Fisherman/Loan Payment Receipt (UG)

Owned by Tatum Hohl (Unlicensed)
Last updated: Nov 18, 2020 by Tom Williams
6 min read

Overview

NorthScope allows users to enter accounts payable cash receipts that integrate as transaction entries in the host system. These transactions are used to record received payments from fishermen, tenders, and fishermen/tenders.

Prerequisites

Required Prerequisites

  • Vendor Setup
  • Financial Account setup
  • Invoice(s) and/or adjustment(s) with remaining balances for the “Received From” vendor

Optional Prerequisites

  • Set the integration setup for Journal in the Company module. 

Understanding the data flow

A cash receipt transaction can be used to apply received payments to outstanding transactions with remaining balances for fishermen, tenders, or fishermen/tenders. When the transaction status is changed to “Ready to Post,” a settlement transaction is adjusted in NorthScope for each line item transaction to which payment was applied, a NorthScope journal entry is created and sent to the host system as an unposted transaction entry in the Financial module for the totality of the cash receipt, and the transaction’s status is updated to “Posted” upon saving.  A cash receipt transaction can be deleted when the transaction status is set to 'New'.

To view the data flow of Cash Receipt transactions, click here. 

Step 1: Entering the transaction in NorthScope.

Entering a new transaction

From NorthScope, expand the Purchasing module on the navigation menu and select “Transactions”. This will open the Purchasing Transaction List View, which displays all Adjustment, Balance Transfer, and Cash Receipt transactions with a status of New or Approved.

Click the “New” toolbar icon and select “Cash Receipt” to open a blank record view.

Completing the header fields

  • Amount: Displays the amount of the payment received.
  • Account Type: Identifies the type of account the cash receipt pertains to (i.e. Vendor).
  • Checkbook: Identifies the bank to which the cash receipt applies.
  • Date: Identifies the date of the cash receipt. This also serves as the GL date. This field defaults to today’s date but can be edited.
  • Description: An additional field for comments or notes regarding the cash receipt.
  • Received From: Identifies the fisherman, tender, or fisherman/tender from whom the payment was received.
    • Note: Once the value for this field is selected, the grid will update to display all outstanding invoices and adjustments with remaining balances owed from the vendor selected.
  • Reference #: Identifies the reference number associated with the payment.
  • Remaining: Identifies the remaining amount of the received payment that can be applied to the line item transactions.
    • Note: This field updates as line item applied amounts are entered.
  • Status: This field is to select the status from the following options:
    • New - This is the default.
    • Approved - Used when there is a two-step process for finalizing transactions. Setting the status to “Approved” disables all editable fields except Status.
    • Ready to Post - Used when the user is ready to post the transaction. Setting the status to “Ready to Post” disables all editable fields including status.
  • Type: Identifies the form in which the payment was received (i.e. check or cash).

Applying payment(s)

Once the “Received From” field value is selected, the cash receipt grid will update to display all outstanding settlement balance transactions with remaining balances owed from the selected vendor. Each document will be displayed as its own line item with the following fields:

  • Applied Amount: This is the only editable grid field and is used to enter the amount of the received payment to be applied to the invoice. The applied amount cannot be greater than the header amount, header remaining amount, or the line item’s remaining amount.
  • Credit Account: Identifies the credit account for that line item, which will also function as the cash receipt’s credit account on the journal entry.
  • Description: Displays a description of the line item transaction.
  • Doc No: Displays the line item transaction’s unique document number.
  • Original Amount: Displays the original amount of the line item transaction.
  • Remaining Amount: Displays the remaining amount owed from the line item transaction.
  • Trans Date: Displays the date of the line item transaction.
  • Trans Type: Identifies the type of the line item transaction (i.e. Invoice).
  • Transaction: Displays the line item transaction’s Transaction number.
  • Unapplied Amount: Displays the amount that has yet to be applied to the remaining balance of the line item transaction.
    • Note: This field updates after an entry has been made in the line item’s “Applied Amount” field.

To apply received payments to a transaction with a remaining balance, enter the desired payment amount in the transaction’s line item “Applied Amount” field. Once all desired amounts have been applied or the full payment received has been applied, click the “Save” toolbar icon.

Step 2: Finalizing the transaction in NorthScope.

Changes can be made to a transaction until it is finalized. To finalize a transaction, the user will need to change the status to “Ready to Post”.  In some companies, posting is a two-step process where transaction(s) are “Approved” by one person and posted by another.

Approving the transaction

This step is optional and is used for companies that require a two-step process where there the person who approves the transaction cannot be the same person that posts the transaction.

To approve a transaction open it from the list view, change the status to “Approved”, and click the “Save” icon on the header toolbar. In addition to the validations performed each time the “Save” icon is clicked, there is an additional validation that is performed:

  • Ensures the Date resides within a valid fiscal period as determined by the host system
  • Ensures the checkbook has a cash account assigned

Once the status has been successfully updated to “Approved”, all the editable fields, with the exception of Status, will be disabled.

Finalizing the transaction

When the transaction is ready to be finalized, the user must open it and change the status to “Ready to Post” and save the transaction. Setting the adjustment to “Ready to Post” does the following:

  • Validates the same conditions as the approval status and locks down all editable fields including status.
  • Updates the transaction status to "Posted".
  • Creates the NothScope journal entry and sends it to the Host System.
  • Adjusts the NorthScope Settlement transaction(s).

Step 3: Posting the accrual journal entry in the host system.

For every Cash Receipt transaction in NorthScope, an accrual journal entry will be made in the host system if the integration setup in the Company module for Journal is set to immediate/timed. The journal entry will appear in the host system's Financial module as a Transaction Entry in the batch titled NS followed by the year, month, and day with the following format: NS: YY_MM_DD. For example, if the Cash Receipt was integrated on July 14, 2015, the Batch ID for the transaction entry would be NS: 15_07_14. 

Each Cash Receipt journal entry description will be the NorthScope journal entry number followed by the NorthScope transaction ID followed by the NorthScope transaction name (i.e. 12345: CR1000 Cash Receipt).

The journal entry for each cash receipt transaction will include a debit line showing the summarized amount of the received payment to the checkbook cash account and credit lines showing the summarized total for each "Credit Account" identified on the transaction.

Note: If the payment received on the cash receipt is not fully applied, there will also be a credit line to the Vendor’s "Settlement Accrual" account for the remaining amount of the received payment that has not yet been applied. If no 'Settlement Accrual' account is assigned to the vendor, the default 'Settlement Accrual' account will be credited.

Once the user is satisfied that all the GL Distributions are correct, the user can post the batch in the host system.

Posting the transaction in the host system accomplishes the following:

  • Posts the transaction within the Financial module of the host system
  • Updates the General Ledger of the host system

Note: Although this step is required, it does not need to be done for each transaction. Posting can be done nightly or as needed.

Step 4: Reviewing in NorthScope.

Whether or not Step 3 is complete, the following will occur in NorthScope:

  • The posted Cash Receipt(s) will automatically update from “Ready to Post” to “Posted” and will no longer be visible in the Purchasing Transaction List View.

Once Step 3 is complete, the following will occur in NorthScope:

  • The NorthScope journal entry will automatically be updated from “Ready to Post” to “Posted” and will no longer be visible in the Financial Journal Entries List View. 
  • The balance(s) of the settlement transaction(s) to which the cash receipt was applied will be updated to reflect the applied payments, decreasing the settlement balance(s) by the applied amount(s).
    • Note: If a settlement transaction was paid in full by the applied payments, the settlement transaction will no longer be visible.