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The Prelist Along With The Checks Will Be Sent To The

The cash receipts procedure involves receiving customer payments, recording them, depositing funds, and reconciling accounts. Mail room staff open payments and create a remittance list matching checks to amounts owed. An administrative clerk verifies checks against the list. The cash receipts department records payments, updates journals, and prepares deposit slips. Accounts receivable is notified to reduce customer balances. General ledger receives journal vouchers and reconciles figures. Finally, cash receipts are periodically reconciled against deposit slips and related documents.

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645 views2 pages

The Prelist Along With The Checks Will Be Sent To The

The cash receipts procedure involves receiving customer payments, recording them, depositing funds, and reconciling accounts. Mail room staff open payments and create a remittance list matching checks to amounts owed. An administrative clerk verifies checks against the list. The cash receipts department records payments, updates journals, and prepares deposit slips. Accounts receivable is notified to reduce customer balances. General ledger receives journal vouchers and reconciles figures. Finally, cash receipts are periodically reconciled against deposit slips and related documents.

Uploaded by

Raca Desu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Cash Receipts Procedure

It involves the receiving and securing the cash; depositing the cash in the bank; matching the
payment with the customer and adjusting the correct account; and properly accounting for and
reconciling the financial details of the transaction.

1. OPEN MAIL AND PREPARE REMITTANCE ADVICE


Customer will now give the customer's payments and remittance advices which will be received
by a mail room employee.

Remittance advices - reminder for the customer of the amount of payable they have and also the
copy of the invoice that we sent to the customer in selling.
It includes the payment date, account number, amount paid, and customer check number.

Errors are avoided and operational efficiency is greatly improved when using
Remittance advices.

Checks and remittances will be delivered to administrative clerk who will reconcile the amount
on each remittance advice with the corresponding check.

Remittance list (Cash prelist)


- List of all the remittances that have received, where the customer's name are listed, the amount
received, the date and the check number

2. RECORD AND DEPOSIT CHECKS


Copy of the prelist along with the checks will be sent to the
 Cash receipts department - Cash receipts employee verifies the accuracy and
completeness of the checks against the prelist

Also a copy of the prelist will be sent to the


 Accounts receivable - inform them that such customer has already paid their dues and
their subsidiary ledgers and a\r will be reduced
 Controller - the head of the accounting department will have a copy for the
reconciliation later in the phase of collection process

Most of the work in the cash receipts procedures happen in the cash receipts department
1. verifies the accuracy and completeness of the checks
(Correct signature, amount, for what invoices and all other details)

2. Updates cash receipts journal- checks will be recorded including cash sales,
miscellaneous cash receipts, and cash received on account. .

3. Prepares a deposit slip


When the payment is directly paid on the bank there are already a lot of things omitted there,
sometimes customer will just notify you with a transfer confirmation or a bank reference
number. So, in the cash receipts department, they will just verify the reference number with
the bank.

Upon receiving numerous checks and recording them on the cash receipts, they now prepare a
summary journal voucher to be sent to the general ledger to manage the control accounts

3. UPDATE ACCOUNTS RECEIVABLE


Remember, we sent a copy of the prelist, and in addition to that, the rem advices can also be used
as a basis by the Accounting receivable department in order to reduce the amount of receivable
from a customer.

Summary of postings will be sent to the general ledger

4. UPDATE GENERAL LEDGER.


Upon receipt of the journal voucher and the account summary, the general ledger function
reconciles the figures, posts to the cash and AR control accounts, and files the journal
voucher.

5. RECONCILE CASH RECEIPTS AND DEPOSITS.


Periodically (weekly or monthly), a clerk from the controller’s office (or an employee not
involved with the cash receipts procedures)
Reconciles cash receipts by comparing the following documents:
(1) A copy of the prelist,
(2) Deposit slips received from the bank, and
(3) Related journal vouchers.

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