Income Receipts

Publicado el
Published on
September 6, 2023
Actualizado en
Updated on
December 19, 2023

A income receipt is a document that confirms the receipt of a payment or an advance of money. This document is crucial for maintaining an accurate record of transactions in a business. It provides the seller with proof of income received and the buyer with confirmation of their payment. In this guide, you will learn how to manage income receipts in Cashflow, covering how to create, edit, and delete these receipts efficiently.

1. Record an Income Receipt

To record a new Income Receipt, follow these steps:

  1. Navigate to the main menu, select Banks, and then click on Income Receipts.
  2. In the list of Receipts, click on the (+) button and then New Receipt.
  3. Select the account, the payer, the payment method, the date, and add a Note. Depending on the chosen payment method, the system will display additional fields such as Number (No.) and Bank Institution.
  4. In the Accounts Receivable section, you will find two tabs: Accounts Receivable (CxC) and Accounts. In the Accounts Receivable (CxC) tab, you can select accounts receivable documents, such as invoices previously registered in the system. In the Accounts tab, you can directly select accounting accounts to affect.
  5. If you are going to settle an account receivable, select the Accounts Receivable (CxC) tab and click on the + Accounts Receivable (CxC) button. In the window that opens, select the documents you are going to settle with this receipt. Then, close the window to return to the income receipt.
  6. If you are going to settle an account receivable in a foreign currency (USD or EUR), in the "Accounts Receivable" tab, select the currency in the Display In field and define or update the Exchange Rate if necessary.
  7. If you plan to make a deposit to an account, such as a customer's advance payment, select the Accounts tab. Here, choose the corresponding ledger account, define a description (Memo), and enter the amount to be deposited.
  8. If you need to add more lines, click the (+) button below the list and repeat the previous step.
  9. Finally, click Save to save the document.
[4] Tabs: Accounts Receivable (AR) and Accounts

Accounts Receivable (AR) Tab
The Accounts Receivable (AR) tab allows you to select accounts receivable documents, such as invoices, that you have previously recorded in the system. This feature is primarily used to settle outstanding accounts.

Accounts Tab
The Accounts tab provides you with the option to directly select ledger accounts to record movements in them. This feature is useful when you are receiving an advance payment from a customer, a loan, or a capital contribution from a partner, or if you need to record a transaction in a specific account.
[6] Multi-Currency
If you generate transactions in multiple currencies and you are going to settle accounts receivable documents in a foreign currency, you must select the currency of the accounts receivable you want to view in the Show field on the Accounts Receivable (AR) tab, otherwise you will not be able to view these documents when clicking on + Receive (AR).

Note: Depending on the currency chosen in the Show In field, the accounts receivable in that currency will be displayed when clicking on + Receive (AR).

2. Assign Collection Commission

To assign a collection commission to your sales team when recording an income receipt, follow these steps:

  1. Follow the same steps (1-6) to record an income receipt as outlined in the previous section.
  2. After selecting an accounts receivable document in the Accounts Receivable tab, proceed to assign a commission. Click on the gear icon at the end of the line and then select Additional.
  3. In the window that appears, go to the Collection Commission section and select the employee from the list.
  4. Complete any other necessary steps when recording the income receipt.
  5. Finally, click Save to save the document.

3. Voiding an Income Receipt

There are occasions when it's necessary to void an income receipt. This can be due to an error or mistake. To void a receipt:

  1. Navigate to the main menu, select Bank, and then click on Income Receipts.
  2. In the list of Receipts, find the receipt you want to void.
  3. Click on the action menu (three horizontal dots) and select Void.
  4. You'll be prompted to confirm the action.
Void Receipt
Receipts of income cannot be deleted, only voided. This is because receipts generate transactions that affect the accounting records. When voiding a document, the system reverses the transaction and leaves a historical record in the accounting for auditing purposes.

4. Send a Receipt by Email

To Send a Receipt by Email:

  1. Go to the main menu, select Bank, and then click on Income Receipts.
  2. In the list of Receipts, find the receipt you want to send.
  3. Click on the action menu (three horizontal dots), and then click Send by Email.
  4. Fill in the fields To (Email), Subject, and Message. These fields will be pre-filled, but you can make any necessary adjustments. If you need to include a BCC or CC, click the link next to the To field.
  5. Click Send to send the receipt.
Send History
Every time you send a document via email from Cashflow, you can view a history of the sending status. You can see when the email is in Queue, Sent, Received, and Opened by the recipient. To access this functionality, click on the send icon (Paper Plane) in the list.

5. List of Receipts and Options

The Income Receipts module provides a list of all registered income transactions and a set of options in the action menu (three horizontal dots) for each transaction. These options allow you to manage and track each transaction easily. The options in this menu are:

  1. Preview
    This option allows you to view the document as it would appear once printed.
  2. History
    Allows you to view all transactions associated with this receipt.
  3. Send by Email
    This option enables you to directly send the receipt to a third party via email.
  4. Attach File
    Allows you to add files related to the income receipt, such as supporting documents, attached files sent, and more.
  5. Audit
    The audit trail shows the changes made to the document, allowing for detailed tracking of modifications.
  6. Void Receipt
    If you need to void an income receipt, you can use this option. A voided document cannot be deleted and is kept in the system for record and auditing purposes.

