Receipts-Entering and Applying

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Scope

This procedure covers applying customer receipts by Accounts Receivable.

System References

Receipts-Entering and Applying [NAV3620U]

Reports-Submit and View Standard Reports [NAV3601U]

Receipts-Receipt Adjustment [PRO3627U]

Receipts-Processing [PRO3626U]

Policy

A cash receipt is an applied receipt if it is associated with a customer number and an open invoice(s).

An unapplied receipt is a cash receipt that can be applied to a customer account if it is associated with a customer number but not associated with an invoice (that is, there is no invoice for the sale or the invoice number is unknown).

An on-account receipt (cash-in-advance) is:

recorded to the customer account
applied against the invoice when the invoice is generated

An unidentified receipt is from an unknown source.

An Application Advice Form is required for any receipt labeled as unidentified.

Responsibility

The AR Receipts Specialist is responsible for:

applying cash receipts in the database
entering cash adjustments in the database, including accounts receivable account corrections related to receipt reversals or unapplications
researching receipts entered as "unidentified"

Distribution

AR Administrator^*

AR Receipts Specialist^*

Ownership

The AR Manager is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed daily, as soon as the receipt application batch is received.

The receipt application batch consists of a copy of the bank deposit slip and any supporting documents.

This procedure continues from:

Receipts-Processing [PRO3626U].

The job title Receipts Creator refers to:

AR Administrator
AR Receipts Specialist

Receipts Creator

1. Fill out deposit slip and copy of Cash Receipts Log from AR Receipts Specialist responsible for creating deposit tickets.

2. Create a receipt batch.

Receivables
N ® Receipts ® Batches
Receipt Batches

Refer to Receipts-Entering and Applying [NAV3620U]

3. Apply the cash receipts.

Review your data entry for accuracy and correct any errors before entering the transaction.

Apply the receipt to the appropriate customer.

Determine whether an account is established for this customer.

If customer cannot be identified:

Research the reason for the receipt.

Determine whether the receipt is associated with an open invoice.

Before a receipt is considered as on account, you must first verify there is no open invoice matching the receipt.

The receipt amount may or may not match the open invoice amount indicated in the database. When it does not, you should not assume the receipt corresponds to the invoice; the receipt should be applied to the customer account - and not to the invoice. If you know the receipt applies to invoice, apply it.

No matching invoice located

Contact the AR Billing Specialist or the AR Departmental Requester responsible for this invoice, verify that this is a cash-in-advance receipt.
Record the status of the receipt on the Cash Receipts Log.

Receipt batches/deposits must be reconciled before fixing out-of-balance batches and deposits.

4. Determine whether the cash receipts total matches the corresponding bank deposit total.

Receivables
N ® Control ® Requests ® Run
Reports

Refer to Reports-Submit and View Standard Reports [NAV3601U].

At the end of the month central AR runs the following reports:

Unapplied Receipt Register
Applied Receipt Register

Compare the total indicated on the cash receipts report with the total on the bank deposit slip.

If the cash receipts total matches the corresponding bank deposit, goto task #8. Otherwise, goto task #5

5. Determine the reason for the out-of-balance condition.

The cash receipts total must match the bank deposit total for the batch.

The total number of receipts and the receipt amounts must match exactly.

You are responsible for correcting all cash application errors.

When you discover a bank deposit error or are unable to determine the reason for the out-of-balance condition, Central Accounting is responsible for resolving bank deposit errors.

6. If a receipt application error is identified, adjust the receipt.

Refer to Receipts-Receipt Adjustment [PRO3627U].

7. Sign and date the Cash Receipts Log.

8. File the documentation in the receipt application file, sequenced by date.

9. Review Receipts and reports to determine status of unapplied and unidentified receipts.

10. Research and apply the receipts.

End of activity.

Receipts-Entering and Applying: Flowchart

Effective: 08/13/04