Receipts and applications

A cash receipt records an amount, receipt number, received date, provider event identity, partner and verification state. A cash application links part of that receipt to an accounting document and records the applied amount and date. This separation lets the finance team distinguish money received from money actually assigned to a specific posted document. It also gives the Accounting Reviewer a way to check whether the same receipt has been applied beyond its available amount.

For a cash receipt from a partner, start with its source identity and verification state. Only a Verified receipt belongs in the application handoff. The Accounting Preparer then chooses an eligible posted document and records the amount applied. If a receipt covers more than one document, each application should have a clear amount and source link. If the receipt is smaller than the document amount, the amount still outstanding should be explainable from applications that have not been reversed.

• Verify the source. The receipt record holds the provider event identity and Verified or Unverified state.
• Apply to a document. Each application links one receipt and one accounting document with an amount and date.
• Keep corrections traceable. A reversal date preserves the fact that an earlier application was corrected.

A receipt is not the same as a petty cash voucher. The voucher records spend and custody; the cash receipt records money received from a provider. Their trails meet only where the accounting document and ledger work calls for them. Keep those purposes clear when training the team.

Agree how provider event identities and receipt numbers are captured, who verifies a receipt and how the team recognizes a duplicate. Define the partner record used for each provider and who maintains receipt verification state. Decide which posted documents are eligible for a cash application and how a correction should be recorded. A consistent rule for partial applications makes reporting easier to explain.

If the organization uses an external provider, agree how that provider’s event reference reaches the receipt record and who checks it. The app’s internal receipt and application records should be reviewed alongside that source when a discrepancy appears. Set ownership for the Unverified Cash Receipts queue so received money does not sit without a verification decision.

Inspect a receipt with its provider event identity, partner, amount and received date. Use one already marked Verified and apply only the eligible amount to a posted accounting document. Have the Accounting Reviewer compare the receipt amount with the sum of applications that have not been reversed. Try a second application that would exceed the receipt and investigate it before accepting it. Then reverse a mistaken application and confirm that the correction remains visible.

For a receipt that remains Unverified, keep it in the queue while the provider reference is checked. This rehearsal shows the team where verification ends and application begins.

• Unverified Cash Receipts — Receipts whose source still needs verification.
• Posted Documents — Eligible accounting documents to inspect before applying received cash.

Continue with reconciliation and journal posting.