What is the difference of using Receipt Voucher (Cash Book Entry) versus using “Payment Amount” field in Invoice to key in payment received for Invoice?
We are using Invoice I-000006, RM 50 as an example.
You may see the differences between these 2 methods.
How to use Payment Amount in Invoice
In Invoice, there is a Payment Amount function. Payment Amount is used to key in payment receive from customer.
You can click on wording ‘Payment Amount’, it will pop-up to allow you to select Payment Method from the drop-down arrow. In this example we will select ‘Bank’.
After selecting Payment Method, proceed to key in received amount and click on Save.
If using ‘Payment Amount' function with full payment amount, the system will not post double entry to Customer account.
Below is double entry posting and posting date is Invoice document date:
Debit Bank Account (based on payment method you choose)
Credit Sales Account (based on product posting sales account).
If there is outstanding amount for Invoice, it will post to customer account.
There is no need to perform Knock Off Entry because it does not involve customer accounts.
So, it will not appear in Debtor Statement or Aging, and Ledger for this customer account.
You will be able to see I-000006 only in Journal of Transaction.
Journal of Transaction
If you did not use Payment Amount in Invoice but use Receipt Voucher to key in the payment received, the double entry posting will be as below:
Invoice double entry posting:
Debit Customer Account
Credit Sales Account (based on product posting sales account)
The payment received was key in at Cash Book Entry – Receipt Voucher.
The double entry posting for Receipt Voucher:
Debit Bank Account
Credit Customer Account
You need to perform knock off for Receipt Voucher against Invoice in Knock Off Entry.
For more information of Knock Off Entry, refer to the following link:
You will be able to see Invoice I-000006 and the Receipt Voucher OR-000002 in Debtor Statement and Ledger for Customer Account.
Journal Of Transaction
By: Rotcana 230913, Lay Swan 230920, P230920