NetSuite Cash Application in Centime

Modified on Mon, 08 Jan 2024 at 12:29 PM

Summary: Reviews how Centime reconciles collections payments made through CentimePay and the timing surrounding it


Article Contains

Overview

When a customer makes a payment using CentimePay, Centime will automatically apply cash appropriately and close out the bill in your general ledger. When utilizing the Customer Portal, Centime will also do this even when early-pay discounts, ACH discounts, credits, and surcharges are involved by applying cash to the corresponding accounts. 


How it Works

When a payment is authorized by a customer through CentimePay, Centime will post the Payment to the  “Undeposited Funds” GL account until the funds settle and once they settle, a Deposit will be created in that same amount to correspond with your bank balance.


Discounts and Surcharges

In the event that discounts or surcharges are utilized, a journal entry will be created for the surcharge or discount amount and assigned to the GL accounts designated in the Online Payments Settings and the customer. 

Discount Posting

For Discount-related transactions, this journal entry will act as a credit memo reducing the invoice amount for your customer while keeping your books balanced. 

At the same time this Journal is created, Centime will also create a payment and post it to  “Undeposited Funds” GL account until the funds settle with the bank. The previous journal entry will be reflected by the reduction from "original amount" and "amount due." 

Once funds settle, Centime creates a Deposit and posts it to the bank register to coincide with when cash actually clears the bank account for easier reconciliation. This way, the bank balance in your General Ledger will align in real time with your bank balance from your financial institution. 

The memo will also display the customer name followed by the invoice number to match what is populated on the bank statement for easier reconciliation. This will reflect in your bank register as well. 

Surcharge Posting

Surcharge posting works similar to discount posting. First a Journal will be created against the surcharge account selected in Centime. 

Next, the Payment will immediately post (with the Journal) to 'Undeposited Funds' until the funds clear the bank. 

Once the funds clear your financial institution, Centime will create a Deposit in your General Ledger.

The memo will also display the customer name followed by the invoice number to match what is populated on the bank statement for easier reconciliation. This will reflect in your bank register as well.









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