Review a Partly or Fully Allocated Bank Statement

Bank statement status. (ABS100/E), (ABS101/B)

The field indicates the current status of the bank statement. The status is used to identify where in the recording process the statement is and what the next step should be.

Alternatives

1 = 'Error in conversion'; 2 = 'Ready for validation'; 3 = 'Error in validation'; 4 = 'Ready for allocation'; 5 = 'Partly allocated'; 6 = 'Completely allocated'; 9 = 'General ledger updated'.

If the statement has status 1, an error has occurred when the bank statement file was processed in M3 e-Collaborator. If so, you must find out why, for example by checking the bank format used by M3 e-Collaborator, and correcting any possible error. The statement must then be deleted and converted again.

Blocked. (ABS100/E)

The field indicates whether the bank statement is currently processed in a job and, if so, the nature of the job.

Alternatives

0 = 'Not blocked', that is, not included in any job; 1 = 'Conversion being performed'; 2 = 'Validation being performed'; 3 = 'Automatic allocation being performed'; 4 = 'A user is working with a statement line'; 5 = 'Preliminary journal printed'; 6 = 'Update of general ledger being performed'.

If the statement is being processed, you must wait until the block is released (that is, set in status=0) before you can work with the statement again.

Amounts

Open balance (in currency amount). (ABS100/F)

The field indicates the balance amount on the statement's opening balance date, expressed as a currency amount.

The amount on the opening balance date should equal the balance amount for the same date in general ledger. If not, the validation of the statement runs the risk of not being approved (depending on the 'Bank account balance' field in (ABS900/F)). If that happens, investigate the reason for the discrepancy. A possible reason is that the preceding bank statement has not been completely allocated and updated general ledger.

Total amount debit. (ABS100/F)

The field indicates the bank statement's total debit amount, expressed as a currency amount.

Total amount credit. (ABS100/F)

The field indicates the bank statement's total credit amount, expressed as a currency amount.

Total amount. ABS100/F)

The field indicates the bank statement's total amount, expressed as a currency amount. In other words, the value displayed here is the difference between the total debit amount and credit amount for the statement.

Total amount statement lines. (ABS100/F), ABS101/B)

The field indicates the total amount for all bank statement lines, expressed as the currency amount. The amount in this field should equal the amount displayed in the 'Total amount' field. If not, the validation of the statement will not be approved. If so, you may have to contact your bank to investigate the reason for the discrepancy.

Total allocated amount. (ABS100/F), (ABS101/B)

The field indicates the total amount in the bank statement that has been allocated, expressed as the currency amount. The field is updated each time an allocation is made.

Line amount (in currency amount). (ABS101/F), (ABS102/B)

The field indicates the amount on the bank statement line, expressed as a currency amount.

Line amount (in local currency). (ABS101/F)

The field indicates the amount on the bank statement line, expressed in local currency.

Amount allocated (in currency amount). (ABS101/F), (ABS102/B)

The field indicates the amount on the bank statement line that has been allocated, that is, the total amount of the transactions that are connected to the statement line in (ABS102). The amount is expressed as a currency amount. The field is updated each time an allocation is made.

Amount allocated (in local currency). (ABS101/F)

The field indicates the amount on the bank statement line that has been allocated, that is, the total amount of the transactions that are connected to the statement line in (ABS102). The amount is expressed in the local currency. The field is updated each time an allocation is made.

Amount left to allocate (in currency amount). (ABS101/F)

The field indicates the amount left to allocate for the bank statement line, expressed as a currency amount. The amount is calculated as the difference between the bank statement line's amount and the total amount on the transactions that are allocated to/created for the statement line in (ABS102). The field is updated each time an allocation is made. Note that the statement line has not been fully allocated until the amount in this field is 0.

Gross amount. (ABS101/F), (ABS102/E)

The field indicates the gross amount for the invoice or invoices, that is, before any cash discount is deducted. The amount is expressed in the currency of the invoice.

