Receive Payment: Types of Payment

The specific fields appear when you select the type of payment. For each payment type, the selection of fields comprising this section is different.

Payment from customer

Advanced mode - turn on the advanced mode to view or override the customer accounts for receivables and advances, as well as fee expense account, which are affected by accounting transaction created by the receive payment document.

If a payment is identified as a payment for an open invoice, the receive payment document clears the customer liability by crediting the selected receivables account with the received total amount.

If the payment is identified as an advance payment, the advance account is credited with the received total amount. The amount can be also allocated to both accounts, if certain residual amount is left after clearing the customer liability. 
Note: Use the advanced mode cautiously. Overriding the accounts may distort the sales process or cause significant errors in the system if the mistake is made while altering the accounts.
For Payment from customer type, the following options are added:

Receivables account - select an account in which income received from the specified customer is to be recorded.

Advance account - select an account in which advances received from the specified customer are to be recorded.

Fee expense account - view or change the fee expense account in which fee is to be recorded.

Match invoices option

If you want to close invoices manually, turn on the Match invoices option.

You will get access to the Open invoices section. In this section, you can add and modify open invoices that you want to close or partially close with the received payment amount.

If you create your receive payment document from the specific invoice, the Match invoices option is turned on by default and the section includes the invoice from which the receive payment document has been created.

You can also view the invoice payment details such as closed receivables, discount %, discount amount and amount of payment etc. as well as change them if required.
Note: The invoice payment details are auto-completed.
If your modifications cause any discrepancies between the received amount (indicated in the Received amount field in the Received amount section) and the Amount of payment, the difference between the amounts is displayed in the Not matched amount field.
Note: The Not matched amount field is not editable and you cannot override it.
You can also manually add other invoices to be fully closed or partially closed.

To do that

1. Turn on the Match invoices option.
 
2. In the Open invoices section, do one of the following:
 
  • To add all open invoices together with their details, click the Fill button.
 
OR
 
  • To add invoices manually, click +Add new.
Note: In either case, a single or multiple invoices are added as line items. However, if you add all open invoices by clicking the Fill button, all invoice line item fields are auto-completed and you do not have to fill them in manually.
 
Invoice Line Item Fields
 

Field

Used for

Invoice

Invoice which you want to close fully or partially.

Once an invoice is selected, all the other invoice payment details are auto-completed. However, you can change them, if necessary.

Date

Date of the invoice you want to close.

Invoice currency

Currency of the invoice you want to close.

Invoice open amount

Open amount of the invoice which is to be closed.

Discount, %

An early payment discount in %. It reduces the amount the customer owes you if the customer pays before the due date indicated in the invoice.

Conditions on which the discount is applicable are retrieved from the net terms specified in the invoice.

The due date of the invoice and the date of the receive payment document are compared, and if the payment is made within the period for which the early discount is provided, the discount percentage is displayed in the field.

Discount amount

The amount deducted from what the customer owes you if they pay before the due date indicated in the invoice.

The discount amount is worked out as:

Discount amount = Amount of payment x Discount %

Closed receivables

The amount of the receivables for the specified unpaid invoice to be closed with the received payment.

The amount of closed receivables is calculated as follows:

Amount of closed receivables = Amount of payment - Discount amount (if applicable)

Open amount in payment currency

Open amount of the invoice which is to be closed indicated in payment currency.

Amount of payment

Total amount of the invoice after the discount for the invoice is calculated.


If you create a receive payment document for an invoice or multiple invoices from scratch without reference to a particular invoice, the Match invoices option is turned off by default. If you keep it turned off, the FIFO (the first in, first out) method is used to close the invoices issued to a selected payer.

Invoice closing according to the FIFO method entails:
 
The invoices issued to the payer are bulk closed automatically, and the first invoices raised are the first invoices to be closed with a received payment. The whole received payment amount is allocated to the unpaid invoices matching the invoice amount of payment. If the payment amount is insufficient to pay down all the open invoices, some invoices (the last invoices raised) will remain unpaid or partially paid. The remaining unpaid amount will persist as customer liability. If an over-payment is made, the overpaid amount is recorded as a  advance from the customer.
 
Receipt from currency exchange

For Receipt from currency exchange type, the Amount details section is unfolded by default and the Advanced mode section includes the following options:

Account of expense from difference between FX rates - select an account in which expense for the currency exchange operation is to be recorded.

Account of income from difference between FX rates - select an account in which income received from the currency exchange operation is to be recorded.

Fee expense account - view or change the fee expense account in which fee is to be recorded.

Advanced mode - turn on the advanced mode to view or override accounts in which exchange gains or losses due to foreign exchange rate fluctuations are to be recorded.  The system itself identifies whether the gain or loss has incurred due to exchange rate fluctuations and makes the corresponding accounting entry reflecting it.
Note: Use the advanced mode cautiously. Overriding the accounts may distort the sales process or cause significant errors in the system if the mistake is made while altering the accounts.

Vendor refund

For Vendor refund type, the section includes the following options:

Receivables account - select an account in which income received from the specified vendor is to be recorded.

Advance account - select an account in which advances received from the specified vendor are to be recorded.

Fee expense account - view or change the fee expense account in which fee is to be recorded.

Advanced mode - turn on the advanced mode to view or override the accounts in which your company’s receivables and advances to the selected vendor are to be recorded. The accounts are affected by accounting transaction created by the receive payment document. Depending on how the system classifies / identifies the payment, the posting either decreases your liability to the selected vendor or increases the amount of advances paid to the vendor.
Note: Use the advanced mode cautiously. Overriding the accounts may distort the sales process or cause significant errors in the system if the mistake is made while altering the accounts.

Other receive payment
 
For Other receive payment type, the section includes the following options:
 
Receivables account - view or change the receivables account in which receivables of the selected payer is to be recorded. The receive payment document is to clear this liability by crediting it with the received amount.

Fee expense account - view or change the fee expense account in which fee is to be recorded.


Other income

For Other income type, the section includes the following options:

Receivables account - select an account in which income received from the specified payer is to be recorded.

Fee expense account - view or change the fee expense account in which fee is to be recorded.


More information