You may have often come across a scenario wherein you have received some payment from the customer after the due date or late and at that particular moment you are not aware for what the reason the payment is received.
You may get into confusion as to how to record such transaction into your accounting system.
Sage 300 ERP is the ultimate solution for handling such transactions. It allows you to record transactions under the ‘receipt form’ using transitions type as unapplied cash
You too may have received cash from your customer, with no indication about the transaction they are paying for. Sage 300 ERP allows you to record such transactions and resolve this problem efficiently.
In simple terms, unapplied cash is the receipt which does not have any specific customer transaction related to it
New Stuff: How Deposit date in AR receipt entry plays important role in Bank Reconciliation
The journal entry passed during such transaction is
Processing Unapplied Cash Transactions When you receive payments from your customers with no indication of what they are paying, you enter the receipt as an Unapplied Cash transaction type in a receipt entry form. This step lets you record the receipt in your Accounts Receivable system and post it to the customer’s account so you can apply it to the appropriate document later.
Then we need to post the batch from the receipt batch list
Now let us invoice that customer
Now in this case the customer had already made the payment of 1000 INR by means of unapplied cash
So now we will adjust that amount of the unapplied cash
The amount of unapplied cash is adjusted against the invoice which was raised.
You might feel that the unapplied cash transition works similarly as the pre-payment transaction, but I would like to bring to your notice the only difference between the two:
In case of pre-payment the account which gets credited in the accounts receivable is the ”Prepayment liability” and in case of the payment received in the form of unapplied cash the “Receivable control “ account get credited.
This is how we can solve the issue of posting the transactions which are related to the payments received from the customers without any reference provided by him.
Also Read:
1.Delete Inactive Records in Account Receivable
2.Terms Code feature in Account receivable in Sage 300 ERP
3.Aged Cash Requirements Report
4.Default settings for Receipts in Account Receivable in Sage 300 ERP
5.Optional to maintain Statistics for Customer, National Account and Group in Sage 300 ERP