Projects:Remittances/Functional Documentation
Document sign-off
Role | Name | Sign-off date |
PM | Patricia San Juan | |
QA | Pablo Sarobe | |
Development | Eduardo Argal |
Document Status
Date | Author or editor | Description of change | Document status | Document version |
July 23th, 2011 | Eduardo Argal Guibert | Document creation & sent for review | Draft | V1 |
April 14th, 2011 | Patricia San Juan | Document reviewed & completed | Final | V2 |
April 26th, 2011 | Patricia San Juan | Document updated based on Dev&PM discussion | Final | V3 |
April 28th, 2011 | Patricia San Juan | Document finished and sent for review | Final | V4 |
Overview & Justification
Purpose
The purpose of this document is to describe the functional specifications of a new extension module which is “Remittance” for Advanced Payment Management (APRM).
The purpose of this module is to enhance APRM module in order to allow the creation of Remittances of payments and/or collections. It should also be possible to print a Remittance.
Besides, this module must also support the creation of other extension modules which will implement a logic for an electronic file to be generated and sent to the bank.
This new feature is going to be developed and delivered as a new extension module which is going to be implemented according to the Technical Documentation which can be found here :
Remittances support Technical Documentation
Module/s Overall Information
- Module Name: org.openbravo.module.remittance
- Module Description: This module adds remittance support to the existing APRM functionality.
The provided infraestructure can be easily extended to manage different file generation formats such as the Spanish ones "Cuaderno 19", "Cuarderno 34" and "Cuaderno 58" - Module Help: This module allows orders, invoices and payments to be included in a remittance. A remittance can be printed and later on sent to the bank for the bank to manage the payment/s.
This module support two remittance types. It is possible to "remit for discount" before the due date or to "remit for collection" on the due date.
It also provides the infrastructure to define a "remittance" file generation logic. - Dataset Description: this module includes a dataset named "Remittances infraestructure", which creates:
- a Remittance Type named "Printable Remittance"
- a Payment Method named "Remittance"
- and an Execution Process named "In Remittance"
- License: Openbravo Public License
Scope
Out of scope:
The first version of this module is not going to include the features listed below which have already been identify as feature requests.
These features which are currently out of scope will either be implemented as a new version of this module or as a new extension module (eiter community or professional).
- Feature Request Nº 16778 - Remittance for discount/collection risk management - there is no plan to implement an automatic procedure to remove the remittance for discount/collection risk after a given period of time previously agreed with the bank. It is very common that the bank does not contact us to let us know that a payment included in a remittance has been collected before/on its due date. The bank just informs in case of payments unpaid/protested.
- As a workaround: Remittance for discount/collection risk must be manually managed by the end-user by booking both, remittance settlment or protest after/on the due date, based on Bank input.
- Feature Request Nº 16784 - there is no plan to implement a logic which informs end-user about how many times a payment has been included in a remittance, protest and redrawn.
- As a workaround: End-user will have to query Linked items.
- Feature Request Nº 16907 - there is no plan to implement the accounting logic for Remittance Protest in the case of either a "Remittance for collection" or a "Remittance for discount".
- As a workaround: End-user will have to manually create that kind of posting by using a GL Journal. Posting will look like as shown below:
Manual booking after a "Remittance Protest", for a given amount :
(43150) Protest Remittance DEBIT
(43000) Account Receivable CREDIT
Manual booking before a "Remittance Protest" redraw, for a given amount :
(43000) Account Receivable DEBIT
(43150) Protest Remittance CREDIT
- As a workaround: End-user will have to manually create that kind of posting by using a GL Journal. Posting will look like as shown below:
New definitions and acronyms
- Remittance => A remittance is a group of payments/collections sent to the bank. The bank will then either manage to collect the money from the customers or to pay the providers.
- Remittance type => Attribute of the remittances which indicates the characteristics and behavior of a remittance. It contains most of the configurations needed for the remittance business logic.
- Remit for discount =>
- If a remittance is set up as "Remit for discount", the bank will do only one checking deposit before the due date of the payments/collections included in the remittance.
- Remit for discount type is commonly used in case of sales orders/invoices & payments in.
- If a remittance is not set up as "Remit for discount", then the bank will do a checking deposit on the due date of the payments/collections included in the remittance.
- In the case of collections this remittance is known as "Remittance for collection".
