Reconcile customer payments through direct debiting or factoring in (ARS410)
This workflow is used to reconcile customer payments processed by direct debiting and factoring in 'Remit Direct Debit and Factoring. Open' (ARS410).
If you use electronic confirmation, the payments are allocated using 'Bank Statement. Open' (ABS100).
See Automatic processing of bank statements.
Outcome
- Payments are reconciled against the remitted invoices. You can record any bank fees.
- An accounting journal is printed.
- Accounts receivable and the general ledger are updated.
- You must manage invoices marked as unpaid in the proposal before reconciliation.
- Use the supporting functions provided in the debt management routine to collect any remaining debts.
Paid invoices
| Accounting Rules | Account | Debit | Credit |
|---|---|---|---|
|
AR75–193 or AR75–194 |
Direct debiting remitted or Factoring remitted |
x | |
| Bank* | x |
*: Represents the account retrieved from the bank account ID selected when creating the remittance.
Reconciled factoring invoices are assigned status 30='Reconciled'.
Unpaid invoices
| Accounting Rules | Account | Debit | Credit |
|---|---|---|---|
|
AR75–193 or AR75–194 |
Direct debiting remitted or Factoring remitted |
x | |
| * | Customer | x |
*: Represents the account entry based on the customer invoice.
Before you start
- You must complete the activity described in Create remittance for direct debiting or factoring in (ARS410).
- The FAM function AR82 (reconcile) and AR83 (reverse) must exist in 'FAM Function. Open' (CRS405).
- You must specify these accounting types for accounting event AR80 (Bank reconciliation) in 'Accounting Rule. Set' (CRS395):
- For VAT on bank charges: 211 (VAT Receivable 1) and, if applicable, 212 (VAT Receivable 2).
- For exchange rate differences: 301 (Realized exchange gains) and 302 (Realized exchange losses).
- To report bank fees, you must create bank fee types in 'Payment Received. Specify Bank Fee Type' (ARS015).
Follow these steps to reconcile and reverse payments
- Reconcile payments against closed invoices.
To confirm that all payments in the remittance are processed, select option 10- 'Reconcile' on (ARS410/B) to reconcile the proposal. On (ARS415/J), you can report any bank fees and indicate whether VAT should be calculated.
- Report unpaid invoices or perform reverse confirmation.
If not all payments in the proposal are made, you must reverse the payments before reconciling the proposal. For proposals with status 90–Confirmed, reversal is performed using option 13-'Reverse', either for an individual payment document in 'Remit Direct Debit and Factr. Details' (ARS411) or for the entire proposal in (ARS410):
- When you reverse a payment document in (ARS411), the payment document is removed from the proposal.
- Reversing an entire proposal changes its status from 90–Confirmed to 20–New, indicating that it must be reconfirmed before reconciliation proceeds.
- To notify the customer, you can send a standard letter (ARS116PF) by selecting one or several invoices with option 14-'Print standard letter' in 'Accounts Receivable. Display' (ARS200).
Reverse reconciliation
In 'Voucher. Reverse' (GLS900), you are only allowed to reverse vouchers created in (ARS410) to a new accounting date.
Release invoices in proposals confirmed with electronic confirmation
You can release the invoices included in proposals confirmed with electronic confirmation using related option 25-'Release direct debiting' in 'Acc Receivable. Display' (ARS200) or 'Customer Invoice. Display in Number Seq' (ARS205). You can also delete these invoices directly from 'Remit Direct Debit and Factr. Invoice' (ARS412).