Albert, Then you and I are both accountants! who use R:Base. Like you I was just trying to paint a clear picture.
Stay well. Myron -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Albert Berry Sent: Tuesday, August 19, 2003 11:10 PM To: RBASE-L Mailing List Subject: [RBASE-L] - Re: Question for you accounting pros Myron, I am an accountant. I was trying to explain to Ben how he could post his under and over payments without going into GAAP. <g> Myron <[EMAIL PROTECTED]> wrote: >Albert, >Some help with the accounting. You can do the R:base. >There are two different ways to keep accounting records; 1; accrual >basis and 2: cash basis. I'm going to assume that you are keeping the >books on the accrual basis. So simply, a sale is a sale, be it a cash >customer or one that sends in a check. When a sale is made and the firm >does not get paid you have to book the accounts receivable (debit) and >credit sales. When the money, check or cash, is received the accounts >receivable balance is reduced (credit) and cash (the g/l account) is >debited. Yes there are issues with over and under payments. > >If you want to discuss some R:Base ideas let me know. > >Myron > >-----Original Message----- >From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Ben >Petersen >Sent: Tuesday, August 19, 2003 7:11 PM >To: RBASE-L Mailing List >Subject: [RBASE-L] - Re: Question for you accounting pros > > >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=3 >> >> 9 >> >> 3397 >> >> >> >> 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=3933 >> 9 >> 7 >> >> 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
