Invoice types available for posting in Accounts Receivable are
- Debit Memo
- Late Fee
- Return Check Fee
All invoice types follow the same rules. The only difference is the Fee that is used when charging late fees and return check fees or when using the write off option (those fees are in AR Settings). The offset is based on the Fee used.
|Invoice or Invoice with Term||Accrual||Offset|
|Invoice with Discount|
|Edit Posted Invoice||Cash||Accrual|
|Add distribution line to invoice||Accrual||Offset|
|Add discount distribution line to invoice||Discount||Accrual|
|Add discount distribution line to invoice that pays off an invoice||Discount||Offset||Discount||Accrual|
|Invoice or Invoice withTerm||Offset||Accrual|
|Invoice with Discount||Offset|
|Invoice with Applied Payments||Original Offset|
If offset is the same for both fees.
Transfer will not occur in GL.
|Payment flagged as unapplied in AR.||GL Transfer will only occur if there are different accrual accounts.||Payment flagged as unapplied in AR.|
Invoice with Applied Payments will create a Transfer Payment entry that will reclassify the offset based on the Unapplied Payment Fee specified.
Auto Apply Invoices
When selected, any unapplied payments will automatically be applied to invoices. If the unapplied payments were specified for a specific fee and/or customer, those will only be applied to invoices for that fee/customer.
|Auto Apply Invoice||Cash||Accrual|
|Unapplied Payment||Unapplied Offset|
|GL Transfer will only occur if there are different accrual accounts.|
If the unapplied payment was entered to a fee other than unapplied fee, it will not have to make the transfer from unapplied to the invoice fee. It will simply add the payment.
Payment types available for posting are ACH, American Express, Cash, Check, Check Card, Discover, Master Card, Online Payment, Other Credit Card, Payment Credit, and Visa. The different payment types are simply a way to track different payment methods for making deposits, printing deposit ticket listing, and printing reports.
Refunds, returns, unapplied payment, prepayment, and invoice/payment wash are additional payment options available for the above payment types. These are shown in a separate table below.
|All types except Payment Credit||Checking||Offset||Checking||Accrual|
|Payments applied to invoices with discounts|
|Payments applied to invoices with term|
When on accrual and posting payments applied to invoices with discounts, the discount is accounted for when the invoice is posted. When on cash, this is when the discount is accounted for in the General Ledger.
When payments are applied to invoices with term and the term is met, the term will use the discount account of the first fee of the invoice for which it is applied.
|Special Payment Types||Cash||Accrual|
|Payment Credit with Discount/Term||Discount||Revenue|
|Payment Credit with Scholarship Account||Scholarship||Offset||Scholarship||Accrual|
|Payment Credit with Scholarship Account and Discount Term|
On cash, payment credit with discount term adds to the offset and discount account for the discount/term given. On accrual, it backs out everything from accrual and backs out everything but the discount/term from the revenue account, and adds to the discount account for the amount of the discount/term.
|Unapplied Payment or applied payment being reapplied|
This assumes the payment is being applied to a different fee with a different Offset, Accrual and/or Checking account. It will only transfer what is necessary.
For example, if reapplying to the same fee, no entry is needed. If reapplying to another fee with the same checking accounts, only transfers the offset if on cash and only the accrual if on accrual.
|All Types Except Payment Credit||Offset||Checking||Accrual||Checking|
|Payment Credit with Scholarship Account||Offset||Scholarship||Accrual Offset||Offset Scholarship|
|Refund with Prepayment||Prepayment||Offset||Prepayment||Accrual|
|Return with Prepayment||Prepayment||Offset||Prepayment||Accrual|
For refunds and returns, this applies when a refund or return is voided. The original payment becomes unapplied for the fees it was applied to.
For refunds and returns with prepayments: When the original payment was applied to invoices AND had a prepayment assigned, and the return/refund field is voided, all money, including the prepayment, changes to unapplied for the fee they were assigned to. This is because you can only have one unapplied type assigned to the payment- you can't have unapplied amount and prepayment on one payment.
The system doesn't have to make an entry to move what was applied to invoices on the original payment, but an entry has to be made to move the prepayment money into the offset (or accrual account if on accrual) of the prepayment fee.
Project codes are assigned to the invoice. When on the accrual basis, the project code is posted with the invoice summary transaction to the offset account and discount account.
When on the cash basis, the project code is posted with the deposit to the offset account (and discount account if one is given), according to projects assigned to the invoices the payments are applied.
The invoice and deposit summary transaction distributions will be broken out by project so that the detail by project is posted to the General Ledger accordingly. For example, if Fee 1 has two invoices, one assigned to project 1 and one assigned to project 2, there will be two Fee 1 distributions posted to General Ledger, one for project 1 and one for project 2.