TOPS Hold Explanation

TOPS Hold Explanation

Since some payments are received and reconciled through TOPS, we need to ensure that monies received are deposited in the bank.  When you reconcile a payment in TOPS, we pass the amount of the payment (which we call a “deposit”) to the accounting system through a general journal entry that debits TOPS Cash and credits TOPS Hold, dated as of the payment reconciled date.  This ensures that the payment shows in the cash account whether the call has been confirmed.  When you confirm the call, the invoice will come across to debit A/R and credit Revenue on the TOPS revenue date.  The accompanying payment will also come across on the revenue date, debiting TOPS Hold and crediting A/R.

                               DEBIT                CREDIT

Net Result         TOPS Cash        Revenue/payout/tax

 Notes:

TOPS Cash is a sub-account of the cash account.

TOPS Hold is an “other current liability” account.

TOPS Support | (e) support@txisystems.com | (p) 866.800.8677 Opt 1