Cash discount amount. (ABS101/F), (ABS102/E)

The field indicates the allowed cash discount amount in the currency of the invoice, based on the cash discount terms selected for the invoice, with any allowed payment variance defined for this type of invoice in (ABS920) deducted. M3 Business Engine automatically calculate this amount during the allocation of invoices to a bank statement line. When this value is displayed for a bank statement line in (ABS101), it represents the total of the allowed cash discounts for all invoices allocated to the line instead.

During the allocation, M3 Business Engine also checks whether the line is completely allocated by comparing the line amounts and the net amounts of all invoices. If these two amounts are not the same, M3 Business Engine makes an additional check against the company settings in (ABS920) to verify whether the payment variance is within the allowed variance limits. Note that this last check is only done if alternative 1 or 3 is selected in the 'Variance check' field in (ABS900).

If any of the following conditions are met, the line is considered as completely allocated:

– The amount in the 010 field in (ABS101/F) is higher than or equal to the amount of the bank statement line, which in turn must be higher than or equal to the amount in the 040 field in (ABS101/F).

– The amount in the 030 field in (ABS101/F) is higher than or equal to the amount of the bank statement line, which in turn must be higher than or equal to the amount in the 040 field in (ABS101/F).

If the line is completely allocated, the allowed cash discount in (ABS101) is set to the highest amount in any of the conditions listed above. The remaining payment variance amount is proportionally distributed - based on the respective invoice's gross amount - to the invoices as an additional cash discount. The net amounts of the invoices are recalculated as well due to the adjusted cash discount.

Net amount. (ABS102/E)

The field indicates the net amount for the invoice, with any cash discount deducted. The amount is expressed in the currency of the invoice.

During allocation, the statement line amount in (ABS101) is compared to the sum of the net amounts on all the invoices/general ledger transactions in (ABS102) that are connected to the line. The check might result in new cash discounts for the invoices. If so, the net amounts will be recalculated accordingly.

Invoice amount. (ABS102/F)

The field indicates the amount on the invoice, expressed in the currency of the invoice.

Received amount. (ABS102/F)

The field indicates the total amount of any previously made payments of the invoiced amount, expressed in the currency of the transaction.

Outstanding amount. (ABS102/F)

The field indicates the amount that remains to be paid and received, that is, the difference between the invoice amount and the received amount. The amount is expressed in the currency of the invoice.

010 – Expected payment according to cash discount. (ABS101/F), (ABS102/F)

The field indicates the expected payment amount of the invoice. Any calculated cash discount based on the cash discount terms selected for the invoice is deducted from this amount.

If the amount of the bank statement line in (ABS101) and the total net amount of all invoices allocated to this line are not the same, M3 Business Engine checks the expected payment values in the 010 to 040 fields in (ABS101/F) before deciding whether to treat the line as completely allocated nevertheless. For details, see the 'Cash discount amount' field in (ABS101/F).

Example

An invoice with an invoice amount of USD 100 is created on September 1. The cash discount terms selected for the invoice grant the customer a ten-percent discount if payment is made before September 11. The expected payment amount, with the calculated cash discount deducted, is USD 90.

020 – Expected payment according to cash discount and variances. (ABS101/F), (ABS102/F)

The field indicates the expected payment amount of the invoice or invoices. Any calculated cash discount, based on the cash discount terms selected for the invoice, as well as the allowed payment variances defined in (ABS920), are deducted from this amount. If the company has defined payment variances both as amounts and as percentages in (ABS920), the lower amount of the two is deducted. See the example below.

If the amount of the bank statement line in (ABS101) and the total net amount of all invoices allocated to this line are not the same, M3 Business Engine checks the expected payment values in the 010 to 040 fields in (ABS101/F) before deciding whether to treat the line as completely allocated nevertheless. For details, see the 'Cash discount amount' field in (ABS101/F).

Example

If an invoice with an invoice amount of USD 100 is paid within the date range for granting a cash discount of 10%, the expected payment is USD 90. The company has defined the following variances for this type of invoice: USD 2 or 5%. M3 Business Engine deducts USD 2 from the expected payment amount, since this is an amount lower than 5% of USD 90 (= USD 4.5). Consequently, the expected payment amount with the expected cash discount and the allowed payment variance deducted is USD 88 (90 minus 2).

