- Payment: A payment event. The actual event of either making or receiving a payment.
- Payment Transaction: The accounting event driven by a payment event.
- Payment Document: A legal document authorizing a payment transaction. For example a cheque or an electronic file containing an instruction to a bank to make a payment. The Payment Document ID is the ID of the actual document or instruction (e.g., the cheque number).
- Payment Plan: The list of Scheduled Payments expected against a particular invoice. If an invoice has only one Due Date then there will be only one scheduled payment expected in the Payment Plan. If there are multiple due dates associated with an invoice then there will be multiple scheduled payment events in the Payment Plan associated with that invoice.
- Scheduled Payment: An event in the Payment Plan defined by its amount and Due Date. The sum of all Scheduled Payments in the Payment Plan must add up to the gross value of the invoice.
- Payment Proposal: A mechanism by which a user can make a payment by selecting scheduled payment events for a particular payment method by due date. The system "proposes" what should be paid based on the selection criteria provided by the user.
- Payment Method: Payment methods represent means of payment employed by your enterprise or by a business partner, such as cash, check, money order, or credit card with order or upon invoicing.
- May have an Automatic Payment Plugin (see below) associated with it.
- The list of payment methods supported Bank and Cash methods "out of the box", but is extensible to support multiple payment methods such as:
- Cash
- Credit Card
- PayPal
- Cheque (Requires Cheque Register showing Cheque #, Payee, Amount, Status, etc)
- Direct Debit
- Standing Order
- Bank Transfer
- Note Payable
- Automatic Payment Plugin: A module that contains the workflow and user actions necessary to generate a Payment Document in local format. Examples might include modules for "US Check Printing", "Finnish Domestic BACS Payment", etc.
- Matching Algorithm: A module that contains the logic of matching items in an imported electronic bank statement to the transactions in Openbravo during the bank reconciliation workflow. For example, you may wish the system to propose a match in the reconciliation when it detects both a match between the reference field on the statement and the payment document number in Openbravo, plus a match on the amount.
- Open Invoice: An invoice that has not received full settlement. It may have been partially paid, but remains open until payment has been received in full.
- Closed Invoice: An invoice that has been fully settled.
- Payment Status: The payment events in the payment flow drive the payment status.
Accounting
Please refer to the Configuration Manual for guidance on how to configure the accounting of Advanced Payables and Receivables Management in Openbravo.
In summary:
- A Receipt or Payment Event can trigger:
- No accounting effect. Transactions are triggered later in the process, either by the Deposit/Withdrawal event or the Reconciliation event), or
- A posting to an Intermediate Account. The Intermediate Account is later cleared by the Reconciliation event, at which point the payment is posted to the Financial Account, or
- A posting directly to a Financial Account (resulting in later events not triggering financial transactions; later events are then only used to track payment status).
- A Deposit or Withdrawal Event can trigger:
- No financial effect. You may not want to use an intermediate account, or
- A posting to an Intermediate Account. The Intermediate Account is later cleared by the Reconciliation event, at which point the payment is posted to the Financial Account, or
- A posting directly to a Financial Account
- A Reconciliation Event can trigger:
- No financial effect. In this case the posting to the Financial Account has occurred earlier in the process, either by the Receipt or Payment event or the Deposit / Withdrawal event, or
- A posting to a Financial Account, simultaneously clearing an Intermediate Account used earlier in the process.
- A posting directly to a Financial Account (where no Intermediate Account has been used).
- A Bank Statement Import Event can trigger:
- No financial effect.
- A posting to the defined "Bank Asset Account" and "Bank Transitory Account" at the Financial Account - Accounting Configuration tab
NOTE: The accounting work flows described in this document assume that the Accounting Server Process (see General Setup || Process Scheduling || Process Request) is active, resulting in postings being created automatically.
Receive Payment
This section details how to receive payments.
In practice all payments will be in the same currency as the invoice/order one (e.g if a sales invoice/order is in USD, end-user would receive an USD amount).
Receive Payment against Sales Order
Overview
Many businesses do not wish to extend credit to specific customers and may therefore have a payment term that requires payment against an order. In effect this is a prepayment of an invoice. The basic workflow of Receive Payment -> Deposit Payment -> Reconcile Payment is followed.
Process
To receive payment against a sales order:
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Payment In and click on 'Create a New Record'.
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- Enter the name of the Business Partner from which payment has been received as well as the Financial Account to which payment is going to be deposit to and the Payment Method.
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- In practice we can say that all payments will be in the same currency as the invoice/order currency, but could be in a different currency than the "Financial Account" currency.
- Therefore, it is now possible to receive a payment in other currency than the "Financial Account" currency, in case the Payment Method allow to do that. In that case end-user must select the "Currency" in which the payment is being received.
- The system will show the conversion rate setup at system level, for the given payment date. End-user can change that exchange rate, if required. Currency Gain/Loss posting will be posted as required, by comparing the exchange rate used at invoice time and the exchange rate used at payment time.