- If a remittance is set up as "Remit for discount", the bank will do only one checking deposit before the due date of the payments/collections included in the remittance.
- Bank Payment => Payment in advanced from the bank before the due date. This will just occur in the case of remittances for discount.
- Remitted status => New payment status to reflect that a payment/collection has been sent to the bank inside a remittance. This status is the one used for payments/collections contained in a remittance, once the remittance document has been processed.
Functional requirements
Configuration
Prior to start using remittance module, some configuration is required.
The configuration basics must be provided as a reference data.
Document Type
A new document type is required in order to manage Remittance.
Below Document Type named "Remittance" will be "Automatically" created after applying remittance reference data set to the legal entity:
- Name : Remittance
- Document category : Remittance
- Sequenced document: yes
- Document sequence: REM_Remittance Sequence
- Table : REM_Remittance
Remittance Posting - Accounting Schema
There are going to be three new Accounting Schema Tables which must be setup as Active for Posting "Yes", for the corresponding Accounting Schema:
- REM_Remittance - this one will manage Remittance posting.
- REM_RemittanceLine_Settle - this one will manage Remittance Settlement posting.
- REM_RemittanceLine_Protest - this one will manage Remittance Protest posting.
Payment Method configuration
A payment method is required in order to easily identify the documents which may be included in a remittance for its collection or payment.
Below basic "Payment Method" will be "automatically" created after applying remittance reference data set to the legal entity:
- Name: Remittance
- Active: Yes
- DEFAULTS PAYMENT IN:
- Payment IN Allowed: Yes.
- Automatic Receipt: No.
- Automatic Deposit: No.
- Execution Type: Automatic.
- Execution Process: In remittance.
- Deferred: Yes.
- Upon Receipt Use: <NULL>.
- Upon Deposit Use: <NULL>.
- Upon Reconciliation Use: <NULL>.
- Payment IN Allowed: Yes.
- DEFAULTS PAYMENT OUT:
- Payment OUT Allowed: Yes.
- Automatic Payment: No.
- Automatic Withdrawn: No.
- Execution Type: Automatic.
- Execution Process: In remittance.
- Deferred: Yes.
- Upon Payment Use: <NULL>.
- Upon Withdrawal Use: <NULL>.
- Upon Reconcialiation Use: <NULL>.
- Payment OUT Allowed: Yes.
Above configuration indicates that the payment method can be used both for IN / OUT Payment transactions and that no accounting will be triggered for these elements in either step (receipt-payment / deposit-withdrawal / reconciliation-reconciliation).
That is the way it should be, therefore we get a specific Remittance accounting workflow by having into account the ledger accounts setup for each Remittance Type, see next section.
It links the payment method to an execution process as well, therefore payments created under this payment method can be executed and be included in a remittance document.
Afterwards this payment method must be assigned to:
- the remmitance type configuration screen
- and to the financial account to be used.
Finally, lets remember that this module supports that any other payment method configuration can be deployed as a module.
Financial Account
The Financial Account to be used in the case of a "Remittance for Discount" must have a Business Parter setup by default, which will be the business partner assigned on the bank payment paid before the due date of the payments included in a remittance.
Remittance Type configuration
There must be a new window to setup remittances.
This new window must be located at the application path:
"Financial Management // Receivables & Payables // Setup // Remittance Type"
A remittante type is required prior to any remittance creation.
Below basic "Remittance Type" named "Printable Remittance" will be "automatically" created after applying remittance reference data to the legal entity. End-user could later on change its setup and even change its name.
- Name: "Printable Remittance"
- Payment method: Remittance (which is the one described in the previous step).
- Remit for discount: No
- Payment Method for discount: Only required in case of "Remit for discount" flag set as yes.
- Payment method for discount is the payment method to be used for the payment of the bank paid before the due date.
- G/L Item for Bank Payment: Only required in case of "Remit for discount flag" set as yes. This GL item will containg the ledger account to balance the payment of the bank paid before due date.
- Posting allowed : Yes. If this flag is enable remittance will be posed following remittance posting logic. If this flag is not enable there will not be any remittance posting at all but just the posting setup in the financial account for the payment method selected in the remittance, if any.
- Java class name for the bank file creation (if any)
Remittance Type could also include below information:
- Parameters, to be used in case of bank file creation.
