Journal entries for Customer Receipts in AR
Some of us are still confused with O2C journals, especially on the Receipts side. I am trying to clarify the same here. If you need to understand the complete flow and journals of O2C you can refer to the same in my blog which I already posted before. Let me explain how the receipts are accounted for using different remittance and clearance methods. Receipt with no Remittance and clearance method By Matching When creating Receipt Remitted Cash A/C…..Debit Unapplied Cash A/C…......Credit When applying receipt to open invoices Unapplied Cash A/C…...Debit Receivables A/C…....Credit When reconciling in Cash Management Cash A/C….....Debit Remitted Cash A/C…...Credit Receipt with Remittance When creating Receipt Confirmed Cash A/C……………Debit Unapplied Cash A/C…......Credit ...