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To deal with overpayment in cash application, first, verify the payment details against the customer’s invoice and account records. If the overpayment is confirmed, communicate with the customer to determine their preference for resolution, which may include applying the excess amount to future invoices, issuing a refund, or crediting their account. Finally, update the accounting records accordingly to reflect the adjustment and maintain accurate financial reporting.
What else can I help you with?
An application of good internal control over cash disbursements is...?
following payment, the approved invoice should be stamped "paid"
Can someone cash a check that a stop payment was placed over a year ago?
yes a stop payment on a check will remain permanently once the bank places it
What is the difference between a cash payment and a payment made to a vendor or contractor through AP and why is one better than the other?
The difference between a cash payment and a payment made to a vendor or contractor through accounts payable is as follows: In a cash payment, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and hand over the cash to the vendor (by decreasing the cash asset account). For the vendor, they recognize the revenue upon completion (by increasing the revenue account) and move the cash onto their balance sheet (by increasing the cash asset account). In an accounts payable transaction, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and acknowledges the debt (by increasing the accounts payable liability). For the vendor, they recognize the sale (by increasing the revenue account) and acknowledges that the company using their services owes them for the work that they did (by increasing the accounts receivable account). Time eventually passes for the accounts payable transaction and the company that used the services of the vendor sends payment to the vendor (by decreasing the cash account) and acknowledges that the debt is paid (by reducing the accounts payable liability). The vendor receives payment in the mail (by increasing the cash asset account) and acknowledges that the debt is paid (by reducing the accounts receivable asset). The key difference is which party is providing the cash flow. For a cash payment, the transaction is best for the vendor because they are receiving cash immediately. For an AP transaction, the service user is better because they held onto cash for some period of time.
What is a schedule of cash collections?
A schedule of cash collections is a financial tool used by businesses to project and track expected cash inflows from sales over a specific period. It outlines when cash is anticipated to be received from customers, based on payment terms and historical collection patterns. This schedule helps in managing cash flow, ensuring that the business can meet its financial obligations and make informed budgeting decisions. By anticipating cash collections, businesses can better plan for expenses and investments.
What are the five key control objectives of the cash payment system?
The five key control objectives of the cash payment system are: Authorization: Ensure that all cash payments are properly authorized to prevent unauthorized disbursements. Segregation of Duties: Differentiate responsibilities among personnel to reduce the risk of fraud or errors, ensuring no single individual has control over all aspects of cash handling. Record Keeping: Maintain accurate and timely records of all cash transactions to facilitate reconciliation and accountability. Physical Controls: Implement safeguards, such as secure storage and access controls, to protect cash assets from theft or loss. Reconciliation: Regularly compare cash records with bank statements and other documentation to identify discrepancies and ensure accuracy.
An application of good internal control over cash disbursements is...?
following payment, the approved invoice should be stamped "paid"
Can you make a payment on line for life insurance?
Payment of life insurance premia is allowed on line, along with payment over counter whether payment by cash or cheque.
What are the differences between physical payment method and e payment method?
Physical payment means you hand over the cash/cheque in person: epayment (short for electronic payment) means you pay over the phone or internet.
What is part-cash sale?
Part of the payment is in cash Example: someone may turn up at a store and have a cheque ready in payment, only to find at checkout that someone forgot to add tax; so person collecting hands over some of their own money to complete payment. For the store it is part-cash sale i.e. they received cheque and cash.
Can someone cash a check that a stop payment was placed over a year ago?
yes a stop payment on a check will remain permanently once the bank places it
Is cash payment over Rs. 20000 for advance against Reimbursement of expenses Allowable as per Income tax Act or Rules?
yes
What is difference cod and vpos?
COD (Cash on Delivery) is a payment method where customers pay for their goods at the time of delivery, typically in cash. VPOS (Virtual Point of Sale) is an online payment gateway that allows businesses to process credit and debit card transactions over the internet. The key difference lies in the payment timing and method: COD involves cash transactions at delivery, while VPOS facilitates electronic payments in real-time online.
What is the difference between a cash payment and a payment made to a vendor or contractor through AP and why is one better than the other?
The difference between a cash payment and a payment made to a vendor or contractor through accounts payable is as follows: In a cash payment, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and hand over the cash to the vendor (by decreasing the cash asset account). For the vendor, they recognize the revenue upon completion (by increasing the revenue account) and move the cash onto their balance sheet (by increasing the cash asset account). In an accounts payable transaction, the company using the services of the vendor immediately recognizes the expense (by increasing the expense account) and acknowledges the debt (by increasing the accounts payable liability). For the vendor, they recognize the sale (by increasing the revenue account) and acknowledges that the company using their services owes them for the work that they did (by increasing the accounts receivable account). Time eventually passes for the accounts payable transaction and the company that used the services of the vendor sends payment to the vendor (by decreasing the cash account) and acknowledges that the debt is paid (by reducing the accounts payable liability). The vendor receives payment in the mail (by increasing the cash asset account) and acknowledges that the debt is paid (by reducing the accounts receivable asset). The key difference is which party is providing the cash flow. For a cash payment, the transaction is best for the vendor because they are receiving cash immediately. For an AP transaction, the service user is better because they held onto cash for some period of time.
What is installment cash credit?
Installment cash credit is a direct loan of money for personal purposes, home improvements, or vacation expenses. You make no down payment and make payments in specified amounts over a set period.
What are cash inflows?
Cash inflow is the money flowing in and out of a business within a given period of time. this can be predicted using a spreadsheet which will indicate the effects of changing fifures. Example of Cash inflow is: ■ Sales - amount to be received from selling good or service. ■ Cash from debtors. ■ Capital. ■ Lone from bank.
When you pay for a new CD with a debit card you authorize the transfer of money from your account to the music store and account. In other words a payment by debit card is the electronic form of a?
payment by cash. When you use a debit card, you are directly accessing your bank account to transfer funds, similar to handing over cash in a physical transaction. This process allows for immediate settlement of the purchase, ensuring that the store receives payment right away.
What do you call left over cash?
left over cash
