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Invoice Posting

Invoice types available for posting in Accounts Receivable are 

  • Invoice
  • 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.

Post InvoiceCashAccrual
 DebitCreditDebitCredit
Invoice or Invoice with Term  AccrualOffset
Invoice with Discount  

Accrual

Discount

Offset
Write Off  OffsetAccrual
Edit Posted InvoiceCashAccrual
 DebitCreditDebitCredit
Add distribution line to invoice  AccrualOffset
Add discount distribution line to invoice  DiscountAccrual
Add discount distribution line to invoice that pays off an invoice DiscountOffset DiscountAccrual
Void InvoiceCashAccrual
 DebitCreditDebitCredit
Invoice or Invoice withTerm  OffsetAccrual
Invoice with Discount  Offset

Accrual

Discount

Invoice with Applied PaymentsOriginal Offset

Unapplied

Payment Offset 

OffsetAccrual
 

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 InvoiceCashAccrual
 DebitCreditDebitCredit
Prepayment PrepaymentOffset PrepaymentAccrual
Unapplied Payment Unapplied Offset

Invoice

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 Posting

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.

Post PaymentsCashAccrual
 DebitCreditDebitCredit
All types except Payment CreditCheckingOffset CheckingAccrual
Payments applied to invoices with discounts

Checking

Discount

Offset CheckingAccrual
Payments applied to invoices with term

Checking

Discount

Offset

Checking

Discount

Accrual

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 TypesCashAccrual
 DebitCreditDebitCredit
Payment Credit  OffsetAccrual
Payment Credit with Discount/TermDiscountRevenue

Offset

Discount

Accrual
Payment Credit with Scholarship AccountScholarshipOffsetScholarshipAccrual
Payment Credit with Scholarship Account and Discount Term

Scholarship

Discount

Offset

Scholarship

Discount

Accrual
Unapplied PaymentCheckingOffsetCheckingAccrual
PrepaymentCheckingPrepaymentCheckingPrepayment
Refunds    
Returns(Checking)(Offset)(Checking)(Accrual)

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.

Reapply PaymentsCashAccrual
 DebitCreditDebitCredit
Unapplied Payment or applied payment being reapplied

Payment Offset

Invoice Checking 

Payment Checking

Invoice Offset

Payment Accrual

Invoice checking

Payment Checking

Invoice Accrual

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.

Void PaymentsCashAccrual
 DebitCreditDebitCredit
All Types Except Payment CreditOffsetCheckingAccrualChecking
Payment Credit  AccrualOffset
Payment Credit with Scholarship AccountOffsetScholarshipAccrual OffsetOffset Scholarship
PrepaymentPrepaymentCheckingPrepaymentChecking
Refund    
Refund with PrepaymentPrepaymentOffsetPrepaymentAccrual
ReturnCheckingOffsetCheckingAccrual
Return with PrepaymentPrepaymentOffsetPrepaymentAccrual

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

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.