Client cash received may be input and not applied to a specific invoice or group of invoices until a later time. You can use the Aged Trial Balance to determine the open invoice or group of invoices to which to apply the cash. The unapplied cash may be a partial payment of an invoice or full payment of one or more invoices. Your goal should be to have as much of the unapplied cash posted to specific invoices by the close of the month. The posting of unapplied cash results in an adjustment to receivables other than a cash entry. The transactions alter the unapplied balance of the client and paid balance of invoices.
The system also allows for occurrences when a debit unapplied amount must be handled. An example of this might be if a client sends payment of $100,000 indicating on their remittance that they are paying $200,000 in invoices and taking a $100,000 credit from a credit invoice. However, the credit invoice has already been taken by the client. In order to enter the cash accurately, apply $200,000 and put a debit of $100,000 into Unapplied. When the client sends the additional $100,000 owed, enter it as a credit to Unapplied. Use the Offsets action to clear the two unapplied amounts.
Follow steps for Entering Cash Receipts using the Prompt Window.
From the Action drop-down list on the Header Window, select Input Unapplied.
Click the Next icon to display the Input Unapplied Window.
Note: Depending on installation, payer type fields may be labeled differently.
Key applicable payer codes in these fields. Note: If the Payer Type is an A/R Client, the Add icon displays since this payer type allows one check to be used for multiple transactions. Just click the Add icon to add rows for multiple entries. If the Payer Type is a Billing Client, the Add icon will not display since one check can only be used for one unapplied transaction. Note: If the unapplied is for an Employee or Vendor, then just the Amount and Description will display.
Key the Amount of unapplied cash for the lower levels associated with the Payer Type.
Key a Description for the unapplied cash entry.
Click the Save icon when finished and return to the Cash Receipts Header Window showing your entries.
Verify your entries, then click the Save icon again to save your entries and return to the Prompt Window where you can select another Action if applicable.
Verify information using the List to Verify option.
Post transactions using the Post Cash Receipts option.