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 Receipts Apply Terms and Allowances Handle Overpayments Perform Cash Receipts Reversals Apply Miscellaneous Cash Receipts Flag Disputed Invoices Print Deposit Slips Locate Customer Payment Info
This course will NOT cover Customer Maintenance Customer Notepad Maintenance Bank Maintenance Payment Maintenance Invoice Generation Cash 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 Ship To records only Multiple customer and Ship To Records Customer and Ship To IDs with invoices numbers Customer ID Ship To ID Corporate ID 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 amount Applies payment from top to bottom until the amount is exhausted. Default is to sort by Invoice Date. Posting by specific invoice Enter amount in Amount Received Paid 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 = Y The 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
The Amount Received can NOT be edited if the Apply Payments checkbox is checked. 1. True 2. 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. 1. True 2. False
AppShare Enter a Cash Receipt for a customer
Accounting for Terms and Allowances Set-up cash receipt following the steps reviewed Pay special attention to the Terms Taken and Allowed Amount fields Follow your company procedure regarding terms and allowances
Adjusting Receipt Amounts for Terms Taken Enter the amount to apply to the specific invoice Enter 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 invoice Enter 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 apply Enter amounts to apply on specific invoices Locate 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 balances Accounts Receivable > System > Payment Type Maintenance
AppShare Apply a credit balance to an outstanding balance
The amount entered for terms can NOT exceed what is setup in Terms Maintenance. 1. True 2. False
Which of the following is NOT true regarding allowed amounts? 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
Overpayments Apply invoice amounts appropriately Save the record System will display a message and will create a zero dollar invoice Enter 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 tab Customer Notes tab Cash Collections Call tab Branch tab Documents 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 invoice Branch 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!
What type of account balance is posted with an overpayment? 1. Debit 2. Credit
When you create a prepayment invoice in cash receipts, both the ship-to id and the branch id automatically default in. 1. True 2. False
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 invoices Helpful in three scenarios Need to reverse payment because of returned check Applied payment multiple times Applied 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 check Query for a customer and reverse payments Assess a returned check fee
Reversing Payments Payment applied multiple times Locate invoice(s) to reverse Scroll to right to check Reverse checkbox Save 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 Branch Y = GL postings post at branch level for receivable reversed or applied. Intercompany postings Reversing payments for intercompany transactions will reverse intercompany payables and receivables Terms and allowances post to accounts associated with company that generated invoice
In order to apply a reversed payment to another invoice or customer, you must click on the Payment Form View tab. 1. True 2. False
Miscellaneous Cash Receipts Use for deposits not related to invoices AR > Transactions > Misc. Cash Receipts
Miscellaneous Cash Receipts Enter the Bank Number for the Deposit Enter 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
What are some uses for Miscellaneous Cash Receipts? 1. Tax Refund 2. Rebates 3. Payment from Customer 4. All of the above 5. 1 and 2
Miscellaneous cash receipts appear on the Accounts Receivable Deposit Slip Report 1. True 2. False
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 Dispute Key or search for the invoice. Select the Disputed checkbox. Save the record.
Disputed Invoices Remove Disputed Status Key or search for the invoice. Uncheck the Dispute checkbox. Save the record.
Key Points: Disputed Invoices Disputed Invoices Do not display in Cash Receipts Invoices removed from dispute Finance charges and aging apply based on the invoice date
A Disputed invoice can be viewed in all of the following except. 1. Cash Receipts 2. AR Trial Balance 3. AR Drill Down
A disputed invoice has the following functions: 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
Reports and Inquire Deposit Slips A/R Drill Down by Payment
Deposit Slips Accounts Receivable > Reports > Deposit Slips
Deposit Slips Criteria Tab Company ID Bank Deposit Number
Locating Customer Payment Information Accounts Receivable > Inquire > A/R Drill Down > By Payment
AppShare Locating Customer Payment Information Locate details anywhere the hand appears
Summary HOW and WHEN to post cash by: Customer Ship To Corporate Quick Entry Cash payment options
Summary Uses for Miscellaneous Cash Receipts Disputed Invoices Deposit Slips Customer payment information in inquire screens
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