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Cash Receipts

1. Cash Receipts

1.1 Cash Receipts Training

CAPPS Financials - End-User Training (EUT)

Course Number: 220

Course Name: Cash Receipts (CR)

Recommended Users: Employees who handle non-receivables cash receipts.

1.2 Welcome

Hello, Welcome back to the CAPPS Financials training.

Before taking this course you should have already completed the CAPPS Financials

Fundamentals course.

1.3 Duration

4 Hours

1.4 Preparation

Avoid Distractions

1.5 Navigation

Be sure you use the Next and Prev navigation buttons only when directed to view information in

this course.

1.6 Course Outline

This course is organized into seven sections. Learn how to use CAPPS Cash Receipts functionality

in each of the following sections:


• Section 1 - Cash Receipts Overview

• Section 2 - Cash Receipts Entry

• Section 3 - Cash Receipt Approvals

• Section 4 - Processing Receipts

• Section 5 - Handling Corrections and Refunds

• Section 6 - Running Reports

• Section 7 - Conclusion

1.7 Course Objectives

After completing this course you will be able to:

• Describe the Cash Receipts handling process within CAPPS

• Identify sources of cash receipts

• Record cash receipt details including payment method, receipt date, receipt amount, and

purpose

• Retrieve cash receipts for approvals

• Prepare deposits and print deposit slips

• Create accounting entries

• Process correction & refund requests

• Inquire and run reports for cash receipt related transactions

2. Section 1-Cash Receipts Overview

2.1 Section 1-Cash Receipts Overview

Section 1

Cash Receipts Overview

2.2 S1 Objectives

Section 1 - Objectives

After completing this section you will be able to :


• Understand the CAPPS Cash Receipts module and its different functions

• Describe methods of entry for cash receipts

• Define key cash receipt terminology

2.3 Section 1 Outline

Section 1 - Outline

• Cash Receipts Overview 10 min

• Key Terms and Definitions 10 min

2.4 S1-L1: Cash Receipts Overview

Section 1 - Lesson 1

Cash Receipts Overview 10

• Learn the purpose of CAPPS Cash Receipts

• Learn the key features of the Cash Receipts module

• Review Cash Receipt entry methods

Key Terms and Definitions 10

2.5 S1-L1: What is CAPPS Cash Receipts?

The CAPPS Cash Receipts module allows agencies to record cash receipt details for money

received that is unrelated to a specific receivable in a single repository.

This money may be received directly by the agency, collected on behalf of the agency by a third

party, or deposited directly with the Treasury.

It can come in the form of checks, cash, credit cards, wire transfers, and ACH (Automated

Clearing House).

2.6 S1-L1: Cash Receipt Features

CAPPS Cash Receipts allows users to:


• Enter a batch of receipts through manual entry, upload receipt details via an Excel file or

receive receipt details from external system via interfaces.

• Capture detailed information, including the remitter, receipt amount, division, and origin

information.

• Apply the receipt to one or more fee codes (multiple distributions).

• Record multiple remittance details for a single receipt.

2.7 S1-L1: Cash Receipt Features Cont

CAPPS Cash Receipts allows users to:

• Attach supporting documents and add comments to a receipt.

• Create bank deposits based on receipt details, if needed.

• Create the cash and revenue accounting entries that are then integrated with CAPPS

General Ledger and USAS.

• Optionally, CAPPS cash receipt also provides an outbound file that may be loaded to an

agencies external Fee Code system to indicate that a remitter’s fees have been paid.

2.8 S1-L1: Cash Receipts Sources

Here’s how receipts are processed…

As mentioned earlier, receipts can come in a variety of forms and through multiple sources.

It is important to know where the money is coming from (the source) and whether the funds

have already been deposited with the Treasury. These details will have a direct impact on how

the cash receipt is processed in CAPPS.

2.9 S1-L1: Cash Receipt Entry Methods

3 METHODS FOR ENTERING CASH RECEIPTS INTO CAPPS

MANUAL ENTRY

Used when recording cash receipts (checks or cash) received directly by the agency and wire

transfers received by Treasury.

EXCEL UPLOAD FILE


Used when recording cash receipts received directly by the agency, recorded first in an external

system, or from a third party.

INTERFACE

Used when recording receipts that were first deposited with the Treasury (e.g. credit cards, ACH,

and lockbox/scanline checks). Exception: Does not include wire transfers.

