Overview
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:
Create a Cash Receipt
- Navigate to Accounting Home and click the Create Entries tab. Then, under the Revenues menu, click Cash Receipts.
- Click New. Then, enter the following fields for each section, as needed. Required fields display with a red asterisk (*).
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Information
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Customer (Account): Select the Account the payment is from in this field.
Note: Once an Account is set to inactive (Accounting Type field is set to “None” and the Accounting Active checkbox is de-selected on the Account screen), it will no longer be available from the Lookup search. - Type: This field can help in filtering reports and list views for the Customer Receipts, Customer Prepayments, Vendor refunds, and other receipt transactions.
- Ledger: This denotes the associated Ledger. Click the Lookup icon to search for and select the Ledger.
- Posting Status: A status of In Process indicates the receipt has not been posted or finalized. When initially creating a new Cash Receipt, the default status is Approved, which indicates the receipt has been finalized and can be posted. 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.
If the Auto-Post setting for Cash Receipts is enabled on the Post Settings screen, a Cash Receipt that is in an “Approved” status will automatically post after it is saved (without having to click the Post button). Additionally, if the Auto-Post setting for Cash Receipts is enabled, and you manually change the Posting Status on an existing Cash Receipt to “Approved,” this record will automatically be posted. If this setting is not enabled, but the daily Scheduled Post job has been created, all “Approved” Cash Receipts will automatically be posted based upon the Next Run Date and Preferred Start Time.
Note: If your default Posting Status is not set to “Approved,” it should be changed to this status. - Receipt Date: Enter the date the Cash Receipt was received in this field.
- Accounting Period: This is used to specify the Accounting Period for Financial Reporting. Click the drop-down list to search for and select the Accounting Period.
Note: This field can be left blank and will automatically populate with the Accounting Period for the receipt date. - Amount: The total amount of money received in a check or electronic deposit for this Cash Receipt.
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Customer (Account): Select the Account the payment is from in this field.
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Customer Refund Information
The Customer Refund information will be auto-populated on a completed Refund Cash Receipt. However, when you create a new Cash Receipt, these fields display blank.
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Alternate Payee Name: If an Alternate Account Name is entered on the Account, that name will default to this field once the record is saved. This information will be included on the check in the Payee field when a Refund Cash Receipt is processed.
Note: The default Alternate Account Name in this field can be overridden. - Payment Type: The default is Check. Click the drop-down list to change the default to Electronic.
- Check Number: Enter the associated check number.
- Memo: Use this field to enter note information that will print in the Memo field on the actual check.
- Payee Street: The street address for the Payee, as it appears on the check.
- Payee City: The city name for the Payee as it appears on the check.
- Payee State: The state name for the Payee as it appears on the check.
- Payee Postal Code: The zipcode for the Payee as it appears on the check.
- Payee Country: The country name for the Payee as it appears on the check.
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Alternate Payee Name: If an Alternate Account Name is entered on the Account, that name will default to this field once the record is saved. This information will be included on the check in the Payee field when a Refund Cash Receipt is processed.
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Description and Reference Information
- Description: A written representation of the purpose for this Cash Receipt.
- Reference: The customer’s check number or the electronic transaction’s reference number.
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Payment Processor – When using Cardknox or Stripe as your Payment Processor, this field is conditionally rendered. This means the field will only display if you receive a payment using Create Payment, Receive Payment, or through the Payment URL/Payment Link that is on the Billing.
Note: This field will not display when a Cash Receipt is manually created using these steps.
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Accounting Information
- Bank Account: Select the bank account for the deposit. The GL Account here will be debited with this transaction. If left blank, it defaults to the Bank Account that is set in the Default Bank Account field on the Ledger screen.
- Credit GL Account: If left blank, this will default to the Unapplied AR GL Account set on the Default GL Accounts. 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 be posted to the transaction.
- Banking Information: Bank Deposit, Bank Transaction, Bank Transaction Date, and Bank Reconciliation will be automatically populated as the Cash Receipt moves through the accounting cycle. Leave these fields blank.
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Voided Information: Once a Cash Receipt has been created, if at any time the Void button was clicked to void the Cash Receipt, the information in this section will automatically be updated on the Cash Receipt.
- Void: checkbox will be selected if the payment has been voided.
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Void Date: the actual date the Cash Receipt was voided will display in this field.
- Void Description: if entered, a descriptive reason for the void will display in this field.
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Information
- Click Save.
Apply a Cash Receipt in Lightning
Once a cash receipt has been entered and posted, it is now ready to be applied to the account that was billed.
The Cash Receipt Apply screen in the Lightning UI supports record pagination of up to 2,000 records. From this screen, you can quickly and easily perform tasks such as the following:
- Select a different customer for applying the Cash Receipt
- Enter and search for a specific Billing Number
- Select the Posting Status as Posted, Approved, or All
- Enter a Billing Date Range and/or a Due Date Range
- Enter a Billing Amount range.
