How do cash receipts affect accounts receivable?
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Strong internal controls are necessary to prevent mishandling of funds and safeguard assets. They protect both the University and the employees handling the cash. No one person should be allowed to
collect, handle or transport and deposit checks/currency without some additional control feature to ensure that all funds are accounted for. Examples of such controls are as follows: Related SU
policy: Gift Acceptance Policy Fees and other Revenues LinkUse an accounts receivable account to process billing and collection for routine revenue activities. If you are unsure if a cash receipt should be recorded as revenue or an offset to an expense, contact General Accounting in the Comptroller’s Office for assistance. Internal controls surrounding this type of activity include:
Related SU policy: Revenue from Transactions with External Parties Bank Accounts LinkThe opening of any University bank account requires proper approval.
Related SU policy: Bank Accounts Is accounts receivable included in cash receipts?The recording of a cash receipt is the recognition of moneys received from internal or external sources. Most cash receipts are recorded through the Accounts Receivable (AR) module in the Statewide Financial System (SFS) after a deposit is made to the State's General Checking Account (GCA).
What does the receipt of payment for an account receivable affect?The amount of accounts receivable is increased on the debit side and decreased on the credit side. When cash payment is received from the debtor, cash is increased and the accounts receivable is decreased.
How would cash collected on accounts receivable affect the balance sheet?How would cash collected on accounts receivable affect the balance sheet? When it collects cash against its A/R balance, a company is converting the balance from one current asset to another. Its A/R balance decreases, while its cash balance increases. Liabilities and equity remain unchanged.
What is an AR cash receipt?The Accounts Receivable and Cash Receipts (AR/Cash) feature provides the central cash receipt and accounts receivable tracking utility for the entire integrated iMIS system. All accounting-related entries generated by iMIS (through Billing, Events, and so forth) flow through and are managed by AR/Cash.
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