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Accounts receivable

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 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
Accounts Receivable
Based on the AR date
N/A
Depositing a payment
Cash
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
Sales Tax Inventory Shipping Finance Charge
Based on the AR date
Sales are recorded when the payment is applied to the invoice.
Depositing a payment
Cash
Undeposited Payments
Posting period for the deposit in the
Enter Deposits
 screen
N/A

This article applies to:

  • Product: Accounting CS

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