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- Once all data has been entered in the "Payment In" window, save and then click on "Add Details".
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- In the Add Payment Window, select Orders from the Transaction Type dropdown.
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- Select the order(s) against which the payment is to be received using the checkbox on the left hand end of each line, and enter the value being received against each order.
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- Please note that, if you choose to enter a value that represents an under-payment of a particular order, the system will prompt the user to either Leave this as an underpayment or to Write off the difference.
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- Having decided what action to take the user then clicks on the Process button.
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- The user is then presented with the options to Process Received Payment(s) or to Process Received Payment(s) and deposit. This choice allows the user to choose where in the workflow they wish the payment to be reflected (Receive Payment -> Deposit Payment) and will trigger the accounting events associated with whichever point in the workflow they choose.
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- Having selected how they wish the payment to be reflected in the workflow, the user then clicks on OK in order to process the payment and complete the task.
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- Validate the payment against the order by navigating to Sales Management -> Transactions -> Sales Order
- Select the order against which the payment was received and click on the Payment Plan tab
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Receive Payment against a Sales Invoice / Reversal Sales Invoice
Overview
The user has a number of ways in which they can receive a payment against a sales invoice (AR Invoice) or make a payment against a reversal sales invoice (Storno Sales Invoice or AR Credit Memo):
- in the case of a payment received against a sales invoice, a positive (+) amount "Payment In" is created.
- in the case of a payment made against a reversal sales invoice, a negative (-) amount "Payment In" is created.
This section focused on a payment received against a sales invoice, but it also applies to a payment made against a reversal sales invoice such as a Storno Sales Invoice and an AR Credit Memo, which need to be setup as "Reversal" at the application path:
"Financial Management || Accounting || Setup || Document Type || Document Definition "
The user can either:
- Receive Payment against Sales Invoices (similar to Payment against Sales Order).
- Create an invoice from an order that already has a payment received against it. In this situation the invoice automatically inherits the payment received against the order.
- Receive payment directly against an invoice. This process is followed when a single payment is being received. Examples of use might include
- a sales invoice being raised in a point of sale environment, where the invoice has just been entered and remains visible on the screen, or
- where the user has received a single payment for a particular invoice and prefers to browse for that invoice in order to allocate the payment to it.
NOTE:
- It should be recognized that receiving a payment against a Sales Invoice need not be a manual step. If desired, this step in the process can be completely automated through the configuration of the payment method. Please refer to the section in the Configuration Manual on Payment Workflow Automation.
- It is possible to configure each payment method allowing payments to be received in other currency than the Financial Account currency. Please refer to the section in the Configuration Manual on Payment Workflow Automation.
- Besides, it is possible to change the conversion rate shown by default while receiving a payment for a sales invoice ("Add Payment In" window), in other currency that the Financial Account currency being used to receive that payment. "Add Payment In" window shows the conversion rate stored at system level in the "Conversion Rate" window for a given date. End-user can change that conversion rate while receiving a payment.
Process
1. Receive Payment against Sales Invoice
- Follow the same workflow as Receive Payment against Sales Order, with the exception that in the Add Payment Window the user would select Invoices (or Orders and Invoices) from the Transaction Type dropdown to be able to select invoices. This process is followed when many receipts of payment are being entered at once.
2. Create an invoice from an order that already has a payment received against it.
To illustrate this process, we will create an invoice from an order that already has a partial payment received against it (so that the invoice automatically inherits the payment received against the order).
- We will first enter an order and receive a partial payment against it following the instruction in Receive Payment against Sales Order. In this example, the original order has a value of €116, and a partial payment of €58 was received against it. Once we have created this entry we can validate it by viewing the Payment In Plan associated with that order:
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- Navigate to Sales Management -> Transactions -> Sales Order
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- Select the order that has the partial payment and click on the Payment Plan tab. Here we can see that the original order has a value of €116, and a partial payment of €58 was received against it.
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- Having confirmed that the order has a partial payment against it, we can then proceed to enter an invoice that inherits that partial payment. To do this we navigate to Sales Management' -> Transactions -> Sales Invoice and click on 'Create New' and enter the details of the invoice for the business partner. We then click on 'Create Lines From'.
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- On the resulting screen we select the order from which we want to make this invoice (in our example this is the order we created above) and click on 'OK'.
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- We then click on 'Complete', ensure that the 'Complete' option is selected in the dropdown, and click on 'OK' in order to complete the invoice.
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- Once the invoice has been completed the user can click on the 'Payment In Plan' tab and view the payment in plan. Here you can see that the invoice has automatically inherited the payment history from the original invoice.
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3. Receive payment directly against an invoice.
This process is followed when a single payment is being received. Examples of use might include:
- a sales invoice being raised in a point of sale environment, where the invoice has just been entered and remains visible on the screen, or
- where the user has received a single payment for a particular invoice and prefers to browse for that invoice in order to allocate the payment to it.
