Applying Corporate Payments to Customer Account

Notice is received from the corporate office stating they received a payment from one of your customers.  Corporate needs the invoices for this account removed/paid from your Accounts Receivable 

 

Example: The customer paid $7,000.00.  Corporate tells you to

Pay’ off the invoice and to put the $7,000.00 to G/L account #232-97-xx.

 

OPTION 1 CASH/RECEIPTS ENTRY & EDITING (TASK 2)

This is done using two transactions.

 

OPTION 1, Transaction #1

 

Go into A/R (Module 2)

• Cash/Receipts Entry & Editing (Task 2)
  • Enter (ADD) New Cash (Sub-task 1)

01 TRX number:           press ENTER key

02 Trx type:                  7 or 8 (*see note below)

03 Customer #: type in customer #

04 Recv date:               Current date

05 Division #:               appropriate #

06 Check $:                 7000.00, if paid by check enter the amount; if paid with credit card enter the dollar amount in field 10

07 Check #:                 12345, type in check #

08 Disc $:                     type in discount amount if applicable

09 Cash $:                    ENTER key

10 Bank card $:            type in amount if paid by credit card

Fields11 through 17:     ENTER key

 

Verify the “Total to apply: “amount is correct.

Press the ENTER key at the “Any Change?” prompt to go to the second screen.  Apply to invoices just like a regular payment. 

 

*NOTE: Trx type: A special Trx type can be setup for National/Premier accounts, using either Trx type 7 or 8.  A report may be printed for this special type in A/R Cash/Receipts History (Task 20). The table is located in:

• A/R (Module 2)
  • System Management Functions (Task 32)
    • Modify Application Tables (Sub-task 17)
      • Cash Receipt Transactions Types (Selection 1)

 

 

OPTION 1, Transaction #2

Go into A/R (Module 2)

• Cash/Receipts Entry & Editing (Task 2)
  • Enter (ADD) New Cash (sub-task 1)

01 TRX number:           Press ENTER key

02 Trx type:                  7 or 8 (*see note above)

03 Customer #:             type in customer #

04 Recv date:               Current date

05 Division #:               appropriate #

Fields 06 through 13:  ENTER key

 14 G/L act #:               232-97-xx, type in the G/L account # corporate wants used

15 G/L act $:                -7000.00, type in the amount applied to the customer’s account as a NEGATIVE amount

Fields 16 and 17:          ENTER key

 

 

Press the ENTER key at the “Any Change?” prompt.  The cursor will NOT go to the second screen.

 

• Go to Print Cash Edit List (Sub-task 4) and print an edit list.
  • Verify the dates, amounts, etc. on the edit list are correct.
  • Total Amount Received: at the bottom of the edit list should be zero.
  • Total change to A/R: at the bottom of the edit list should be the amount plus the discount applied to the customers account, i.e.$7000.00. 
• If everything is correct go to, Post Cash Records to A/R files (Sub-task 5)
  • Save cash posting register as usual
  • Say YES to Posting of Cash header Records OK?  
  • Total change to A/R should go on A/R daily balancing spreadsheet

 

OPTION 1, Transactions 1 and 2 effect on the G/L:

Debit 232-97-xx         $7000.00

            Credit 105-97-xx        7000.00

 

 

OPTION 2:  

This is done in two transactions:  one in Sales Entry & Editing (Task 1) and one in Cash/Receipts Entry & Editing (Task 2)

 

NOTE: Using Sales Entry & Editing will affect the sales totals in A/R Customer Master / Current year sales.  Many A/R reports gather data from these fields.  To avoid this, all A/R adjustments should be done in field 9: Other amt and an A/Rparameter must be set to Yes, go into A/R (Module 2)

• System Management Functions (Task 32)
  • Modify Parameter Files (Sub-task 22)
    • A/R – General (Selection 1)

Look for: SKIP’OTHER= Exclude “Other $” from customer master file monthly revenue figures. 

N-No includes “Other” and finance charges

Y-Excludes “Other $” and finance charges

F-Excludes finance charges but does include “Other $”

 

Something to consider: All Items with the type of “Labor” use the “Other $” field.  So before changing this parameter, verify none of your item types are Labor.

 

OPTION 2, Transaction #1, Sales Entry & Editing (Task 1)

 

Go into A/R (Module 2)

• Sales Entry & Editing (Task 1)
  • Enter (ADD) New Sales (Sub-task 1)

01 Invoice #:                type in a document # out of the normal invoice # range

02 Inv date:                  use a current date

03 Due date:                 type in appropriate due date

04 Division #:               type in appropriate division #

05 Sale type:                3 credit memo

Check for duplicate credit memo or debit memo? Y

06 Customer #:             type in customer #

07 Salesman #:             type in appropriate salesman #

08 Sale amt:                 Enter key

09 Other amt:               type amount of payment

10 State tax:                 Enter key

11 Non-tax amt:           type amount of payment again

12 Freight amt:             ENTER key

13 Disc allow:   ENTER key

14 Tax discount:           ENTER key

15 Apply to:                 If payment is applied to only one invoice, type in the invoice #.  If payment is going to be applied to multiple invoices, press the ENTER key

16 St Tax flag: type in appropriate state tax flag

Fields 17 through 20:  ENTER key

21 Tax zone A:             If you have a NON-taxable tax zone type it in.  If not ENTER key.

Fields 22 through 27:    ENTER key

28 Ordered by (or PO #): type in memo, CORPORATE PAYMENT

29 Terms:                     ENTER key

 

Verify that all of the fields are correct, at “Any Change?, press the ENTER key.

 

The cursor will go to the second screen, to line 1:

• Type in the first five digits of the G/L # corporate wants used.
• The cursor will go to the “Income amt” column.  Press ENTER key
• The cursor will go to the “Cost amt” column. Press ENTER key
• Modify last item?  N, then Press ENTER key

 

Go to, Print sales edit list (Sub-task 4)

• Verify everything is correct

Go to, Post sales records to A/R files (Sub-task 5)

• Save sales posting register as usual
• Say YES to, Posting of Sales header records OK? YES
• TOTAL INV column goes on the A/R balancing spreadsheet.

 

 

OPTION 2, Transaction #2, Cash/Receipts Entry & Editing (Task 2)

If the payment was applied to one invoice in Option 2 / Transaction 1, you don’t need to do this transaction.  If the payment is to be applied to multiple invoices this transaction is needed.

Go into A/R (Module 2)

• Cash/Receipts Entry & Editing (Task 2)
  • Enter (ADD) New Cash (Sub-task 1)

01 TRX number:           Press ENTER key

02 Trx type:                  7 or 8

03 Customer #:             type in customer #

04 Recv date:               Current date

05 Division #:               appropriate #

Fields 06 through 10:  ENTER key

11 Credit #:                  type in the credit memo # used in Option 2 / Transaction 1

12 Credit $:                  the amount of the credit memo created in Option 2 / Transaction 1 will appear

Fields 13 thru 17:          ENTER key

 

Verify the “Total to apply: “amount is correct.

Press the enter key at “Any Change?” to go to the second screen.  Apply to invoices just like a regular payment.

 

 

Go to Print cash edit list (Sub-task 4) and print an edit list.

• Verify everything on the edit list.
• Total Amount Received: at the bottom of the edit list should be zero.
• Total change to A/R: at the bottom of the edit list should be zero
• If everything is correct go to, Post cash records to A/R files (Sub-task 5)
  • Save cash posting register as usual
  • Say YES to Posting of Cash header Records OK? YES

 

OPTION 2, Transaction 1 and 2 effect on the G/L:

Debit 232-97-xx         $7000.00

            Credit 105-97-xx        7000.00