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Projects:Remittances/Configuration Manual

Contents

Document Status

Date Author or editor Description of change Document status Document version
July 29th, 2011 Patricia San Juan Document creation & sent for review Final V1
March 20th, 2015 Patricia San Juan Document update due to remittances including different currencies new feature Final V2

Introduction

This document describes how to install and configure "Remittances" infraestructure for APRM on top of a either :

"Remittance" is a community module which adds remittance support to the existing APRM functionality.

A remittance is a group of "payments in/out" which can be remitted to the bank. The bank will then manage either the collection of the money from the customers or the payment to the vendors/suppliers.

This module supports several remittance types:

This module also provides the ability to print a remittance as well as the infrastructure to define a "remittance" file generation logic.

From a high perspective, the following steps are needed in order to use the new functionality:

  1. Install the Remittance module
  2. Deploy remittance data set
  3. Configure remittance types
  4. Configure payment methods
  5. Configure business partners
  6. Configure financial accounts

Installing Remittances

To install the module:

A detailed guide on how to install can be found in the Install Module video.

Note:
It is important to highlight that there are 3 new "tables" which should be setup as "Active" = Yes, for the corresponding General Ledger Configuration at thee application path
Financial Management // Accounting // Setup // General Ledger Configuration:

Deploying Remittance dataset

Remittance introduces new transactions in the system that require:

Above listed reference data are installed with the module but need to be applied to each new or existing Client.

To do so:

It is important to remark that there is a know issue happening on those Openbravo instalation for which "Core Document Types" were not applied as a Core dataset.
If you try to apply the "Remittance Dataset" in to those installation, you will get an error:
Error dataset remesas.png
The way to solve this is:

Payment Methods 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:

PaymentMethod Remittance.png

Above configuration indicates that:

Note:
It is really important to configure payment methods to be used in Remittances, the way it is described above, otherwise there could be:

"Remittance" payment methods must be assigned as payment method to:

It is important to remark that once a payment method has been assigned to a financial account, its setup can be once again modify. For instance a remittance payment method do not allowing making payments in multiple currencies overall, can be setup to allow making payments in multiple currencies for a given financial account. Therefore, the setup done at this last level is the final setup to be used while creating remittance from a given financial account.

It is possible to create additional payment methods, by example:

but always the way it has been described above.

Remittance Types configuration

A remittante type is required prior to any remittance creation.

A remittance type is needed to setup the main features and the behavior of a remittance.

There is a new window where the end-user is able to:

This new window is located at the application path:
Financial Management // Receivables & Payables // Setup // Remittance Type

"Printable Remittance" type is setup by default as described below:

Above configuration means that while creating a new remittance by using "Printable Remittance" type:

The end-user is able to modify the "Printable Remittance" type by adding the ledger accounts of a given general ledger configuration in the "Accounting" tab.
Those accounts are the accounts to be used while posting remittance transactions to the ledger:

Note: We recommend to configure for "Spain" at least 2 additional remittance type, to be used just in case of "Payment In" transactions:

Finally, end-user could also create as many "Remittance Types" as "Financial Accounts" to be used in order to get the proper accounting.
Let's imagine that we do have two financial accounts "Bank 1" and "Bank 2", and the ledger "bank" account for each of them is 57201, in the case of "Bank 1", and 57202, in the case of "Bank 2").
If that is the case we will need to create two remittance types, one pointing to the "Bank" ledger account 57201 as settlement account, and the other one pointing to the "Bank" ledger account 57202.

Multi-currency Remittance Types configuration

As already mentioned, it is also possible to configure remittances which do allow to remit orders/invoices or payments in other currency than the financial account currency or even mix currencies within the same remittance.

For doing so, "multi-currency" remittance type needs to be related to a payment method which do allow making/receiving payments in other currencies.

For instance, "Remit for collection" remittance type above can allow to remit sales invoices in an other currency than the financial account currency, if it is related to a "Payment Method" (i.e. "Payment In Remittance Multi-currency), that allows "Receiving Payments in Multiple Currencies". See image below:

PaymentMethod PaymentInMulticurrency.png

Multi-currency Remittance Types accounting

It is required to properly defined conversion rates valid from-to within a given period range in the "Conversion Rates" window.

That conversion rates are going to be used while posting remittances that include transactions in both EUR and USD currencies for instance being post to a general ledger in EUR.
In that case USD to EUR conversion rate valid at a given period range will be required.

It is important to remark that:

A) A remittance can include either invoices, orders or payments.
Depending on the transaction type included in a remittance the conversion rate "valid from-to date" used while posting any of its phases can change.

b) Besides the above remittance process has 4 steps that can be post to the ledger:

Having said that, it can be summarized that:

Finally, bank revaluation Gain&Loss accounting entries caused by currency conversion changes at the time of settlement/discount posting, are also going to be created.

Financial Accounts configuration

Remittance payment methods need to be related to the financial account to be used while sending remittances to the bank.

For doing that end-user must navigate to the "Financial Account" window which can be found at the application path:
Financial Management // Receivables & Payables // Transactions // Financial Account

For a given financial account setup as "Bank" type, the payment method "Remittance" must be included in the "Payment method" tab.

Above setup implies that every time that a remittance is created for a given financial account only those "remittance" payment methods linked to that financial account could be selected.

Remittance FinancialAccount.png

It is also required that the financial account to be used for "Remittance for Discount" type, has:

The reason why is:

Additionally, it is required to select payments from financial accounts in which payment method "Remittance" is not configured.

