Receiving Cash for Banking later

If i receive a cash payment from a client and i keep it in the till for banking later, how should i record the data correctly in Manager?

I am currently doing the following:

  1. Creating a Sales invoice
  2. Issuing a cash receipt immediately to the client through the created sales invoice so that i can issue them with a receipt, but i leave the receipt status as pending given that it has yet to be banked.
  3. I then Create a journal entry to Debit the value of the cash received in my cash till account. Then i Credit the same Value against the Accounts Receivable specifically against the invoice generated.

When it comes to the time for me to bank the money kept in the cash till, i would change the status of the cash receipt to Cleared, however, i do not know what to do in the Journals to reduce the balance in the cash till.

Can someone help please. Thanks

You are doing several things incorrectly (or at least describing them incorrectly):

  1. Since the customer is paying immediately, there is no need for the sales invoice. You are not extending credit for a later payment by the customer. Just issue a receipt directly, selecting the cash account you have established for the till.
  2. When you deposit money from the till into your bank account, enter an inter account transfer from the till to the bank account. That is all you have to do.

Step 3, as you described it, is incorrect accounting. Even if you take the unnecessary step of issuing a sales receipt before entering a receipt against it, the receipt would zero out the receivable. So there would be no purpose in any journal entry crediting Accounts receivable. That was already done by the receipt, assuming you entered it properly. What you are doing now is telling Manager you owe the customer money.

You also cannot indicate Cleared/Pending status on cash receipts. So you cannot be doing what you describe. If you have been doing this, that means you created your till as a bank account rather than a cash account.

Finally, there is no way in Manager to use journal entries to move money.

All this is explained in relevant Guides.

Thank you, i will make those changes.