Receipting Payments

Purpose

• Ensure accurate and timely receipting of funds to bank account
• Ensure proper allocation of journal entries to appropriate customers or other accounts.

Background

If invoicing is a key area of our business, receipting the funds from those invoices is equally important. This procedure was developed to assist in ensuring that banking and allocation of funds occurs with minimal mistakes and issues arising.

Scope

All staff who handle funds received

Procedure

When payment is made to an account it must be entered into the database, thus ensuring the accuracy and currency of the account record.

To maintain a system of checks and balances, you should first provide a  receipt for the money and enter the amount received into the Accounting Software (PROVIDE A STEP BY STEP PROCESS TO IDENTIFY HOW THIS IS DONE IN YOUR ACCOUNTING SOFTWARE).

The other key part in this process is telling the software how the money is to be used, ie. which transactions should be credited with the money received. For example, if there are a series of outstanding invoices – how is a payment to be allocated Should it be paid off the oldest account first or is there an account in dispute that will remain unpaid until the dispute is resolved This is a decision that you must make.

Your Responsibility.

• To make sure that the receipts for each account are recorded accurately in the accounting software.
• To determine, in line with the business’s policy or procedure, how each payment of money is to be divided.

What you will need before you begin

Safety hazards awareness

Any safety hazards to be aware of – delete this section if not needed

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Steps

Select the type of payment (Bank Deposit/Transfer, Cash, Cheque, Credit Card, EFTPOS or Money Order).

• If it is a Bank Deposit Receipt
• (IDENTIFY STEPS INVOLVED)
• If it is a Bank Transfer ie. the Customer has a direct debit setup from their account to yours:
• (IDENTIFY STEPS INVOLVED)
• If it is a Cash Receipt:
• (IDENTIFY STEPS INVOLVED)
• If it is a Cheque Receipt:
• (IDENTIFY STEPS INVOLVED)
• If it is a Credit Card Receipt ie. a Manually swiped Credit Card transaction has taken place:
• (IDENTIFY STEPS INVOLVED)
• If it is an EFTPOS Receipt ie. your business has an EFTPOS setup through the bank for Debit and Credit Card transactions:
• (IDENTIFY STEPS INVOLVED)
• If it is a Money Order Receipt.
• (IDENTIFY STEPS INVOLVED)

Tips

Any tips learnt from previous experiences that should be passed on – delete this section if not needed

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Traps

Any traps to avoid learnt from previous experiences that should be passed on – delete this section if not needed

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