Cash handling in order processing

Order entry handles payments in two different ways according to whether the payment is made by check/cash or credit card.

To apply cash/check payments

When a cash/check payment is applied to an order, iMIS immediately recognizes the payment when the order is entered. A debit to the appropriate cash account is created and a credit is applied to the prepaid account specified in default accounts in AR system setup. Cash or check payments are usually deposited immediately and considered as “cash on hand.” When the order is subsequently invoiced, the prepaid account is debited and the income account specified for the product code is credited.

To apply credit card payments

If the Recognize Credit Card Order Payments as Prepaid Cash option is not enabled (from AR/Cash, select Set up module), payment is not submitted until the product has been shipped and iMIS recognizes the cash at the time the order is invoiced.

When processing orders with credit card payments, you can either enter the amount in the Payment Amount field or leave the field blank. If a credit card code is entered in the Check/CC field and the amount is left blank, iMIS will simply make the cash amount equal to the invoice amount at the time the order is invoiced. If an amount is entered in the Payment Amount field, iMIS will apply this payment against the invoiced amount. In the case of over/under payments, iMIS will create the appropriate AR entry.

Note: If you are processing orders in iMIS, you must populate the transfer clearing and the prepaid default accounts on the Set up cash accounts window (from AR/Cash, select Set up tables > Cash accounts).

More:
Controlling the recognition of credit card entries in batches