Using Customer Payments

21 0 0 06/12/2020

Customer Payments have three purposes:

Record the balance of the payment received together with the associated payment method.
Track and apply the balances of any unused credit or payments.
Allocate balances from Customer Credit Notes.

New Payments

In Salesorder, Payments from Customers (receiveing payments) are recorded using the Customer Payment Document.

A Customer Payment Document is a Posting Document. Posting documents post their values to the relevant Accounts when saved or edited.

Ref #s of Customer Payments documents normally have the prefix CP.

A payment can be received in the following ways:

Use Cash Sales	To receive a Payment from Customer, go to: SALES > Payments from Customers > +
Use Customer Master	To receive payments against multiple invoices, go to: SALES > Customers > Select Customer > Actions > Receive Payment
Use Sales Invoice	To receive payment against a single invoice, go to: SALES > Sales Invoices > Select Invoice > Actions > Receive Payment

All Customer Payment Documents can be viewed in the following ways:

SALES > Payments from Customers > List all Payments,
BANKING > Money In,
BANKING > Bank Accounts.

Transactions on Customer Payment

Transaction	More information
Refund	Refer Using Customer Refund
Receive Payment Without Processing	Manually update the status of the Customer Payment to Received and post the value to the Ledger.

Customer Payment Document: Configuration

To configure Customer Payment Document, go to:

SETUP > Configuration > Customer Payment Receipt

The following configuration options are available:

New Template

You can create new Customer Payment (Receipt) Document templates using this option.

Templates enable you to customize the layout of the document when its being printed.

For more details on how to use templates, refer Setup Document Template

General tab

Default Receipt Template

Using this option you can choose a template for the Customer Payment (Receipt) document.

This template defines the layout of the Customer Payment document when its being printed.

Salesorder app provides a default Standard template.

When you create a new template using the New Template option as discussed above, the newly created template will also be displayed in this dropdown field.

To learn more about how to use templates, refer Setup Document Template

Customer Payment Document: Reference

Fields in first Section

Ref #

A unique identifier for the document.

Received from

Customer Name

Date

The date on which the payment from Customer was received.

Status

New: Default status when creating a new Payment.

Not Received: In case a payment processor fails to acknowledge the payment transaction successfully, this field is set to Not Received.

Received: The Staus field is updated to Received:

When the payment processor successfully processes the Payment.
When a user performs Receive Payment Without Processing action. Refer to Customer Payment Document: Settings section.

Owner

The user creating or owning this document. See Using Owners

Customer Balance

Amount owed by the Customer.

Currency

The Currency in which this Document is presented. See Using Currencies

Exchange Rate

The exchange rate applied to the relationship between this Document’s currency and the base currency of your general ledger. See Using Currencies.

Fields in Payment and Credit Section

Amount Paid

The amount paid by the Customer.

This amount will automatically be added to the balance in the Unused Payment field on the Invoices tab which will be adjusted when payment allocations are done.

Available Credit

This amount is a total of any outstanding credit notes.

When you allocate credit to an invoice, this field will be adjusted accordingly.

Tabs

Invoices tab

Displays a list of current and unpaid Sales Invoices along with Unused Payment and Unused Credit fields.

Unused Payment: Initially this field will have the same value as the Amount Paid field above.

As payments to invoices are allocated, this amount will decrease accordingly.

Unused Credit: Initially this field will indicate any credit that is available.

As credit is allocated to invoices, this amount will change accordingly.

If not all the credit is used, this field will retain the residual value for future allocation to new invoices.

The Sales Invoices table is discussed below:

Sales Invoice table under Invoices tab

Column

Description

Checkbox

Include the balance due on this Invoice in the sum total of the Amount to Pay (last row).

Date

Tax date of the Sales Invoice.

Ref#

Invoice number.

Customer Ref

Customer Purchase Order number.

A/C Memo

A note to the General Ledger.

Original Amount

The original balance invoiced.

Balance Due

The outstanding amount.

Discount

You can set a payment discount using this field. This will change the value in Amount to Pay field.

Set the document in Edit mode and click on the pencil icon to edit this field. A popup window with the following details are available:

Payment Date: Tax date of the Sales Invoice.
Due Date: Payment due date.
Terms: Payment terms applicable for the the Customer.
To check this, go to:
Sales > Customers > Select Customer > Profile tab > Trading Information section > Terms
To learn more, see Using Payment Terms
Discount for Terms: If early payment discount is defined under Payment Terms then the exact discounted amount applicable will be calculated and displayed in this field.
To check this, go to:
Accounting > Payment Terms > Select the Terms set for the Customer > Early Payment Discount section.
For example: If an early payment discount of 10% is defined for payment within 10 days of issue date against an invoice amount of $2000, then Discount for Terms field will show a value of $200 within 10 days of the invoice/tax date.
To learn more about payment terms, see Using Payment Terms
Account: Select the GL Account where the discount has to be posted in the General Ledger. e.g. Sales Discounts under Income in the GL.
To set the default account for Customer Discounts, go to:
SETUP > Configuration > Accounting > Accounts > Edit > Default Accounts section > Customer Payment Discounts
Class: Select a class in case classifications are defined. Refer to Using Classifications
Discount to Apply: Actual discount amount applied and posted to the GL. This value cannot be greater than the Amount to Pay(Invoice Amount) field.

Charge

From an accounting perspective, this field allows you to put a portion of the amount that is being paid to a different account.

This reduces your work in terms of making manual journal entries once payments are received.

This does not change the value in Amount to Pay field.

For eg. If Amount to Pay(invoice amount) is $1000 and you pay 2% of the amount i.e. $20 as payment gateway charges, then using the Charge field you can put $20 in an expense account and remaining $980 in an income account.

Set the document in Edit mode and click on the pencil icon to edit this field. A popup window with the following details are available:

Account: Select the GL Account where the charge has to be posted in the General Ledger.
e.g. Bank charges or Card Charges under Expense in the GL.
To set the default account for Customer Charges, go to:
SETUP > Configuration > Accounting > Accounts > Edit > Default Accounts section > Customer Payment Charges
Class: Select a class in case classifications are defined. Refer to Using Classifications
Charge to Apply: Actual charge amount to be applied is defined here. This value cannot be greater than the Amount to Pay(Invoice Amount) field. This is the value that gets posted to the GL.

Amount to Credit

From a credit note or unused payment.

This field is editable.

Amount to Pay

The amount to be applied to this Invoice.

This field is editable.

Allocate Credit tab

This tab displays a list of all the available Customer Credit Notes:

Column	Description
Checkbox	Include the balance due on this Invoice in the sum total of the Amount to Pay (last row).
Date	Tax date of Credit Note.
Ref#	Credit Note number.
Original Credit	The credit amount when the credit note was issued.
Credit Available	The credit amount available for use.
Amount to Allocate	The credit amount to be allocated to the invoices selected in the Invoices tab. This field is editable.

Payment Method

This tab is used to record details about the payment made by the Customer.

Payment Method: Payment method used by the Customer to make payment.

By Credit Note and/or Unused Payment only

Use this option, when there is no payment, and you just want to apply an Unused Payment or Credit balance to outstanding Invoices.

Credit Card

Check Deposit to box, select bank account and enter cardholder details.

Check

Select Deposit to box, select To Accountand enter check number in Reference field.

Cash