- Mike will be able to define here:
- whatever kind of parameter required by an electronic file format in the field "Name"
- as well as its corresponding value, field "Value Key".
- Mike will be able to define here:
- Accounting, for Mike to include for each remittante type information such as:
- Accounting schema: Accounting schema of the company to be used.
- Sent Account: account to be used when posting a remittance.
- Settlment Account: account to be used whenever a remittance is being settled.
Finally, lets remember that this module supports that any other remittance type configuration can be deployed as a module.
There should be at least below 2 types of remittances in case of "collections":
- Remittance for collection
- Do not setup as "Remit for discount".
- Remittance for discount
- Do setup as "Remit for discount".
Remittance management
There must be a new window to manage remittances.
This new window must be located at the application path:
"Financial Management // Receivables & Payables // Transactions // Remittance"
End-user must be able to create a remittance by detailing below information:
- Organization
- Document type = set up to the new document type "Remittance" by default.
- Remittance type
- Transaction date
- Due Date = while selecting either payments, orders or invoices; the system will list only those ones having a due date prior or equal to the entered Due Date.
- Discount Date = only shown and mandatory in case of a Remittance for Discount.
- Name = Remittance name
- Financial Account
- Single payment flag. If this flag is selected, the system will generate a single payment including al the invoices/orders selected by the end-user. If this flag is not selected, the system will not generate a single payment but the payments needed based on the grouping criteria selected while processing a remittance ("No grouping", "Group by business partner" "Group by business partner and due date"). This flag only applies to invoices/orders, as it is not possible to include several payments in a single payment.
- Payment = this one will be automatically filled in if a a Remittance for discount has been used, as this payment is the bank payment paid before the due date.
End-user must be able to create a new remittance by including:
- payments (in/out)
- order or invoices (sales/purchase)
It should be possible to generate the corresponding payment to be included in the Remittance grouping by:
- Business Partner
- Business Partner and Due Date
It should be possible to:
- Process
- Post
- and Print
a remittance
There should be a way for the end-user to see:
- all the lines/payments included in a remittance
- the bank instructions to be printed, bank instruction which include information such as:
- the business partner (vendor) to be paid or the business partner (customer) from which collect a payment
- the payment in/out due date
- the payment in/out justification or description
- the payment in/out amount
- and finally the business partner bank account number
- as well as which ones of those remittance lines have been finally Settled. It should also be possible to:
- undo or reactivate a settled remittance line
- and to post a settled remittance line
- and which ones of those remittance lines have been finally Protested.It should also be possible to:
- undo or reactivate a protested remittance line.
- and to post a protested remittance line
Settle / Protest Remittance
There must be a window to either settle or protest remittances.
End-user must be able to select:
- Organization
- Remittance
once done, the system will show all the payments included in a remittance for the end-user to either Settle or Protest them, for a given accounting date.
User & busines process description
User goals
Remittance feature will allow the end user to:
- Generate a printable form of a remittance, including all the details needed for the bank to collect or to pay.
- Create a payment to reflect the Bank Payment before due date, in case of a remittance for discount.
- Provide the infrastructure required for any module to define a bank file generation logic by deploying:
- a dataset with the corresponding remittance type
- and the java class which will implement the file generation logic.
User Roles and Personas
The following roles are involved:
Accounting Manager (Mary): Mary is the accounting manager. She is the accountant responsible, therefore she needs to send remittance documents to the bank.
She should be able to setup financial accounts based on her company needs, and subsequent remittance configurations when required.
She should also be able to launch remittance printable form whenever needed in order to verify its content and get it final/approved.
Accounting staff (Peter): Peter is an employee part of the accounting staff. He will check the setup and he will also launch, verify remittance printable form together with the underline acconting related.
Sales staff (Mike): Mike is an employee part of the sales staff. He will be the one entering sales transactions as appropriate.
Purchase staff (Alice): Alice is an employee part of the purchase staff. She will be the one entering purchase transactions as appropriate.
Business scenario/s
F&B is an enterprise located in Spain making business with several Business Partners: Vendors, Suppliers, Customers, etc.
Every Business Partner can have a "by default" Payment Method such as "Check" or "Remittance", by example and a "by default" Payment Terms such as "Inmediate", "30 days" or "60 days" by example.
