Receiving Payment for an AR Invoice
The below process highlights how to receive a payment for an Accounts Receivable Invoice. Accounts Receivable Invoices are entered in Order Entry, however, the payment is applied to the Invoice in Accounts Receivable. Parish accounting users should receive Accounts Receivable Invoice payments at the entity level.
Pre-requisites:
- There must be Accounts Receivable Invoices entered in the Order Entry module. When they are entered in the Order Entry module, they will create an Invoice in the Accounts Receivable module to receive payment against.
Steps
- Click the Application drop-down menu
- Click Accounts Receivable
- Click the All tab
- Click Receive payments – New!
- Select the Account Type – i.e.: Bank Account
- Bank Account (most parishes) – this will allow you to record a receipt directly to a Parish Checking Account
- Undeposited Funds Account (rare for parishes) – this will allow you to record a receipt in to an Undeposited Funds Account, which you can later deposit to a Parish checking account in a separate process
- Select the Checking Account of the Parish you are in – i.e.: 10702-0000 Chase if you are at the entity level for Demonstration Parish
- Note: If you selected Undeposited Funds Account in step 6, you will be prompted to select a GL Account instead – i.e.: 10199 – Deposits In-Transit - CSH
- Select a Payment Method – i.e.: Check
- Note: Other payment methods that Parishes might use include Record Transfer or Cash. Record Transfer can be used if funds were directly deposited into a Parish bank account and no check or cash was physically received. Cash should be used if a Parish received a cash payment.
- Select the Customer that you are receiving a payment for – i.e.: C-00068—Convent Rental
- Note: There must already be an Accounts Receivable Invoice created in Order Entry for this Customer
- Note: After selecting the Customer, Accounts Receivable Invoices for this Customer will appear, which you can apply a payment to
- Enter the amount of the check
- Note: If you use a different Payment Method in step 5, this field will be called “Transferred Amount” or “Cash Payment Amount”
- Enter the Receipt date – this should be the date the payment was received
- Note: This will default to today’s date and can be changed if needed
- Enter the Payment Date – this is the date on the check
- Note: If you use a different Payment Method in step 5, this field will be called “Payment Date”
- Enter the Check number
- Note: If you use Record Transfer as a Payment Method in step 5, this field will be called “Reference Number” If you use Cash as a Payment Method, this field will not exist.
- Enter a Payment Memo
- Attaching transaction support documentation is strongly recommended
- Click Select Invoices button
- Note: a Select Invoices for Payment Screen will open
- Invoices available for payment will be listed
- Select the invoice you want to apply the payment to by clicking in the box to the left of the Invoice No.
- Click Add & close
- Continue work on the Receive Payment screen in the “Invoices selected for payment” section
- Enter the payment amount of each invoice listed below
- Click on Post
- In order to verify the payment was entered correctly, verify using the following methods: Accounts Receivable Aging Report to
- Verify the amount on the Posted Payments Screen
- Run a Check Register to verify that the payment amount matches the transaction and bank statement (Accounts Receivable > Reports > Registers > Receipts then select dates, filters and preferred formats and finally View or Print)
- Run an Accounts Receivable Aging Report to ensure that the invoice no longer shows an outstanding item on the report (see separate process document)
