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If you process receivables for your client in Accounting CS, it is important that you assign the appropriate GL accounts to the AR accounts to ensure that the journal entries are posted to the correct accounts. You must assign these accounts regardless of the accounting method selected (accrual basis or cash basis) in the Setup > Clients > Accounts Receivable tab; otherwise the application will assign items with blank accounts to the undistributed account, which may cause balances to be off.
Accounting CS posts accounts receivable transactions to the accounts listed below. The accounts may differ, based on the accounting method selected for your client.
Accrual basis
Action | Debit entries | Credit entries | Posting period | Notes |
---|---|---|---|---|
Entering an invoice | Accounts Receivable Cost of Goods |
Sales Shipping Sales Tax Inventory |
Posting period for the invoice in the Enter Invoices screen | |
Creating a finance charge invoice | Accounts Receivable | Finance Charge | Based on the Calculate finance charges through field in the Assess Finance Charges screen | |
Entering a credit memo | Sales Sales Tax Inventory |
Accounts Receivable Cost of Goods |
Posting period for the credit memo in the Enter Invoices screen | |
Entering a depositable payment | Undeposited Payments | Unearned Revenue | Posting period for the payment in the Manage Customer Payments screen | Depositable payments include cash, checks, and credit cards. |
Entering a write-off (payment) | Bad Debt Expense | Unearned Revenue | Posting period for the write-off in the Manage Customer Payments screen | This is not a depositable payment. |
Applying a payment to an invoice | Unearned Revenue | Accounts Receivable | Based on the AR date | |
Depositing a payment | Cash | Undeposited Payments | Posting period for the deposit in the Enter Deposits screen |
Cash basis
Action | Debit entries | Credit entries | Posting period | Notes |
---|---|---|---|---|
Entering an invoice | No entry is made. | |||
Creating a finance charge invoice | No entry is made. | |||
Entering a credit memo | No entry is made. It only reduces the invoice amount. | |||
Entering a depositable payment | Undeposited Payments | Unearned Revenue | Posting period for the payment in the Manage Customer Payments screen | Depositable payments include cash, check, and credit cards. |
Entering a write off (payment) | No entry is made. It only reduces the invoice amount. | |||
Applying a payment to an invoice | Unearned revenue Cost of goods |
Sales Sales Tax Inventory Shipping Finance Charge |
Based on the AR date | Sales are recorded when the payment is applied to the invoice. |
Depositing a payment | Cash | Undeposited Payments | Posting period for the deposit in the Enter Deposits screen |
Example: partial payment of an invoice applied proportionally per distribution
The example below illustrates how Accounting CS applies partial payments to each distribution on an invoice.
Example invoice
Invoice item | Total of each invoice item | Percentage of each item |
---|---|---|
Item 1 | $400.00 | 40.00% |
Item 2 | $500.00 | 50.00% |
Item 3 | $100.00 | 10.00% |
Invoice total | $1,000.00 | 100.00% |
When you apply a partial payment of $500.00, the application applies it as follows.
- Item 1: 40% x $500 = $200.00
- Item 2: 50% x $500 = $250.00
- Item 3: 10% x $500 = $50.00
Invoice item | Total of each invoice item | Percentage of each item | Amount applied |
---|---|---|---|
Item 1 | $400.00 | 40.00% | $200.00 |
Item 2 | $500.00 | 50.00% | $250.00 |
Item 3 | $100.00 | 10.00% | $50.00 |
Invoice total | $1,000.00 | 100.00% | $500.00 |
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