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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