Mike a member of the AR (sales) staff issues sales invoice as required and Alice, a member of the AP (purchase) staff register purchase invoice in the system as required.
Either Mary or Peter will be the ones to register the corresponding payments (out/in) in the system if any.
Purchase Order/Invoices & Payments Out
(Prepayment) Remittance
Alice is in charge of entering in the system the purchase orders.
On January she enters and complete below purchase orders with below details:
- Purchase order 1 - Date = 14-01-2011 - Vendor D - amount - 1.180,00 €
- Purchase order 2 - Date = 14-01-2011 - Vendor D - amount - 1.062,00 €
Peter should be able to remit above purchase orders because Vendor B requires F&B to prepay in order for the goods to be sent to F&B.
For getting the above done:
- Peter needs to create a new "payment" remittance dated on January 14-01-2011 and with due date = 14-01-2011; then he needs to press "Select Orders or Invoices".
- Once in that window he should be able to select "Payment Out" transaction type and "Orders" as Document, the system must show the two orders previously created.
- Peter selects both of them and then click on Process. Two lines will be then created in the Lines tab of the Remittance window.
- Peter needs to Process by grouping by business partner as due date is not relevant here. Only one payment out is created with status "Remitted". Finally Peter posts the remittance.
It is important to highlight that Vendor D should have a Vendor prepayment account setup.
Posting must look like:
2.242,00 (40700) Vendor prepayment DEBIT
2.242,00 (40100) Remittance Sent Acount CREDIT
Later on and once the bank has made the payment, Peter needs to go to the "Settle Protest Remittance" window and select the organization, the remittance and once done press on the process button "Search", the system will show the just created remittance.
For a given accounting date, Peter must Settle the Remittance.
Back in the remittance window, he needs to select the remittance and from the Settle tab get it posted.
Posting must look like:
2.242,00 (40100) Remittance Sent Account DEBIT
2.875,66 (57200) Remittance Settle Acount CREDIT
Later on Vendor D sent an invoice to us for the 2 purchase orders, as those ones are already paid the due date of that invoice must be 14-01-2011. It should not be possible to include this vendor invoice in a remittance as it is already paid.
(Payment) Remittance
Alice is in charge of entering in the system the purchase invoices received.
On January she enters and post several purchase invoice with below details:
- Invoice 1 - Vendor A - Amount = 3.044,40 €- Due Date = 01-02-2011 - payment method = Remittance
- Invoice 2 - Vendor B - Amount = 6.844,00 € - Due Date = 02-01-2011 - payment method = Check
- Invoice 3 - Vendor A - Amount = 13.334,00 € - Due Date = 06-02-2011 - payment method = Remittance
Besided dated on January 2nd, Peter needs to create a remittance for the payments listed above, therefore the bank can manage to pay the vendors/providers on the due date.
For doing that he navigates to the "Remittance" window and creates a new remittance. He must select a "Payment" remittance type do Not setup as "Remit for discount" linked to the method of payment "Remittance".
He enters 02-01-2011 as transaction date and 06-02-2011 as due date.
He also needs to select the financial account to be used.
Now Peter uses the option "Select Orders or Invoices" in order to add the purchase invoices to be paid; it could be that Peter would need also to add purchase orders.
While doing this, Peter selects below options:
- Transaction type : Payment Out
- Document : Invoices
- Show payments for alternative payment methods: yes
The system will list above 3 invoices. Peter selects all of them and process.
Peter is now able to process the remittance by generating payments do not grouped by business partner because each payment will be paid on its due date.
Then, he will choose the option: "Generate payments and process".
This action will generate 3 payments, one per each business partner and each invoice:
- payment 1 for Vendor A for a total amount of 13.334,00 €
- payment 2 for Vendor A for a total amount of 3.044,40 €
- payment 3 for Vendor B for a total amount of 6.844,00 €
These 3 payments will be created as well in the Payment Out window with status "Remitted".
Finally, Peter posts the Remittance to the ledger, to get that the amount is booked to the "Remittance Sent account". The posting will look like:
23.222,40 (40000) Vendor liabilities DEBIT
23.222,40 (40100) Remittance type - Sent Account CREDIT
(Payment) Remittance Print
Peter must be able to print the remittance by using "Print" menu button. Then he will send that printed remittance to the bank for the bank to manage the payments.
