Thanks Albert, The terminology is different, but the results are the same as what I'm doing now. Nice to know I'm not alone <g>.
Ben Petersen On 19 Aug 2003, at 16:01, Albert Berry wrote: > The invoice still debits accounts receivable and credits sales; the payment > Credits accounts receivable and debits cash. If you were to use my second > option, all your cash invoices would be for Mr. Cash Sales, and at the end of > the year, all things being honest, would approach a balance of zero. > > The transaction summary would be along the lines of the following: > > 1. Sell the item: DR Accts Rec (Mr. CS) CR Sales > 2. Book the cash: DR Cash, CR Accts Rec (Mr. CS) > > If it is a real credit customer, then you would apply the DR and CR to the > correct customer, of course. In the event that the cash sale was incorrectly > paid, and the odds of refunding overpayments or collecting underpayments > approaches zero, then one would use an account in the ledger called "Cash > Over/Under" or such like. These accounts are nearly always present in any system > that uses one of more tills; the odds of a till being exactly correct at the end > of a busy day are almost as long as the lottery odds. This would show the > invoice as fully paid, and set the difference off. The auditors will > expense/revenue the item at the next audit. > > > "Ben Petersen" <[EMAIL PROTECTED]> wrote: > > >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 > >> > > > > > > > -- > 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 >
