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Cash Collection

This document discusses cash collection processes in accounting. It defines cash collection as activities involved in collecting cash payments from customers for goods and services. It lists key input documents like invoices, remittance advices, and bank deposit slips. It also lists output documents including cash receipts journals, accounts receivable aging reports, bank reconciliation statements, collection letters, and cash flow statements. Each document type is then defined in more detail outlining their important attributes.

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Roy Lobriguito
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317 views12 pages

Cash Collection

This document discusses cash collection processes in accounting. It defines cash collection as activities involved in collecting cash payments from customers for goods and services. It lists key input documents like invoices, remittance advices, and bank deposit slips. It also lists output documents including cash receipts journals, accounts receivable aging reports, bank reconciliation statements, collection letters, and cash flow statements. Each document type is then defined in more detail outlining their important attributes.

Uploaded by

Roy Lobriguito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

CASH

COLLECTION
Accounting Information System
CASH COLLECTION

Refers to the activities and processes


involved in collecting cash payments from
customers for goods and services
provided by a business. The collection of
funds is a fundamental aspect of cash flow
management.
INPUT DOCUMENTS
1 INVOICE /BILLING STATEMENT

2 REMITTANCE ADVICE

3 BANK DEPOSIT SLIPS

4 AGING A/R REPORTS


OUTPUT DOCUMENTS
1 CASH RECEIPTS JOURNAL
ACCOUNTS RECEIVABLE
2 AGING REPORT

3 BANK RECONCILATION
4 COLLECTION LETTERS

5 CASH FLOW STATEMENT


INVOICE
Invoices Important Attributes: (From Billing Dept.)
• Invoice number
• Date
• Business contact information
• Descriptions of goods and services
• Payment terms
• Seller’s name and address and company registration number
• Buyers name and address
• A unique invoice reference number
• A line detailing each product or service
REMITTANCE ADVICE
Attributes of Remittance Advice: (From the Buyer)
 Name and address of the buyer
 Name and address of the supplier
 Date of the remittance
 Remittance Amount
 Tentative date when the supplier can expect the payment in all completeness
 An invoice number
 Payment amount
 Method of Payment
BANK DEPOSIT SLIPS
Attributes of Deposit Slips: (From Customer)
 Depositor’s name
 Date
 Account number
 Amount
 Breakdown
CASH RECEIPTS
JOURNAL

Attributes of Cash Receipts Journal:


 Date
 Account credited
 Post reference:
 Cash Sales
 Sales discount
 Accounts receivable
 Other accounts
ACCOUNTS RECEIVABLE
AGING REPORT
BANK RECONCILATION

Attributes of Bank Recon:


 Reporting Period
 Balance per Cash Book
 Balance per Bank Statement
 Name of Bank and account number
COLLECTION LETTERS

Attributes of Collection Letter:


 Customer’s Name and Address
 Date
 Full amount of debt
 Last deadline for payment
 Name of Creditor
CASH FLOW STATEMENT
Main Attributes or Components of a Cash Flow Statement:
1.Cash flow from Operating Activities
2.Cash flow from Investing Activities
3.Cash flow from Financing Activities

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