Record, Apply, Reverse On Account Payment & Client on Account Report

Guidelines:

This feature allows you to receive a payment ‘on account’ (Rec On Acct) and reverse the payment ‘on account’ (Rev On Acct).

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Example: A client may provide monies up front for work you do which may at a later date be paid for using this on account payment.

From the AR – On Acct menu, you have three options pertaining to this type of transaction.
They are:

  • Record the Payment.

  • Apply the Payment.

  • Reverse the Payment.

Record On Acct Payment

To record a payment on account, mouse over 'Rec/Rev On Acct' from the On Acct drop down menu and click the orange + icon, Screenshot 2024-04-15 171459.png . Then in the window shown below enter the relevant transaction data.

In this example a $10,000 check is being entered on account for client Arizona Banker.

The ‘Bank Acct’ is where the funds will be deposited. The ‘Credit GL Account’ field is where you select the GL Account that will have a corresponding credit entry in the Journal Entry. Once all the entries are completed, submit the entry using the Insert button.

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In the example, $10,000 will be Debited to bank account 1001 and $10,000 Credited to GL account 1505.

Apply On Account Payment

As Client Invoices are generated and you need to record payment for the invoices against an ‘On Account’ entry, you can do so by selecting ‘Apply on Account’ from the AR – On Acct submenu.

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In this example, a payment of $10,000 from a prior Payment on Account is being applied against a $10,000 invoice.

$10,000 will be Credited to the appropriate Accounts Receivable account and $10,000 Debited to the GL account for the initial on-account payment, in this example GL acct 1505.

Reverse On Account Payment

To reverse a Client Payment on Account from the A/R menu, go to the ‘Rec/Rev on Acct’ submenu where you are presented with this window:

After finding the check (payment) you want to reverse, you may reverse the payment by clicking on the red circle icon, Screenshot 2024-04-15 171959.png , and then enter a date in the pop-up window:

Once deleted, in our example, $10,000 will be Credited to bank account 1001 and $10,000 Debited to GL account 1505.

When reversing multi-currency payments, any penny rounding differences are automatically adjusted to the Gain/Loss Account setup under GL > Setup > Exchange Rates.

Client on Account Report

Generate this report from AR – Reports – Client on Account to list any unapplied
prepayments / deposits that remain 'On Account' for each client that you have entered an on-account payment.

Make selections and print in the desired format.

The report is generated for a specific General Ledger period in the current fiscal year or first two periods of the next fiscal year.