3-3-1 Cash Receipts

You use the 3-3-1 Cash Receipts window to enter payments for receivable invoices, discounts for early payment of invoices, and overpayments. You can also reverse payments.

You also use the Cash Receipts window to reverse payments and discounts. To reverse payments, enter a negative amount in the paid column and discount column if you have taken a discount. If the reversal is for a credit invoice enter a positive amount in the paid column.

To enter a payment against an invoice

Open 3-3-1 Cash Receipts.

Do the following:

In the Account text box, enter the ledger account number for the cash account.

In the Deposit# text box, enter the deposit number.

In the Date text box, enter the deposit date.

In the Description text box, enter a brief statement about the transaction.

Do one of the following:

In the Client text box, enter the client number.
In the Job text box, enter the job number.

Do one of the following:

Click the Contract Invoices tab.
Click the Service Invoices tab.

Click the Display button.

In the grid, do the following:

In the Paid cell, enter the total amount received.
Do not include any discount or credit in this amount.

If you are using discounts, in the Disc Available cell, enter the amount of the discount.
If you are not using discounts, skip step b.

Important! To enter an overpayment for an invoice, the total of the Paid and Discount cells must equal the amount in the Balance text box. Then in the Overpayment cell, enter the amount paid in addition to the invoice payment, not the total amount.

Repeat step 6 for each invoice you want to pay.

On the File menu, click Save.

Tip: If you do not enter a job number or client number, Sage 100 Contractor displays all invoices.

Entering payments and applying credits to invoices simultaneously

You can simultaneously enter a payment and apply a credit invoice. Suppose a job has a $500.00 credit invoice, a $1,000 invoice, and a $3,000 invoice. The client sends a payment of $3,500, the total amount due. You can apply the credit to either invoice, then apply the payment to the remaining balance.

To enter a payment and apply a credit to an invoice

Open 3-3-1 Cash Receipts.

Do the following:

In the Account text box, enter the ledger account number for the cash account.

In the Deposit# text box, enter the deposit transaction number.

In the Date text box, enter the deposit date.

In the Description text box, enter a brief statement about the transaction.

Do one of the following:

In the Client text box, enter the client number.
In the Job text box, enter the job number.

Do one of the following:

Click the Contract Invoices tab.
Click the Service Invoices tab.

Click the Display button.

In the grid, do the following:

In the Paid cell, enter the total amount received.

In the Discount Available cell, enter the amount of the discount.

To apply the credit in the Paid cell of the credit invoice, enter the credit as a negative amount.

Repeat step 6 for each item.

On the File menu, click Save.

Applying credit invoices to receivable invoices

You can apply the balance of a credit invoice to one or more receivable invoices. It is also possible to apply only a portion of the credit invoice balance to an invoice and apply the remaining balance later.

To apply a credit invoice to a receivable invoice

Open 3-3-1 Cash Receipts.

Do the following:

In the Account text box, enter the ledger account number for the cash account.

In the Deposit# text box, enter the deposit transaction number.

In the Date text box, enter the deposit date.

In the Description text box, enter a brief statement about the transaction.

Do one of the following:

In the Client text box, enter the client number.
In the Job text box, enter the job number.

Do one of the following:

Click the Service Invoices tab.
Click the Contract Invoices tab.

Click the Display button.

In the grid, do the following:

In the Paid cell, enter the credit as a negative amount.

Repeat step 6 for each invoice to which you want to apply a credit.

On the File menu, click Save.

Reversing cash receipts

Important! After you apply a credit invoice to an invoice and save the transaction, you cannot reverse the credit. If you have applied a credit invoice to the wrong invoice, enter an invoice to correct the error.

To reverse a cash receipt

Open 3-3-1 Cash Receipts.

Do the following:

In the Account text box, enter the ledger account number for the cash account.

In the Deposit# text box, enter the deposit transaction number.

In the Date text box, enter the deposit date.

In the Description text box, enter a brief statement about the transaction.

Do one of the following:

In the Client text box, enter the client number.
In the Job text box, enter the job number.

Do one of the following:

Click the Contract Invoices tab.
Click the Service Invoices tab.

Consider the following:

If the invoices are partially paid, the Open only option should be selected.

If the invoices are completely paid, select the Paid only option.

If you have a combination of paid and partially paid invoices, select the All option.

Click the Display button.

In the grid, do the following:

In the Paid cell, enter the amount as a negative amount.

In the Discount cell, enter the discount amount, if any, as a negative amount.

Repeat step 7 for each payment you want to reverse.

On the File menu, click Save.

Notes:

When you reverse a payment made to an invoice with status 4-Paid, Sage 100 Contractor changes the status to 1-Open.
After reversing all payments made to an invoice, you can void the invoice.

Reversing an Accounts Receivable Credit Applied to an Invoice with a Reference Number

To reverse an applied credit

Open 3-3-1 Cash Receipts.

In the Job field, select the correct Job.

Click the [All Invoices] button.

Click [Display Invoices].

On the Contract Invoices tab grid, locate the accounts receivable invoice and the accounts receivable credit which was applied to the invoice.

On the grid line for the accounts receivable credit memo, click the Discount field and enter the amount of the credit you wish to reverse as a positive sum.

On the grid line for the accounts receivable invoice, click the Discount field and enter the amount of the credit you wish to reverse as a negative sum.

In the Account field, enter the correct cash account.

In the Deposit # field, enter a number.

In the Description field, enter a description.

In the Date field, enter the correct date.

Select the correct Posting Period.

Select File > Save.

Entering receivable two-party checks

There are several ways to handle two-party checks. If the other payee has signed the check over to your company, deposit and receive the check normally. When you have to sign over the check to a second payee, it is necessary to enter two transactions in the accounting. Make the first transaction in 3-3-1 Cash Receipts, and the second in 4-3-1 Select Invoices to Pay and 4-3-2 Pay Vendors.

To enter a receivable two-party check

Open 3-3-1 Cash Receipts.

Do the following:

In the Account text box, enter the cash clearing account number.

In the Deposit# text box, enter the deposit transaction number.

In the Date text box, enter the deposit date.

In the Description text box, enter a brief statement about the transaction.

Do one of the following:

In the Client text box, enter a client number.
In the Job text box, enter a job number.

Do one of the following:

Click the Contract Invoices tab.
Click the Service Invoices tab.
Click the Display button.

In the grid, do the following:

In the Paid cell, enter the total amount received. Do not include any discount or credit in this amount.

In the Discount Available cell, enter the amount of the discount.

Repeat step 5 for each invoice.

On the File menu, click Save.

Open 4-3-1 Select Invoices to Pay.

In the Invoice Selection window:

Enter the selection criteria.

Select other options as desired.

Click OK.

Locate the invoice.

In the Set to Pay text box, enter the total amount to be paid.

Do not include a discount in this amount.

On the File menu, click Save.

Open 4-3-2 Pay Vendors.

Select the payee.

Select Check in the Pay By field.

Click [OK]. Print the check to blank paper in the 4-3-5 Report Printing window.

Note: The account used should be the same check clearing account used when you received the two party check, not your regular checking account.

Tips:

Entering the two transactions produces the same audit trail as if you cashed the client’s payment and then sent a check to the vendor. If you do not have to send a check, immediately print the check on blank paper instead of a check form. This will help prevent any confusion about the transaction the next time you print checks.
It is a good idea to include a note referencing the client check number in both transactions. This connects the two transactions together, providing a clear audit trail.

More resources

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