Remittance print must included below information:
- Remittance Number : the number of the Remittance
- Drawing up Date : Remittance transaction date
- Charge Date: should be empty as there will be as many charge dates as payment due dates.
- Bank account
- Bank
- Organization Tax Id
Details for each payment:
- Due date
- Business Partner
- BP Account Number
- Justification
- Amount
Summary section:
- Total Amount
(Payment) Settle / Protest Remittance
It was possible for F&B to pay on due date:
- Vendor B purchase invoice (due date 02-01-2011)
- and Vendor A purchase invoice with due date 01-02-2011
Peter must navigate to the new window "Settle / Protest Remittances". Once there he selects the Organization and the Remittance, 3 payments will be shown:
- Dated on 02-01-2011 Peter selects Vendor B payment for an amount of 6.844,00 € and gets it settled.
Payment status will changed to "Withdrawn not Cleared", therefore the only thing left to do is to clear the payment in the Financial Account. - Dated on 01-02-2011 Peter selects Vendor A payment for an amount of 3.044,40 € and gets it settled.
Payment status will changed to "Withdrawn not Cleared", therefore the only thing left to do is to clear the payment in the Financial Account. - Dated on 06-02-2011 Peter selects Vendor A payment for an amount of 13.334,00 € and gets it protested.
Payment status will changed to "Awaiting Execution".
Pete must be able to see the status of each payment beloging to the Remittance in the Remittance window.
In this case there will be 2 payments listed in the "Settled" tab of the Remittance window and 1 payment listed in the "Protested" tab of the Remittance window.
Peter needs to post the ones settled, to get that the amount is booked to the Remittance Settle Account. The posting will look like:
9.888,40 (40100) Remittance type - Sent Account DEBIT
9.888,40 (57200) Remittance type - Settle Account CREDIT
Peter will need to post the one protested, to get that the amount is booked back to the Vendor Liabilities account. The posting will look like:
13.334,00 (40100) Remittance type - Sent Account DEBIT
13.334,00 (40000) Vendor Liabilites CREDIT
(Payment) Remittance Redraw
Later on, by mid February, it is possible to pay the unpaid Vendor A invoice.
Peter could create a new "payment" remittance in order to remit once again the unpaid Vendor A invoice; this time he will select the option "Select Payments" instead of "Select Orders/Invoices".
Peter gets the new remittance processed and posted. The payment with status "Awaiting Execution" changes to "Remitted".
After that he needs to navigate to "Settle / Protest Remittance" window and get that payment settled, payment status will change then to "Withdranw not Cleared".
Finally, Peter will need to navigate to the Remittance window in order to post the settled remittance.
(Payment) Remittance Write-off
Peter should be able to either write-off an "Awaiting Execution" payment or to include it in an existing or new remittance in order to redraw it.
For doing that Peter needs to execute the payment awaiting execution from the "Payment Out" window. Once there Peter clicks on "Execute Payment" process button.
The system must show up two options:
- Write off total amount.
- Peter will select this option in case he needs to write-off the payment purchase invoice
- Write-off amount field of the payment will be then filled-in with the purchase invoice amount and the payment status will be changed to "Payment Made".
- Include in existing remittance or create a new one
- Peter will select this option in case he needs to remit the payment once more.
- In case of existing an open remittance of the same type, that payment will be included there, otherwise a new remittance will be created.
Sales Orders/Invoices & Payments In
Remittance for collection
Mike is in charge of issuing sales invoices.
On April, Mike issues and post several sales invoices with below details:
- Invoice 1 - Customer D - Amount 11.800,00 € - Due Date = 11-05-2011 - payment method = Remittance
- Invoice 2 - Customer D - Amount 10.620,00 € - Due Date = 20-05-2011 - paymente method = Remittance
- Invoice 3 - Customer E - Amount 12.980,00 € - Due Date = 25-05-2011 - payment method = Check.
Peter should be able to remit above sales invoices with the aim of getting the bank to collect the money from the customers on its due date.
For getting the above done Peter must follow below described steps:
- He needs to create a new remittance in the remittance window.
- Once there, he needs to select as "Remittance Type" a Remittance type do not setup as "Remit for discount" = Yes
- He needs also to enter as "Transaction Date", let's say May 1t and as "Due Date", the lastest due date which in this example is 25-05-2011
- Finally he needs to use the option "Select Orders or Invoices".
