Cash Receipts

April 9, 2019 in Accounts Receivable


This function is used to enter receipts details of payments from your Customers as well as ‘Sundry Receipts’ that need to be banked from non-debtors sources e.g. rental income, insurance policy refunds, sale of assets etc.  These sundry receipts are manually posted to one or more General Leger Accounts.

Where these receipts affect customers, the Customers Ledger is updated immediately by the system. You may offset the receipt against outstanding invoices on the Customer’s Ledger or leave the payment ‘on account’ to match off against invoices at a later time. Note that invoices and payments that are matched remain on the Customer’s Ledger until a Statement is produced.

If you are using Bank Reconciliation, the receipt is recorded in the Bank Reconciliation System for later reconciliation against the bank statement.

Data Input


Step 1 – Bank Details

Note: The following information (Bank, Reference and Date) is only required at the start of entering banking transaction. It is not necessary to enter these details a second time unless you wish to change them.


Enter the Bank Account the payment receipt is being deposited to.
The bank defaults to the User’s default bank. If you are using Bank Reconciliation the receipt is recorded as a ‘deposit’ in the Bank Reconciliation system so you may match it to your bank statement at a later time.

Deposit Reference

Enter the reference number for this Banking Sheet.
You may choose to assign the Next available reference number, by using the ‘Next?’ option.

The Deposit Reference is used to group multiple receipt transactions so they can be combined to form one ‘Deposit Slip’ report which is used when depositing the total receipts for the day at your bank.

Receipt Date

Enter the date on which this payment was received. By default, its is set to the current system date.
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Step 2 – Drawer


If you are receiving a payment from an account customer, enter the Customer code for the account being paid.
If this is a sundry payment, leave the customer code blank, and enter drawer only.


Enter the name of the drawer of the cheque, for a Sundry cash receipt.
For cash receipts from debtors, the procedure assumes that the name of the drawer of the cheque is the same as the name of the customer.
For branch accounts, the Head Office account name appears as the Drawer name.
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Step 3 – Receipt Amount

Receipt Total

Enter the total amount of the receipt.

If you are doing an ‘offset only’ entry to match up credit and debit items on the customer’s account, then enter zero here.


If you are allowing a settlement discount, enter the amount of the discount here. Discounts are not entered on sundry cash receipts.
Upon input of the discount amount, the tax discount amount is displayed.

Include Tax Discount Amount

Displays the tax discount amount.
You may amend the tax discount amount to be included in the calculation.

Ex Tax Discount Amount

Displays the discount amount excluding the tax.


If the receipt is in a foreign currency, select the Currency of this transaction. If the Bank specified is a foreign bank, the bank’s currency is defaulted and may not be changed. For receipts into banks with local currency, the currency per transaction may be selected here.
Upon selecting the currency, you may input the rate and amount details.

Exchange Rate

The current exchange rate for the selected currency is shown.
You may change the exchange rate if required.

Foreign Amount

Enter the total receipt amount in foreign currency. The amount is converted to local currency using the exchange rate entered and the local receipt total is calculated.

Foreign Discount

If you are allowing a settlement discount, enter the amount of the discount in foreign currency here.

Include Tax Discount Amount

Displays the tax discount amount.
Enter the tax discount amount to be included in the calculation.

Ex Tax Discount Amount

Displays the discount amount excluding the tax.

Leave receipt amount on Account

Select whether you wish to leave the receipt amount ‘on account’ or not.
If you choose to leave the amount ‘on account’ here, you are not presented with the ‘Offset Account’ step of the Cash Receipts process.
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Step 4 – Tender

The format the receipt was tendered in is entered here. This is the method via which you received the payment e.g. ‘Cash’, ‘Cheque’, ‘Credit Card’, ‘Bank Transfer’ etc.
This information is used on the Deposit Slip so you can report how much Cash and how many cheques (and the details of cheques) you are including in your banking.
The information is also updated to the Bank Reconciliation system (if you have switched on Bank Reconciliation) to help identify matching entries on the Bank Statement.

