount to apply in the Received Amount field for each Billing listed, or use the Quick Apply Arrow to the left of the Received amount field.
- Cash Application adjustments can be used to record Payment Discounts, Bank Fees, Short payments in the cash application process.
- Click Save and Complete.
Track Retainers and Customer Pre-Payments
Retainers and prepayments can be recorded in Accounting Seed as a Cash Receipt. When a Cash Receipt is created, a debit to cash and a credit to unapplied AR will be created. Accounting Seed will track pre-payments and/or retainers in the unapplied AR GL account by default.
If you would like to track retainers or pre-payments in a GL account other than unapplied AR, simply override the Credit GL account on the Cash Receipt to a pre-prepayment liability/customer deposit account. As cash is applied to Billings the liability GL account set on the cash receipt will automatically be relieved.
- The Product field has now been added to the Cash Receipt so users can tag a product if necessary. When added, the product value will be shown on the Cash Receipt's transactions posted to the General Ledger.