030 – Expected payment according to cash discount and tolerance days. (ABS101/F), (ABS102/F)

The field indicates the expected payment amount of the invoice or invoices. Any calculated cash discount, based on the cash discount terms selected for the invoice in combination with the tolerance days defined for these cash discount terms in (CRS077), are deducted from this amount.

If the amount of the bank statement line in (ABS101) and the total net amount of all invoices allocated to this line are not the same, M3 Business Engine checks the expected payment values in the 010 to 040 fields in (ABS101/F) before deciding whether to treat the line as completely allocated nevertheless. For details, see the 'Cash discount amount' field in (ABS101/F).

Example

The company created an invoice with an invoice amount of USD 100 on September 1. The cash discount terms selected for the invoice grant a ten-percent discount if the customer pays the invoice before September 11. However, the cash discount terms also allow for three extra tolerance days. A cash discount will therefore be granted even if the customer pays too late, provided that payment is made within these tolerance days (September 12-14). Since the customer pays the invoice on September 13, the expected payment amount is USD 90.

040 – Expected payment according to cash discount, variances and tolerance days. (ABS101/F), (ABS102/F)

The field indicates the expected payment amount of the invoice or invoices. Any calculated cash discount, based on the cash discount terms selected for the invoice in combination with the tolerance days defined for these cash discount terms in (CRS077), as well as the allowed payment variance defined in (ABS920), are deducted from this amount.

If the amount of the bank statement line in (ABS101) and the total net amount of all invoices allocated to this line are not the same, M3 Business Engine checks the expected payment values in the 010 to 040 fields in (ABS101/F) before deciding whether to treat the line as completely allocated nevertheless. For details, see the 'Cash discount amount' field in (ABS101/F).

Example

The company created an invoice with an invoice amount of USD 100 on September 1. The cash discount terms selected for the invoice grant a ten-percent discount if the customer pays the invoice before September 11. However, the cash discount terms also allow for three extra tolerance days. A cash discount will therefore be granted even if the customer pays too late, provided that payment is made within these tolerance days (September 12-14). The payment variance allowed for this type of invoice is the lower of the following two values: USD 2 or 5% of the invoice amount. In this case, the allowed payment variance is USD 2, since this is a lower amount than 5% of USD 90. The customer pays the invoice on September 13 and is granted a cash discount, since payment was made within the extra tolerance days. The cash discount (USD 10) and the allowed payment variance (USD 2) are deducted from the invoice amount. Consequently, the expected payment amount is USD 88.

Accepted variance

The field indicates the maximum accepted overpayment for the invoice or invoices. This amount is the invoice's gross amount plus the accepted payment variance defined in (ABS920). If the company has defined an accepted payment variance both as an amount and as a percentage, M3 Business Engine uses the alternative resulting in the lowest overpayment.

A payment in one bank statement line can refer to several invoices. In (ABS101), the field displays the maximum accepted overpayment total for all invoices allocated to the bank statement line. In (ABS102), the field displays the corresponding amount for a specific invoice instead.

M3 Business Engine manages variances in two ways:

– For cash discount variances for customer invoices (variance level 1): In the case of an underpayment, when the amount of the bank statement lines is less than the total gross amount, the variance is considered a cash discount variance. If the variance is allowed, as defined in (ABS920) for variance type 1 (Cash discount), then the variance is distributed to each invoice and included in the booked cash discount. A prerequisite is that the company has selected alternative 1 or 3 in the 'Variance check' field in (ABS900).

– For overpayment or underpayment per bank statement line (variance level 2): If the overpayment or underpayment is allowed, as defined in (ABS920) for variance types 2 (Overpayment) and 3 (Underpayment), M3 Business Engine books the variance based on accounting rule AB10-185. A prerequisite is that the company has selected alternative 2 or 3 in the 'Variance check' field in (ABS900).

The total accepted variance per bank statement line is displayed in (ABS101/F) together with the allowed limit values.