To illustrate this process, we will browse directly to an existing invoice and receive payment directly against it.
- To do this we navigate to Sales Management -> Transactions -> Sales Invoice and select the invoice against which we want to receive payment. In the Payment Monitor section of the invoice header we can see that this invoice was for €116 and that a partial payment of €58 has been received against it. In order to receive the outstanding amount we then click on 'Add Payment In/Out'.
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- Once in the "Add Payment In" window and in the case of receiving a payment in other currency than the financial account currency(e.g. a partial payment of €58 is being received in a "Financial Account" in USD), the applicable conversion rate "€/USD" setup at client level (Conversion Rate window) for a given date will be shown in this window. End-user can change the conversion rate shown, if required. Openbravo will post the corresponding currency gain/loss while creating the payment GL entries by taking into account both (1) the exchange rate used at the time of posting the invoice and (2) the exchange rate applicable at the time of posting the payment, having into account that:
- there will not be any currency gain/loss posting in case (1) = (2)
- there will be a currency loss posting in case (1) > (2)
- there will be a currency gain posting in case of (1) < (2).
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- In the resulting screen we enter the value of the 'Actual Payment In' received. Please note that an underpayment allows the user to decide whether to leave the difference as an underpayment or to write of the difference. In our example we will assume that the customer has paid the outstanding amount in full. We then click on 'Process' in order to process the payment.
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- In the resulting screen we can select whether we want to simply Process Received Payment(s) or Process Received Payment(s) and Deposit. This allows the user to choose where in the workflow they wish the payment to be reflected (Receive Payment -> Deposit Payment) and will trigger the accounting events associated with whichever point in the workflow they choose. In our example we will select Process Received Payment(s) and click on 'OK'.
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- Finally, we can see from the Payment Monitor section of the invoice header that the invoice now has a status of 'Payment Complete' as the full amount of €116 has now been received.
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- We can confirm this by clicking on the 'Payment In Plan' tab, where we can see that the number of payments received as 2.
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- From the 'Payment Plan' window we can also click on the 'Payment Details' tab that then shows the detail of the two payments received.
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Make Payment
This section details how to make payments.
In practice all payments will be in the same currency as the invoice/order one (e.g if a purchase invoice/order is in USD, end-user would make a payment in USD amount).
Make Payment against Purchase Order
Overview
Many businesses do not have credit extended to them and may therefore be required to make payment against a purchase order. In effect this is a prepayment of a purchase invoice (where the supplier will not ship the goods unless a prepayment is received). The basic workflow of Make Payment -> Withdraw Payment -> Reconcile Payment is followed.
Process
To make payment against a purchase order:
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Make Payment and click on 'Create a New Record'.
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- Enter the name of the Business Partner to which payment is to be made as well as the Financial Account source of the payment, and the Payment Method.
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- In practice we can say that all payments will be made in the same currency as the invoice/order currency, but the source of the payment (Financial Account) could be in a different currency.
- Therefore, it is now possible to make a payment in other currency than the "Invoice/Order" currency, in case the Payment Method allow to do that. In that case end-user must select the "Currency" in which the payment is being made.
- The system will show the conversion rate setup at system level, for the given payment date. End-user can change that exchange rate, if required. Currency Gain/Loss posting will be posted as required, by comparing the exchange rate used at invoice time and the exchange rate used at payment time.
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- Once all data has been entered in the "Payment Out" window, save and then click on "Add Details".
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- In the Add Payment Window, select Orders from the Transaction Type dropdown.
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- Select the order(s) against which the payment is to be made using the checkbox on the left hand end of each line, and enter the value being paid against each order.
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- Please note that, if you choose to enter a value that represents an under-payment of a particular order, the system will prompt the user to either Leave this as an underpayment or to Write off the difference. In this example we will intentionally leave an underpayment of €1.
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- Having decided what action to take the user then clicks on the Process button.
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- The user is then presented with the options to Process Made Payment(s) or to Process Made Payment(s) and withdrawal. This choice allows the user to choose where in the workflow they wish the payment to be reflected (Receive Payment -> Withdraw Payment) and will trigger the accounting events associated with whichever point in the workflow they choose.
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- Having selected how they wish the payment to be reflected in the workflow, the user then clicks on OK in order to process the payment and complete the task.
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- Validate the payment against the order by navigating to Procurement Management -> Transactions -> Purchase Order
- Select the order against which the payment was made and click on the Payment Plan tab
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Make Payment against Purchase Invoice / Reversal Purchase Invoice
Overview
The user has a number of ways in which they can make a payment against a purchase invoice (AP Invoice) or receive a payment against a reversal purchase invoice (Storno Purchase Invoice or AP Credit Memo):
- in the case of a payment made against a purchase invoice, a positive (+) amount "Payment Out" is created.
- in the case of a payment received against a reversal purchase invoice, a negative (-) amount "Payment Out" is created.
