Hi Albert, Still stumped. (Probably a forest for the trees thing <g>)
We receive partial payment of an invoice. I debit cash (checking). Where do I make the credit entry? How does this effect the invoice? We receive payment in excess of the invoice. I debit cash (checking). I can now book the invoice using part of the payment received (credit income). Where do I credit the balance of the payment? tia, Ben Petersen On 19 Aug 2003, at 14:50, Albert Berry wrote: > 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 >