You may have received mixed tender types for the receipt, so Tender details are entered in the form of a list, with one tender item on each line of the list.
Click Add to add new tender details.

Note: the total amount entered as tendered here must match the total amount of the receipt entered.

Tender Type

Select the tender type, that identifies how the payment was tendered. The Tender Types that are available here are set up and configured as required by you – so you can call cash ‘Cash’, ‘Hard Cash’ or ‘Dollery-doos’ if you like.

If the tender entered has a tender type of ‘cheque’, then you are required to enter the cheque details:  drawer name, bank, branch and cheque number.


Enter the amount for this tender type.


Only required when a cheque is tendered.

The drawer is defaulted from the Customer account name.


Only required when a cheque is tendered.

The bank name is defaulted from the Customer account if a previous cheque has been received by this account on a previous cash receipt entry.
You can change the bank name if required.


Only required when a cheque is tendered.

The bank branch is defaulted from the Customer account if a previous cheque has been received by this account on a previous cash receipt entry.
You can change the bank branch if required.

Cheque No

Only required when a cheque is tendered.

Enter the cheque number that is on the cheque received.
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Step 5 – Offset Account

When you are receiving cash from a debtor, you may allocate the receipt to open items on the debtor’s account or leave the amount ‘on account’ to be matched off at a later time. To match transactions via cash receipts at a later time, enter zero for the received amount and offset items that total to zero.

The ‘Amount to Allocate’ and the ‘Amount Remaining’ are displayed. These amounts include any discount entered. As individual transactions are offset, the ‘Amount Remaining’ is increased/decreased (increased if you are matching off a credit note, decreased if you are matching off an invoice). If you have partially offset the amount received, the amount left in the ‘Amount Remaining’ is left on the debtors account as an un-allocated cash receipt.

Click Offset to allocate the outstanding amount of an item
OR click Roll to allocate amount in turn to each open item from the ‘Item’ specified
OR click the edit icon to manually allocate cash.

Note: you cannot use the ‘Roll’ option when there are transactions of mixed currencies.

When offsetting foreign currencies, the ‘Amount to Allocate’ is shown in both local and foreign currency. The ‘Amount to Allocate’ is shown in foreign currency only. When the foreign amount is fully allocated, if there is any currency variation a ‘variance’ transaction is created on submission and added to the debtors ledger items. This variance transaction is automatically offset against the cash receipt.


Displays the amount of the ledger item.

Previous Offset

Displays the amount previously offset against the ledger item.


Displays the outstanding amount of the ledger item.

Less This Offset

Enter the amount to offset against this receipt.

Auto Calc Offset Conversion

I don’t know what this is…………..


Displays the nett amount of the ledger item.

Leave remaining amount as a retention

If you have only partially offset the ledger item, you may select this option to leave the remainder of the amount outstanding as a retention.

Click Next to continue.
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Step 6 – Unallocated Credit Reference

This step is only available if there is any amount remaining to be left on the account.

Unallocated Credit Reference

Enter the credit reference for the unallocated amount. This may be mandatory or optional depending on the choice made in System Options. This is used to help identify un-allocated credits at a later time.

Credit Ageing Date

If you are ageing un-allocated credits, you can enter a specific credit ageing date here if required.
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Finish Step & Links

After submitting the Cash Receipt, the following options are available:

Enter Another Similar Receipt – this is the default option and takes you back to the beginning to enter a subsequent transaction. This option by-passes re-entry of the Bank, Reference, Date fields. Press <return> here for fastest data entry.

Change Bank, Reference and/or Payment Date – if you need to switch banks or begin a new deposit reference or change date, then use this option to go back to enter more payment receipts.

Print Bank Deposit Slip – if you are finished banking for the day and wish to print a deposit slip to take to the bank then use this option.

Print Settlement Discount Adjustment – if you have entered a discount during the receipt entry and need to print a Settlement Discount Adjustment document, use this option.
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