This section focused on a payment made against a purchase invoice, but it also applies to a payment received against a reversal purchase invoice such as a Storno Sales Invoice and an AR Credit Memo, which need to be setup as "Reversal" at the application path:
"Financial Management || Accounting || Setup || Document Type || Document Definition "
The user can either
- Make Payment against Purchase Invoice (similar to Payment against Purchase Order).
- Create an invoice from an order that already has a payment made against it. In this situation the invoice automatically inherits the payment made against the order.
- Receive payment directly against an invoice. This process is followed when a single payment is being made, for example where the user wants to make a single payment for a particular purchase invoice and prefers to browse for that invoice in order to make the payment against it.
NOTE:
- It should be recognized that making a payment against a Purchase Invoice need not be a manual step. If desired, this step in the process can be completely automated through the configuration of the payment method. Please refer to the section in the Configuration Manual on Payment Workflow Automation.
- It is possible to configure each payment method allowing payments to be made in other currency than the Financial Account currency. Please refer to the section in the Configuration Manual on Payment Workflow Automation.
- Besides, it is now possible to change the conversion rate shown by default while making a payment or a purchase invoice ("Add Payment Out" window), in other currency that the Financial Account currency being used to make that payment. "Add Payment Out" window shows the conversion rate stored at system level in the "Conversion Rate" window for a given date. End-user can change that conversion rate while making a payment.
Process
1. Make Payment against Purchase Invoice
- Follow the same workflow as Make Payment against Purchase Order, with the exception that in the Add Payment Window the user would select Invoices (or Orders and Invoices) from the Transaction Type dropdown to be able to select invoices. This process is followed when many receipts of payment are being entered at once.
2. Create an invoice from an order that already has a payment made against it.
To illustrate this process, we will create an invoice from an order that already has a partial payment made against it (so that the invoice automatically inherits the payment made against the order).
- We will first enter an order and make a partial payment against it following the instruction in Make Payment against Purchase Order. In this example, the original purchase order has a value of €313, and a partial payment of €300 was made against it. Once we have created this entry we can validate it by viewing the Payment Plan associated with that order:
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- Navigate to Procurement Management -> Transactions -> Purchase Order
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- Select the order that has the partial payment and click on the Payment Plan tab. Here we can see that the original order has a value of €313,20, and a partial payment of €300 was made against it.
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- Having confirmed that the order has a partial payment against it, we can then proceed to enter an invoice that inherits that partial payment. To do this we navigate to Procurement Management' -> Transactions -> Purchase Invoice and click on 'Create New' and enter the details of the invoice for the business partner. We then click on 'Create Lines From'.
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- On the resulting screen we select the order from which we want to make this invoice (in our example this is the order we created above) and click on 'OK'.
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- We then click on 'Complete', ensure that the 'Complete' option is selected in the dropdown, and click on 'OK' in order to complete the invoice.
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- Once the invoice has been completed the user can click on the 'Payment Out Plan' tab and view the payment plan. Here you can see that the invoice has automatically inherited the payment history from the original invoice.
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3. Make payment directly against an invoice.
This process is followed when a single payment is being made. For example where a user wishes to make a single payment for a particular invoice and prefers to browse for that invoice in order to make payment against it.
To illustrate this process, we will browse directly to an existing purchase invoice and make payment directly against it.
- To do this we navigate to Procurement Management -> Transactions -> Purchase Invoice and select the invoice against which we want to make payment. In the Payment Monitor section of the invoice header we can see that this invoice was for €313,20 and that a partial payment of €300 has been made against it. In order to pay the outstanding amount we then click on 'Add Payment In/Out'.
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- Once in the "Add Payment Out" window and in the case of making a payment in other currency than the financial account currency (e.g. a partial payment of €13.20 is being made from a "Financial Account" in USD), the applicable conversion rate "€/USD" setup at client level (Conversion Rate window) for a given date will be shown in this window. End-user can change the conversion rate shown, if required. Openbravo will post the corresponding currency gain/loss while creating the payment GL entries by taking into account both (1) the exchange rate used at the time of posting the invoice and (2) the exchange rate applicable at the time of posting the payment, having into account that:
- there will not be any currency gain/loss posting in case (1) = (2)
- there will be a currency gain posting in case (1) > (2)
- there will be a currency loss posting in case of (1) < (2).
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- In the resulting screen we enter the value of the 'Actual Payment Out' made. Please note that an overpayment allows the user to decide whether to leave the difference as an overpayment or to write of the difference. The system will assume that the user wishes to pay the outstanding amount in full; the user may edit the amounts if they wish. We then click on 'Process' in order to process the payment.
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- In the resulting screen we can select whether we want to simply Process Made Payment(s) or Process Made Payment(s) and Withdrawal. This allows the user to choose where in the workflow they wish the payment to be reflected (Make Payment -> Withdrawal Payment) and will trigger the accounting events associated with whichever point in the workflow they choose. In our example we will select Process Made Payment(s) and click on 'OK'.
