Cash Application
Reconciling the Daily Deposit Report with Actual Deposits
Each day the Daily Deposit Report is automatically sent to the Deposit Slip mailbox for the previous day’s transactions. Stores have until 1pm to send in their paperwork for the previous day’s transactions. An email should be sent by each store to the Deposit Slip email containing: the deposit slip, the receipt from the bank, copies of all checks and copies or any remittances (for cash, check or credit card payments) received from customers.
The Daily Deposit Report is the control document. The report displays any cash and check transaction. This is used to verify the actual deposit with the bank.
In addition to all of the cash and check transaction, the Daily Deposit Report includes any credit card transactions that were payments on account.
Verifying the Deposit
Use the Daily Deposit Report, determine what the deposit should be. The amount is reflected in the Deposit Amount column.
Verify the amount of cash marked on the deposit slip that was presented to the bank matches the Deposit Amount Column for Cash.
Verify that each of the checks listed on the Daily Deposit Report match the checks that were marked on the deposit slip for the bank.
Verify that the Bank Receipt amount matches the deposit slip amount.
Applying Payments made at Stores
Cash or Credit Card
Once the deposit has been verified, the next step would be to apply any payments that were made at the store.
Using the Daily Deposit Report, any transaction with a Trans Type of RA needs to be applied to open invoices on the customer’s account.
Check the paperwork that the store sent in to see if there is a remittance advice for this payment. The store may send in the actual remittance advice from the customer, or may send a copy of the statement with the invoices the payment is to be applied to marked on it.
If no remittance advice is received, the payment should be applied to oldest invoices due.
Search Bar: ARECE
Menu: Customer > Entry > Cash Receipt
Bookmark: ARECE – Customer Cash Receipts Entry
This will open an Open Journal popup window.
Unless otherwise instructed by the AR Manager, leave the date today’s date and click <OK>.
On the Cash Receipts Entry Screen, select the Payment radio button (if it is not already selected).
If the payment is CASH, MASTERCARD, VISA, DISCOVER or AMEX, Enter the Date for the check number. Please use the format YYYYMMDD. Otherwise, if it is check, enter the actual check number from the Daily Deposit in the check field.
Leave the Amount zero.
Enter the date of the payment in the date field. The payment date will show as such in ARIC Customer Inquiry. While this can be backdated, anything more than a few days can cause an issue with Tax Payments.
Click <NEXT>
Click <OK>
Click <NEXT> again
Enter the customer number from the Daily Deposit Report
Enter HVB Main Operating 1109
Click <NEXT>
Click the <Credits> Tab which will show you any open Unapplied Cash and Misc Credits.
Select the amounts to apply by Clicking the appropriate check boxes.
Click the <Invoices> Tab to Select Invoices to apply Credits against.
Using the remittance advice, click on the invoices that the customer is intending to pay. A Check should fill in the Paid In Full column and the amount of the invoice will fill into the Apply Amount column. Select all invoices on the remittance and the Proof row at the top right should go to ZERO.
NOTE: If a customer is not paying for an invoice in full, DO NOT click Paid In Full Box. Simply enter the amount that the customer is paying in the Apply Amount Column.
If the customer has a discount on an invoice, and the invoice is being paid within the discount period for the invoice, the discount amount will automatically be filled in to the Apply Discount column. We should not be giving the discount to the customer if they have not earned the discount.
HINT!!
If you have a customer that has many different open invoices, you can use the Find function to find the invoice you’re looking for without having to scroll up and down. Click on the magnify glass to enter any of the following to locate a specific invoice: Invoice Number, Amount, Date, Customer PO, or Due Date
Press <Enter> to search
Proof should equal Zero.
Click <Finish>
Ready to update. Click <YES>
Repeat for the next customer.
Applying Received On Account Payments made at Stores
Check
Check the paperwork that the store sent in to see if there is a remittance advice for this payment. The store may send in the actual remittance advice from the customer, or may send a copy of the statement with the invoices the payment is to be applied to marked on it.
If no remittance advice is received, the payment should be applied to oldest invoices due.
Search Bar: ARECE
Menu: Customer > Entry > Cash Receipt
Bookmark: ARECE – Customer Cash Receipts Entry
This will open an Open Journal popup window. Unless otherwise instructed by the AR Manager, leave the date today’s date
Click <OK>
Type: Payment (if it is not already selected).
If the payment is Check, enter the actual check number from the Daily Deposit in the check field. Otherwise , if the payment is CASH, MASTERCARD, VISA, DISCOVER or AMEX, Enter the Date for the check number. Please use the format YYYYMMDD.
Amount: zero.
Date: Enter the date of the payment. This is the date that ARIC Customer Inquiry will show as the payment date. While this can be backdated, anything more than a few days can cause an issue with Tax Payments.
