AR Cash Posting

Billing & Accounts Receivable

Accounts Receivable

About This Program

Use Cash Posting to enter payments and other credits to customer accounts. You can post manually to individual invoices, and/or use Keystone features to

• Post payments to invoices automatically.
• Post open credits to invoices automatically.
• Award paid-on-time discounts automatically.

You can also apply allowances to invoices. Allowances are adjustments such as waiver of service charges, delivery damage or bad debt. You may also use Cash Posting in Recovery procedures for situations such as bounced checks and errors on invoices. See A/R Recovery and Contingency Procedures

General Ledger Transactions

When you post	Debits to	Credits to
Cash	Cash	A/R
Discount	Discounts	A/R
Allowance	Allowances	A/R
Open Credit	Cash	A/R

If you have the General Ledger Interface, Cash Posting activity will create transactions. For all posting actions Keystone generates a General Ledger transaction: a credit to A/R and a debit to the account posted. Keystone sends these actions to A/R Distributions. The following table summarizes the debits and credits generated by cash posting actions.

Cash Management Transactions

Cash Posting activity also updates the cash accounts of the Keystone Cash Management system. Keystone posts all cash posted during a session to each Cash G/L account as a deposit transaction to the corresponding bank account. For more information see Keystone Accounting Cash Management.

Important Update

Starting in Keystone 2.3, the handling for allowances has changed to allow for finer control of allowances that have tax adjustments.

When applying an allowance, the program will handle allowances diffently based on the allowance Tax Adjustment method setup in Allowance Class Maintenance.

Tax Adjustment Method:

• No: This is handled as in previous versions. No tax information is affected. {For systems with Sales Tax based on collections, this is treated the same as a cash payment.)
• Tax Only: The amount of the allowance is treated as 100% tax. The system will prevent you from allowing out more tax than exists on the invoice. This amount will be reflected on the sales tax adjustment report.
• Percentage: This is used to write off part of an invoice, and reduce tax at the same time. You can specify the amount of tax to apply. This gives you the ability to write off both taxable and exempt portions of an invoice at the same time. For example, if you were to write off $106 taxable ($100 sale taxed at 6%) and $50 exempt, you could post a $156.00 allowance consisting of $6.00 of tax.

Using This Program

Using the Cash Posting Screen

The Posting window has two sections. The top section shows customer and payment information. The bottom section contains a data grid of invoices to which you can post payments, discounts and allowances.

Keystone displays the information in the top section for verification– you can’t change it here. The running totals at top right will change automatically as you post.

Receiving Payments

To receive a payment, bring up the appropriate customer account and enter the check number and amount. The check amount will immediately show up as the Amount Remaining in the running totals. To complete the cash posting session , you must post the entire Amount Remaining to invoices. Repeat the following steps until Amount Remaining shows 0.00:

1. Move the highlight to the invoice you want to post to.
2. Press F5, F6, F7 or F8 to Post Cash, Discount, Allowance or Open Credit (see below).
3. Correct (if necessary) the amounts posted and press F2.

Automatic Posting

Often we want to apply cash receipts simply to invoices in turn, starting with the oldest. Keystone can accomplish this simple procedure automatically, without having to select and post to each invoice.

1. Enter all check information.
2. Enter a Job Id if the money is to be applied to one job only.
3. If negative (credit) balances should be reduced to zero and added to the check amount, check the Pick Up Credits box.
4. Click on “AUTO POST”.
5. In the Auto Post Options window (see below) select the appropriate discount and selection options and press F2.

Picking up Credits

Credit balances may occur on open credits, adjustment (negative) invoices or overpaid invoices. The process of posting negative cash to credit balances is known as picking up the credits, and can be done either by posting to the individual invoices or by auto-posting with the Pick Up Credits box checked.

