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Ledgers Sales or Accounts Receivable: Payment and Receipt for AR and AP

Ledgers Sales or Accounts Receivable: Payment and Receipt for AR and AP

Payment and Receipt for AR and AP

Reference Contents > Ledgers Sales or Accounts Receivable > Payment and Receipt for AR and AP

This window is used for Payments from Customers, Refunds to Customers, Payments to Suppliers and Refunds from Customers. It handles bank or cash transactions involving customers or suppliers.

You can select a customer or supplier by entering the code directly or by using keyword search or drag and drop from the Scratchpad. There are also up and down buttons.

Choose the List contents from the drop down list. If you seek to use the Selected Period option, you should first click on the — Choose Periods — option which will open the Period Range Selection window in which you select the period range that will apply when re-selecting the Selected Period option.

Field	Description
Customer or Supplier code	The unique customer or supplier identification code.
Company name	Customer or supplier company name.
Currency	Default currency code.
List contents	Select from the list to determine the extent of transactions listed.
Contact details	Contact details including telephone, fax and email. Right-click on this field to obtain print functions for the address and contact. Print Standard Letter opens the Standard Letter Selection window and Print 4×4 Label opens the 4 by 4 Label Position window. TIP: The contact shown here can be other than the customer or supplier’s default address and contact by linking a specific address and contact to the “Accounts Department Address and Contact” document. This can be done in the customer or supplier maintenance on the Address Document Link Maintenance window.
Transaction list	The list of account transactions is described as the Account Review subwindow.

The bottom of the window contains a tab pane with two panes.

List Context Menu	Action
Refresh List	Operate to rebuild the list using the list contents option selected. This is useful when the bank window is left open and a transaction elsewhere effecting the bank account is posted.
Go To Unallocated Credit	Operate to find on the list the first (or next) Credit that is not fully allocated.
Create Memo Set for Selected	Operate to create a Credit Memo that will be applied to all selected transaction list lines. This will open the Credit Control Memo Set window.

The window has 2 tab panes.

Transaction
Totals and Allocation

Transaction

This pane enables you to make the transaction.

Field	Description
Bank account	The account should be a bank or cash type account and can be either entered directly, by keyword search or can be dragged from the Accounts Scratchpad. You can enter another type of account by holding down the shift key when leaving the field.
Account reference	General Ledger Accounts. User reference. {GLAFILE.GLAUSER char 10}
Description	General Ledger Accounts. Description. {GLAFILE.GLADESC char 40}
Value	The value of the transaction in the currency of the transaction, typically the default currency for the account.
Currency code	Ledger Transactions. Currency code. {TRAFILE.TRACURR char 3} WARNING: Mixed currencies on accounts which do not have the local currency as their default currency is NOT recommended. Future reviews and statements can only be normalised to the default foreign currency values with reference to the current exchange rate rather than that which applied at the time of the transaction. If multi-currency transactions are expected the default currency for the account should be the local currency. You can force the currency to the default currency of the customer using the optAcNoMixedCur system option. This will disable the edit of the currency for customers with foreign default currencies. NOTE: From Version 3.1017 a change in calculating the running account foreign currency balances has been applied that makes it possible to mix currencies in an A/P or A/R account. Prior to that change any alien (neither local or account) currency values needed to be calculated into the account currency value for the running account balance using the current exchange rate of the alien currency transactions. Since the change the value of the alien currency value is converted backwards from the local currency balance. This ensures that such alien currency entries do not get out of step, in account currency terms, from the local currency balance. This also better maintains the Unallocated Credit total. This is particularly useful in the following example: Say you operate in Saudi Arabia where the local currency is SAR. You invariable sell your products to the oil industry pricing everything in USD and receiving payments into a USD bank. However, you buy much of your high value components in the UK in GBP or Europe in EUR. You therefore quite reasonably want to maintains supplier accounts in EUR or GBP because the invoices you receive are in those currencies. But you pay these suppliers from your USD bank and so you want that reflected on the account when viewing it. The new balance calculating method can handle this scenario.
Exchange rate	Ledger Transactions. Currency exchange rate. {TRAFILE.TRARATE number float} TIP: When Pay Selected is checked for a foreign currency, double-clicking here will activate the field so you can change the exchange rate.
Value in local currency	The value of the transaction in the local system currency.
Document reference	Ledger Transactions. Document reference. {TRAFILE.TRADOCR char 15} NOTE: Document Reference values can not be between “XX-000000” and “XX-999999” where XX is either ASS, CA, CH, CR or IN, as these are reserved for the system.
Date	Ledger Transactions. Date of transaction. {TRAFILE.TRADATE date date1980}
Posting period	Select an alternative for posting in a future G/L period if needed.
Comment	Ledger Transactions. Comments on transaction. {TRAFILE.TRACOMM char 30}

