This document presents an overview of how to record different categories of customer payments and prepare them for the final allocation to the corresponding invoices in accounts receivable.
Payment details for payments by cash, manual bank transfer, checks with direct allocation to invoice, and drafts are entered. Checks with later allocation to invoice have updated accounts receivable and the general ledger.
Allocate the recorded payments to the corresponding invoices as described in the topic entitled Allocating Customer Payments to Invoice. The link to this topic is found in the See Also section below.
For payments by cash, manual bank transfer, checks with later allocation to invoice, and drafts, preliminary account entries are created in the FCR040 work table. Accounts receivable and the general ledger are not updated until the payments are allocated to invoice and the entry program is exited.
Record customer payments by cash and bank transfer (manual entry).
Select an applicable FAM function in 'Payment Received. Record' (ARS110) to enter payment details for cash payments and payments received via bank transfer with manual entry based on a printed bank statement on the E panel. If the payment is received via bank transfer, record any bank fees on the E panel. You continue directly with the allocation to invoice on the F panel.
Record customer payments by accepted draft.
Select an applicable FAM function in 'Payment Received. Record' (ARS110) or 'Payment Document. Enter' (ARS105)– the latter program functions as a "pre-program" to (ARS110/F) for checks and drafts – to enter payment details for payments by accepted drafts or definite postdated checks (which are treated as drafts in M3) on the E panel. You continue directly with the allocation to invoice on the F panel.
Payments by drafts without acceptance are not recorded manually. Such drafts and corresponding payment account entries are created in 'Draft without Acceptance. Open Payment' (ARS370).
Record customer payments by check.
Select an applicable FAM function in (ARS110) or (ARS105) to enter payment details for payments by check or preliminary postdated check on the E panel. The result of the entry of payments by check depends on the payment method for the FAM function selected. The payment class of the payment method determines whether the check can be entered for later allocation to invoice (payment class 1) or allocated directly to invoice in (ARS110/F) (payment class 2). The payment type of the payment method determines whether the check can be included in a bank remittance in 'Bank Remittance. Open' (ARS300) or must be deposited manually.
Checks with Later Allocation:
Checks with later allocation to invoice are entered directly when they are received and are allocated to a specific payer on the F panel. They are not allocated to specific invoices. If a bank remittance is not used, the transit account for checks that are not allocated is credited based on accounting rule AR05-371, and the bank account is debited (accounting rule AR05-370). If a bank remittance will be used, the transit account for checks that are not deposited (accounting rule AR05-372) is debited instead of the bank account. The account entries are then offset when the check is later allocated to an invoice in (ARS110/F).
Checks with Direct Allocation:
Checks with direct allocation to invoice must be allocated to an invoice as part of the recording on the F panel. If no bank remittance is used, the receivables account is credited, and the bank account is debited immediately. If a bank remittance will be used, the transit account for checks that are not remitted (based on accounting rule AR30-195) is debited instead of the bank account.
Accounts Receivable (A/R) Checkbook:
The A/R checkbook in 'Customer Check. Display' (ARS430) is updated with both types of checks. There you can monitor the status of all checks received from a certain payer, for example, or any preliminary postdated checks, or all checks within a specified status range. You can also see the invoices paid with a specific check.
Record customer payments – electronically transferred bank statements.
Payments in bank statements received electronically are received via Infor Enterprise Collaborator using API program ABS100MI. The results are displayed for each division, status, and bank statement date in 'Bank Statement. Open' (ABS100). The same program can also be used to enter bank statements manually based on a printed statement. M3 validates that the included payment transactions are correct before allocating them automatically to the corresponding invoices.
An older and less flexible solution is available in the Accounts Receivable module, where a batch file with electronic receipt orders or bank statements can be downloaded in 'Batch Payment. Update' (ARS040). The included payments are then automatically or manually allocated to the corresponding invoices.