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.

Enter a Cash Receipt

1. Navigate to Accounting Home and under Cash In, click Cash Receipts.

2. Click New Cash Receipt and enter the following fields as needed:

  • 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, 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 Cash GL Account set on the Accounting Settings tab. This GL Account 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, 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.

3. Click Save.


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.

  1. Navigate to Accounting Home and under Cash In, click Cash Receipts.

  2. Open the Cash Receipt you want to apply.

  3. On the Cash Receipt page, click the Apply button.The Cash Receipt Apply page will show all posted, open billings for the associated account.

  4. 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.

  5. Cash Application adjustments can be used to record Payment Discounts, Bank Fees, Short payments in the cash application process.

  6. Click Save and Complete.
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15 Comments

  • 0
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    Lloyd Leanse

    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.

  • 0
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    Jeanae Remala

    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?

  • 0
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    Ryan Faulkingham

    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.

  • 0
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    Ryan Faulkingham

    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. 

  • 0
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    Jeanae Remala

    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

  • 0
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    Ryan Faulkingham

    Jeanae,

    Please submit a support ticket to support@accountingseed.com so we can walk through your specific options. 

  • 0
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    Jeanae Remala

    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!

  • 0
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    Theresa Arawole

    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

  • 1
    Avatar
    Jeanae Remala

    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.  

  • 0
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    Anna Anderson

    We changed the validation rules on the adjustment field to allow negative numbers

  • 0
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    Ryan Faulkingham

    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

  • 0
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    Lloyd Leanse

    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?

  • 0
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    Ryan Faulkingham

    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

  • 0
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    Justin Feldman

    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!

    Edited by Justin Feldman
  • 0
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    Mitch Gerwin

    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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