AR – Receive Payments
Receiving Payments on the Receive Payments screen
Opening the Receive Payments Form
- Using the menu bar at the top of your screen, click AR/AP, then select Receive Payments. When the Receive Payments form opens, all of the Invoice records with outstanding balances or those not marked Paid are displayed. This allows you to apply payments or credit memo to multiple invoices for each customer.
Filling in the Header Section
- Locate a customer with the Customer Search drop-down box and press Enter.
- Dep to Acct: Select the Un-deposited Funds account. This can also be set to fill in automatically in the Company Setup & Preferences.
- Note: When a deposit slip is created, later on, a specific Bank Account can be selected in which to deposit the money temporarily placed in the Undeposited Funds account.
- Date Paid: Accept the default date or enter a new date.
- How Paid: Select the payment type from the drop down menu. (i.e. Check, Cash, Credit Card, etc.)
- Ck/Card Number: Enter a check number or credit card number. (Enter the last 4 digits if entering a Card #)
- Exp Date: Enter the credit card expiration date if the method of payment is a Credit Card.
- Amt Paid: Enter the amount paid by the customer.
- Authorization: Enter the credit card authorization number.
Applying Payments to Individual Invoices – Manually
- In the Amt to Allocate column, enter the amount to allocate to each outstanding invoice by typing in the value or by clicking on the Pay button to automatically insert the total Current Balance to the Amt to Allocate field for each Invoice selected.
Applying Payments to Individual Invoices – Automatically
- Press the Auto Allocated button. This will automatically enter the Current Balance amount to the Amt to Allocate field, beginning with the oldest invoice and continuing until the amount left to apply is less than the Current Balance of the Invoice (after the last full applied amount). The remaining credit will be applied to the Invoice, even if the amount is less that the total Current Balance of the invoice.
- If you are not satisfied with the result of the Auto Allocation, you can press the Clear Allocated button to reverse the action.
Committing the Payments Applied
- No payments will actually be applied until you have pressed the Apply Payments button. A dialog box will appear confirming “Payments were applied”.
When a Customer Over Pays
Suppose a customer sends you a check for $500, toward Invoice 101. But suppose Invoice 101 is only a $100 invoice. In this situation you have these options:
- Option 1: You can enter the Amt Allocated at $500. In this example this will over-pay Invoice 101, leaving a Credit of $400 extra, which can be applied to some other Invoice at a later date (using the ‘Zero Payment Credit’ option explained below).
- Option 2: You can apply $100 to Invoice 101 and apply the remaining $400 to 1 or more open (unpaid) invoices.
- Option 3: You can hold the check and either send it back to the customer or call for further instructions from the customer.
Applying Credits using the Zero Payment Credit function
Suppose Customer X has 2 Credit Memo’s (totaling -$200 + -$300.12) that you’d like to apply toward 3 Invoices (totaling $100 + $200 + $200.12). These are the steps you would need to take to complete that:
- Open the Receive Payments screen.
- Fill in the fields in this manner:
- CUSTOMER selection: Select Customer X.
- DEP TO ACCT: Accept the default (undeposited funds account)
- DATE PAID: Enter the date you want the credit to be applied.
- HOW PAID: Type of select Credit.
- Note: You may want to enter a Terms of Payment (in the Company Setup & Preferences) called Credit.
- DEP: Leave it unchecked.
- CK/CARD NUMBR: Type Credit or N/A
- AMT PAID: Leave BLANK.
- Zero Payment Credit (checkbox): Check that.
- Invoice Line Items:
- Locate the ($200.00) Credit Memo and type -200 in the Amt to Allocate field.
- Locate the ($300.12) Credit Memo and type -300.12 in the Amt to Allocate field.
- Locate the $100.00 Invoice and type 100 in the Amt to Allocated field.
- Locate the $200.00 Invoice and type 200 in the Amt to Allocated field.
- Locate the $200.12 Invoice and type 200.12 in the Amt to Allocated field.
- NOTE: The total field (above the UnAllocated Difference field) should now equal $0.00.
- Now press the red Apply button.
- Additional Notes:
- If desired, you do not have to apply the full credit memo.
- Credit Memos (or over-paid Invoices) can be applied to multiple unpaid Invoices (so long as the total amount of the negative you are applying EQUALS the total amount of positive you are applying towards unpaid invoices).
- You can also apply a Customer Credit directly on an Invoice (on the Invoice screen) by clicking > Payments (tab) > Add or Edit Payments > Show/Apply Credit > Typing in the Amt to Apply (in negative numbers) > then clicking Apply Credit.
Placing Customers on Credit Hold or Admin Credit Hold
- If a customer falls behind on payments or has exceeded their credit limit it can be very useful to alert the Sales department of this situation by placing the Customer on Credit Hold. This will cause a warning to appear when taking Orders from the Customer. On the other hand, if the customer’s AR balance gets worse (even with the Credit Hold warnings) then you can suspend ALL Quote and Sales Order creation for the customer by placing the Customer on Admin Credit Hold.
- You can set the Credit Hold and Admin Credit Hold options in a Customer’s record on the Customers > Default Pricing tab.
Mass Updating Customers Credit Hold Status (on and off)
- What if you have placed a Customer on Credit Hold and then they have brought their account current (but you didn’t realize it)? Or, what if a Customer is NOT on Credit Hold, but should be, due to going beyond their Credit Limit? These are both real world problems companies encounter. On the Receive Payments screen > Functions button there is an option called Update Customer Credit Hold Status that (when executed) will automatically update all customers Credit Hold settings–meaning it will set or remove the Credit Hold status–based on each customer’s current Credit Limit and Credit Days. Note: This process will NOT remove a Customer from Admin Credit Hold. Admin Credit Hold can only be turned on and off manually by a user with Accounting rights.