The Received Amount and Applied Date displays for each Billing, and can be adjusted, if necessary. In addition, the Adjustment Amount and Adjustment GL Account can be modified for each Billing. When you click an arrow to apply a Cash Receipt amount, the Applied and Balance fields automatically adjust accordingly.
If the applied amount on the Cash Receipt brings the balance on a Billing to 0.00 (zero), the Paid Date on the Billing will display the same date as the Applied Date. Otherwise, the Paid Date on the Billing will display blank. The Paid Date on the Billing will only populate when the Billing is fully paid.
Note: If there is more than one application of cash or credit, when the balance on the Billing reaches 0.00, the latest Applied Date from the Cash Receipt or Credit Memo will be used as the Paid Date on the Billing.
Note: To have the Paid Date field automatically populate on existing Billings that have been fully paid (Balance = 0.00), display each Billing, click Edit and then click Save. Additionally, if you have Billings that are before the Iris release, you must first Edit and Save the Billing Cash Receipt (BCR) record. Then, Edit and Save the Billing in order to have the Paid Date automatically populate.
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Navigate to Accounting Home and click the Create Entries tab. Then, under the Revenues menu, click Cash Receipts.
Important: The remaining steps to actually apply a Cash Receipt are only applicable if you are using the Lightning UI. -
Open the Cash Receipt you want to apply and click Apply/Unapply. The Cash Receipt Apply screen displays.
Note: If Cardknox is your Payment Processor, and you include Convenience Fees, the amount of Convenience Fees charged on the Cash Receipt will display at the top of the screen. The Convenience Fees amount that display here is only for informational purposes. The Cash Receipt Total will include the Convenience Fees amount. However, the Convenience Fees will not be included in the Applied or Balance amounts. Therefore, the Convenience Fees cannot be applied to the Billing.
Note: If the Cash Receipt has already been voided, an error message will display. You cannot Apply/Unapply a voided Cash Receipt.Note: Click here to view the above image in full screen.
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To modify/narrow the search criteria, perform any of the following, as necessary:
- In the Customer field, to select a different customer for applying the Cash Receipt, click the X to remove the current customer. Then, search for a new customer.
- In the Billing Number field, enter a specific Billing number to search for.
- In the Posting Status field, click the drop-down to select Posted, Approved, or All.
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In order to enter any of the following filters, you must have selected a Customer, Billing Number, or Posting Status.
- Billing Date Range - Click the Calendar icon in the From/To fields to select a date.
- Due Date Range - Click the Calendar icon in the From/To fields to select a date.
- Billing Amount - Enter a beginning and ending amount.
- Click Search Billings to search for the selected criteria.
- Click a right arrow to move a selected amount into the Received Amount field.
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(Optional) Make adjustments to any of the following fields, as necessary:
- Received Amount
- Applied Date
- Adjustment Amount
- Adjustment GL Account
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Do one of the following:
- Click Save & Complete to save your changes and return to the Billing record screen.
- Click Save & Refresh to save your changes and refresh the Cash Receipt Apply screen.
- Click Save & New to save your changes and display the New Cash Receipt dialog box to create a new Cash Receipt.
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When the Cash Receipt is applied, a Billing Cash Receipt (BCR) is created, which connects the Cash Receipt to the Billing. To review the applied information, click the Applied To tab. Then, scroll down the page to view the applied information, as necessary.
Important: A user-defined posting status should not be created or assigned as a default status on the Billing Cash Receipt object. This will interfere with the posting of these records.
A Billing Cash Receipt (BCR) will use the Account name from the Billing (instead of from the Cash Receipt) for the following transaction record types:
- Accounts Receivable
- Adjustments (which will display as Customer Payment Discounts)
- Currency Gain/Loss (when Multi-currency is enabled and the Currency Conversion Rate on a Cash Receipt and Billing are different)
A Billing Cash Receipt (BCR) will use the Product, Project, Project Task and GL Variables from the Cash Receipt for the following transaction records:
- Unapplied Accounts Receivable
- Accounts Receivable
- Adjustments
- Currency Gain/Loss
Note: Click here to view the above image in full screen.
In the sample screen below, the Account name (Alpha Communications) from the Billing is used for the Accounts Receivable and Customer Payment Discounts transaction record types. The Project, Project Task, and GL Variables from the Cash Receipt record is used for all of the below transactions.
Note: Click here to view the above image in full screen.
Track Retainers and Customer Prepayments
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 prepayments and/or retainers in the unapplied AR GL account by default.
If you would like to track retainers or prepayments in a GL Account other than unapplied AR, simply override the Credit GL Account on the Cash Receipt to a prepayment liability/customer deposit account. As cash is applied to Billings, the liability GL Account set on the Cash Receipt will automatically be relieved.
