Receiving Miscellaneous Cash

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Sometimes you will receive money from a source other than your Clients.  Likely examples of such monies is the interest you receive from the bank, commission or a finder's fee, or some sort of refund check.  Money that comes into your business and is not payment for services or merchandise is known as a Miscellaneous Cash Receipt.

 

To enter a Miscellaneous Cash Receipt, open the Documents and Accounting Window and switch to the Journal Entries and Miscellaneous Cash Receipts (Journal Entries and Misc.) Tab.

 

docs acct window-je tab -misc cr

 

Click the Cash Receipt button to open the Cash Receipt - Miscellaneous Window.

cash receipt button

Here you will enter the information about the money that you have received.

 

cr - misc window

 

Receipt Information:

The Date will default to the current system date, but can be changed as necessary.  The Date entered determines on which date the Miscellaneous Cash Receipt will appear on the Checking Window - Checkbook Tab.  The Check Number (Check No.) allows you to enter the number of the Check, if one is available.   You can also record a transfer number, authorization number, etc. in lieu of a check number depending on the mode of payment.  Select the appropriate Payment Type which will automatically default into the Deposit Slip Number (Deposit Slip No.).  Change the Deposit Slip Number if necessary.

 

Payment Distribution:

You can enter the Name of the person or organization from which the company is receiving the funds.  Enter the amount that you are receiving in the Amount field.  An optional Transaction Description regarding the cash receipt can be recorded for future reference.  Finally, enter or select a General Ledger Account Number in the Offset Account field.  This Account Number represents the classification of the funds you are receiving (why you have received the funds) and will often be a Revenue Account.

 

Click OK to save the Miscellaneous Cash Receipt.  The Miscellaneous Cash Receipt will be displayed on the Documents and Accounting Window in the proper month folder displaying the Name, Transaction Description, Date, and Amount.

 

Accounting:  Assuming the Amount is a positive figure, the Offset Account determines which General Ledger Account will be credited while the Checking Account of the selected Payment Type will be debited.  If you enter a negative figure (i.e. –100.00) in the Amount field then Checking Account will be credited, or reduced, and the Offset Account will be debited.  If you do not know what Offset Account then you may want to select the Suspense Account or verify with your accountant.