A Cash Note is an Invoice that is to be treated as being paid. It differs from a normal Invoice in that it does not affect your Debtor Account or appear on any of your debt-chasing reports: instead, a debit posting for the Invoice value is made directly to your Cash Account.

To enter a Cash Note, follow the usual procedure described here for entering Invoices, with just one exception: change the Payment Terms (using the 'Paste Special' function if necessary) to refer to a Payment Term record of "Cash" type. You can register such a Payment Term against Customers that are always issued with Cash Notes (in the Customer register), so that you don't have to make this change every time.

Click the OK check box when you are sure the Cash Note is correct. As with ordinary Invoices, you must approve Cash Notes by checking the OK check box and saving, for them to be entered into the Sales Ledger and for Nominal Ledger Transactions to be created.

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