Methods for Reconciling Credit Card Payments against Customer Invoices

This document presents an overview of the three alternative methods for reconciling credit card payments against customer invoices using payment reference numbers in the M3 Business Engine.

The purpose of the three methods of reconciliation is to provide greater flexibility when matching customer payments made by credit card to invoices based on payment reference numbers.

When a payment is made by credit card, it is normally made against a payment reference number that was created when the payment was booked, not against a customer invoice number.

Reconciliation Methods

Credit card payments and customer invoices can be automatically or manually reconciled. Applying the correct scenario depends on the company bank.

M3 provides these reconciliation methods for customer payments:

Method Description

Automatic matching in accounts receivable

Bank statements with receipt orders that have payment reference numbers are received electronically via M3 e-Collaborator and displayed in ‘Batch Payment. Update’ (ARS040). When you update accounts receivable with the receipt orders, M3 uses the payment reference numbers to identify the corresponding customer invoices.

Automatic matching in the bank statement processing application

Bank statements are received electronically via M3 e-Collaborator and displayed in ‘Bank Statement. Open’ (ABS100).

The payment reference number is also used here to allocate the payment to the correct customer invoice, depending on your scenario settings in ‘Scenario. Open’ (ABS911).

Manual matching in accounts receivable

The reconciliation is done manually when the bank has sent a printed payment specification in the form of a statement of account.

You register the payment manually in ‘Payment Received. Record’ (ARS110). When you select sorting order 4 (Quick entry) in (ARS110/F), you can press function key F19 to search for a certain payment reference number. When you select a payment reference number, the corresponding customer invoice number is displayed automatically in (ARS110/F).

Transfer of Payment Reference Numbers

The payment reference number is transferred to M3 Financial Management via the FIRCON table, either when the customer order is invoiced or when the credit card payment is allocated to the invoice.

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