What Does This Procedure Do?
In this procedure, you register the on account payments you receive from customers. The incoming payment amount reduces the customer's balance in the accounts receivable ledger at the same time that an accounting order is updated for the payment and can be printed in the Print Incoming Payment Ledger / Accounting Orders procedure.
On account payments are automatically numbered from a number series that has been defined in the Number Series procedure in the Global Settings.
Later on, the on account payments or credit invoices can be transferred or "set-off" as payment for one or more customer invoices. You can set-off the on account amount in full or in part. When you have registered a set-off, you can see how much is left to be set-off of the current on account payment/credit invoice.
You can only make set-offs between invoices that have been registered to the same customer. They must also have been registered in the same currency. You cannot perform coding on an account that isn't linked to the currency on the on account payment.
Any set-offs that create an exchange gain/loss mean that an accounting order is updated with coding against the exchange gain/loss account. If you create a set-off that creates a rest amount on the set-off debit invoice, you can enter this as either a partial payment, discount or write-off (bad debt loss). If you use either discount or bad debt loss, a coding is created against the customer discount/bad debt loss account. These accounts must be registered in the Chart of Accounts / Standard Accounts procedure in Global Settings.
By using the setting Print ledger/acct. order directly in Reg. Incoming Payments?, under Invoices under the Sales tab in the Settings procedure, it is possible to select if the ledger/accounting order should be printed directly or if a question should appear regarding direct print when registering payments. All set-offs create ledger posts which can be printed in the Print Incoming Payment Ledger / Accounting Orders procedure. The ledger list and ledger shows all set-off posts with the code SOF as the payment method.
If you have activated the setting called Manage automatic set-off for on account payments during invoicing, under Invoice heading under the Sales tab in the Settings procedure, you can also perform automatic set-off.
The procedure consists of three tabs:
What is "On Account"?
An on account payment is a financial outstanding account between a customer and a supplier, which usually means that the customer makes partial payments in advance. For example, it may be used for large projects where the parties agreed that the customer should make periodic project payments in advance.
An on account payment received from a customer is registered in the system, and remains in the ledger as a "debt" to the customer. Later on, the payment can be transferred or set-off as a payment for one or more invoices.
What is Factoring?
Factoring means that companies use their customer invoices as security and receive advances from a credit institute or bank in return.
Field Descriptions
Read more about the Window functions under Window Functions in the MONITOR Basics guide.