CASH RECEIPTS PROCEDURES

Mail room- customer payments and remittances arrived here

Cash Receipts Department- cashier records the checks in cash receipts journal and promptly sends them
to the banks (3 copies)

Accounts Receivable Department – AR clerk prepares a summary of changes in account balances

General Ledger Department- reconciles the information and post to the control accounts

Controller’s Office- periodically performs bank reconciliation by comparing deposits slips returned from
the bank
AUTOMATED CASH RECEIPTS PROCEDURES
Mail Room- separates the checks and remittance advices and prepares a remittance list

Cash Receipts Department- reconciles the checks and the remittance list and prepares the deposit slips

Accounts Receivable Department- receives and reconciles the remittance advices and remittance list

Data Processing Department- the batch program reconciles the journal voucher with the transaction file
of cash receipts and updates the AR subsidiary and general ledger control accounts (AR-Control; and
Cash)
REENGINEERED CASH RECEIPTS PROCEDURES
The Mail Room clerk places of unopened envelopes into a machine that automatically opens them and
separates their contents into remittance advices and checks. Once the envelopes are opened, mail room
staff cannot access their contents.

Point-of-Sale (POS) Systems- Are used extensively in grocery stores, department stores, and
other types of retail organizations