Activant Prophet 21

Cash Receipts Application and Posting Customer Payments

This class is designed for…

Accounts Receivable personnel in charge of cash application and deposits

Objectives

Post Cash ReceiptsApply Terms and AllowancesHandle OverpaymentsPerform Cash Receipts ReversalsApply Miscellaneous Cash ReceiptsFlag Disputed InvoicesPrint Deposit SlipsLocate Customer Payment Info

This course will NOT cover…

Customer MaintenanceCustomer Notepad MaintenanceBank MaintenancePayment MaintenanceInvoice GenerationCash Collection Call Maintenance

Where do we post cash?

Accounts Receivable > Transaction > Cash Receipts

Determine the option to use:

How do you receive payments?

What information arrives with payments?

Which Option Should I use?

Which option to use when posting cash?

Payments received with… Should be posted by…

Ship To and customer IDs Customer ID

Ship To records only Ship To ID

Multiple customer and Ship To Records

Corporate ID

Customer and Ship To IDs with invoices numbers

Quick Entry

Cash Receipts By Customer ID

Enter the Invoice Number OR Customer ID

Cash Receipts By Customer ID

Enter Bank Number Deposit Number defaults

Year/Month/Date-Bank Number

Cash Receipts by Customer ID

Enter Payment Type Created by user in System Setup Training

Cash Receipts by Customer ID

Enter Payment and Payment Details

Cash Receipts by Customer ID

Protobase Complimentary/Third-Party product: Credit Card Integration

Additional charge

Protobase will provide authorization of credit card Contact inside salesrep if interested

Cash Receipts by Customer ID

Verify Date Received and Period/Year

Posting Options

Apply Payment Automatically allocates the amountApplies payment from top to bottom until the amount is exhausted.

Default is to sort by Invoice Date.

Posting by specific invoiceEnter amount in Amount ReceivedPaid in Full checkbox

Apply Payment Option

Apply Payment Option

System Setting- Apply Credits in Cash Receipts

Apply Payment Option

If “Apply Credits in Cash Receipts” = YThe application will apply payments to invoices AND credits in Cash Receipts

Application is from the oldest invoice based on invoice date to the newest when Apply Payment = Y

Specific Invoice Application

1. True2. False

The “Amount Received” can NOT be edited if the “Apply Payments” checkbox is checked.

1. True2. False

If you check the accounts receivable system setting – Apply Credits in Cash Receipts, customer credits will be automatically be applied to the oldest to newest invoices in cash receipts.

AppShare

Enter a Cash Receipt for a customer

Accounting for Terms and Allowances

Set-up cash receipt following the steps reviewedPay special attention to the Terms Taken and Allowed Amount fieldsFollow your company procedure regarding terms and allowances

Adjusting Receipt Amounts for Terms Taken

Enter the amount to apply to the specific invoiceEnter terms in the Terms Taken field

System Settings

System Setup > System > Company Maintenance > Accounts Receivable tab

Adjusting Receipt Amounts for Allowances

Enter the amount to apply to the specific invoiceEnter the allowance in the Allowed Amount field

Allowed Amounts

Default is to post to Allowed account indicated in Customer Maintenance

Allowed Amounts

Change account or add multiple accounts

Posting Terms and Allowances

Post a check and apply a discount and allowed amount

Applying Credit Balances at Cash Receipts

Credit balance will increase the amount to applyEnter amounts to apply on specific invoicesLocate the Credit to apply and select the Paid in Full checkbox

Applying Credit Balances at Cash Receipts

Applying Credit Balances at Cash Receipts

Payment Type can be created specifically for applying credit balancesAccounts Receivable > System > Payment Type Maintenance

AppShare

Apply a credit balance to an outstanding balance

1. True2. False

The amount entered for terms can NOT exceed what is setup in Terms Maintenance.

1. Allowed amounts can not exceed what is setup in Company Maintenance

2. Users have to have permissions to enter allowed amounts

3. Clicking the RMB on the Allowed Amount field will allow you to change the default account

4. None of the above

Which of the following is NOT true regarding allowed amounts?

Overpayments

Apply invoice amounts appropriatelySave the recordSystem will display a message and will create a zero dollar invoiceEnter the Ship To ID and Branch Save the record

Overpayments

Overpayments

If record is saved with an amount in the “Amount to Apply” field, this message will be retrieved:

Overpayments

Enter Ship To ID

Overpayments

Enter Branch ID on the Branch tab and Save record again

How does Cash Receipts affect the G/L?

Cash Receipts affect on General Ledger

What? Where? How?

