How journal entries are posted for Accounts Receivable
If you process receivables for your client, you'll need to assign GL accounts to AR accounts to ensure journal entries post to the correct accounts. You'll need to assign these accounts regardless of the accounting method selected (accrual basis or cash basis). Go to
Setup
, followed by Clients
, then select the Accounts Receivable
tab. If you don't, the application assigns items with blank accounts to the undistributed account, which may cause your balances to be off.Accounting CS posts accounts receivable transactions to the following accounts. The accounts may differ, based on the accounting method selected for your client.
Accrual basis
Action | Debit entries | Credit entries | Posting period | Notes |
|---|---|---|---|---|
Entering an invoice | Accounts Receivable Cost of Goods | Sales Shipping Sales Tax Inventory | Posting period for the invoice in the Enter Invoices screen | N/A |
Creating a finance charge invoice | Accounts Receivable | Finance Charge | Based on the Calculate finance charges through field in the Assess Finance Charges screen | N/A |
Entering a credit memo | Sales Sales Tax Inventory | Accounts Receivable Cost of Goods | Posting period for the credit memo in the Enter Invoices screen | N/A |
Entering a depositable payment | Undeposited Payments | Unearned Revenue | Posting period for the payment in the Manage Customer Payments screen | Depositable payments include cash, checks, and credit cards. |
Entering a write-off (payment) | Bad Debt Expense | Unearned Revenue | Posting period for the write-off in the Manage Customer Payments screen | This isn't a depositable payment. |
Applying a payment to an invoice | Unearned Revenue Discount | Accounts Receivable | Based on the AR date | N/A |
Depositing a payment | Cash Cash Back | Undeposited Payments | Posting period for the deposit in the Enter Deposits screen | N/A |
Cash basis
Action | Debit entries | Credit entries | Posting period | Notes |
|---|---|---|---|---|
Entering an invoice | N/A | N/A | N/A | No entry is made. |
Creating a finance charge invoice | N/A | N/A | N/A | No entry is made. |
Entering a credit memo | N/A | N/A | N/A | No entry is made. It only reduces the invoice amount. |
Entering a depositable payment | Undeposited Payments | Unearned Revenue | Posting period for the payment in the Manage Customer Payments screen | Depositable payments include cash, check, and credit cards. |
Entering a write off (payment) | N/A | N/A | N/A | No entry is made. It only reduces the invoice amount. |
Applying a payment to an invoice | Unearned revenue Cost of goods Discount | Sales Sales Tax Inventory Shipping Finance Charge | Posting period based on the AR date | Sales are recorded when the payment is applied to the invoice. |
Depositing a payment | Cash Cash Back | Undeposited Payments | Posting period for the deposit in the Enter Deposits screen | N/A |
