Automatically Write Off Customer Payment Difference

This instruction explains how you automatically write off small differences between a customer payment and a customer invoice record by applying user-defined payment tolerances. This way you do not have to manage minor differences manually.

The write-off is done by specifying the customer invoice as partially paid. Any remaining difference within the payment tolerance level is automatically written off.

Outcome

Small payment differences are accepted, automatically written off and recorded. An accounting journal and a customer payment journal are printed.

The general ledger and accounts receivable are updated. The following account entries are created:

Accounting Rule Account

Debit

Credit

*

Customer

 

x

 

Bank

x

 
AR30–185

Accepted payment difference

x

 

*Account entry based on the original customer invoice.

If the automatic write-off is used in combination with a cash discount, an extra debit transaction under accounting rule AR30–310 (cash discount) is also created.

Before you start

Follow These Steps

Enter Received Amount

  1. Enter a payment directly in 'Payment Received. Record' (ARS110/E) or via 'Journal Voucher. Open for Multi-Entry' (GLS105) or 'Payment Document. Enter' (ARS105).

  2. In (ARS110/F), select an sorting order to identify the invoice records, when necessary:

    • 1 = Payer
    • 2 = Customer
    • 3 = Invoice number
    • 4 = Quick entry
    • 5 = Group invoice
    • 6 = Payer, sorted by due date.
  3. Select option 11 = 'Partial payment' for the invoice to which the payment should be allocated.

  4. On the H panel, enter the amount received in the 'Partial payment amount' field. Press Enter.

  5. Select one of the following alternatives:

    • If the customer is entitled to a cash discount, the K panel for entering cash discounts is called. Continue with Enter Cash Discount for Partial Payment
      • On the K panel, Enter option 11 = 'Partial payment' in the Option field.
      • If necessary, change the proposed payment amount and the granted cash discount. Press Enter to return to the F panel.
    • If the customer is not entitled to a cash discount, you return to the F panel. Continue with Review Write-off.

      On the F panel, review the amount left to distribute to check that the payment difference is written off.

Finish Write-off

  1. Repeat this activity until the entire total is allocated and adjusted.

  2. To end, press F3 to assign a voucher number to the voucher.

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