2.10 S1-L2: Key Terms and Definitions


Cash Receipts Overview 10

Key Terms and Definitions 10

• Learn key terms that are important to the cash receipts functionality.

2.11 S1-L2: Key Terms and Definitions

Fee Code: A code that describes the product/service for which an agency provides and charges

its customer. The revenue distribution is derived by the associated predefined financial speed

charts. In addition, the fee code will default the assigned USAS T-code for the GL journal import

process. The USAS T-code defines how the transaction is handled in USAS. i.e. 188 or MAN.

Source Receipt #: External tracking number for cash receipts received. For example, when

receiving receipts from Texas.gov site, the ‘trace number’ is populated as the Source Receipt #.

Receipt #: CAPPS tracking number for cash receipts received.

Receipt: Payment from a Remitter for fees owed to an Agency.

Remitter: Party from which the funds were received (i.e. who is paying for the product/service).

Batch: Collection of receipts entered for a bank account at a given time.

Control Count / Amount: Total number of receipts and total amount of receipts included in a

given batch.

Treasury Deposit: Collection of receipts on a given day to be deposited to Treasury.


Cash Receipts Origin: Identifies the source of the receipt entry. For example, ONL is used for

receipts manually entered using the CAPPS Cash Receipts pages.

Receipt Status: Each individual receipt has a status. The status indicates the receipt’s progress

throughout the cash receipt’s process.

• New(N): Assigned when you begin entering receipt details. Information has not been

saved at this point.

• Open(O): Assigned when you save the receipt details.

• Pending Approval(P): Assigned when you save and submit a receipt for approval.

• Approved(A): Assigned when a receipt pending approval is approved.

• Deposited(D): Assigned when a bank deposit is created.

• Error(E): Assigned when the fee code ‘In Error’ is selected during entry. Note: These

receipts are not sent to USAS.

Note: The ‘Error’ option is used to record cash receipts received but not processed. For example,

the checks may belong to another agency. These do not get processed and do not get sent to

USAS; for tracking purposes only.

3. Section 2-Receipts Entry

3.1 Section 2: Cash Receipts Entry

Section 2

Cash Receipts Entry

3.2 S2 Objectives

After completing this section you will be able to:

• Describe purpose of origin code

• Enter cash receipt details manually through online entry

• Load cash receipt details via the Excel upload process

• Load cash receipts received from the Treasury via an interface process



Section 2 - Outline

Origin Overview 10

Cash Receipts: Online Entry 25

Cash Receipts: Excel File Upload 15

Cash Receipts: Interface 10

3.4 S2-L1: Origin Code Overview


Origin Code Overview 10

• Describe purpose of origin code




3.5 S2-L1: Origin Code

During entry, each batch is assigned an origin code. The origin identifies the source of the

receipt entry and controls processing.

This includes:

• How the USAS Doc number is assigned

• Whether approval is required

• Whether the cash receipt needs to be included in the outbound process to USAS

• Whether accounting entries need to be created

• Which GL T-Code needs to be assigned

3.6 S2-L1: Origin Codes Cont

Origin codes used when entering receipts directly into CAPPS:


ONL: Used when recording deposits, refunds, returned checks (NSF) or receipt allocations

(corrections). Also used to record wire transfers that DO need to be sent to USAS for the day.

Sent to USAS to record deposits entered prior to the daily deposit deadline.

System assigns a USAS document number (D-doc)

MAN: Used to record wire transfers that DO NOT need to be sent to USAS for the day.

Not sent to USAS to record deposits entered after the daily deposit deadline and are already

recorded in USAS to match the daily bank deposit and prevent a default of the deposit.

System assigns the USAS document number (D-doc)

JDOC: Used when recording receipts related to proceeds from the sale of assets.

User enters the USAS document number (J-doc)

GDOC: Used when recording receipts related to hotel occupancy tax refunds.

User enters the USAS document number (T-doc)

EXTRN: Used when recording receipts that were received by the agency and will be sent to USAS

for processing.

User enters the USAS document number = NEXT (D-doc).

TRPTY: Used when recording receipts that were received by a third party and deposited with the

Treasury. Note: The agency will need to update the file containing the receipt details with the F-

doc prior to uploading.

User enters the USAS document number (F-doc)

Origin codes used when recording receipts via the interface method:

LCKBX: Used when recording receipts that were received by the agency from Treasury.

