Outstanding balance (Banking and Accounts Receivable)

Category: iDempiere Published: Tuesday, 11 December 2007 Written by Administrator

Control Over Managment Of Outstanding Balances

Through this process, iDempiere manages customers receipts  and payments to suppliers. It also manages the bank reconciliation and the management of the cash book, keeping track of all payments in transit, bank charges and the creation of payments by direct transfer.

Account payable

As it was explained in control  from requisition  until payment ,  accounts payable  can be generated automatically, depending on the supplier's  parameterization or  depending on the terms of the invoice. Rules can be changed any time, which it gives to iDempiere a big flexibility. The methods for payment are supported by :

 

 Cash        :                     it creates  an entry to the cash book of that day.

 

 Checking account:      It is the method of payment by default applied  to any business partner. It can be changed  at any given time.

 Credit card:               Transactions with credit card can be processed on line . Invoices can be checked out  as paid and charges are kept as  payment pending of reconciliation. This method may require an external processor for credit cards.

        Checks:                     After selecting the proper bank , you will be able to keep yours checks saved in the system.  Invoices are checked out as paid and checks are kept in the system as payment pending of  reconciliation.

Allocation

To allocate is the process of linking a payment, or multiple payments, to one or multiple invoices or credit notes, recording discounts on payments and canceling of accounts receivable. The user simply selects the appropriate documents and enters or confirms the differences as partial payments, discounts or cancellations.

Conciliation Banking

Updating the bank statement information can be done automatically as long as the bank provides services of electronic data transfer although this may vary from bank to bank. Conciliation banking makes it possible to reconcile payments in transit, admission charges or record direct debits for done payments. 

Petty Cash

In iDempiere all invoices paid or collected by petty cash are automatically saved in the cash book, thus iDempiere creates a cash journal  by day and organization . The models used are:

General expenses:           This model generates  all the expenses from specified accounts in the cash book.

General Incomes :            To record all the incomes from specified accounts in the cash book.

Checking petty cash out:  To verify  differences between all accounts specified in the cash book.

        Charges:                              Costs or Gains can be recorded to unrelated products.

Transfers:                            To effectuate an specific bank account transfer, it is constitutions and petty cash                   reimbursement.

 

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