Adjusting Customer Payments

This document explains the different ways you can manage differences between the original invoices and the received payments.


Customer payments are executed. Payment differences are dealt with. Invoice and payment records are netted. Credit memos and debit notes are created. Payments that cannot be allocated are recorded on account for further investigation.

Follow up write-offs, payment tolerances, cash discounts, bill backs and debit notes by selecting column templates with the following value types in 'Accounts Receivable. Display Balances' (ARS225):

Value Type Description Currency
62 Payment tolerances Local
162 Payment tolerances Foreign currency
63 Bill back Local
163 Bill back Foreign currency
64 Debit note Local
164 Debit note Foreign currency
65 Write-offs by using option 20-98 in 'Payment Received. Record' (ARS110/F) Local
165 Write-offs Foreign currency

Accounts receivable and the general ledger are updated.

Which transactions are created for deductions, write-offs, and other differences is controlled by the 'Split payment transaction' field for the FAM function used.

Before you start

Follow These Steps

All the activities below are carried out in 'Payment Received. Record' (ARS110/F).

  1. Accept and Write Off Differences

    Write off or otherwise manage differences between a customer payment and the corresponding invoice record:

    • Manually write off payment difference
    • Automatically write off payment difference
    • Accept cash discount.

    Any currency deviation due to exchange rate gain or loss is automatically managed in M3.

    As an outcome, Write-Offs and Cash discounts are recorded.

  2. Match Invoice and Payment Records

    You can also manage the difference in the following ways:

    • Manually match existing credit invoice records or on accounts records
    • Manage unauthorized but accepted payment deductions made by the customer (debit notes)
    • Match invoice records to create a credit memo
    • Perform netting of invoice record against supplier invoice.

    As an outcome, Records Matched or Netted and Credit Memos and Debit Notes created.

  3. Managing Non-adjustable Differences by Recording on Account

    Manage payments that cannot be entirely written off or allocated to an invoice for a customer by recording it on account for later allocation.

    As an outcome, Payment Registered for Prayer for Later allocation.

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