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Collection of an accounts receivable

Once you have made credit sales to customers, the next step in the sales cycle is to collect the receivable from the customer. There are two steps to this process: recording the receipt of money from the customer, and then recording that the money has been deposited in the bank. This topic covers the first step, showing you where and how to record the receipt from the customer in Sage 50. Instructions on how to perform the second step can be found in the Creating a new bank deposit page in the Banking section in this Learning Center.

Receive money from a customer

To record the receipt from a customer, open the Customers & Sales Navigation Center. Click on the Receive Money icon and select Receive Money from Customer from the drop down list provided. Alternatively, through the Banking Navigation Center you can also access the same Receive Money icon and select Receive Money from Customer from the drop down list provided.

Select Receive Money from Customer

This opens the window where you can enter the details of the receipt into Sage 50. The following screenshot and reference table show step-by-step instructions on how to enter the collection of a receivable from a customer in Sage 50. Note that each step is assigned a reference number to help you identify the appropriate field or icon in the screenshot provided.

The following screenshot of the Receipts window was taken using Sage 50 Complete Accounting 2013. If you are using Sage 50 Complete Accounting 2015 or 2017, be aware that the name of the window has changed to Receive Money. Apart from a few minor visual changes to the window, the process remains the same so you can still use these instructions to help you.

The Receipts/Receive Money window with reference numbers

The Receipts/Receive Money window
Step Sage 50
field or icon
1 Customer ID Select the name of the customer.
2 Address Sage 50 automatically displays the address of the customer.
3 Apply to Invoices tab Notice that Sage 50 automatically displays a list of the customer's outstanding invoices.
4 Reference Enter the reference number for the cash receipt. For example, if the customer paid by check, then the reference is the check number of the customer's check.

Note that this field is called Check/Reference No. in Sage 50 Complete Accounting 2015 and 2017.
5 Receipt Number Enter the receipt number for the cash receipt.
6 Date Click the calendar icon to select the date of the receipt.
7 Payment Method Select the method of payment from the drop down list provided.
8 Cash Account If the business has more than one type of cash account, select the cash account into which the receipt of cash is entered.
9 Pay column If the customer has paid the full amount of the invoice, then click the Pay box for that invoice to enter a check mark in that column. Sage 50 automatically fills in the Amount Paid column with the amount due for that invoice. Note that if the customer has more invoices than is displayed, Sage 50 provides a scroll bar to scroll down to the invoice that you want to apply the payment to.
10 Amount Paid column If the customer only made a partial payment against a particular invoice, type in the amount of that payment in the Amount Paid column. Sage 50 automatically places a check mark in the box in the Pay column for that invoice.
11 Receipt Amount Sage 50 automatically calculates the total of the Amount Paid column and displays the amount received from the customer. This amount is also displayed in the title of the Apply to Invoices tab. You should check that this total is equal to the amount of the customer's check or other method of payment.
12 Save icon Once you have reviewed the information in the Receipts/Receive Money window, remember to click the Save icon to record the cash receipt, journalize the transaction and post it to the applicable accounts.
Puzzle icon

Helpful Hint!

When you open the Receipts/Receive Money window, Sage 50 may automatically populate a date or a reference number into the Deposit Ticket ID field. If there is anything entered into the Deposit Ticket ID field Sage 50 will automatically create a bank deposit ticket for that single cash receipt when the window is saved. If this field is left blank, no bank deposit ticket is created. If you are completing the Sage 50 Practice Set, delete any entry that may be in this field. This is because you are instructed to record this cash receipt in a bank deposit ticket that is to be created later on. See the Creating a new bank deposit page in the Banking section in this Learning Center for instructions on how this is done.

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