Background: Cash Receipts Entry
Use the Cash Receipts Entry (RCE) program to enter customer payments and adjustments and to print the Cash Receipts Register. See Road Map for work flow.
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The Cash Receipts Entry program has been designed for fast and easy invoice selection. You must fully process invoices through the AR Invoice Register (RR) program before you can apply payments to them in the Cash Receipts Entry program.
The program accepts various payment methods, including check, credit card, and electronic funds transfer (EFT) transactions. If you process refunds, payment method code RF must be set up in AR Payment Method Codes Maintenance (TPMM).
The Cash Receipts Entry program accumulates GL posting data. The program is controlled by options set up in the System Options Maintenance (XM) program (Accounts Receivable Options) and the Posting Criteria Maintenance (XPC) program.
Automatically Apply Payments to Invoices
When you click Auto apply, the program applies payments to invoices based on the Payment application method you selected in the System Options Maintenance (XM) program (Accounts Receivable Options). The methods are invoice number, invoice date, invoice due date, and discount terms date. The program applies to the first number or earliest date for the method you selected.
Adjustment and Write-off Limits
The Adjustment limit in cash entry option in the System Options Maintenance (XM) program (Accounts Receivable Options) sets the maximum amount of debit and credit adjustments allowed, including no adjustments or unlimited adjustments. If an adjustment transaction exceeds this limit, the program will not allow the adjustment; you must use the AR Adjustments Entry (RB) program.
Likewise the Write-off limit in cash entry option in the System Options Maintenance (XM) program (Accounts Receivable Options) sets the maximum amount allowed for a write-off, including no write-off or an unlimited write-off amount. If a write-off transaction exceeds this limit, the program will not allow the transaction.
Customer Deposits
When you enter customer deposits in the Cash Receipts Entry program, the system writes them to a deposit master file for easier tracking and detailed reporting. However, you must run the Cash Receipts Register before you can apply them in the Sales Order Maintenance (OE) program to a sales order, the EDI/Sales Quote Maintenance (QOE) program to a sales quotation, or Sales Shipment Confirmation (OC) program to a shipment.
Miscellaneous Cash
You may receive payments that are not for an invoice or from a customer; for example, a tax refund or an employee's check to reimburse the company for using the shipping department to send his personal holiday gifts. For a customer, enter the customer number and payment method and select Misc cash receipt? For a non-customer, leave the Customer number field blank. In either case, you next select the GL account to which the payment is to be posted. When you click OK, the program prompts you for the off-setting revenue account.
On-Account Payments
If you do not know the number of the invoice to which it should apply cash, you can place the payment on-account. The program assigns each on-account payment for an individual customer a sequential number; for example, ON-ACCT00001 and ON-ACCT00002.
When you determine which invoice to apply the payment, select the on-account payment and then select the invoice. The invoice balance will be reduced by the amount of the on-account payment.
Credit Cards
To process credit cards, the system option (in System Options Maintenance - Accounts Receivable Options) must be set to allow credit cards in cash entry. See Credit Card Options for information.
Debit Memos
Customers may take credits that are really unauthorized. They may send you a payment, indicate that it covers ten invoices, and list credits that they are taking. For example, a product was damaged in shipping, and it is less than a set amount, so the customer does not have to physically return the item. Or, they may indicate that the pricing was incorrect.
Until customer service or you have time to investigate the claimed credit, you need to account for the full payment received and apply it to the invoices specified so that your records are in sync with what the customer thinks is paid. You can then click DR memos to create a new invoice for amount of the claimed credit, because the customer still owes this amount until someone decides that the credit is justified. If the amount is small enough and within the write-off limit for cash entry you might choose to just write the amount off. Sometimes the cost of investigation is more than the amount being disputed.
