Matching customer payment and invoice records

Outcome

Customer payments are matched to a customer invoice or supplier invoice, debit notes are managed, and credit memos are issued. An accounting journal is printed.

The general ledger and accounts receivable/payable are updated. See the documents listed in the See Also section.

Before you start

You must meet the starting conditions listed in Adjusting Customer Payments.

Follow these steps

To resolve the difference between payment and invoice records, perform these steps:

1. Manually match invoice and payment records

   Match a customer payment to one or several invoices, credit invoice records, or payment records in 'Payment Received. Record' (ARS110). Matching is usually done for credit invoices and on account records.

2. Manage customer debit note

   Accept a debit note and apply it to one or several payment or invoice records in (ARS110).

   A debit note is a statement from the customer informing that a deduction from the invoiced amount has been made because of a certain complaint. Instead of filing a formal complaint and awaiting a credit invoice, the customer sends a statement informing about the deduction either as a separate document or in the actual payment.

3. Create credit memo by matching customer payment record to credit invoice record

   Create a credit memo for one or several customer invoices in (ARS110).

   A credit memo is a combined credit invoice record and receipt used to:

   • Close outstanding transactions
   • Function as a receipt informing the customer that a specific credit invoice record has been used to clear certain invoices and/or on account records. The receipt is created by using the standard letter function.
4. Perform netting of customer payment difference against supplier invoice

   Match a recorded difference between the customer invoice and the payment received to a supplier invoice. This is called netting.

   Netting is usually done when a customer, who is also a supplier, has deducted a certain amount from the invoiced total, with reference to an outstanding invoice previously sent to the user. Netting is a common procedure when a customer is a major retailer.

   You allocate the deducted amount directly to the invoice in accounts payable when processing the payments in (ARS110).

5. Payment of payment documents

   You can pay payment and advance payment documents in (ARS110) using the related option 19='Payment request/document'. This option is available both in 'Payment Received. Record' (ARS112) and 'Payment Received. Record' (ARS118). When selected, the (ARS112/I) panel opens, where you can specify the payment document type and payment document number.

   If the prepayment process is activated in 'Settings - Customer Order Invoicing' (CRS722), document type 1 (Payment request) is used by default. If type 1 is not available, document type 2 (Payment document) is used instead. The document type is editable and determines which fields are displayed in the panel.

   After the payment document is added, the system retrieves the outstanding amount and currency. Several controls are in place to ensure that the currency matches the payment document and that the paid amount does not exceed the outstanding balance.

   The payment is recorded as an on-account payment using accounting event AR30 and accounting type 110 in 'Accounting Rule. Set' (CRS395). Additional information is added for each document type:

   • For payment document type 1 (Payment request):
     • Payment request number - Additional information number 242
     • Request reference number - Additional information number 243
     • Customer order number - Additional information number 203
   • For payment document type 2 (Payment document):
     • Payment document number - Additional information number 249
     • Customer order number - Additional information number 203

   These details serve as references when posting the customer invoice and when processing payments related to payment documents and advance payment documents.

   Additionally, option 19 enables cross-division transaction processing in both (ARS112) and (ARS118), and in the 'Bank Statement. Open' (ABS100) through manual allocations.