Receipt Entry

November 5, 2025

Overview

The Receipt Entry in DIGITZ ERP is a financial document used to record the receipt of funds into the company’s Cash or Bank accounts.
It represents incoming payments from customers or other sources and ensures that all receipts are properly reflected in the company’s financial ledgers.

The document supports both Customer Receipts (linked to sales transactions) and Other Receipts (not related to customer accounts), maintaining accurate control over incoming funds and their respective allocations.

Purpose

To record all incoming payments in an organized manner — whether received from customers, sales returns, credit notes, or other income sources — while ensuring that all corresponding ledgers such as Cash, Bank, and Receivables are updated automatically and accurately.

How It Works

A Receipt Entry is created whenever the company receives money through Cash, Bank Transfer, Cheque, or other payment modes.
Based on the Payment Mode, the system determines the target account (e.g., Cash Account or specific Bank Account) and creates the respective ledger postings upon submission.

DIGITZ ERP allows two types of receipts:

Customer Receipt – Payments received from customers, linked to Sales Invoices, Sales Returns, or Credit Notes, or even received On Account without document allocation.
Other Receipt – Payments received from non-customer sources, such as miscellaneous income, interest, adjustments, or deposits, without any customer reference.

Each receipt type is handled distinctly to ensure clear audit trails and accurate ledger updates.

Key Fields

Receipt Type – Defines whether the entry is a Customer Receipt or an Other Receipt.
Customer / Party – The customer or entity from whom the payment is received.
Posting Date – The date when the payment is recorded.
Payment Mode – The mode through which the payment is received (e.g., Cash, Bank Transfer, Cheque, etc.).
Received To Account – The target account (Cash or Bank) where the funds are deposited.
Amount – The total value of the receipt.
Reference Type / Reference Name – Links the receipt to one or more documents such as Sales Invoice, Sales Return, or Credit Note.
Project / Cost Center – Optionally associates the receipt with a specific project or cost center for analysis.
Remarks – Notes or narration describing the payment details.

Customer Receipt

The Customer Receipt is used to record incoming payments from customers. It can be directly linked to outstanding Sales Invoices, Credit Notes, or Sales Returns, or it can be recorded On Account (without linking to specific documents).

Purpose:
To register customer payments against open invoices or to capture unallocated receipts that will be adjusted later.

How It Works:

When the customer is selected, DIGITZ ERP automatically lists all open invoices, credit notes, or return documents for allocation.
The user can allocate the received amount fully or partially against specific invoices.
If the payment is received On Account, the amount is posted to the customer’s account as an advance, available for later allocation.
Upon submission, the system automatically updates the Accounts Receivable and the Cash/Bank accounts.

This ensures accurate tracking of customer receipts, outstanding balances, and cash flow visibility.

Other Receipt

The Other Receipt option is used when the incoming payment is not related to any customer transaction. Examples include miscellaneous income, interest income, deposits, or refunds.

Purpose:
To record non-customer-related income or inflows while ensuring proper accounting treatment.

How It Works:

The user selects Other Receipt as the receipt type.
The corresponding income or clearing account is chosen manually (e.g., “Other Income”, “Bank Interest”, or “Deposit Received”).
The Payment Mode determines the Cash or Bank account affected.
On submission, the system debits the Cash/Bank account and credits the selected income or liability account.

This flexibility allows companies to record all types of incoming transactions systematically.

Workflow

Create a new Receipt Entry.
Select the Receipt Type (Customer or Other).
Choose the Customer or Income Account, depending on the type.
Enter the Posting Date, Payment Mode, and Amount.
If it’s a Customer Receipt, select open invoices or apply the amount On Account.
If it’s an Other Receipt, choose the appropriate income or adjustment account.
Save and Submit the document.
The system posts the ledger entries automatically based on configuration.

Posting Behaviour

On submission, ledger entries are created based on the type of receipt and selected payment mode.
Customer Receipts:
- Debit: Cash/Bank Account
- Credit: Customer (Accounts Receivable)
Other Receipts:
- Debit: Cash/Bank Account
- Credit: Income or Other Specified Account
Any On Account receipts remain as credit balances under the customer until adjusted against future invoices.
All postings follow the Perpetual Accounting method, ensuring immediate impact on both financial and bank ledgers.

Integration

The Receipt Entry integrates seamlessly with:

Sales Invoices / Credit Notes / Sales Returns – For payment allocation and settlement.
Customer Ledger – To track customer-wise receipts and outstanding balances.
Bank Reconciliation Module – To match system entries with actual bank statements.
Accounting Reports – Appears in Cash Book, Bank Book, Trial Balance, and General Ledger.
Project / Cost Center – Enables analysis of receipts by business segment.

Conclusion

The Receipt Entry in DIGITZ ERP provides a clear and efficient method for recording all types of incoming funds — whether from customers or other sources.
By supporting allocations to invoices, on-account receipts, and other income postings, it ensures real-time accuracy in both customer ledgers and cash/bank balances, making it an essential part of the ERP’s financial workflow.