A new window will pop-up in order to select either "Payment In/Out" transaction types or either "Orders", "Invoices" or "Order and Invoices"
Peter selects "Payment In" Transaction type and "Invoices".
The system will then show him just the sales invoices issued for "Customer D" as "Customer D" has a "Remittance" payment method setup by default.
But, it could be he also wants to remit Sales Invoices for Customers who don't have a "Remittance" payment method setup by default. Then he needs to press the option "Show payments for alternative payment methods".
In that case the system will show him the three invoices issued so far.
Peter selects all of them and click on "Process" button.
Three lines will be shown in the "Lines" tab, one per each invoice to get paid.
Peter then process the remittance do not grouping by Business Partner because the due date must be taken into account. It could be that Peter wants to group by due date but in this example is not relevant as the due dates are diferent from each other.
Three payments will be shown now in the "Lines" tab, one per each invoice to get paid.
He posts the remittance to get that the amount to be paid is booked on the "Remittance Type - Sent Account". The posting will look like:
35.400,00 (43120) Remittance Type - Sent Account DEBIT
35.400,00 (43000) Account Receivables CREDIT
Remittance for collection - Remittance Print
Peter verifies that the accounting related is right, he prints the remittance form and sends it to the bank for its collection by using "Print" menu button.
Remittance print must included below information:
- Remittance Number : the number of the Remittance
- Drawing up Date : Remittance transaction date
- Charge Date: should be empty as there will be as many charge dates as collection due dates.
- Bank account
- Bank
- Organization Tax Id
Details for each payment:
- Due date
- Business Partner
- BP Account Number
- Justification
- Amount
Summary section:
- Total Amount
Remittance for collection - Remittance Settlement & Protest
The bank manages to collect 2 of the 3 invoices above as the Customer E did not manage to pay F&B company.
The bank communicates to Peter, the collection of the money on the corresponding due date.
Peter must navigate to the new window "Settle / Protest Remittances". Once there he selects the Organization and the Remittance, 3 payments will be shown:
- Dated on 11-05-2011, Peter selects the one with due date 11-05-2011 from Customer D and get it settled.
Payment status will then change to "Deposit not Cleared", therefore the only thing left to do is to get it clear in the Financial Account.
- Dated on 20-05-2011, Peter selects the one with due date 20-05-2011 from Customer D and get it settled.
Payment status will then change to "Deposit not Cleared", therefore the only thing left to do is to get it clear in the Financial Account.
- Dated on 25-05-2011, Peter selects the one with due date 25-05-2011 from Customer E and get it protested.
Payment status will then change to "Awaiting Execution".
Pete must be able to see the status of each payment beloging to the Remittance in the Remittance window.
In this case there will be 2 payments listed in the "Settled" tab of the Remittance window and 1 payment listed in the "Protested" tab of the Remittance window.
Peter needs to post the ones settled, to get that the amount is booked to the Remittance Settle Account. The posting will look like:
22.420,00 (57200) Remittance Type - Settle Account DEBIT
22.420,00 (43120) Remittance Type - Sent Account CREDIT
Peter will need to post the one protested, to get that the amount is booked back to the Customer Receivables account. The posting will look like:
12.980,00 (43000) Account Receivable DEBIT
12.980,00 (43120) Remittance Type - Sent Account CREDIT
Remittance for collection - Redraw & Write off
Dated on June 2011, Customer E is able to pay and asks Peter to remit the unpaid invoice once more.
Remittance Redraw:
Peter could create a new remittance in order to redraw the unpaid sales invoice; this time he will select the option "Select Payments" instead of "Select Orders/Invoices".
Peter gets the new remittance processed and posted. The payment with status "Awaiting Execution" changes to "Remitted".
After that he needs to navigate to "Settle / Protest Remittance" window and get that one settled, payment status will change then to "Deposited not Cleared".
Finally, Peter will need to navigate to the Remittance window in order to post the settled remittance.
Redraw or Write-off
Peter could also navigate to the sales invoice, then to the "payment in details" tab and finally to the corresponding "Payment In".
"Payment In" is in status "Awaiting execution", therefore Peter can execute once again the payment by pressing the button "Execute Payment". The system must sow up two options:
- Write off total amount.