Cash Account Bank File Debit

Terms Customer Record Debit

Allowed Account Customer Record Debit

A/R Customer Record Credit

Additional tabs: Cash Receipts

Previous Payment tabCustomer Notes tabCash Collections Call tabBranch tabDocuments Link

Previous Payments tab

Information detailing past payments

Customer Notes tab

Customer Notepad Maintenance

Cash Collection Call tabs

Cash Collection Calls tab

Cash Collection Call Invoices tab

Branch tab

Displays Branches associated with invoiceBranch Accounting

Remember!

The application of cash by Customer ID, Ship To ID, and Corporate ID are very similar!Your choice is determined by the manner payments are received!Always balance the payments applied to the amount received!

1. Debit2. Credit

What type of account balance is posted with an overpayment?

1. True2. False

When you create a prepayment invoice in cash receipts, both the ship-to id and the branch id automatically default in.

Cash Receipts Quick Entry

Accounts Receivable > Transactions > Cash Receipts Quick Entry

Current Check tab

Invoice Information tab

Reversing Payments

Reverse cash receipts already applied to invoicesHelpful in three scenarios

Need to reverse payment because of returned checkApplied payment multiple timesApplied payment to wrong invoice or wrong customer

Can charge service charges to returned checks

Reversing Payments

System Setup/System/Company Maintenance

Reversing Payments

AR/Transaction/Reverse Payments

Reversing Payments

Reversing Payments

Query for paid invoices

Locate invoice(s) to reverse

Reversing Payments

Returned Check

AppShare

Reverse payments due to a returned checkQuery for a customer and reverse paymentsAssess a returned check fee

Reversing Payments

Payment applied multiple timesLocate invoice(s) to reverseScroll to right to check Reverse checkboxSave record

AppShare

Reverse a payment that was applied in error/multiple times

Reversing Payments

Applied payment to wrong invoice or wrong customer

Reversing Payments

Reverse payments applied to the wrong invoice or wrong customer

Retrieve data and locate invoices to reverse

Click on the Payment Form View tab

Reversing Payments

AppShare

Reverse a payment and reassign to another customer/invoice

Reversing Payments

Any invoice that is reversed maintains the original invoice date and ages appropriately

GL postings are in the period in which it is reversed

AR drill down by Customer and Payment displays the reverse payments

Reversing Payments

Track AR by BranchY = GL postings post at branch level for

receivable reversed or applied.

Intercompany postingsReversing payments for intercompany

transactions will reverse intercompany payables and receivables

Terms and allowances post to accounts associated with company that generated invoice

1. True2. False

In order to apply a reversed payment to another invoice or customer, you must click on the Payment Form View tab.

Miscellaneous Cash Receipts

Use for deposits not related to invoicesAR > Transactions > Misc. Cash Receipts

Miscellaneous Cash Receipts

Enter the Bank Number for the DepositEnter the Account Number, Reference, and associated credit/debit

Miscellaneous Cash Receipts G/L Impact

Postings are based on user entry - debits and credits post according to entry

AppShare

Enter a check in the amount of $300.00 for an August Rebate Incentive Program

1. Tax Refund2. Rebates3. Payment from Customer 4. All of the above 5. 1 and 2

What are some uses for Miscellaneous Cash Receipts?

1. True2. False

Miscellaneous cash receipts appear on the Accounts Receivable Deposit Slip Report

Disputed Invoices

Accounts Receivable > Transaction > Disputed Invoices

Use this option when a “dispute” occurs between you and your customer about a particular invoice

Disputed Invoices

Place Invoice in DisputeKey or search for the invoice. Select the Disputed checkbox. Save the record.

Disputed Invoices

Remove Disputed StatusKey or search for the invoice. Uncheck the Dispute checkbox. Save the record.

Key Points: Disputed Invoices

Disputed InvoicesDo not display in Cash Receipts

Invoices removed from disputeFinance charges and aging apply based on the invoice date

1. Cash Receipts2. AR Trial Balance3. AR Drill Down

A Disputed invoice can be viewed in all of the following except _____.

1. Prevents the Invoice from appearing in cash receipts

2. Prevents memos from being applied to the invoice since it does not display in cash receipts

3. Prevents finance charges from accumulating on the invoice

4. All of the above 5. None of the above

A disputed invoice has the following functions:

Reports and Inquire

Deposit SlipsA/R Drill Down by Payment

Deposit Slips

Accounts Receivable > Reports > Deposit Slips

Deposit Slips Criteria Tab

Company IDBankDeposit Number

Locating Customer Payment Information

Accounts Receivable > Inquire > A/R Drill Down > By Payment

AppShare

Locating Customer Payment InformationLocate details anywhere the hand appears

Summary

HOW and WHEN to post cash by:CustomerShip ToCorporateQuick Entry

Cash payment options

Summary

Uses for Miscellaneous Cash ReceiptsDisputed InvoicesDeposit SlipsCustomer payment information in inquire screens

For More Information…

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