User enters the USAS processing date and USAS document number on the Lockbox load run

control page.

SCNLN: Used when recording receipts that were received by a third party and deposited with

the Treasury.


User enters the USAS document number (F-doc). The agency will need to update the file

containing the receipt details with the F-doc prior to uploading.

TXGOV: Used when recording credit card receipts received via Texas.Gov provided in flat file (F-

doc).

3.10 S2-L2: Online Entry


Origin Overview 10


• Enter cash receipt details manually using CAPPS Cash Receipts entry page.



3.11 S2-L2: Entry Tips

To help speed up the entry process, having the following information available is recommended:

Receipt Details

• Who paid the money (i.e. who is the remitter)?

• How much was received?

• When was the payment received?

• What is the purpose of the payment (i.e. what fees (product/service) are they paying for)?

• For tax purposes, what geographical location was the money paid to?

• Are there any supporting documents?

3.12 S2-L2: Exercises

The exercises below provide step-by-step instructions on how to perform the following task in

CAPPS:

Cash Receipts Entry


• Scenario 1: Online entry -Single Fee

• Scenario 2: Online entry -Multiple Fee

• Scenario 3: Online entry - In Error

When you are ready select this link Section 2 Cash Receipts Entry -and complete the following

three exercises: Online entry -Single Fee , Online entry -Multiple Fee, and Online entry - In Error.

Once you have completed the exercises, close the window to return to the course.

3.13 S2-L3: Excel Upload


Origin Overview 10



• Create Excel file containing cash receipt details to be uploaded into CAPPS

• Upload cash receipts from Excel upload


3.14 S2-L3: Cash Receipts – Upload via Excel

The Excel upload function is an alternate cash receipts entry method.

Why upload via Excel?

• Staff prefers to work in Excel

• Staff who is recording receipt details does not have access to CAPPS

• Agency records receipt in external system and then uploads to CAPPS

• Agency receives cash receipts file from third party, which includes receipts collected on the

agency’s behalf

3.15 S2-L3: Cash Receipts – Excel First Time Use

Prior to using the upload method for the first time, you will need to:

http://cappstraining.cpa.texas.gov/courses/FIN/220_CR/UPKs/220_CR_S2/Publishing%20Content/PlayerPackage/HTMLPages/default.htm



• Obtain a copy of the CAPPS’ Cash Receipt Upload Spreadsheet

• Confirm you have a compatible version of MS Office installed (MS Office 2013, 2010, 2007

or 2016)

• Set Microsoft Excel to accept macros

Note: It is the agency’s responsibility to maintain any workstations and ensure that the ‘Cash

Receipt Upload Spreadsheet’ is used.

3.16 S2-L3: Exercise

Section 2 - Lesson 3 Exercise

The exercises below provide step-by-step instructions on how to perform the following task in

CAPPS:

Cash Receipts Entry

• Scenario 1: Excel Upload - External

• Scenario 2: Excel Upload - Third Party

• Scenario 3: Run Excel Upload Process

• Scenario 4: Submit Batch for Approval

When you are ready select this link Section 2 Cash Receipts Entry -and complete the following

four exercises: Excel Upload – External, Excel Upload - Third Party, Run Excel Upload Process,

and Submit Batch for Approval.


3.17 S2 Lesson 4: Interface


Origin Overview 10




• Learn method of payments received by treasury




• Learn how each method is processed within the CAPPS Cash Receipts module

3.18 S2-L4: Cash Receipts – Interface

The following receipts deposited directly with the Treasury are loaded into CAPPS via interface

processes:

• Fees paid via credit card on Texas.gov site

• ACH receipts

• Lockbox & Scanline

3.19 S2-L4: Treasury Deposits Overview

Knowing the source is important because it will impact how the funds are entered into CAPPS by

the agency.

1. Treasury receives the following: Credit Card, ACH, Lockbox, and Scanline.

2. Treasury deposits funds and prepares file with deposit details, and transmits it to the agency

and USAS.

3. Agency uploads files received from Treasury into CAPPS via the following processes: Load

from Treasury and Load from Lockbox.

3.20 S2-L4: Cash Receipts Sources Cont.

Treasury Deposits Overview Cont.

Here’s how receipts are collected…

4. Loaded receipts must be reviewed and approved. Once approved, accounting entries can be

created.

