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.

Summary of steps for Entering a Cash Receipt:
 
  1. Navigate to the Cash Receipts Tab or the Cash Receipts related list on the Account.
  2. Click New and Enter the follow fields as appropriate:
    1. Account - Select the account the payment is from in this field.
    2. Payment Reference - This is mostly used to enter the check number or wire information.
    3. Receipt Date - Enter the date the cash receipt was received in this field.
    4. Accounting Period - This field is used to specify the accounting period for financial reporting. Accounting period must have a value of "Open." This field can be left blank and will automatically populate with the accounting period that the receipt date resides in.
    5. Posting Status - A status of "In Process" indicates the receipt has not been posted or finalized. A status of "Posted" indicates the receipt is final and cannot be edited. A posted cash receipt creates debit and credit lines in the transaction table. An un-posted cash receipt has unrelated transaction lines.
    6. Amount - Enter the total amount of the receipt here.
    7. Type - This field is optional and can help in filtering reports and list views for the following types of transactions: Customer Receipts, Customer Prepayments, Vendor refunds, Other receipts
    8. Bank Account - Select the bank account for the deposit. Upon posting, the bank account selected here will be debited and a credit entry will be made to the "Unapplied Cash GL Account" in accounting settings if the Credit GL Account is left blank.
    9. Credit GL Account - If this field is left blank, the Credit GL Account used in the related transaction will be to the "Unapplied Cash GL Account" in accounting settings. If this field is populated, the GL account specified in this field will be used. The typical use case for populating a value here is to use a pre-paid deposit account for customer deposits in a retainer billing model. If the Credit GL Account field is populated here, it will also be relived when the amount is applied.
    10. Additional Accounting - Select a project, project task, or any GL account variables here, and this information will post to the transaction. 
  3. Click Save

Summary of steps for Applying 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 the cash receipt record you would like to apply. Click the "Apply" button at the top of the screen. The apply payment screen will generate.
  2. The apply payment screen will show all open billings for the associated account. Pagination allows users to page through a set of up to 2000 records for a Cash Receipt. Each page must be saved before you can page through additional pages.
  3. Find the billing you with to apply the amount in, and type the amount in the Applied Amount field. If the check did not cover the whole amount due to a discrepancy, the partial amount can be applied. It will reduce the billing balance by that amount, and the billing status will now reflect the partial payment as opposed to the full payment. 
  4. Cash Application adjustments can be used to record the following in the cash application process: Payment Discounts, Bank Fees, Short payments
  5. Select "Done" once you are finished.

 

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8 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

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