Click: <NEXT> <OK><NEXT>
Apply to:
Type: Customer
Customer Account: Enter the customer number from the Daily Deposit Report
Bank: HVB Main Operating 1109
Click <NEXT>
Click the <Credits> Tab. This will display any open Unapplied Cash and Misc Credits.
Select the values to apply by clicking the <Check Box> next to the Credit number and the <Apply> Check Box. The amount will fill into the available row in the proofs at the top.
Click <Invoices> to return to the list of open invoices.
Using the remittance advice, click the invoices that the customer intends to pay. Click the appropriate <Paid In Full> check boxes per records to be applied against. Select the invoices on the remittance and the Proof row at the top right should go to ZERO.
NOTE: If a customer is not paying for an invoice in full, DO NOT click the Paid In Full check box. Enter the amount that the customer is paying in the Apply Amount Column.
If the customer has a discount on an invoice, and the invoice is being paid within the discount period for the invoice, the discount amount will automatically be filled in to the Apply Discount column. The discount should not be allowed if not earned (Paid on time).
If there are many open invoices, the Search feature can be used to find the invoice without scrolling through the entire list. Click the <Magnify Glass> to search by: Invoice, Amount, Invoice Date, Due Date, Customer PO.
If no remittance advice is received, use the sort function to sort by due date and begin applying to the oldest first. Alternatively, you can use the Auto Apply Function.
Click <FINISH><FINISH>
Update? <YES>
Auto Apply is another option for Payment application.
To use Auto Apply click <Show More> under Auto Apply
An Application Rules popup box appears. Generally, leave the selection criteria as it is by default, however you can make any necessary changes.
All Regardless of Type will apply to both Invoices and Service Charges. Alternatively, you can select All Except Service Charges.
Only select Service Charges Only if writing off a large amount of service charges and apply the credit to write off the service charges.
Determine how discounts will be handled. As a rule, we do not allow customers to take the discount after the 10 day grace period that the system allows.
If Values were changed, Click <Apply>
All of the invoices will be applied based on their due date.
Click <Finish>
A Pop-Up window will appear. Click <YES>.
The original Cash Receipts Entry page will display. Repeat for the next customer.
Applying Payments for Checks received at the Main Office
Search Bar: ARECE
Menu: Customer > Entry > Cash Receipt
Bookmark: ARECE – Customer Cash Receipts Entry
ARECE will open an Open Journal popup window. Unless otherwise instructed by the AR Manager, leave the date today’s date
Click <OK>
On the Cash Receipts Entry Screen:
Type: Payment
Check #: Enter the check number
Amount: Enter the amount of the check
Date: Enter today’s date
Click <NEXT>
Customer: Enter the customer number, or use the search function to look up the customer.
Bank: HVB Main Operating 1109
Click <NEXT>
HINT: If the customer account number cannot be found, but the invoice number is known, click on the drop down menu and select Invoice to search by invoice number to locate the customer’s account number.
Click <NEXT>
Note: If using the invoice number field as your search criteria, the search results will include the entire customer’s list of unpaid invoices.
Using the remittance advice, Click Paid In Full <Check Boxes> for the fully paid Invoices. Select all invoices on the remittance and the Proof row at the top right should go to ZERO.
NOTE: A Partial payment of an invoice should not be checked as Paid In Full, just the Apply Amount should be entered.
Click <Finish> when complete
If the customer has an earned discount, and the invoice is being paid within the discount period for the invoice, the discount amount will automatically be filled in to the Apply Discount column. Discounts should not be granted to the customer if they have not paid within their Terms.
If a customer that has many different open invoices, the Search feature can be used to find the invoice.
Click the <Magnify Glass> to search by: Invoice #, Amount, Invoice Date, Due Date, Customer PO.
If no remittance advice is received, use the sort function to sort by due date and begin applying to the oldest first. Alternatively, the Auto Apply Function can be used.
Click <FINISH><FINISH>
Update? <YES>
Auto Apply is another option for Payment application. To leverage this feature click <Show More> under Auto Apply
An Application Rules popup box appears. Generally, these the selection criteria should remain ‘as is’, but changes can be made per situation.
All Regardless of Type will apply to both Invoices and Service Charges.
Alternatively, select All Except Service Charges.
Service Charges Only would only be used is if writing off a large amount of service charges and apply the credit to write those service charges off.
Determine how discounts will be handled. As a rule, we do not allow customers to take the discount after the 10 day grace period that the system allows. Leaving the default will use this rule.
If Values were changed, Click <Apply>
All of the invoices will be applied based on their due date.
Click <Finish>
A Pop-Up will appear.
Click <YES>.
The Cash Receipts Entry page will appear. Repeat for the next customer.
Leaving Money Unapplied on Customer Account
From time to time a customer will overpay, or the amount that they have indicated on their remittance advice does not match our records. The money will be left unapplied on the customer account.
When there is money left after all invoices have been paid, there will be a positive Proof Amount.
