Payment Receive - Enter

Version: As of version 16.03

Purpose

To guide the user through receiving payment in DEACOM for an Order to Cash process.

Security and Configuration

Security/Permissions The following are required for this process. Note: Additional security may be required. See your system administrator for security access.

Configuration

One or more Bill-to Companies and Sales Orders will have to be entered in the system in order to post payments on account and/or advance payments. In order to post payments after shipment has occurred, one or more Sales Orders must be shipped.

Additionally, a Short/Over Payment Part is required to process short and over payments. The requirements for this part are:

  • On the Item Master > Properties tab:
    • Ensure the "Stocked" flag is not checked.
    • Ensure the "Saleable" flag is checked.
  • On the Item Master > General 1 tab:
    • Order Type should be set to "Normal".
    • Unit of Measure fields should be set to "Each".
  • On the Item Master > Accounts tab:
    • Specify a "Revenue" account.

Related Processes

Procedure

Payments from customers may be received via checks, bank wires, etc.

Amounts received may be applied as regular payments (for single or multiple invoices), pre-payments, or payments on account. Small difference between amounts received and open invoices may be automatically adjusted using Short/Over Payment functionality.

Credit cards may also be used for Cash Receipts via pre-authorization at time of order and charge at time of shipment, or partial or full prepayment of an order at the time the order is taken. For more information, refer to the Processing Sales Orders with Credit Cards page.

For information on processing payments made via check, navigate to the appropriate section below.

Processing regular payments

Orders paid via checks may be posted in DEACOM with or without manual modification. In the below scenario, which can be used to post payment against one or multiple orders, the Sales Order(s) must be shipped and invoiced.

  1. Navigate to Accounting > Cash Receipts.
  2. Choose "Regular Payments" as the report type.
  3. Complete the pre-filter as needed. Typical selections may include the following:
    1. Choosing a Bill-to Customer, as indicated on the check.
    2. Selecting a specific Sales Order or Bill-to PO number.
    3. Payment Date - The date defaults to the current date; however, this may be changed if posting cash from a prior date.
    4. Confirm the Cash Account is correct.
    5. Facility may be selected to further filter the selection.
      1. Note: If GL Overrides exist at the Facility level, selecting one of these fields will update the Cash Account in the previous step.
  4. Click "View" to display the list of invoices to pay. When viewing multiple invoices at once, the invoices are sorted by Company and Order number.
  5. Use the "Move" or "Move All" buttons to move the invoices to be paid over to the right side.
    1. Note: If not moving all the invoices, each one must be moved individually.
  6. Note any discounts taken. The Discount filter allows for the following: Use Order Setting (default), Take Discount, and No Discount. Applicable discounts are applied when the order is moved to the right side for payment.
    1. "Use Order Setting" follows the Terms on the order and will apply discounts based on the payment date.
    2. "Take Discount" will allow the discount despite the date payment is applied.
    3. "No Discount" does not evaluate a discount even if the order is within Terms.
  7. If modifications will be made, highlight the order with the adjustment and click "Modify Amt".
    1. Click "Add".
    2. For allowable deductions, choose an Account to write off the expense, enter an amount, click "Save" and close the form.
    3. For deductions not allowed, enter the amount paid in the "Set Total Amount", click "Enter", click "Save" and close the form. The amount not paid will remain open on the Sale Order until collected or written off.
  8. Click "Apply".
  9. Enter a Reference Number, which is normally customer’s check number.
  10. Optionally, enter a Deposit Number, which is normally used for lock box or wire transfer number.
  11. Verify the "Date Paid" which is used for GL posting.
  12. Choose a "Payment type". Options are Cash, Check, Credit Card, etc.
    1. Note: If choosing a credit card, the credit card number should be entered on the line above.
  13. Confirm cash account then click "Continue".
    1. Note: If choosing a gift card payment type, the system will present the Edit Gift Card form where users will swipe a gift card or enter the gift card number manually.

Note: Users will be required to enter an amount in the "Payment Amount" field if the security setting "Accounting -- bypass payment amount" is set to No. Additional information on the "Payment Amount" field is available via the Process Checks help section.

Entering pre-payments

Note that in this scenario, the order must be entered, but not invoiced.