Button	Action
Pay Selected	Check this option to automatically pay the selected debit lines. A mix of debits and non-allocated credits can be selected. All will be paid and allocated together when posted. Suppliers can be assigned a cheque and have a remittance advice/cheque printed. You can apply the optAcApMemoStop system option. If set to 1 or 2 this will prevent any debit being included in the pay selected range if it has associated with it a Credit Memo that is not Approved or Cleared.
Complex	To extend the transaction to include cross currencies, bank charges and other adjustments. It opens the Additional Payment Postings window.
Post Transaction	Click to post the transaction.

Button

Action

Pay Selected

Check this option to automatically pay the selected debit lines. A mix of debits and non-allocated credits can be selected. All will be paid and allocated together when posted. Suppliers can be assigned a cheque and have a remittance advice/cheque printed.

You can apply the optAcApMemoStop system option. If set to 1 or 2 this will prevent any debit being included in the pay selected range if it has associated with it a Credit Memo that is not Approved or Cleared.

Complex

To extend the transaction to include cross currencies, bank charges and other adjustments. It opens the Additional Payment Postings window.

Post Transaction

Click to post the transaction.

Payment from Customer

Transaction process	Customer payment	Type 020
Credit	Payment amount	to A/R customer a/c
Debit	Payment amount	to G/L bank or cash a/c
Credit	Payment amount	to G/L debtors control a/c

Refund to Customer

Transaction process	Customer refund	Type 014
Debit	Payment amount	to A/R customer a/c
Credit	Payment amount	to G/L bank or cash a/c
Debit	Payment amount	to G/L debtors control a/c

Payment to Supplier

Transaction process	Creditor payment	Type 040
Credit	Payment amount	to A/P supplier a/c
Credit	Payment amount	to G/L bank or cash a/c
Debit	Payment amount	to G/L creditors control a/c

Refund from Supplier

Transaction process	Creditor refund	Type 041
Debit	Payment amount	to A/P supplier a/c
Debit	Payment amount	to G/L bank or cash a/c
Credit	Payment amount	to G/L creditors control a/c

Sales Order Pre-Payments

You can record a pre-payment to a specific Sales Order by entering the Sales Order number into the Document Reference in the form of “SO-000000”, where 000000 is the full Sales Order number including prefixed zeros. If you do this, the printed Sales Order document will reflect the prepayment and when dispatch takes place the invoice transaction will be automatically cleared by the amount as appropriate. Certain rules apply, The Sales Order must be for the right customer and in the same currency as the pre-payment. However, no value check is made to see if over-prepayment is being made.

NOTE: Once you have posted a prepayment in this way, you cannot delete the Sales Order. You should first Refund against the Sales Order to reverse the Sales Order prepayment.

If a partial dispatch of the Sales Order takes place, the prepayment remaining on the Sales Order will be reduced by the Invoice value.

If you have made a prepayment the Sales Order Header maintenance window will show the amount.