This is required when the company receives a promissory note and it is deposited in a "cash drawer" (financial account). When payment is made, the promissory note may be remitted in the financial account in which is to be deposited. This financial account must be configured with "Remittance" payment method.

Business Partner configuration

It is required to setup for each business partner the "Payment Method" and the "Financial Account" which are going to be used by default while managing payments for that business partner.

For doing that end-user must navigate to the "Business Partner" window, which can be found at the application path:
Master Data Management // Business Partner

It is important to remark that it is possible to include in a Remittance, payments do NOT necessary linked to a remittance payment method.

Remittance Execution process

Remittance Not for Discount

A Remittance which is not setup for discount can include:

which are going to be sent to the bank in a printed format, for the bank to manage its payment on its due date.

Normally, a Remittance not for discount of Payment IN transactions is known as "Remittance for Collection".

Remittance process start by creating a remittance in the "Remittance" window which can be found at the application path:
Financial Management // Receivables & Payables // Transactions // Remittance.

Once there end-user can create a new remittance by entering below required data/input:

This field if selected allows to create just one payment for all remittance lines. For getting that working all remittance lines need to have at least the same currency.

After that, end user will be able to select:

Remittance Header 2.png

Once in the "Select Orders or Invoices" window, see image below, it is possible to:

Select Orders or Invoices.png

Once the transactions have been selected and processed, the system will show them in the "Lines" tab.

After that end-user can process the remittance by using "Process" button in the top. Depending on the "grouping" option selected while processing, the system will create:

After that end-user can post the remittance by using "Post" process button in the top. Remittance posting will look like:

Payment IN (Remittance)

Remittance type - Sent Account (DEBIT)
Receivables account (CREDIT)

Payment OUT (Remittance)

Payables account (DEBIT)
Remittance type - Sent Account (CREDIT)

Later on the Bank will let the end-user know which transactions included in a remittance have either finally collected or paid, and when. Once known end-user should either "Settle" or "Protest" remittance lines in the window "Settle / Protest Remittance".

Settle Protest.png

and get them posted to the ledger by going back to the remittance window "Settled" or "Protested" tabs.

The system will then show below posting:

Payment IN - Remittance Settle
Remittance Type - Settlement Account (DEBIT)
Remittance Type - Sent Account (CREDIT)

Payment IN - Remittance Protest
Accounts Receivable (DEBIT)
Remittance Type - Sent Account (CREDIT)

Payment OUT- Remittance Settle
Remittance Type - Sent Account (DEBIT)
Remittance Type - Settlement Account (CREDIT)

Payment OUT- Remittance Protest
Remittance Type - Sent Account (DEBIT)
Payables account (CREDIT)

It is possible to redraw unpaid payments with status "Awaiting Execution", by including them in a remittance:

It is also possible to write-off an unpaid payment which was included in a Remittance:

Execute payment.png

Remittance for Discount

A Remittance for discount can include:

which are going to be sent to the bank in a printed format, for the bank to manage its collection before its due date (discount date).

Remittance process start by creating a remittance in the "Remittance" window which can be found at the application path:
Financial Management // Receivables & Payables // Transactions // Remittance.

Once there end-user can create a new remittance by entering below required data/input:

After that, end user will be able to select:

Once in the "Select Orders or Invoices" window, once more it is possible to:

Once the transactions have been selected and processed, the system will show them in the "Lines" tab.

After that end-user can process the remittance by using "Process" button in the top. Depending on the grouping option selected while processing, the system creates:

Additionally, a"Discount payment" is also created.
Once executed and posted in the "Payment In" window, the system will show below posting:

Bank Payment Method for discount - Upon Receipt or Upon Deposit Use Account (DEBIT)
Remittance Type - GL item account (CREDIT)

Note: Above posting would depend on how the "Discount" Payment Method has been setup.
If the account used is upon receipt, the account "upon deposit" will be later on use, while posting the transaction in the Financial Account window.
In that case, below posting will then be shown:

Bank Payment Method for discount - Upon Deposit Use Account (DEBIT)
Bank Payment Method for discount - Upon Receipt Use Account (CREDIT)

After that end-user can post the remittance by using "Post" process button in the top.. The system will then show below posting:

Remittance type - Sent Account (DEBIT)
Receivables account (CREDIT)

Later on the Bank will let the end-user know which transactions included in the remittance for discount have either been finally collected on the due date or not.

Once known the end-user should either "Settle" or "Protest" remittance lines in the window "Settle / Protest Remittance", and get them later on posted to the ledger by going back to "Remittance" window, "Settled" or "Protested" tabs. The system will then show below posting:

Remittance Settle
Remittance Type - GL item account (DEBIT)
Remittance Type - Sent Account (CREDIT)

Remittance Protest

Receivable account (DEBIT)
Remittance Type - Sent Account (CREDIT)

It is also required to create a payment out for the bank for the unpaid payment by using the Remittance Type - GL item in the Financial Account. The system will then show below posting:

Remittance type - G/L item account DEBIT
Financial Account - Withdrawal Account CREDIT

This version of the module does not include the accounting logic for Remittance Protest. In the case of either a "Remittance for collection" or a "Remittance for discount", 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":
(43150) Protest Remittance DEBIT
(43000) Account Receivable CREDIT

Manual booking before a "Remittance Protest" redraw:
(43000) Account Receivable DEBIT
(43150) Protest Remittance CREDIT

It is possible to redraw unpaid payments with status "Awaiting Execution", by including them in a remittance:

It is also possible to write-off an unpaid payment which was included in a Remittance:

Execute payment.png

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