5. Accounting entries are created and loaded into the General Ledger.

6. Agency transmits cash receipt details to USAS.


4. Section 3-Processing Cash Receipt

4.1 Section 3: Processing Cash Receipts

Section 3

Processing Cash Receipts

4.2 S3 Objectives


After completing this section you will be able to

• Approve or reject cash receipts transactions

• Prepare bank deposit

• Create cash receipt accounting entries

• Send cash receipt details to GL

4.3 S3-L1: Processing Cash Receipts


Processing Cash Receipts 40

• Review cash receipt details and choose to approve or reject the receipt entry.

• Prepare bank deposit and print bank deposit slip.

• Create, review, and edit (if necessary) cash receipt related accounting entries.

• Run the send to GL process.

4.4 S3-L1: Exercise 1

Section 3 - Lesson 1 Exercise 1

Processing Transactions

Approve Cash Receipts

Receipts are reviewed and approved after entry.


Each receipt may require up to two levels of approval.

If a receipt is rejected, then the cash receipts batch must be updated and resubmitted for

approval.

The exercise below provides step-by-step instructions on how to perform the following task in

CAPPS:

Scenario: Approve Cash Receipts

When you are ready select this link Section 3: Processing Cash Receipts -and complete the

following exercise: Approve Cash Receipts.

Once you have completed the exercise, close the window to return to the course.




Create Bank Deposit

Deposits are created after approval of the cash receipts batch.

This process produces the cash receipt deposit slip.

Note: Receipts marked ‘in error’ or receipt previously deposited with the Treasurer (F-doc) are

not included in the deposit.


CAPPS:

Scenario: Create a Bank Deposit


following exercise: Create Bank Deposit.










Creating Accounting Entries

The Create Accounting Entries process generates the cash receipt’s accounting entries.

Once created, the Review/Edit Accounting Entries page can be used to review and edit the entry

prior to sending to GL.

Important: If accounting entry edits are needed, then they must be made prior to running of the

next Send to GL process.


CAPPS:

Scenario: Creating Accounting Entries

Scenario: Review and Edit Accounting Entries


following exercise: Create Accounting Entries and Review/Edit Accounting Entries.





Send to GL

The Send to GL process is used to send cash receipt accounting entries to the CAPPS General

Ledger.

Note: This process is run automatically daily at 8:00 am and 2:00 pm.


CAPPS:

Scenario: Run Send to GL Process





following exercise: Send to GL.


5. Section 4-Handling Corrections & Refunds

5.1 Section 4: Handling Corrections and Refunds

Section 4

Handling Informational Changes, Refunds, Chargebacks, NSFs and Reallocations

5.2 S4 Objectives


After completing this section you will be able to

• Record Informational Changes & Corrections

• Process Refund Request

• Process NSF

• Process Reallocation


Section 4 - Outline

Processing Informational Changes 15

Processing Corrections 30

5.4 S4-L1: Processing Informational Changes

Section 4 - Outline


• Learn how to enter and approve informational changes





5.5 S4-L1: Correcting Receipts

Informational Change

From time to time, you may find that a receipt’s details were recorded incorrectly and need to

be changed.


Changes to details such as the remitter name & address, division, and reference details that will

not impact accounting entries are treated as ‘Informational Changes’.

5.6 S4-L1: Exercise



CAPPS:


Scenario 1: Request Informational Change

Scenario 2: Approve Informational Change Request

When you are ready select this link Section 4: Handling Corrections and Refunds -and complete

the following exercises: Request Informational Change and Approve Informational Change.


5.7 S4-L2: Processing Corrections

Section 4 - Outline



• Reallocating Receipts

• Processing Refunds and Chargebacks

• Processing Insufficient Funds




5.8 S4-L2: Correcting Receipts

Correcting Receipts

Correction

Changes to details such as the fee code, fee amount, tax location, and reversals that will impact

accounting entries are treated as ‘Corrections’.

Corrections include:

• Reallocations,

• Refunds,

• Chargebacks, and

• Insufficient funds (NSF).

5.9 S4-L2: Reallocating Receipts

Reallocating Receipts

Reallocation

Reallocations include corrections to the fee code, the fee amount, accounting distribution or tax

code after the cash receipt has processed to the General Ledger.