Totals and Allocation

Shows totals for the account and enables you to allocate a credit to debits.

Field	Description
Current debit balance	The total balance (or turnover) on the account in the currency shown. A local value will also be shown if the account is for a foreign currency.
Select lines debit	The sum of the selected lines value in currency. A local value will also be shown if the account is for a foreign currency.
Selected lines due	The sum of the selected lines amounts due in currency. A local value will also be shown if the account is for a foreign currency.
Unallocated credit	The total unallocated credit that is available for clearing debits on the account in currency. A local value will also be shown if the account is for a foreign currency.
Quick payment due	The amount of quick payment discount.
Quick payment date	The date quick payment discount is applicable to.

Button	Action
Print Remittance	Select an assigned payment in the list and click to print a Remittance Advice Note. This button is available for all A/P operations and in A/R operations only when a payment is selected in the list.
Apply Quick Payment	For an invoice subject to a Quick Payment Discount that has not yet been applied, click here to apply it.
Allocate a Credit	Select a single credit line and a number of debit lines to allocate, then click this button to apply the allocation. For interactive partial allocations hold the SHIFT key down when clicking. Holding the SHIFT key down with cause the Interactive Allocations window. In this window you can distribute the allocations in a non-standard manner. You can apply the optAcApMemoStop system option. If set to 1 or 2 this will prevent any debit being included in the allocation if it has associated with it a Credit Memo that is not Approved or Cleared. A value of 1 offers a warning which can be overridden, a value of 2 will prevent any allocation until the memo is set to an approved status.
Deallocate Selected	Select an allocated debit or credit and click to deallocate. Credits can be allocated and cleared, deallocated and cleared, and deallocated and uncleared. When credits are included in a Pay Selected payment they are considered by the allocation to be negative debits and will appear as such in the Transaction Allocation Review window. Deallocating a credit will have one of the following consequences: If it is a conventional credit allocated to one or more debits, the allocation set will be removed and the credit(s) set to Cleared with zero due. If there is no allocation and it is set Cleared (in this state it does not individually appear on a statement), the Cleared flag will be set false and the Due amount will be set to the credit value (in this state it show on a statement). If there is no allocation and it is NOT set Cleared, the above process will above state will be reversed. Deallocating a debit will always remove the debit allocation record, set the due amount to the value of the credit and set the Cleared flag false.

Quick Payment Discounts (A/R only)

When you select an invoice line that is subject to a quick payment discount the value and date will display beside an enabled Apply Quick Payment button. This is only applicable if the discount has not already been applied.

When an Invoice is created the account transactions processed ignore any Quick Payment Discount amount that is on offer to the customer. In theory, you are offering a credit of the quick-payment discount amount if the customer pays on time. Therefore, when you are paid you must decide whether this credit is due. If it is, select the invoice line and click on the button. This will lead to the invoice and other G/L transactions being adjusted as well as the invoice record. If you decide not to award the discount, no adjustments will be made.

WARNING: Once you apply a quick payment discount, you can not reverse the process.

Currency transactions

When you receive payments from customers (or make payments to suppliers) for invoices posted in foreign currencies, the payment transaction may be at a different exchange rate. I.E. The value of the invoice(s) and payment may be the same in the foreign currency but not when converted to your local currency. The difference, if any, represents a Currency Trading profit or loss and needs to be accounted for.

The program automatically spots this when you allocate a credit and you will be warned. If you confirm this a special currency adjustment transaction will be made with corresponding transactions to the debtor control and currency trading G/L accounts. The customer invoice transactions will have their local currency values changed to reflect the new rate.

Transaction process	Currency Adjustment	Type 003
Debit	Gain amount	adjustment to local currency value of to A/P supplier or A/R customer a/c
Debit	Gain amount	to G/L currency trading a/c
Credit	Gain amount	to G/L creditors control a/c

Ledgers Sales or Accounts Receivable: Payment and Receipt for AR and AP