Lesson 6.3: Recording Cash and Client Receipts

In FastFund Online, all money entering your organization—whether from grants, donations, service fees, or client payments—is recorded through the Cash Receipts window. This lesson distinguishes between recording general revenue (Cash Receipts) and receiving payments for outstanding invoices (Client Payments). It also introduces the concept of “Undeposited Funds,” a critical internal control feature.

The “Undeposited Funds” Concept

Unlike many personal finance programs that post receipts directly to a bank account, FastFund posts all cash receipts to a holding account called Undeposited Funds. This account acts like a virtual cash drawer or safe.

• Step 1 (This Lesson): You record individual checks and cash in the Cash Receipts window. These increase the balance of “Undeposited Funds.”

• Step 2 (Next Lesson): You group these individual receipts into a single Bank Deposit that matches the total on your actual bank deposit slip. This moves the money from “Undeposited Funds” to your specific Bank Account.

Recording Standard Cash Receipts (CR)

Standard Cash Receipts are used for immediate revenue recognition where no previous invoice exists. This applies to donations, grant payments, over-the-counter sales, or miscellaneous income.

To Enter a Cash Receipt:

1. Navigate to Transactions > Cash > Cash Receipts.

2. Mode: Ensure you are in the default Cash Receipt mode (not Client Payments).

3. Payor (Name): Enter the name of the individual or organization. This list pulls from “Other Names,” “Vendors,” “Employees,” or “Constituents” (if using Fundraising). It does not include Clients.

4. Reference: This is a required field. Enter the check number, “Cash,” or the last four digits of a credit card transaction.

5. Amount: Enter the total amount received.

6. Distribution: In the grid at the bottom, select the Revenue or Income account to credit. You can split the receipt across multiple revenue accounts or Projects.

Recording Client Payments (CR-AR)

If you use the Accounts Receivable module and have already sent a Client Bill, you must use the Client Payments mode to record the receipt. If you use the standard CR screen described above, you will double-count your revenue and leave the client’s bill unpaid on your aging report.

To Record a Client Payment:

1. In the Cash Receipts window, click the Client Payments button at the top.

2. Client: Select the Client name. The system will alert you if there are no open bills for this client.

3. Distribution: The bottom grid changes from a list of GL accounts to a list of Open Client Bills.

4. Apply Payment: Enter the total receipt amount at the top. Then, enter the amount to apply against specific invoices in the “Payment” column. You can pay multiple invoices with a single check or record a partial payment.

Handling Prepayments

If a client sends money before you have generated a bill (e.g., a deposit for future services), FastFund handles this as a Prepayment.

1. Select the Client in the Client Payments screen.

2. If the client has no open bills, the system will prompt you to record a Prepayment.

3. Enter the amount and save. This creates a credit on the client’s account.

4. Later, when you create the Client Bill, you can apply this prepayment to reduce the balance due.

Attachments

For audit purposes, you can attach digital copies of checks, grant award letters, or remittance advice directly to the transaction. Click the Browse button in the Attachment area to upload a file (PDF, JPG, etc.) to the receipt record.