The debit memo will default to the accounts receivable account (set up in Posting Criteria Maintenance - XPC) and you should not alter it. When the debit memo is created you are recognizing that the customer owes you the disputed amount and reconciliation of the accounts receivable detail to the general ledger will require you to have debit memos included. The debit memo is marked as a disputed invoice; the reason code is specified in Cash Receipts Entry (RCE).
After investigation you can use AR Adjustment Entry (RB) or One-Step Invoice Entry (RE) to offset the debit memo as needed. Alternatively you can offset the debit memo to the original invoice to show the customer still owes the balance.
Delete a Transaction
You can delete an entire transaction any time before you enter PROCEED for the If the register is correct, enter PROCEED to update prompt for the Cash Receipts Register. If you delete a deposit number, you also delete all payments and applications for that deposit number. This saves you from having to click Delete multiple times.
Discounts
The Discount eligibility date option in the System Options Maintenance (XM) program (Accounts Receivable Options) determines whether the customer's eligibility for an AR terms discount is based the customer's check date or the date you deposit the check.
You can use the Discount grace period in days option in the System Options Maintenance (XM) program (Accounts Receivable Options) to extend the eligibility of customers to receive a cash discount. This grace period extends the AR terms. For example, if the grace period is 2 days and the AR terms is 2% 10 days / NET 30, you will give the discount if payment is entered on the 11th or 12th day.
Your settings for the Include misc charges in terms disc calc? and Include freight in terms disc calc? options in the System Options Maintenance (XM) program (Accounts Receivable Options) determine whether the AR Invoice Register (RR) includes or excludes miscellaneous charges and freight from the total invoice before calculating the potential discount.
Eligible Amount
An invoice line displays the eligible discount amount. Once the line is selected, the amount is the actual amount applied. (The amount may have been changed with the modify option.)
Preview and Final Register
When you print the Cash Receipts Register, these documents print in this order:
Seq |
Document |
Comments |
1 |
Preview register |
Review to be sure that it is correct. |
2 |
Preview journal |
If these options are selected:
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3 |
Final register |
If this option is selected:
|
4 |
Final journal |
If these options are selected:
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The Cash Receipts Register prints this information:
Deposit number
Deposit date
Deposit total if you entered a total in the Deposit total field
Payments entered
User who entered the deposit
This information prints for each customer:
Customer number
Payment method
Payment/Reference number
Payment date
Payment amount
ABA number
Currency
Organization code
Cash account number
Processing fee: Payment amount x Processing fee % or Processing fee amount
Customer name
This information prints for each transaction
Transaction type:
Code |
Transaction Type |
CA |
Credit Adjustment |
CM |
Credit Memo |
DA |
Debit Adjustment |
DI |
Debit Invoice |
DM |
Debit Memo |
DP |
Deposit |
PY |
Payment |
WO |
Write-off |
Invoice number or ON-ACCOUNT
Payment amount
Discount amount
Payment reference
Invoice balance
Totals include:
Total cash
Number of payments
Total miscellaneous cash
Credits applied
Total to be applied
Total applied to invoices
Total applied as on-account payments
Total applied as deposits
Total taken as credits
Total applied
Total fees
Total discounts
Total write-offs
Total credit adjustments
Total debit adjustments
Bank Reconciliation
Select the Update cash receipts to bank recon? option in the System Options Maintenance (XM) program (Accounts Receivable Options) if you want the system to update the cash payments entered in the Cash Receipts Entry program to the bank reconciliation system. The system updates total cash transactions as bank deposits to the Check Reconciliation (NBC) and Bank Transaction Audit Listing (NBCL) programs.
Program Options
You can set the Default to invoice lookup? option from this program only if you have an existing batch. If you do not have a batch, your system administrator can run the User Options Maintenance (UOPT) program to set the option for you.
Audit Trail
To activate an audit trail, select one of the files listed below in the Audit Trail Maintenance (XAT) program. The system records all transactions. You can then run the Audit Trails (ATR) program and select that file to print a report of these transactions.
S3: Commission Accrual
S3L: Commission Accrual Line