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Spring '24 Release
- With Cardknox as your Payment Processor, Convenience Fees can be included on payments that are processed in Accounting Seed.
- With this release, Cash Receipt and Cash Disbursement records must have the Approved Posting Status in order to be posted or auto-posted. This change makes these two objects consistent with our other objects and conform to the correct Accounting process. Similar to the other objects, if you attempt to post a Cash Receipt or Cash Disbursement while they are in any other Posting Status, an error message will display.
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Summer '23 Release
- When using Cardknox or Stripe as your Payment Processor, the new Payment Processor field is conditionally rendered. This means the field will only display if you receive a payment using Create Payment, Receive Payment, or through the Payment Link that is on the Billing.
- When the Balance on a Billing is made 0.00 (fully paid), the Applied Date of the most recent cash or credit application is set as the Paid Date on the Billing.
- The Save & New button has been added to the Cash Receipt Apply screen.
Comments
15 comments
The Apply screen would be another one which I think would benefit from field sets. We use a custom billing number field which appears on the face of the Billings which we send our clients. They often put that number on the check stub or in the wire information which should make it easy for us to apply the payment to the correct Billing. However, since our custom billing number doesn't appear on the Accounting Seed Apply Cash screen, it's not as easy as it could be.
I have a related company who sends us a check each month for a loan payment that needs to be split between interest and principal when the cash receipt is recorded. How do I add an additional G/L line to a cash receipt?
Hi Lloyd,
Try using a workflow to populate the Proprietary Billing Number field with your custom field. This will then show up on both the pdf invoice and the cash receipts application screen.
Hi Jeanae,
It sounds like your cash receipt does not have an associated billing. In this case, you can either create a billing with separate billing lines pointing to each G/L account and then apply the cash receipt to it or create a journal entry with multiple lines. You may also benefit from our recurring billing. If you have more questions about this, please submit a ticket with support.
Hi Ryan,
You are correct, we do not send bills for this loan as it is not a sale and does not generate revenue other than the interest. I'm not sure if the recurring bililng would work as the split between principal and interest changes as every month. Thanks
Jeanae,
Please submit a support ticket to support@accountingseed.com so we can walk through your specific options.
I have a customer who overpaid an invoice and has no other oustanding invoices to apply the overpayment too. How do I handle this when applying the payment and I have a positive balance left on the "Cash Receipt Apply" page? Thanks!
Hi Jeanae,
In this case you may want to do one of two things: keep or refund the overpayment. I have inserted the knowledge base article below that shows you how to complete the steps for both options.
https://accountingseed.zendesk.com/hc/en-us/articles/217368428-Customer-Overpayments
If you still have more questions regarding this topic, feel free to submit a support a ticket at
https://accountingseed.zendesk.com/hc/en-us/requests/new
Customers sometimes OVERPAY by a few cents, for which we aren't going to issue a credit memo or make a refund. The "Adjustment Amount" on the cash receipts screen needs to allow for "negative" numbers as well for these small payment differences. It costs $$$ in labor to now have to make a billing for 2 cents on an over-payment and then go back into the cash receipt to apply the extra 2 cents remitted. This happens a lot when you're processing payment of 800 - 1,000 invoices a month.
We changed the validation rules on the adjustment field to allow negative numbers
Hi Anna,
Turning off that validation rule allows for a negative cash receipt, but Jeanae is asking about the "adjustment amount" field in the cash receipt application page. Currently, this is useful if a customer underpays and you just want to write off the remaining balance of the billing. If a customer overpays by just a little, it would be useful to write that off by using this field and this improvement is on our roadmap.
Thank you,
Ryan
Is there a new validation rule which prevents booking a Cash Receipt in, say 2018-07, and applying it to a Billing which has 2018-08 as its Accounting Period? If so, do you have a suggestion about how to account for prepayments by our clients?
Hi Lloyd,
In this example, as you are applying the cash receipt to the billing, are you entering in 2018-07 as the applied accounting period? If so, yes there is a rule in place to not allow this since the billing is created in 2018-08. If this was applied in 2018-07, then A/R would be incorrectly decreased because the related billing has not yet been posted to it.
The best practice for prepayments are to enter in the cash receipt and credit some prepayment GL account in 2018-07. Then, create the billing in 2018-08 and apply the cash receipt with a application accounting period of 2018-08.
Thank you,
Ryan
I have a couple of questions:
1. What exactly is the purpose of applying a Cash Receipt? What is the end-result?
2. When trying to apply a cash receipt, I am getting the following error: "The cash receipt does not have any matching billing records for NDPI " ... However I have got Billing records associated with that Organisation, and those Billings have been posted. Why am I seeing this error?
Thanks!
Good morning Justin,
Can you please log this as a support ticket to our support desk?
www.support.accountingseed.com
Thanks!
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