ManualDoc:TFF808181308EA4230130901AB2C60090

Openbravo allows to manage different currencies within an organization or business unit.

Nowadays, it is very common for the organizations located in a country to make business with third parties located abroad, and even more, it could also happen that an organization needs to post the transactions to general ledgers configured in different currencies.
To learn more visit General Ledger Configuration.

Above described business scenario, implies the need of managing exchange rates between the organization's general ledger currency and the supplier's invoice currency to be used while posting the supplier's invoice to the ledger/s.

This tab allows you to enter:

• either an exchange rate between the organization's general ledger/s currency and the supplier's invoice currency
• or the total foreign invoice amount/s, therefore Openbravo can calculate the corresponding exchange rate/s

Additionally, Openbravo has a "central" repository of exchange rates which are used in case there is no an exchange rate defined at document level.

Contents 1 Payment 1.1 Adding Order/Invoices 1.2 Adding G/L items 1.3 Reviewing the totals and processing the payment 1.4 Credit Payments 1.5 Payments in multiple currencies

Payment

Payment/s can be made against a purchase invoice by using the Add Payment button which opens the Add Payment window.

As shown in the image above Openbravo shows a new window named "Add Payment". This window is split into four sections:

• Header section shows information such as the "Payment Document Nº", the "Payment Date", the "Payment Method" or the "Currency".
• Order/Invoice section allows to select/unselect the orders or invoices to be paid
• G/L items section allows to add any type of expense related to the payment being entered.
• and Totals section summarizes the "total amount paid on GL items", the "total amount paid on Order/Invoices" payments and the difference between the "Actual Payment" and the "Expected Payment".
  This section also includes the actions to process the payment.

Adding Order/Invoices

If the "Add Payment" window is opened from a "Purchase Invoice", all invoice scheduled payments are selected by default if there are more that one, and the "Expected Payment" amount is set as equal as the "Invoice Amount", and the "Transaction Type" field is set to "Invoices". See image below:

The reason for the above is that Openbravo understands that the invoice is going to be fully paid, but obviously that could not be the case. Therefore:

• It is always possible to uncheck any of the scheduled payments selected by default or change the payment amount for a particular scheduled payment, if an invoice partial payment needs to be registered.
  Both cases the "Expected Payment" field changes accordingly.
• It is also possible to select additional purchase invoices and/or orders to pay to the same vendor by changing the value selected in the field "Transation Type".
  The options available are: "Orders" , "Invoices" and "Orders and Invoices".
• It is also possible to select additional orders and/or invoices to pay even having an alternative payment method by just removing the payment method shown in the filtering section.
• And finally, it is also possible to filter orders and/or invoices within a given expected date from/to range by using "Expected Date" filtering capabilities.

As shown in the image above, in the case actual payment amount is less than the grand total, the difference or outstanding amount left to be paid is shown in the grid line and this amount is consider as an underpayment. On the other hand, that difference can be "Written-off" by just checking the field Writeoff next to the field "Amount". If that is the case:

• the purchase invoice is set as fully paid
• the invoice posting to the ledger settles the total vendor liability amount
• while the payment posting to the ledger uses besides the Write-off Revenue account to post the amount written-off.

Adding G/L items

GL Items section allows to enter any type of expense related to the payment but do not included in the invoice, by clicking on [Add New] .

First thing to do is to select the G/L item for the expense and then enter the expense amount in the field "Paid Out" as shown in the image below:

Note that accounting dimensions such as "Project" can be shown depending on the Accounting Dimensions defined for the Client.

Once done,

• the invoice posting to the ledger settles the total vendor liability amount
• while the payment posting to the ledger uses besides the G/L item account to post the paid expense amount.

Reviewing the totals and processing the payment

As already mentioned, "Totals" section allows to review:

• the total amount to be paid on G/L items
• the total amount to be paid on Invoices and/or Orders
• the grand total
• and the diference between the "Actual Payment" and the "Expected Payment".

And also, "Totals" section allows to process a payment by selecting an option in the field "Action Regarding Document". The options available are:

• Process Made Payment(s): this option just process the Payment so a new payment is created in the Payment Out window.
• Process Made Payment(s) and Withdrawal: this option besides processing the payment creates a withdrawal transaction in the Financial Account.

The options above depends on the setup of the payment method:

• If Automatic Withdrawal option had already been selected within the payment method for Payment, only the option Process Made Payment(s) and Withdrawal is shown. However
• If the Automatic Withdrawal option had not been selected, both actions are offered giving the user an option to choose whether they want the Withdrawal to be executed as well or not.

Finally any of these actions updates Payment Monitor section of the Invoice Header. The Paid amount is also reflected in the Payment Plan tab of the Purchase Invoice (and the Purchase Order if it exists). Details of the payment can be found in the Payment Details tab.

Credit Payments

Whenever there is available credit for a vendor a new window is automatically open upon completion of a new vendor's purchase invoice in order to allow the user to either select the credit available to pay that new invoice or not.

• If the available credit is used:
  • the payment status of the invoice changes to Payment Complete = Yes, whenever the credit amount used fulfill total invoice amount.
  • a literal such as "Invoice paid using credit:Payment Nº (Credit Payment)" is automatically populated in the description field of the invoice
  • a new payment is automatically created in the Payment Out window. This payment clearly states the invoice paid in the "Description" field and the credit payment used is shown in the Used Credit Source tab of the payment out.
• If the available credit is not used
  • nothing happens, the new invoice is still not paid and the available credit amount remains the same.

Moreover it is also possible to use the available credit generated for that particular vendor later on while "Adding a Payment" for that vendor.

If that is the case a new section is shown in the "Add Payment" window, that is "Credit to Use" section. See image below:

"Credit to Use" section shows all credit payments created for a given vendor (if more than one), therefore it is possible to select one or more, and even change the credit amount to be used for the payment, in the field "Payment Amount".

Once the payment is processed, a new payment is created in the Payment Out window. That payment states at the very top the "Used Credit" amount.

Payments in multiple currencies

Openbravo allows to make payments in a different currency than the financial account currency.

For getting that working the payment method assigned to the financial account used to make the payment needs to be configured to allow so, that implies to select the check-box "Make Payments in Multiple Currencies".

Let's take for instance an organization such as "F&B US Inc".
This organization is located in USA, therefore it is likely that the organization's general ledger currency as well as the financial account currency is set as USD.

F&B US Inc makes business with a supplier located abroad. This supplier issues its invoices in EUR currency (therefore a Price List in EUR will then be needed) and requires to be paid in EUR currency. This means that:

• F&B US Inc organization needs to record the supplier's invoice in EUR same as the payment to the supplier.
  • If the supplier's payment is registered in the "Add Payment" window shown from the "Purchase Invoice" , Openbravo allows to enter the conversion rate between EUR to USD.

Once the payment is processed, a new payment out will be created in the Payment Out window.
This payment will clearly states "Paid" amount in EUR currency as well as "Paid" amount in USD currency, together with the exchange rate used.