Module 2 · Core · 8 min read

Receipts: collecting what customers owe

You will be able to: Record a receipt and allocate it to invoices; Explain what happens to money that settles no invoice; Describe how a post-dated cheque differs from cash and bank receipts.

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A receipt records money a customer has paid you. It matches the money to the customer's unpaid invoices, so the invoices show less outstanding, and the cash or bank account goes up. A receipt carries no VAT and no stock: the VAT was already recorded on the invoice.

The Receipts register listing receipt vouchers with date, customer, narration, amount and status.

Sales, Receipts: money received and what it settled.

Sales, Receipts: money received and what it settled.

Recording a payment

  1. Open Sales, then Receipts and press + New.
  2. Pick the customer in Received From (F3 jumps there). Open Items shows what they still owe, oldest first.
  3. Check the Date, choose the Mode (Cash, Bank, Card, Cheque or PDC Cheque, depending on your Payment Modes) and type the Amount.
  4. Leave the Allocate boxes empty to settle the oldest invoices first, or type an amount against each invoice you choose.
  5. Press Submit. The receipt is numbered and posted.
A new Receipt Voucher with the customer Emirates Fresh Mart selected in Received From, the payment mode, the amount and the list of open invoices to allocate.

Pick the customer and Open Items lists what they still owe, oldest first.

Pick the customer and Open Items lists what they still owe, oldest first.

What a receipt posts

  • Debit the account of the payment mode (Cash, Bank, or PDC Receivable for a post-dated cheque) for the full Amount.
  • Credit Trade Receivables for each invoice settled, tied to that invoice.
  • If part of the money settles no invoice, credit Customer Advances; it stays on account for later.
Two payments on one invoiceAl Noor Trading owes AED 525 on one invoice. First they pay AED 200 by bank transfer. Receipt 1: Debit Bank 200; Credit Trade Receivables 200. The invoice's Outstanding becomes 525 - 200 = AED 325 and its Payment chip reads Partial. Later they pay the remaining AED 325. Receipt 2: Debit Bank 325; Credit Trade Receivables 325. Outstanding is 0.00 and the chip reads Paid. If instead they paid AED 600 against an invoice of 525 and had no other invoice, AED 525 would settle the invoice and the extra AED 75 would be credited to Customer Advances.

Post-dated cheques

Set Mode to PDC Cheque and type the Cheque No and the Cheque Date written on the cheque. On Submit the invoices are settled at once, but the money is debited to PDC Receivable, not to the bank. The cheque is registered on the PDC screen (Accounting, Post-dated Cheques), where you record the deposit, clearing or bounce. The money reaches the bank only when the cheque clears.

Other currencies

Pick the Currency and Zeyto fills the Rate with the newest rate on file on or before the Date. A receipt in another currency settles only invoices in that same currency. If the rate on the invoice differs from the rate on the receipt, the gap goes to Realized FX Gain/Loss.

Correcting a receipt

  • Amend reverses the old posting and posts the corrected receipt with /A1.
  • Cancel reverses the receipt and the invoices it settled become unpaid again.
  • An invoice with a receipt against it cannot be amended or cancelled until you cancel the receipt. A receipt for a post-dated cheque cannot be amended or cancelled once the cheque has been deposited, cleared or bounced.
TipBack on the Sales Invoice list, press Unpaid, Partial or Overdue above the list to see what is still owed. Outstanding goes down by what each receipt settled.

Try it in the demo

  1. Open https://demo.zeyto.app/demo-app/ and sign in (user admin, password demoAdmin123). This is a public demo with sample data, so nothing you do there affects a real business.
  2. Open Sales, then Receipts and press + New. Pick a customer in Received From and look at Open Items.
  3. Choose a Mode and enter an Amount smaller than the first invoice. Read the Allocate boxes and the Accounting impact section. Leave without submitting.
  4. Open the Sales Invoice list and press Partial and Overdue to see how the Payment chip reads.
Open the live demo

Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.

Key takeaways
  • A receipt debits cash or bank and credits Trade Receivables, matched to specific invoices.
  • Money that settles no invoice stays on account as Customer Advances.
  • A post-dated cheque settles the invoice immediately but reaches the bank only when it clears.

Check yourself

4 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.

1. A receipt is saved with every Allocate box empty. Which invoices does Zeyto settle?

2. A customer owes AED 525 on one invoice and pays AED 200. What are the Outstanding and the Payment chip?

3. A customer with a single AED 525 invoice pays AED 600 by receipt. What happens to the extra AED 75?

4. A receipt is posted with Mode PDC Cheque. What is true?

Previous: The tax invoice: booking the saleNext: Sales returns and credit notes

Practice questions for this module · Printable study sheet