Posting payments to accounts receivable & other accounts

Recording payments to customer receivable accounts through the Data Management System is another function within the Accounts Receivable process.
Coding upon receipt of payment (check, credit card cash, money order, travelers’ check) – coding is similar to creating a key to the map. Regardless of the type of payment presented, check, cashier’s check or money order when coded with the account number and accounts receivable account number where the funds should be posted in the Data Management System the first time it makes life simple in the accounting world.
Using the Data Management System function for cash receipts
The Data Management System function for recording cash receipts is strictly that to post cash, check, and money order, cashier checks, as examples to the correct or assigned general ledger account. To maintain the integrity of each receivable account, record all cash receipts utilizing the cash receipt journal or cash receipt function. A general journal posting or different journal posting besides the assigned cash receipt journal creates a breach within the accounts receivable process. It creates an area of exposure that may allow mishandling of cash within the organization. To foster a healthy and accountable accounting environment, record all monies received in the dealership through the cash receipt function if it’s an option.