- Peter will select this option in case he needs to write-off the collection of the sales invoice
- Write-off amount field of the payment will be then filled-in with the sales invoice amount and the payment status will be changed to "Payment Made".
- Include in existing remittance or create a new one
- Peter will select this option in case to redraw the unpaid sales invoice once more.
- In case of existing an open remittance of the same type, that one will be included there, otherwise a new remittance will be created.
Remittance for discount
Mike is in charge of issuing sales invoices.
On June, Mike issues and post several sales invoices with below details:
- Invoice 1 - Customer D - Amount 11.800,00 € - Due Date = 11-07-2011 - payment method = Remittance
- Invoice 2 - Customer D - Amount 10.620,00 € - Due Date = 20-07-2011 - paymente method = Remittance
- Invoice 3 - Customer E - Amount 12.980,00 € - Due Date = 25-07-2011 - payment method = Check.
Peter should be able to remit above sales invoices with the aim of getting the money from bank even before the sales invoices due date, which means even before the sales invoices are paid.
For getting the above done Peter must follow below described steps:
- He needs to create a new remittance in the remittance window.
- Once there, he needs to select as "Remittance Type" a Remittance type do setup as "Remit for discount" = Yes
- He needs also to enter a "Transaction Date", let's say June 30th
- He also needs to enter a "Discount Date", let's say July 1st
- He also needs to enter as "Due Date", the lastest due date which in this example is 25-07-2011
- Finally he needs to use the option "Select Orders or Invoices".
A new window will pop-up in order to select either "Payment In/Out" transaction types or either "Orders", "Invoices" or "Order and Invoices"
Peter selects "Payment In" Transaction type and "Invoices".
The system will then show him just the sales invoices issued for "Customer D" as "Customer D" has a "Remittance" payment method setup by default.
But, it could be he also wants to remit Sales Invoices for Customers who don't have a "Remittance" payment method setup by default. Then he needs to press the option "Show payments for alternative payment methods".
In that case the system will show him the three invoices issued so far.
Peter selects all of them and click on "Process" button.
Three lines will be shown in the "Lines" tab, one per each invoice to get paid.
Peter then process the remittance by grouping by Business Partner in order to save remittance fees, because this time the due date is not relevant but the discount date.
Two payments will then be shown in the "Lines" tab, one per each Business Partner.
Peter must post the remittance to get that the amount to be paid is booked in the "Remittance Type - Sent Account". The posting will look like:
35.400,00 (43110) Remittance Type - Sent Account DEBIT
35.400,00 (43000) Account Receivables CREDIT
And, this time, another payment is also shown in the "Remittance" header.
This payment is the "Bank Payment" dated on July 1st (discount date)
Peter must navigate to this payment in and get it posted. Posting must look like:
35.400,00 (57200) Bank Payment Method - Upon Receipt Use account DEBIT
35.400,00 (52080) Remittance Type - G/L item account CREDIT
Once know, Peter will have to book the payments fees charge by the Bank.
At the end of the day the money get from the bank will be less than the remittance for discount total amount.
For doing so, Peter will have to book the corresponding "Fee" in the Financial Account used for the remittance discount.
Those "Fees" will have to be added as a new transaction in the "Financial Account", as described below:
- Transaction Type: Fee
- Paid Out: 150.00
- Description: Payment Fees Remittance for Discount dated on July 1st. Remittance Nº. XX
Posting will look like:
150,00 Financial Account - Bank Fee Account DEBIT
150,00 Financial Account - Withdrawal Account CREDIT
Remittance for discount - Remittance print
Peter verifies that the accounting related is right.
He also prints the remittance form and sends it to the bank for the bank to manage the remittance discount.
Remittance print must included below information:
- Remittance Number : the number of the Remittance
- Drawing up Date : Remittance transaction date
- Charge Date: 1st July, 2011. As this one should be the discount date as this is going to be the only one bank payment.
- Bank account
- Bank
- Organization Tax Id
Details for each payment:
- Due date
- Business Partner
- BP Account Number
- Justification
- Amount
Summary section:
- Total Amount
Remittance for discount - Remittance Settement & Protest
The bank manages to collect 2 of the 3 invoices above as the Customer E did not manage to pay F&B company.
The bank communicates to Peter the protest of the Customer E payment remitted.
