1. Create a second Receivable account for Cash transactions, and treat everything in there the same way as the Client Receivables (where one expects the bills to be paid after the fact). This allows write down/up at the end of the year, and supplies the auditors with
2. (My personal preference) Set up a Customer called "Cash Sales" and use him/her for the cash transactions. "Ben Petersen" <[EMAIL PROTECTED]> wrote: >Hi Bill, > >My question really relates more as to how partial/over payments against >invoices are treated in the general ledger for cash based systems, rather >than billing. (What do you do with the cash?) But Thanks! > >Ben Petersen > > >On 19 Aug 2003, at 9:57, William Stacy wrote: > >> I use a transaction view that includes �a transaction table and a >> transaction detail table. �In the detail table, all chargable items have >> an item number (that links them to other, item tables), a quantity, �a >> regular price/fee/amount per unit, a computed column that is the product >> of the quantity and the price, and a final price (discounted/agreed amt, >> etc). All payments and other credits receive negative signs and go in >> the final price column, so the "balance" of a transaction is simply the >> sum of the price column, which will be positive if a balance remains, >> negative if a credit balance is created, and zero if the payment/credit >> totals equal the charged amounts. �This way I can create statements, >> bills, insurance claims etc from this one view. >> >> bill >> >> Ben Petersen wrote: >> >> >Hi all, >> > >> >I'm down to the nitty gritty of an accounting package and wanted to make >> >sure my take on accounts receivable for cash based customers was >> >accurate. >> > >> >For straight up transactions where there is an invoice and a payment for that >> >invoice nothing hits the GL until payment is made. But in the instance where >> >someone _partially_ pays an invoice, or, over-pays an invoice, this is what >> >I've been doing in past systems: >> > >> >Debit cash for the payment amount. >> >Credit A/R for the payment amount. >> >Debit A/R for the invoice total. >> >Credit income accounts for the items on the invoice. >> > >> >In the case of under-payment this leaves an A/R balance. In the case of over- >> >payment there is a negative A/R balance. >> > >> >In my re-write everything is driven by views, so it is possible to have a >> >circumstance where new invoices work directly against the customer account to >> >reduce the credit and not be posted through A/R. My concern is that while it >> >makes the A/R portion of the GL cleaner, it is possible, for example, to have >> >an invoice detailed in A/R at one moment, and not the next, if a new invoice >> >brought the customer account to zero. While the transactions would explain >> >"what happened" I don't know that this is acceptable. >> > >> >I'm looking for some outside confirmation and/or alternatives. >> > >> >Thanks >> > >> >Ben Petersen >> > >> >. >> > >> > � >> > >> > > -- Albert Berry Full Time Consultant to PSD Solutions 350 West Hubbard, Suite 210 Chicago, IL 60610 312-828-9253 Ext. 32 __________________________________________________________________ McAfee VirusScan Online from the Netscape Network. Comprehensive protection for your entire computer. Get your free trial today! http://channels.netscape.com/ns/computing/mcafee/index.jsp?promo=393397 Get AOL Instant Messenger 5.1 free of charge. Download Now! http://aim.aol.com/aimnew/Aim/register.adp?promo=380455
