The rule
A sale leaves no credit, and is never stopped by the credit check, when one of these is true:
| It is a cash sale when ... | Where that is decided |
|---|---|
| It is to your company's cash book ledger | Accounting configuration (the cash ledger) |
| It is to a customer marked Cash selling customer | The customer in Accounting |
| It is paid in full with the sale: what is received with it covers the total (to within half a paisa) | The receipt saved with the invoice, or on the POS the payments less the change, plus loyalty points redeemed |
Everything else is a credit sale for the part not paid with it, and is checked (How credit control works).
A cash mark alone does not count
The credit check does not trust a "cash" mark on the document by itself. It reads only what the books will show: the ledger the sale is made to, and the money actually received with the sale. What makes a sale paid in full is a receipt saved with it. (On the standard Sales invoice screen, choosing Cash saves such a receipt for the whole total with the invoice: see the Accounting help on cash and credit sales.)
Examples
| Sale | Paid with the sale | Checked? |
|---|---|---|
| 50,000 invoice to a credit customer, no receipt saved with it | 0 | Yes: 50,000 on credit |
| 50,000 invoice with a receipt of 50,000 saved with it | 50,000 | No: paid in full |
| 50,000 invoice with a receipt of 20,000 | 20,000 | Yes: 30,000 on credit |
| Any amount to the cash book or a cash selling customer | Any | No |
| 50,000 delivery note | A delivery note carries no payment | Yes: 50,000 |
| POS bill of 5,000 paid 5,500 in cash, 500 change | 5,000 | No |
Edits and currencies
- When an invoice paid at the counter is edited, its earlier posting and the receipt saved with it are both left out of the balance; the new amount paid with it counts instead.
- A foreign-currency sale is converted to local currency with the document's rate, for both the total and the amount paid with it.
Common questions
Why is a delivery note checked for its whole amount?
A delivery note carries no payment, so its whole amount is on credit, unless it is to the cash book or a cash selling customer (How credit control works).
A POS bill was paid in cash with change given back. Is it a cash sale?
Yes, when the payments less the change, plus any loyalty points redeemed, cover the bill. A bill of 5,000 paid with 5,500 and 500 change is paid in full and is not checked.
Does a sale paid in full at the counter count in Credit sales this period?
No. That figure on Collections counts only what each invoice left owing, so a sale paid in full at the counter, or made to a cash ledger, adds nothing (Collection figures).