Example

A supplier invoice with an invoice amount of USD 100 is allocated to a bank statement line. There is no cash discount obtained for the invoice. In (ABS920), the maximum allowed overpayment is defined both as an amount and as a percentage. Since M3 Business Engine always uses the lower of these two values, USD 5 is selected as the allowed overpayment in this case. (USD 5 is a lower amount than USD 10, which corresponds to 10% of USD 100.) Consequently, the maximum allowed overpayment is USD 105.

Percentages

Total allocated amount – percentage. (ABS100/F)

The field indicates the percentage of the total amount of the bank statement that has been allocated. The field is updated each time an allocation is made. Note that the statement is not completely allocated and cannot update general ledger until the percentage in this field is 100.

Fully allocated statement lines – percentage. (ABS100/F)

The field indicates the percentage of the total number of lines in the bank statement that has been fully allocated. The field is updated each time an allocation is made. Note that the statement is not completely allocated and cannot update the general ledger until the percentage in this field is 100.

Manually allocated statement lines – percentage. (ABS100/F)

The field indicates the percentage of the total statement lines that has been allocated manually. This field can be used to analyze automatic allocation's performance. A high percentage indicates that the automatic allocation is not optimized. Possible reasons are that the automatic allocation setup, such as the scenarios defined or the structure of the additional information, are not set up correctly, or that the information from the bank is incorrect or incomplete.

Amount left to allocate – percentage. (ABS101/F)

The field indicates the percentage of the total amount on the bank statement line that remains to be allocated. The field is updated each time an allocation is made. Note that the statement line is not fully allocated until the amount in this field is 0.

Miscellaneous

Number of statement lines. (ABS100/F)

The field indicates the number of bank statement lines that have been updated in the validation of the statement.

Manually allocated statement lines.

(ABS100/F)

The field indicates the number of statement lines that have been manually allocated, as opposed to automatically allocated. The field is updated each time an allocation is made.

Sequence sub-number. (ABS102/B)

The field indicates an identity for a transaction connected to the statement line. The transaction can belong to one of these four categories:

1. A detailed transaction (that already exists when the bank statement is received via M3 e-Collaborator). This transaction contains detailed information about parts of the statement line. For example, it contains information about the type of transaction referred to by the statement line. Sometimes there is more than one detailed transaction connected to the statement line, for example, if the bank statement line refers to several transactions, such as invoices. The sub-number is set automatically when the bank statement is received via M3 e-Collaborator or manually entered. The detailed transaction has a sub-number that does not equal 9998 or 9999 and no connection number.

2. An invoice that has been automatically allocated to the detailed transaction mentioned above. This invoice receives the detailed transaction's sub-number and an individual connection number.

3. A general ledger transaction that has been created and that refers to the bank statement line. A general ledger transaction receives sub-number 9998.

4. An invoice that has been manually allocated to the bank statement line. This invoice receives sub-number 9999.

Connection number. (ABS102/B)

The field indicates a number created automatically to separate different invoices/transactions that refer to the same sequence sub-number.

Scenario number. (ABS102/E)

The field indicates the identity of a scenario. A scenario consists of definitions that control how to search for and allocate a customer/supplier invoice to a bank statement line automatically. The scenario can also control how to automatically create a voucher if the statement line does not refer to an invoice (such as a bank fee, for example), or how to automatically create an on-account payment if no invoice is found. The scenarios are defined in (ABS911).

Scenario type. (ABS102/E)

The field indicates the type of scenario to use when processing bank statements.

Alternatives

1 = General ledger (GL). The scenario automatically creates a voucher. The scenario is used for statement lines that do not refer to an invoice, such as bank interest or a bank fee.

2 = Accounts receivable (AR). The scenario searches for and allocates a customer invoice to a statement line.

3 = Accounts payable (AP). The scenario searches for and allocates a supplier invoice to a statement line.

4 = Accounts receivable (AR) on account

5 = Accounts payable (AP) on account.

With alternatives 4 and 5, the scenario will automatically create an on-account payment in accounts receivable and accounts payable respectively.

Text identifier. (ABS102/E)

The field indicates the text string that was found in the additional information for the statement line. The text identifier retrieved information from the additional information, for example the customer or supplier to whom the statement line refers.