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- Finally, we can see from the Payment Monitor section of the invoice header that the invoice now has a status of 'Payment Complete' as the full amount of €313,20 has now been paid.
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- We can confirm this by clicking on the 'Payment Out Plan' tab, where we can see that the number of payments made is 2.
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- From the 'Payment Out Plan' window we can also click on the 'Payment Out Details' tab that then shows the detail of the two payments made.
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Make Payment via a Payment Proposal
Overview
This process supports the automatic payment of a large number of invoices based on the due dates of the lines of the Payment Plan associated with open Purchase Invoices. The user can request a proposal of all invoices to be paid based on a number of criteria, review that proposal, and then automatically make payment.
The key steps in automating the payment process are:
- Generate a payment proposal
- From the proposal select those invoices that you wish to pay.
- Generate the payment transactions in Openbravo.
- Create the payment documents / files to instruct the bank to make payment.
It is possible to generate a payment proposal including invoices to be paid in the same currency as the selected Financial Account (Bank) currency.
Process
To illustrate this process we will assume that there are already Purchase Invoices in the system that are due for payment.
1. Generate a payment proposal
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Payment Proposal and click on Create a New Record
The user may enter a description of the payment proposal and then provides the following selection criteria:
- Business Partner: If payment is to be made to a single business partner then they can be selected. Only payments due to that business partner will be proposed.
- Payment Method: Select the payment method that you wish to use to make payment.
- Paying From: It is possible to select a Financial Account that has the above payment method active (i.e., only valid accounts for this payment method).
- It is important to remark that it will only be possible to select invoices to be paid in the same currency as the selected Financial Account currency.
- Payment Date: The accounting date of the payment to be generated from this proposal.
- Due Date: The Due Date of all payments to be proposed. The system will propose for payment all open invoices that are due on or before the date given.
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2. From the proposal select those invoices that you wish to pay.
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Once the selection criteria has been entered, click on the Select expected payments button. This shows the invoices that have met the selection criteria entered in the previous window.
The options here are:
- Show payments for alternate payment methods: Select this checkbox if you would like to see invoices that are currently planned to be paid using other payment methods.
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- By clicking on the select all checkbox in the top left hand corner of the grid the system will automatically propose the full amount of each invoice for payment.
- The user can change reduce the amount to be paid if desired.
- Invoices can also be deselected by unchecking them individually. These deselected invoices will automatically be included in the next payment proposal.
- Once the user has completed making adjustments to the payment proposal they can click on the Process button.
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The user is returned to the Payment Proposal window, where it is now possible to click on the Lines tab.
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- In the Lines tab it is possible to see the detail of each invoice added to the payment proposal.
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3. Generate the payment transactions in Openbravo and update the payment status of the invoice.
From the payment proposal window it is now possible to click on the Generate Payments button in order to:
- create the payment transactions associated with the accounting workflow for the payment method for this financial account. Please refer to the section in the Configuration Manual on Payment Workflow Automation.
- record the payment against the payment plan for each invoice.
- control the grouping of the payments. Currently there is only one grouping supported; group separate payments to the same vendor into one payment
The use can click on Process in order to generate the payments in Openbravo and this returns you to the Payment Proposal window.
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4. Create the payment documents / files to instruct the bank to make payment.
The final step is to start the Payment Run in order to create the external documents or file in order to instruct the bank to make payment. There are two mechanisms to allow you to execute the payment run, either immediately directly from the Payment Proposal, or at a later time using the Payment Execution menu item.
- Immediately from the Payment Proposal:
- Click on the Execute Payment button on the Payment Proposal window
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- At a later time using the Payment Execution menu item:
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Payment Execution and enter the search criteria to find the payment proposal for which you want to generate the payment documents
- Select the Payment Method and the Financial Account
- Filter on the From and To dates of the Payment Proposal
- Show whether you are searching for a proposal relating to amounts Paid Out or Received In.
- Once the search criteria have been provided, click on the Search button and this will return the proposals that meet your requirements.
- Select the payment proposal for which you want to create the payment documents and click on Process.
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Whichever method is used to initiate the creation of the payment documents / files, the result is that the Payment Execution Process associated with the Payment Method is launched.
In order to illustrate this process Openbravo contains an illustrative Payment Execution for cheque printing. This process can interact with the user in generating payment documents.
In our illustrative process we want to print cheques using prenumbered cheque folios provided by our bank. The scenario assumes that the blank cheques are loaded on a printer, so the user is invited to provide the number of the top cheque in order for Openbravo to have a record of which cheque number is used to pay which supplier.
- In our illustrative process the user is therefore invited to enter the number of the first cheque folio that will be used in the printing process.
NOTE: This information will be used later in the reconciliation process.
- Once the user has provided the information required by the payment process the user can click on Execute in order to create the payment documents / files.