6. Import Payments and Income Receipts

If you are migrating from another system, this function allows you to upload a list of customer payments or income receipts from a spreadsheet file instead of adding each transaction individually. Here's how to do it:

  1. Go to the main menu, select Bank, and then click on Income Receipts.
  2. In the list, you can click on the (+) button and then select Import.
  3. Alternatively, you can use the Import from Excel option located below the list.
  4. Once you're on the import screen, choose Income Receipts as the Transaction Type and Create as the Action.
  5. Click on Upload File, and in the window that appears, click on Browse File to select your import file from your computer. You can download an import template by clicking on the Import Template option.
  6. Click on Upload File and select the file from your device.
  7. Once the file has been successfully uploaded, click Continue.
  8. Now, you'll need to match the fields. In the Match Fields window, for each field on the left, choose the corresponding column from your file in the dropdown menu.
  9. When you've finished matching the fields, click Continue.
  10. Your data will be imported into the spreadsheet view. Here, you can review and make any necessary adjustments.
  11. When you've finished reviewing your data, click Save and Upload.

Remember, it's always important to review the data after a mass import to ensure that everything has been imported correctly.

Import Processing
When you click "Save and Upload" for your file, the system will place it in an import queue. The import process usually takes less than a minute; however, it could take much longer depending on the number of records you are importing.

Tips & Best Practices

Here are several tips and best practices for effectively managing your income receipts:

  1. Verify Information
    Always double-check the data entered on an income receipt before saving it. This will help prevent potential errors and the need to void receipts.
  2. Transaction History
    Use the "History" function in the options menu of each receipt to track all associated transactions. This can be helpful for audit trails and issue resolution.
  3. Use of Multi-Currency
    If you work with multiple currencies, make sure to select the correct currency when creating an income receipt. Remember that the currency exchange rate determines which accounts receivable are displayed.
  4. Save and Send Receipts
    Save and send your income receipts as soon as transactions are completed. This ensures that customers receive their receipts promptly and that income data is recorded in your accounting system as soon as possible.
  5. Void with Caution
    Void income receipts only when absolutely necessary, as this process leaves a trail in your accounting and can complicate your records if done frequently.
  6. Data Import
    If you're migrating from another system, use the import function to upload your transactions in bulk. This can save you time and ensure your records are complete.
  7. Supporting Documents
    Whenever possible, attach supporting documents. This can include receipts, invoices, contracts, etc. This practice helps you maintain a complete record of each transaction and can be useful in case of an audit.
  8. Void Incorrect Transactions
    If you realize that you've recorded an income receipt with incorrect information, be sure to void it as appropriate. This ensures that your financial records are accurate and reflect your business's financial situation correctly.
  9. Perform Audits
    Use the audit function to track changes made to your transactions. This tool can be useful for detecting errors, irregularities, or fraudulent activities.

These tips can make it easier for you to manage your income receipts, make your financial data more accurate, and simplify your business tasks.

Common Issues

Here are some common problems and their solutions:

  1. Data Entry Errors
    Data entry errors are a common issue when creating income receipts. Make sure to double-check your entries to avoid any potential errors.
  2. Cannot Edit an Income Receipt
    Income receipts cannot be edited. If you need to correct any information on an income receipt, you'll need to void it and create a new one.
  3. Selecting the Wrong Currency
    If you're working with multiple currencies, ensure that you select the correct one when creating an income receipt. The selected currency determines which accounts receivable documents are displayed in the list.
  4. Currency Transaction Error
    If you encounter discrepancies in values after recording the transaction, it could be due to an error in the exchange rate. Verify the exchange rate if you're using a foreign currency in the transaction. Review and adjust the exchange rate to ensure it's correct. If necessary, void and recreate the transaction.
  5. Data Import Issues
    If you're having trouble importing payment or income receipt data, check that your file is in the correct format and that all columns are properly mapped during the import process.
  6. Accidental Voiding
    If you void an income receipt by mistake, it cannot be recovered. Make sure you genuinely need to void a receipt before doing so. In case of an error, you'll need to create a new receipt to replace the voided one.
  7. Email Problems
    When sending a document via email, you may encounter issues such as undelivered or unreceived emails. Ensure that the email address is correctly written. Additionally, check the email sending history to verify the email's status.
  8. Data Import Errors
    When importing data from a spreadsheet, you may encounter errors if the data doesn't match the formats and fields required by the Cashflow system. Make sure you're using the correct format for each field, and ensure that all required fields are present in your import file. Use the provided import template to ensure the correct format.
  9. Slow Import
    The import processing time depends on the file's size. If the file is large, it may take several hours to import all the data. Be patient and wait for the import to complete. If several hours have passed and it's still not finished, consider contacting customer support.
  10. Missing or Incorrect Data After Import
    When you upload a file, the system maps the columns in your file to the fields in the Cashflow system. If the data doesn't appear correctly, review the field mapping to ensure that each Cashflow field corresponds to the correct column in your file.

Remember that if you're unable to resolve the issue, it's always best to contact technical support for assistance and to avoid potential errors that could affect your accounting records.