Invoice Drill-down

The same invoice drill-down capability is available here as on the A/R Inquiry screen. You may view the full detail behind an invoice by double-clicking the invoice or pressing F9 while you select the invoice. A window comes up displaying all tickets billed on the invoice and all payments posted to the invoice. Keystone shows tax and invoice subtotals at the bottom. See A/R Inquiryfor more information.

Cash Posting Fields

Customer Id

(Index field) Select a customer or find an invoice by number. Type in a Customer Id, use the dropdown, or press F4 to search by customer name or invoice number.

Check No.

Customer’s check number. If credit card payment, enter “CC” or the abbreviation for the specific card (MC, VI, AX, etc.).

Check Amount

The amount of the check.

Job Id

Enter a Job Id to select only invoices for a particular job.

Posting date

The date at which transactions will be posted.

Cash G/L

The cash account to which this check will be deposited.

Bank No.

(optional) Id number of bank on which check is drawn. If credit card payment, enter the authorization number.

Show Paid Invoices

Check this box to include fully paid invoices in the invoice grid.

Running Totals

Cash

Total cash posted to invoices in this session.

Discounts

The total discounts given to this customer in this session.

Allowances

The total allowances given to this customer in this session.

Amount Remaining

The amount of cash you have left to post to invoices. Keystone will not allow you to apply the posted payments until the Amount Remaining reaches zero.

Invoice Grid

Each line of the invoice grid displays one invoice, in order by invoice date.

Inv No.

Invoice number. Service charges appear with invoice number of 0 (see Apply Service Charges, page 89).

Inv Date

Invoice date.

Job Id

Job name. Service charges have “SERVICE CHARGE” as the Job Id.

Debit Amt

Actual amount charged on invoice.

Credit Amt

The total of cash payments, allowances, and discounts already applied toward the invoice balance.

Invoice bal

The invoice amount minus the credit amount.

Discount

Paid-on-time discount originally offered on the invoice

Valid Until

Expiration date of paid-on-time discount offer.

Last Ck #

Check number of most recent payment applied to invoice.

Last Paid

Date of most recent payment applied to invoice.

Cumul. Bal.

The customer’s A/R balance up to and including this invoice.

Posting Windows

When you post cash, discount or allowance by using the F-keys or buttons, a small window comes up to accept options and amounts. Auto Post Options Window The auto post option can save you work by allowing you to post a check to many invoices in one step. Keystone applies the money to invoices in order until depleted or there are no more invoices.

Auto Post Option

Post To

All Invoices

Apply money to all invoices in customer account.

Selected Invoices

Apply money to selected invoices only. To select more than one invoice, hold down the Ctrl key and click on the invoices, or hold down the shift key and use the up- and down-arrow keys.

Allow Discounts

For All

Post all available discount to all auto-posted invoices.

For None

Post no discounts to auto-posted invoices.

If Invoice Date Is On Or After

Post discounts only to eligible invoices, based on the invoice date.

If Discount Date Is On Or After Post discounts only to eligible invoices, based on the invoice’s discount (Valid Until) date.

Cash and Discount Windows

By default Keystone posts just enough cash to pay off the invoice, after deducting the discount. The Post Discount window is identical to the Post Cash window, except Cash Amount is not included.

Discount Available

The largest amount of discount the customer can get on this invoice, if paid on time.

If Paid By

The customer must pay invoice by this date to earn the Discount Available.

Discount Given

The amount of discount already applied to this invoice.

Discount Amount

The amount of discount you want to give (default: Discount available - Discount Given, if Posting Date is before "If Paid By" date). To give the amount of discount the customer would get under their credit terms, just press Enter to accept the default.

Cash Amount

(only in Cash Posting Window) The amount of cash you want to apply to this invoice (default: invoice amount - Discount Amount, or Amount Remaining, whichever is less)

Press F2 to accept the Cash and Discount Amounts, or ESC to cancel the posting operation. Keystone deducts the cash amount from Amount Remaining, and adds the total of cash and discount to the credit amount for the highlighted invoice.