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Returning to Financial Management -> Receivables & Payables -> Transactions -> Payment Execution and entering the same search criteria used above shows that the proposal has been processed (as it is no longer returned).
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Payment History
In order to see a history of payment runs:
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Payment Run.
- Select the Payment Run you wish to view. This opens up a window that shows:
- Client and Organization
- Payment Execution Process: See the Configuration Manual section on Payment Execution Process
- Source of the Execution: How the payment run was triggered.
- Status: Either Executed, Partially Executed or Pending
- Message: The message entered by the user in the Payment Proposal window.
- Execution Date: The date the payment run was done.
- Clicking on the Payments tab opens a window that shows each payment executed by the run
- Clicking on the Parameters window shows the values returned by the payment execution process. In our illustrative example this is the cheque number used.
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Record Deposit / Withdrawal
Overview
This section deals with the process of manually marking a payment as either deposited or withdrawn in the receivables and payables workflows.
Withdrawals & Deposits are recorded in the Financial Account, both :
- in the currency of the financial account ("Deposit Amount" in the case of Payment In, and "Withdrawal Amount" in the case of Payment Out.)
- and in the currency of the Invoice/Payment ("Foreign Amount").
and will be posted if applicable, in the currency of the Accounting Schema.
NOTE:
It should be recognized that marking a payment as either deposited or withdrawn need not be a manual step. If desired, this step in the process can be completely automated through the configuration of the payment method. Please refer to the section in the Configuration Manual on Payment Workflow Automation.
NOTE:
The timing of accounting events are driven by the accounting workflow. This means that marking a payment as either deposited or withdrawn (either manually or automatically) may (or may not trigger) an accounting event, depending on the configuration of the accounting workflow.
NOTE:
Commonly an accounting event is not defined for the deposit or withdraw events, but users may still use the deposit or withdraw events to track the status of payments in the receivables and payables workflows for the purposes of cash management (knowing exactly where all funds are in the workflow).
In the following process description the assumption is made that Openbravo has not been configured to automatically mark payments as either deposited or withdrawn as the user wishes to manually keep track of the deposit and withdrawal events.
Process
To illustrate this process we will assume that there is, intentionally, no automation of the deposit or withdrawal events (as the user prefers to track these statuses manually).
It is also assumed that when processing payments in the receiving or making payment workflows, the user chose, for receivables to Process Received Payment(s) and for payables to Process Made Payment(s).
Had the user chosen for, receivables to Process Received Payment(s) and deposit or for payables to Process Made Payment(s) and withdrawal, then the payments would already have been marked as deposited or withdrawn and there would be no need to manually deposit or withdraw those payments.
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Financial Account and click on the account for which you wish to mark transactions as either deposited or withdrawn.
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- From the 'Financial Account' window we can also click on the 'Transactions' tab in order to see the details of the transactions. In order to change the status of payments not yet marked as deposited, it is necessary to click on the 'Add Transactions' button.
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- From the 'Add Transactions' window we can see the details of payment transactions not yet marked as deposited or withdrawn, depending on the view selected in the 'Document' window.
- If you want to show payments received as 'deposited', then select 'Received In' in the 'Document' window, select the items you want to mark as deposited, and click on 'OK'.
- Similarly, if you want to show payments made as withdrawn, then select 'Paid Out' in the 'Document' window, select the items you want to mark as withdrawn, and click on OK.
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- You are then returned to the Transactions tab of the Financial Account where you can now see the deposited or withdrawn transactions in both the "Deposit/Withdrawn" currency and in the "Foreign" currency.
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Reconciliation
This section deals with the process of reconciling the transactions in the Financial Account in Openbravo to the transactions on the bank statement (from the bank). The reconciliation process is the final step in the receivables and payables workflows.
The objective of the reconciliation process is to explain (reconcile) any difference in the end balance shown for the Financial Account in Openbravo and the end balance shown on the bank statement, both in the same currency, Financial Account currency.
In a perfect world these two balances will always be the same; however the reality is that they rarely are. The difference between the two balances can be explained by:
- In the Financial Account
- Payments from customers marked as received (or in transit) in Openbravo that have not yet been been cleared by the bank
- Payments to suppliers marked as paid (or in transit) in Openbravo that have not yet been been cleared by the bank.
In both cases these transactions have not yet been cleared through the banking system and therefore do not yet appear on the bank statement.
- In the Bank Statement
- Payments from customers paid directly into the bank account that have yet to be recorded in Openbravo.
- Standing Orders or Direct Debits paid to suppliers directly from the bank account that have yet to be recorded in Openbravo.
- Interest and fees charged by the bank that have yet to be recorded in Openbravo
- Errors on the bank statement
In these cases the transactions (other than any errors) should be entered into the Financial Account in Openbravo.
As the reconciliation process explains the difference between the two balances, the first step in the process is to review the bank statement and mark as cleared any items that appear both in the Financial Account and on the bank statement (as they have been cleared by the banking system). Additionally, any transactions (receipts and payments) shown on the bank statement that should be reflected in the Financial Account should also be entered into Openbravo.
