Cash Receipts "Total Amount received" MUST Equal Deposits

This document explains the importance of verifying the “Total amount received” on a Cash/Receipts edit list and posting.

It is strongly recommended before posting in A/R (Module 2), Cash/Receipts entry & editing (Task 2), to print an edit list (Sub-task 4). On the edit list and posting, the “Total Amount Received” should be the same amount deposited into your bank.

You may have multiple deposits into your bank account which will equal the “Total Amount Received” on the cash edit and posting. Example: Deposit for cash over the counter, deposit for A/R checks which came in the mail, deposit for Visa/Master card, deposit for American Express, etc… The important thing is for all of these deposits for one day to equal the “Total amount received” on the edit and posting.
- We recommend to have the deposits and “Total Amount Received” equal on a daily basis.
If using multiple divisions, customers 1-99 are divisions. If the Cash/Receipts edit list and posting includes customers 1-99 the “Total external A/R receipts” should be the same amount deposited into your bank.

REPORTS:

Cash/Receipts posting “Total amount received”, is included on monthly reports as the amount deposited into your bank account. Here are some of the reports which use this amount:
- A/R (Module 2), Cash/Receipts history (Task 20)
- A/R (Module 2), System management functions (Task 32), Generate A/R to G/L interface (Sub-task 3)
- A/R (Module 2), Aged trial balance (Task 9)
- A/R (Module 2), Prepare monthly statements (Task 12)
- G/L (Module 4), G/L trial balance (Sub-task 9)
- G/L (Module 4), Financial statements (Task 10), Balance sheet
Different levels of using Profits Plus:
- Posting sales & cash/receipts to customer’s accounts & sending A/R statements to customers. If a cash/receipt posting has the incorrect “Total amount received” the customer’s statement is incorrect.
- Some Profits Plus users choose to post the sales & cash/receipts into customer’s accounts & send the customer’s statements. They then print monthly A/R reports to give to a bookkeeper or accountant. The bookkeeper or accountant does balance sheet, income statement, balances to the bank statement, etc…. If a cash/receipts posting has the incorrect “Total amount received”, the monthly reports from A/R given to the bookkeeper or accountant are incorrect.
- Most Profits Plus users go the step further. They use the G/L module to create their own financial statements each month.
- One of the procedures they would do is to print a G/L trial balance & verify the bank statement to the G/L account for the checking account. If a cash/receipts posting has an incorrect “Total amount received”, the G/L trial balance will have the incorrect amount, thus not balancing to the bank statement.
- The amount on the Balance sheet for the Cash would not be correct if a cash/receipts posting has an incorrect “Total amount received”.
- The amount on the Balance sheet for the Accounts Receivable would not be correct.

A/P (Module 3), Check Account (Task 20)

Using the A/P (Module 3), Check Account (Task 20) to balance to the bank statement. If this task is used to balance to the bank statement the “DEPOSITED” amount on the checking account report must equal the “Total amount received” from the A/R Cash/Receipts history. See document Balancing A/R $ Received with A/P Check Account.
- If anything is entered, changed, or deleted from this Task 20 Check Account, it doesn’t affect any other task or module.
- For example: An A/P check was posted with an amount of $100.90 & the bank cleared it for $100.60. When balancing the bank statement, you go into Task 20 Check Account & change the check amount to $100.60. This doesn’t affect anything else. You would need to make a manual journal entry in the G/L module for the 30 cents. Same thing with a deposit. If your deposit was originally $100.90 & the bank cleared it for $100.60. When balancing the bank statement, you go into Task 20 Check Account & change the deposit amount to $100.60 it doesn’t affect anything else. You would need to make a manual journal entry for 30 cents. Or instead of changing the deposit amount a miscellaneous charge for 30 cents is entered into Task 20 Check account. A manual journal entry for 30 cents would need to be made.

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