  1. Navigate to Accounting > Cash Receipts.
  2. Choose "Pre-Payments" as the report type.
  3. Complete the pre-filter as needed; normally choosing a Bill-to Company.
  4. Enter the Payment Date for GL posting.
  5. Confirm the correct cash account is chosen then click "View".
  6. Use the "Move" or "Move All" buttons to move the invoices to be paid over to the right side.
    1. Note: If not moving all the invoices, each one must be moved individually.
  7. If modifications will be made, highlight the order with the adjustment and click "Modify Amt". Enter the amount of the payment in the “Set Total Amount” field then click "Save" and close the form.
  8. Click "Apply".
  9. Enter a Reference Number, which is normally customer’s check number.
  10. Optionally, enter a Deposit Number, which is normally used for lock box or wire transfer number.
  11. Choose a "Payment type". Options are Cash, Check, Credit Card, etc.
    1. Note: If choosing a credit card, the credit card number should be entered on the line above.
  12. Confirm cash account then click "Continue".

Entering payments on account

If the company’s Accounts Receivable policies clearly state that checks without specific remittance advice will be applied to the oldest outstanding invoices, then these checks are handled in the same manner as those in the previous category, by selecting the Bill-to Company and/or Ship-to Company indicated by the check. If this is not the company’s policy, the payment can be entered "on account", to be applied to specific outstanding invoices at a later time.

  1. Navigate to Accounting > Cash Receipts.
  2. Choose "Payment on Account" as the report type.
  3. Select the Bill-to Company, as indicated on the check, and a Ship-to Company.
  4. Enter the Payment Date for GL posting
  5. Confirm the correct "Cash Account" and "Credit to Account" are chosen. These should automatically populate, but can be manually set.
  6. Select a Facility, if applicable. In some cases, GL Overrides on the Facility may change the accounts selected in the previous step.
  7. Enter the amount of the check in the "Amount" field.
  8. Enter a Reference Number, which is normally customer’s check number.
  9. Optionally, enter a Deposit Number, which is normally used for lock box or wire transfer number.
  10. Choose a "Payment type". Options are Cash, Check, Credit Card, etc.
    1. Note: If choosing a credit card, the credit card number should be entered on the line above.
  11. After entering all required information, click the "Apply" button. A Sales Order is automatically created. The order is shipped and invoiced, and the check applied to it, creating a net credit. The order number is noted in the resulting popup box. Additionally, the "Print receipt" flag may be checked prior to applying payment to print a receipt.
  12. Clear the popup box by pressing Enter on the keyboard. The Cash Receipts form returns, still set to Payment on Account, and ready for the next check to be entered.

If the name on the check isn’t identifiable as either a Bill-to Company or a Ship-to Company, it can not be applied to the account of a known Customer. A Bill-to Company can be established, as a holding account, to accept the check while it is being researched. Once the correct account is identified, the payment to the holding account can be voided and reapplied. The voided payments in the holding account will accumulate as unpaid zero dollar invoices, and can be cleared periodically by moving all of them to the right on the Invoices to be Paid form and applying a zero dollar payment.

Additional Information

Processing over payments

Over payment checks are used to refund customers who have overpaid an invoice, but are rarely utilized within DEACOM and are not recommended. Usually, over payments stay on accounts as net credits and are applied to future invoices. Over payment checks are used as a last resort when money owed to a customer threatens business or the customer does not plan on placing new orders in the immediate future. To process over payment checks:

  1. Navigate to Accounting > Cash Receipts.
  2. Choose "Regular Payments" as the Report Type.
  3. Select the Sales Order credit that was previously created or the Bill-to Company.
  4. Click "Move" to move the Sales Order credit to the right side of the Invoices to Pay form.
  5. Click "Apply". The Process Checks form will appear.
  6. In the "Reference" field, verify the number for the check being issued.
  7. Enter a "Payment Type" if one is not defaulted.
  8. Click "Continue" on the Process Checks form. The form will close and a check will print.

Processing short payments

The short payments process is used to enter payments less than the sales invoiced amount. The reason customers short pay invoices vary. For example, a customer could send a single payment covering multiple invoices with a deduction off the payment for $1,000 in advertising allowances. If the payment details do not specify which of the invoices the deduction applies to, then using the short pay feature to deduct the money from the entire account may be more beneficial then taking a deduction against a random invoice for the $1,000 advertising allowance.

In DEACOM, short payments are entered without taking deductions from any of the invoices that the customer is paying and offer the option of re-billing the customer for the unpaid balance, if the deductions taken are reviewed and not approved. The short payment process is detailed in the steps below.