This process is known as reconciliation as any remaining unmatched transactions will explain the difference between the two balances, i.e., reconcile the balances.
There are two reconciliation processes in Openbravo:
- Manual Reconciliation from a paper Bank Statement
- Automatic Reconciliation using Imported Bank Statement
Manual Reconciliation from a paper Bank Statement
Overview
This process assumes that the user has a copy of the bank statement and wishes to reconcile it to the Financial Account in Openbravo.
Process
To illustrate this process we will assume that there are
- transactions in the Financial Account in Openbravo that have now cleared through the banking system (i.e., they are showing on the bank statement and need to be marked as cleared in the Financial Account).
- transactions on the bank statement (for example bank fees) that need to be reflected in the Financial Account.
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Financial Account, click on the account that you wish to reconcile, and select the Transactions tab.
- Our example shows that there is a transaction line in the Financial Account to match; it has a "Cleared" status of "No".
- Referring to my bank statement I can see that the transaction has actually cleared and is now shown on the statement. In order to mark it as cleared I click on the "Reconcile" button.
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- This opens up the Reconciliation window, which shows all the transaction lines that have not yet cleared. Here I can check those items that have cleared by placing a check in the checkbox in the "Cleared" column.
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- First I need to enter the End Balance per the Bank Statement.
- I can check those items that have cleared by placing a check in the checkbox in the "Cleared" column.
- I can see at the bottom of the screen that there is an unreconciled balance. This is because there is Loan Interest shown on the bank statement that needs to be entered in the Financial Account.
- I therefore click on the "Save" button in order to return to the Transactions screen so that I can enter the Loan Interest.
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- I can now see that the item that I marked as cleared is now marked as cleared, however in order to enter the outstanding transaction for the Loan Interst I now click on the "Add Transactions" button.
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- In the "Add Transactions" window I change the "Transaction Type" to GL Item.
- In the GL Item drop down I select one of the GL Item.
- I enter the amount in the "Paid Out" field and click on the "OK" button.
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- This returns me to the Transactions window where I can now see the transaction line for Loan Interest that I have just entered. Note that this line is not marked as cleared.
- In order to clear this transaction line I click on the "Reconcile" button
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- This returns me to the Reconciliation that I saved earlier.
- I now mark the Loan Interest transaction line as Cleared.
- At this point please note that the Difference between the two balances is now zero, meaning that the two balances are fully reconciled.
- I now click on the "Reconcile" button to complete the reconciliation process.
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- This returns me to the Transactions window where I can see that the reconciliation process completed successfully and I note the reconciliation number.
- There are no unreconciled transaction lines (Note: The "Hide Reconciled Transactions" check-box is selected.)
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- In order to view the reconciliation I click on the "Reconciliations" tab and select the most recent reconciliation.
- This opens up the Reconciliation window showing the detail of the reconciliation performed.
- If I want to I can print the reconciliation report. I have a choice of:
- Reconciliation Detail Report: Shows all the transaction lines that reconcile the two balances.
- Reconciliation Summary Report: Shows only the cumulative values of the transaction lines that reconcile the two balances.
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- In order to view the detail I click on the "Cleared items" sub-tab.
- This opens up the Reconciliation Lines window showing the detail of the transaction lines that were reconciled.
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Automatic Reconciliation using Imported Bank Statement
Overview
This process assumes that the user receives an electronic bank statement and wishes to automatically reconcile it to the Financial Account in Openbravo.
The automatic reconciliation process involves 4 steps, one of them (step 2) is optional:
- Import the bank statement
- Post the bank statement
- Match using the imported bank statement
- Reconcile
Process
To illustrate these steps we will assume that there are
- transactions in the Financial Account in Openbravo that have now cleared through the banking system (i.e., they are showing on the bank statement and need to be marked as cleared in the Financial Account).
- transactions on the bank statement (for example bank fees) that need to be reflected in the Financial Account.
- we will illustrate this process using a Financial Account of type "Bank", as the process is (intentionally) not supported for Financial Accounts of type "Cash".
- we will use whichever matching algorithm is associates with the Financial Account we select. Please refer to the Configuration Manual for more information on defining the Financial Account.
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Import Bank Statement
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Financial Account, click on the account that you wish to reconcile (making sure you select an account of type "Bank"), and select the Transactions tab.
- Our example shows that there are four transaction lines in the Financial Account to match; they have a "Cleared" status of "No".
- In order to see which transactions have actually been cleared by my bank I must first "Import the Bank Statement" by clicking on the button.
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- This opens up the "Import Bank File" window.
- I select the location of the bank file and the format of that file (for illustration purposes we will use a Spanish bank file format).
- I then click on "OK".
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Post Bank Statement
- Navigate to Financial Management -> Receivables & Payables -> Transactions -> Financial Account, click on the account that you wish to reconcile (making sure you select an account of type "Bank"), and select the Imported Bank Statements tab.