Cash receipts will automatically create the reversal for the old transaction and create the new

corrected transaction that is then sent to GL and USAS for processing. These are assigned USAS

document type ‘J’.

5.10 S4–L2: Exercise



CAPPS:

Reallocating Receipts

Scenario 1: Reallocate Receipt

Scenario 2: Approve Reallocation



the following exercises: Request Reallocation and Approve Reallocation.


5.11 S4-L2: Refunding Receipts

Refunding Receipts

A refund can be processed in the event money needs to be returned to the remitter.

Note: The remitter must be set up as a vendor (supplier) in CAPPS prior to processing the refund

request.

If necessary, refunds can also be canceled or reallocated.

Note: Refunds are not integrated to Accounts Payable. This transaction will also require an

entry to Accounts Payable as a ‘Refund of Revenue’ and will integrate with CAPPS GL and USAS.

In Cash Receipts, refunds do not create accounting entries and are not sent to USAS.

Chargebacks are similar to refunds and are handled the same way.

Chargebacks are credit card refunds and typically processed via the TX.GOV interface.

5.12 S4-L2: Exercise


CAPPS:

Refund Receipt

Scenario 1: Request Refund

Scenario 2: Approve Refund Request


the following exercises: Request Refund and Approve Refund Request.







5.13 S4-L2: Insufficient Funds (NSF)

NSF includes returned items where the check or payment bounces from the bank.

Two Steps:

1. Enter NSF: Record in Cash Receipt to reflect the Default transaction recorded in USAS by

Treasury. This Origin does not get sent to USAS as it already occurred.

2. Enter ONL J Doc: Record the allocation using ONL origin to reverse out of Default to the

correct CR fee code where the money is returned. This Origin is sent to USAS.

5.14 S4-L2: Step 1: Record NSF

Step 1: Record NSF

Recording an NSF is similar to recording other corrections, with the following exceptions, enter:

• Batch Type = NSF

• USAS Doc Number = ‘R-Doc’ number

5.15 S4-L2: Step 1: Record NSF Cont.

Step 1: Record NSF Cont.

Proceed with entering the following:

• Fee Code: NSF Fee Code

• T-Code: 153 or 156

After entering the NSF receipt, submit it for approval.

5.16 Step 2: Enter Reallocation

Step 2: Enter Reallocation

After approving NSF entered as part of step 1, you must create a re-allocation entry:

• Batch Type = Reallocation

• USAS Doc Number = System Assigned


5.17 Step 2: Enter Reallocation Cont.

Step 2: Enter Reallocation Cont.

Proceed with entering the following:

• Fee Code: Update with fee code for where money was returned

• T-Code: Accept default

After entering the reallocation, submit it for approval.

5.18 Review Accounting Entries

Review Accounting Entries

When entering and approving the NSF and Reallocation entries, you will also need to run

processes to create the accounting entries and post them to GL.

6. Section 5-Running Reports & Performing Inquiries

6.1 Section 5: Running Reports & Performing Inquiries

Section 5

Running Reports & Performing Inquiries

6.2 S5 Objectives


After completing this section you will be able to:

• Review Receipt History

• Print Receipt

6.3 S5 Exercise

Section 5 - Exercise



CAPPS:

Cash Receipts Inquiries & Reports

Scenario 1: Running Reports

Scenario 2: Performing Inquiries

When you are ready select this link Section 5: Reporting and Inquiries -and complete the

following exercises: Review Receipt History and Print Receipt.


7. Section 6-Conclusion

7.1 Section 6: Conclusion

Section 6

Conclusion

7.2 S6 Summary

Congratulations, you have completed this course. You learned the following regarding CAPPS

Cash Receipts:

• How to manually enter cash receipt details

• How to upload cash receipts via Excel

• How to review and approve cash receipts

• How to process cash receipts, including preparing bank deposit, creating accounting entries,

send to GL, etc.

• How to record corrections and refunds

• How to run reports & perform inquiries

• You are now ready to move on to your next course, see you there!




7.3 S6 Congratulations

I hope you enjoyed your training!

This course is almost complete.

It’s now time to review what you’ve learned in this course.

7.4 S6 Knowledge Check

Knowledge Check

Next you will be presented with a series of questions covering important things to remember

from this Cash Receipts course.

After completing the knowledge check, close the browser tab and return to the course.

7.5 End

This completes the course. See you next time!

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