  1. Navigate to Accounting > Cash Receipts.
  2. Follow the steps for "Processing regular payments" above to view and select the orders being paid.
  3. Click the "Short/Over Pay" button to display the Short/Over Pay form.
  4. The Bill-to Company will default to the Bill-to on the first Sales Order in the "Invoices to Pay" side of the mover form. The Ship-to Company functions the same way. Note that if the "Bill-to" field is changed from the default, the system will change the Ship-to to the record attached to that Bill-to. The Facility will also default to the Facility selected on the first Sales Order in the "Invoices to Pay" side of the mover but may be changed.
  5. In the "Check Total" field, enter the amount the user wants to pay. The amount must be less than the "Invoice Total" field, and users will be prompted if they try to enter more than that amount.
  6. If a Rebill Sales Order will be created, check the "Create Rebilling SO" flag and select a Work Flow (optional) to ensure the process is controlled. Note that if the "Shortage" amount is known to be valid, users will most likely not create a Rebill SO.
  7. Once all the appropriate information has been entered, click the "Apply" button.
  8. At this point, the system creates, ships, and invoices a sales order using information from the Short/Over Pay form. The system will use the date entered in the "Payment Date" field for all Sales Order dates and GL postings. The Sales Order will have just one line, for the part specified in the "Short/Over Payment Part" field for the Bill-to Company. If no "Short/Over Payment Part" is specified, the system will prompt the user that this is required and refuse to move on until corrected. The line will have a quantity of -1. The item's price is the "Shortage" amount. The system will display this order directly underneath all the orders on the right-hand side of the mover form.
  9. Click the "Apply" button.
  10. The system will display the Process Checks form.
  11. Select the appropriate "Payment Type" on the form and enter any other necessary information. If the "Reference" field is not being used for other purposes, short payment details may be entered here.
  12. Click the "Continue" button to complete the payment process.
  13. If the "Create Rebilling SO" flag was checked, the system will create another regular Sales Order with the same information from the Short/Over Pay form, but with a quantity of 1.
    1. All other information is the same, including price and dates.
    2. The Terms on the new Sales Order will default based on the Terms specified on the Ship-to Company if they exist, otherwise the Terms specified on the Bill-to record is used.
    3. If a work flow was specified on the "Short/Over Pay" form, it will be populated on this Sales Order. If the user has permission to edit Sales Orders, the rebilling Sales Order will be displayed in edit mode. If the user has permission to view Sales Orders only, the rebilling Sales Order will be displayed in view mode. If the user has neither of these permissions, the system will display a message indicating the order number of the rebilling Sales Order that was created.
    4. This Sales Order will not be marked as shipped or invoiced, allowing companies to review the shortage amount and, if necessary, ship and invoice the order, which can then be sent to the customer to request payment for the shortage amount.

Applying credits to invoiced orders

When using credits to "pay" invoiced Sales Orders and the credit is worth more than the total balance of all invoices, there are two options: (1) pay some invoices and retain the excess amount of the credit to use against future orders or (2) pay some invoices and cut a check to the customer for the credit balance, acting as a refund. Both of these options begin with the following:

  1. Navigate to Accounting > Cash Receipts.
  2. Choose "Regular Payments" as the Report Type.
  3. Complete the pre-filter as needed, normally choosing a Bill-to Company, then click "View" to generate the list of invoiced orders.
  4. Use the "Move" or "Move All" buttons to move the credit and invoices to be paid over to the right side.
    1. Note: If not moving all the orders, each one must be moved individually.
  5. Note any discounts taken. The next step depends on the scenario.
    1. If the credit does not cover the balances of the selected orders, continue with steps 7-13 of the Processing regular payments section above.
    2. If the credit is more than the balances of the selected orders and option (1) described above is being utilized, continue with step 6.
    3. If the credit is more than the balances of the selected orders and option (2) described above is being utilized, continue with step 9.
  6. Total the amounts listed in the "Cash" column of the orders (not including the credit) in the Invoices to Pay section and take note of the number.
  7. Highlight the credit and click "Modify Amount" to open the Payment Deductions form.
  8. Enter the number from step 6 in the "Set Total Amount" field then save and exit the Payment Deductions form.
  9. Click "Apply" to open the Process Checks form.
  10. If desired, enter a "Reference" number, then select the correct "Date Paid", "Payment Type", "Cash Account", and printer information, then click "Continue".
    1. If following option (1) this action will apply the specified amount of the credit to the selected invoices, mark the selected orders as paid, and leave the credit marked as not paid and with a balance.
    2. If following option (2) this action will generate a check made payable to the Bill-to Company for the balance of the credit less all selected invoices and mark all orders as paid.