- Our example shows that there is a Bank Statement containing both Payment Out/In, successfully imported.
- The bank statement can be posted by clicking on the process button "Post"
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- Bank statement posting will generate a ledger entry (Debit/Credit) by taking into account the ledger accounts defined in the
Financial Management -> Receivables & Payables -> Transactions -> Financial Account - Accounting Configuration tab:
- Bank Asset Account
- Bank Transitory Account.
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- A bank statement posting will look like:
- In the case of a "Negative" Bank Statement (by example -4.500,67) => A bank statement containing more Payments OUT lines than Payments IN lines
- Bank Transitory Account (DEBIT)
- Bank Asset Account (CREDIT)
- In the case of a "Positive" Bank Statement (by example 4.850,20)=> A bank statement containing more Payments IN lines than Payments OUT lines
- Bank Asset Account (DEBIT)
- Bank Transitory Account (CREDIT)
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Match using Imported Bank Statement
- I am returned to the transactions window where I can see that the import process completed successfully.
- I now want to "Match using Imported Bank Statement", so I click on that button.
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- This opens up the "Match using imported Bank Statement Lines" window.
- I can filter the contents of the window to show:
- Deposits and Payments
- Deposits only
- Payments only
- The window is divided into two sections:
- The left hand section shows the Imported Bank Statement Lines and in my example I can see the three lines of the bank statement that I successfully imported in the step above.
- The right hand section shows the Transactions in Openbravo that have been automatically matched to the lines in the bank statement. The logic used for matching is defined by the matching algorithm associated with this Financial Account. Please refer to the Configuration Manual for more information on associating matching algorithms to Financial Accounts.
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- I can see that there is a clear match for the first two lines, so I accept the proposal and mark them as a match by clicking on the checkbox in the "Match" column.
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- For the third line I can see that the bank has made a payment to "Demo Business Partner" for 16.00 (this may have been a direct debit or standing order transaction). I therefore need to add the payment to my Financial Account in Openbravo. In order to do this I click on the "Add" option in the transaction line.
- This opens up the Add Transaction" window.
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- In this window I want to add the Payment that is shown on the bank statement, so I leave the Transaction Type as the default "Payment"
- In the Details section I change the Document to "Paid Out", which shows a list of previously paid items for this Business Partner.
- In order to add the new payment I click on the "Add Payment" button.
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- I enter the payment document number
- In the "To be Paid To" dropdown I select the Business Partner and at this point the system automatically brings up the list of unpaid documents.
- I select the Payment Method
- I filter by Transaction Type on
- Orders
- Invoices
- Orders and Invoices
- I select the item for which payment was received and the system automatically completes the payment amount.
- I then click on the "Process" button
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- In the following window you are asked how you want to process this transaction. As this payment has already been cleared by the bank I select "Process Made Payment(s) and Withdrawal"
- I then click on the "OK" button
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Reconcile
The user clicks on "Reconcile"...
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Image TR0028: ...and is invited to confirm the action.
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Image TR0029: The user is presented with a warning that there are unreconciled items.
Note: the "Create Adjustment" button is to manage situations where the bank has made an error and the user wants to adjust the imported bank statement to remove the error. Any adjustments must be stored against the bank statement and the adjusting value and description displayed on the reconciliation statement.
In this case the user decides to leave the transaction as unmatched and clicks on the "Leave as Unmatched" button.
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Image TR0030: The user is returned to the transactions screen where they receive confirmation that the process has successfully completed.
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Image TR0031: Clicking in the "Imported Bank Statement" tab the user can see that the bank statement recently used has been marked with the date of the reconciliation.
Note:
- "Import date" shows the date the file was imported
- Statement Date shows the date of the bank statement.
- "Reconciliation Date" should show the date that the reconciliation was completed.
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Image TR0032: Clicking on the Statement Details tab the user can see the detail of the imported statement.
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Image TR0033: Returning to the Transactions screen the user sees the unreconciled transactions. The message "8 items to match" refers to all unmatched items for today in the grid. The user wants to view the reconciliation summary and clicks on the "Reconciliation" tab.
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Image TR0034: This opens a summary view of the reconciliation. This shows:
- Statement Date: Shows the date that the reconciliation was based on.
- End Balance: The statement end balance.
- Items reconciled: The number of items reconciled.
- Unreconciled Statement Lines: Number of unreconciled items (Miss X)
- Outstanding Payments: Number of outstanding payments (Mari Cleaning Services).
- Outstanding Deposits: Number of outstanding deposits (Priscilla Pirelli).
The user decides to print the most recent reconciliation statement so clicks on the most recent line.
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Image TR0035: This opens a summary screen. The user clicks on one of the "Publish" options...
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Image TR0036: ...and the Reconciliation Report is generated. In this case it is the "Publish Detail" option.
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Image TR0037: The "Publish Summary" does not show the line detail.
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