This week’s training demo dives into the ‘Cash Receipts’ functionality – Cash receipt journal and deposit – in Microsoft Dynamics 365 Business Central.
Below is a transcription of this training video:
“We will do cash receipts. There are couple of ways of doing that. If you go to our Cash Management, you do have a “Cash Receipt Journal” and a “Deposit”. Now the difference between these two, it really depends on how you mostly receive payments from your customers.
A deposit is a deposit slip. You get a bunch of checks. You are filling out deposit slips and you are going to take those checks to the bank. For bank reconciliation purposes, you want that to show up as one number, not as multiple customers. In that case, we will use deposit.
Now, I am going to go back and use the cash receipt journal as an example but if you look at the deposit screen, we see the structure, you can imagine having that physical deposit slip in front of you. The total of the deposit slip and then down below the individual checks that I have collected from either customers or different employees, we need to pay something back or just miscellaneous cash. It will allow is that in the bank statement we will see, when we do a back req it makes it easier to see one number on the bank reconciliation as opposed to each check individually. And then behind that we can expand and collapse to see that. So, if you do have a lot of that then there’s a function for kind of virtual deposit slip in the system.
In Cash Receipt Journal, we go ahead and receive cash through special journal or in this case the cash receipt journal. We are going to use the default journal we have here. So, we get through it. We are receiving the payment. When we come through to the Account Type, here is where we select who is giving us the payment. We can get a refund from a vendor this way as well. So, if vendor sends you cash back, we can say we are getting it back from the vendor and it will impact the vendor record. In our case, we are going to go through and select ‘Customer’.
For the Account No., we can select who that customer is. The invoice is out there and so I am going to go ahead and select an ‘Invoice’. You can see once I select that invoice, it automatically puts in that amount for me. So, if it’s one invoice and you want to save yourself some typing, you can select that invoice default. You can also change the amounts here. That’s fine as well if they are paying in pieces, you can adjust the amount paid against that invoice and it will leave the remaining amount open until its either fully paid or we credit the balance off.
Our Balance Account here, we can select the G/L account. More than likely, you would want to put that in a bank account that is of course linked to your general ledger but again updating your sub-ledger record for your check book as well. And then we have these individual cash receipts under bank statements. Just slightly different than what we talked about with a deposit is that this would show up as a line on your bank statement in business central as opposed to a deposit that might be grouped. So, two different ways of doing this depending on how the payment was made to you from the customer.”