Click <Finish>
A Ready for Update window will appear.
Click <OK>
Enter a Reference so it is understood where the source of the funds originated.
The check number would be a perfect Reference and would be identified later on, during reconciliation.
Click <OK>
Moving Money from one Customer to Another
From time to time, it will be necessary to move money from one account to another. This most often is the result of a Receipt on Account being applied to the wrong customer’s account. You may notice when attempting to apply the payment that there are no open invoices on the account. An inspection of the check and/or remittance, may reveal that the Receipt on Account was entered under the wrong customer number.
To move the money, use the Split Check transaction method.
Search Bar: ARECE
Menu: Customer > Entry > Cash Receipt
Bookmark: ARECE – Customer Cash Receipts Entry
A Journal Box will open, Click <OK>
Type: <Split Check>
Check #: Blank.
Amount: ZERO.
Date: today’s date.
Click <Next>
Click <OK>
Click <NEXT><OK>
Bank: HVB Main Operation 1109
Type: Customer
Customer #: Enter or search for appropriate Account
Click <NEXT>
Click the <Credits> tab to display the unapplied cash/credits on the customer account.
Click Check the Apply box on the Credit(s) to move to the other account.
Click <FINISH>
An unapplied cash Window will pop up.
- Enter a reference of “Moved to Cust#” with the Customer Account# where the money is going. This will leave a trail, if there are any future questions.
Click <OK>
The Cash Receipts Entry window will open.
Customer #: Enter the customer account where the money is to be moved
Click <NEXT>
The Invoices view displays and application of the money to the invoices may proceed, following the regular application process.
If leaving the money unapplied on the new account (proof > Zero), click <FINISH>.
The Unapplied Cash Window will appear.
Credit Amount: Enter the amount to leave unapplied
Reference: Enter detail of the source of the funds.
Click <OK>.
Split Check (check is paying two different customer accounts)
There are customers that have multiple accounts. At times, the customer will write one check covering both accounts. If you are unaware and begin entering the payment as a Payment Type (Payment radio button selected on the main ARECE window), leave the amount that needs to be applied to the other account as unapplied and move the money (following the directions above).
If it is realized, before application begins, that a payment represents a customer with multiple accounts, such as Brickman, the Split Check method can be used.
Search Bar: ARECE
Menu: Customer > Entry > Cash Receipt
Bookmark: ARECE – Customer Cash Receipts Entry
Type: Split Check
Check Number: ####
Amount: (if the payment was mailed into the main office and is being entered for the first time).
Click <NEXT>
Note: If applying a payment received in the store, the Split Check functionality can be used to apply across multiple accounts. Follow the guidelines outlined previously regarding the check number depending on the payment type received, leave the amount as ZERO. Click <OK> to the warnings about zero check.
Enter the first customer number
Bank: HVB Main Operating 1109
Click <NEXT>
Enter the amounts to apply to invoices on this account and click <FINISH> when done. If there is a proof amount, it can be applied to other accounts.
An Unapplied Cash popup appears. Leave the amount zero and no reference is necessary.
Click <OK>
Customer #: Enter the next customer number
Bank: HVB Main Operating 1109
Click <NEXT>
Click <FINISH> once proof is zero or all remittance instructions have been employed.
If not fully applied (Proof Not Zero), the remainder will remain on the last account as an Unapplied Credit.
Ready to Update, Click <Yes>
HINT!!
Once complete with Split Check payment type, change the Payment Type to Payment when complete with the Split Check.
Applying Open Unapplied Cash
Open Unapplied Cash should be applied as Payment Type, if possible. There are times when it is not possible to use the date of the original transaction as the check number or the amounts are very small.
When applying multiple small amounts of unapplied cash that are not directly linked to a particular payment, Select <Apply Credits>.
Click <NEXT>
Enter the customer number
Bank: HVB Main Operating 1109
Click <NEXT>
The Credits screen automatically opens. All credits are listed that are available for application.
Click the <Apply box> per row credit(s) to select to apply.
Click the <Invoices> Tab to list open invoices.
Apply the amounts until the proof is zero and click <FINISH>
Click <Yes>
Applying Open Misc Credits
TIP!! The only way to know how a Misc Credit was applied when using the Apply Credits is by looking at the MC type Transaction in ARIC and then leverage the Applied Journal to print out the journal (AREJ).
There is no direct method in ARIC to view how a credit was applied.
Choose the Apply Credits type in Cash Application entry screen.
Click <NEXT>
Customer #: Enter the customer number
Bank: HVB Main Operating 1109
Click <NEXT>
The Credits screen lists all available credits that can be selected to apply.
Click the appropriate Apply <Check Box(s)> to select for application.
Click the <Invoices> Tab to display the open invoices.
Apply the amounts until the proof is zero
Click <FINISH>.
Ready to Update? Click <Yes>.