Peter must navigate to the new window "Settle / Protest Remittance". Once there he selects the Organization and the Remittance, 2 payments will be shown:
- Dated on 20-07-2011, Peter selects the payment from Customer D and get it settled.
Payment status will then be change to "Deposit not Cleared", therefore the only thing left to do is to get it cleared in the Financial Account.
- Dated on 25-07-2011, Peter selects the one from Customer E and get it protested.
Payment status will then change to "Awaiting Execution".
Peter must be able to see the status of each payment beloging to the Remittance in the Remittance window. In this case there will be 1 payment listed in the "Settled" tab of the Remittance window and 1 payment listed in the "Protested" tab of the Remittance window.
Peter needs to post the one settled, to get that the amount is booked to the Remittance Settle Account. The posting will look like:
22.420,00 (52080) Remittance Type - G/L item account DEBIT
22.420,00 (43110) Remittance Type - Sent Account CREDIT
Peter needs to post the one protested, to get that the amount is booked back to the Customer Receivables account. The posting will look like:
12.980,00 (43000) Account Receivable DEBIT
12.980,00 (43110) Remittance type - Sent Account CREDIT
Peter must also create a payment out for the bank for the unpaid payment.
For doing that Peter will need to navigate to the Financial Account window.
Once there find the Financial Account used for the Remittance for Discount, and then he will need to add a new transaction by using a GL item as described below:
- Transaction Type: GL Item
- Transaction Date: 25-07-2011
- G/L Item: Payment Bank
- Paid Out : 12.980,00
- Description: Payment out to the bank, Remittance Nº XX. Payment Protested.
The posting will look like:
12.980,00 (52080) Remittance type - G/L item account DEBIT
12.980,00 (57200) Financial Account - Withdrawal Account CREDIT
Remittance for discount - Redraw & Write-off
Dated on August 2011, Customer E is able to pay and asks Peter to remit the unpaid invoice once more, this time not for discount but for collection.
Remittance Redraw:
Peter could create a new remittance in order to redraw the unpaid sales invoice; this time he will select the option "Select Payments" instead of "Select Orders/Invoices".
Peter gets the new remittance processed and posted. The payment with status "Awaiting Execution" changes to "Remitted".
Posting must look like:
12.980,00 (43120) Remittance Type - Sent Account DEBIT
12.980,00 (43000) Account Receivable CREDIT
After that he needs to navigate to "Settle / Protest Remittance" window and get that one settled, payment status will change then to "Deposited not Cleared".
Finally, Peter will need to navigate to the Remittance window in order to post the settled remittance. Posting must look like:
12.980,00 (57200) Remittance Type - Settle Account DEBIT
12.980,00 (43120) Remittance Type - Sent Account CREDIT
Redraw or Write-off
Peter could also navigate to the sales invoice, then to the "payment in details" tab and finally to the corresponding "Payment In".
"Payment In" is in status "Awaiting execution", therefore Peter can execute once again the payment by pressing the button "Execute Payment". The system must sow up two options:
- Write off total amount.
- Peter will select this option in case he needs to write-off the collection of the sales invoice
- Write-off amount field of the payment will be then filled-in with the sales invoice amount and the payment status will be changed to "Payment Made".
- Include in existing remittance or create a new one
- Peter will select this option in case to redraw the unpaid sales invoice once more.
- In case of existing an open remittance of the same type, that one will be included there, otherwise a new remittance will be created.
Appendix
This section describe a few enhancement which have been recently implemented in the very last version of "Advanced Payables and Receivables management" feature which enhance remittances functionality:
Feature Request Nº 16782 - Payment Fees/Remittance Fees - a payment fee is a charge associated with the process of collecting payments for customers or managing payments to vendors. A remittance fee is a charge associated to remittance management. There could also be other kind of fees.
- It is now possible to link whatever kind of fee or GL item previously setup to a remittance payment, by using Bank Statement Split functionality.
Example
Let's imagine a remittance payment made by our bank for a total amount of 1000,00 € + a fee amount of 50,00 €.
Once the corresponding bank statement has been imported, there will be a bank statement line for an amount of 1050,00 € but we do only have a remittance payment of 1000,00 €.
It is now possible to match the bank statement line of 1050,00 € with the payment of 1000,00 €,
besides the system will create automatically a new bank statement line for the remaining amount we can link to a fee of previosuly create GL Item in order to reflect the corresponding fees.