accounts receivable

Cash Receipts Entry

Last Revised: 08/22/22

Cash Receipts Entry is used to record payments received from a customer. This can include checks received in the mail, ACH payments received and deposited directly in your bank, and credit card payments made online by customers using Dynaweb. Cash Receipts Entry should be completed prior to the bank deposit, whether the checks are physically taken to the bank, or scanned using a check scanning device.

 

Cash Receipts Entry is the first step of the Cash Receipts process. Cash Receipts are processed in a batch where the deposit date is the same for all payments in the batch. In most cases you will have only one batch open at a time, but it is possible to have multiple batches open at the same time which is typical for larger companies where multiple people process cash receipts at the same time.

 

When starting a new batch, you will be prompted to enter or select:

• Deposit Date - Enter the date the deposit will actually be made (or was already made)

• Bank Code - Select the bank account to which the funds will be deposited. Bank Codes are maintained using Bank Code Maintenance which is located on the APU menu.

• Source - select the type of deposit and source of funds

  • C - Checks/Cash - This option will post the batch total amount to bank reconciliation

  • M - Checks Mobile deposit - using a bank app on a smart phone. This option will post each check to bank reconciliation individually.

  • T - ACH deposit - for funds deposited directly by customers

  • L - Lock Box deposit - if you have a lock box that is managed by your bank and you do not personally handle the checks

  • W - Dynaweb Credit Card deposit - this batch type is created automatically when a customer pays their bill online using Dynaweb

For each payment received, enter:

• Customer - enter customer number or search by name. Note you can enter a # followed by the invoice number to automatically find the customer accociated with any invoice.

• Date - you can either enter the date printed on the check, or the date the payment was received. Be consistent and use the date you prefer in all batches. The date entered will appear in Customer Inquiry - Payment History.

• Check Number - enter for check payments, "ACH", or other payment reference number. In some cases, such as when a check bounces, you need to 'reverse' a prior deposit. You can touch the F2 key to reverse a prior payment as prompted at the Check Number field. You then will select from a list of recent payments from the customer.

• Payment Amount - A positive amount indicates a payment received. When using the reversal option described above, the payment amount is negative.

After completing the Cash Receipts Entry process, proceed to Cash Receipts Listing/Deposit Slip Printing where you can print a list of payments entered and print a deposit slip when depositing checks at the bank.

 

What if I can't determine the customer that sent the check?

In most cases, the remittance advice will include a list of the invoice numbers being paid. At the customer field, you can enter # followed by the invoice number, i.e., #12345 and Dynamo will look up the customer associated with that invocie.

 

What if a customer check bounces?

Create a new batch, select the customer, and enter the date that the bank deducted the original payment from your account. Then at the Check Number field, touch the F2 key for the Reverse Prior Payment option. Select the payment to be reversed from the list. The Cash Application will be completed automatically. Print the Cash Receipts Journal and Update the batch. The customer's account will now show the invoices as due again.

 

What if I discover that I made an entry error?

At any time prior to Cash Receipts Update, you can return to Cash Receipts Entry, and make any corrections required. If you have already updated the batch and discover an error, then you can reverse the original payment as described in the section above, and then re-process the payment using the corrected information.