Recording Payments Received from Companies

Background

When invoices are raised and sent to clients, they need to be settled.

Typically settlement is achieved by the owing client making a payment of funds in respect of the invoice.

Clients may elect to make payments in a one to one manner per invoice, or they may make a single payment that can be applied to several open invoices.

strokeone provides the flexibility to process this, as the receipt of payments is separated from its allocation..

Prerequisites

Ensure that you have logged onto strokeone, and that you can see and have opened the detailed layout of the company whom the payment has been received from.

Procedure

  1. Ensure that you have selected the Invoices tab.

    (Note: In the below sections/text, the numbers in (bold parenthesis) refer to the annotations in the above screen-shot)

     

  2. Click on the new record icon in the Payments received (2) pane.
  3. A new blank payment record is inserted,

    Dev: Open enhancement to insert the new row at the top of the pane. Currently it is inserted at the bottom which means user [potentially] needs to scroll down to find it for populating.
  4. Click the Select button to highlight the record inserted in step 3)
  5. Populate the payment record data fields as follows:-

 

Field

Instructions

Payments Date

Click the activate the calendar, and select the date that the payment was received.

Method

Select from the drop-down list the value that represents how the client made the payment.

Current values are:-

 

  • Adjustment

  • Bank Transfer

  • Cash

  • Cheque

  • Credit Card

 

Tip: you can create additional values in this drop-down list if required.

Paid

Enter here the amount of the payment.
Note: This is a money field, so you can enter the payment amount with up to two decimal points of precision.

Used

This field shows the amount of monetary value of the payment that has been used in settlement of open invoices. It gets populated when the payment is allocated.

Remaining

This is automatically calculated field (Paid) minus (Used).
The remaining amount is deemed Unallocated, and contributes towards the Unallocated Payments balance..

 

  1. When you have entered the payment details, it should look something similar to this:-

    Note the following:-
    1. The payment received record (1) is detailed in the payments pane.
    2. The payment received record is set with a Status of Red, as none of the Paid amount has been used.(i.e. Used = Null)
    3. Unallocated Payments (2) field for the company is automatically recalculated. (Unallocated Payments is calculated as @sum of Remaining Amounts on all payment received records for this company)
    4. Similarly, the Balance Outstanding (3) field is auto-recalculated. This is calculated as Current Debt (4) minus Unallocated Payments (2)
    5. Current Debt (4) is made up of an @sum of Outstanding Amounts (3) on open invoices for the company.
  2. Repeat steps 2) to 6) if you are recording multiple payments received from the company.

    Note: In order that you maintain reconciliation between your banking ledger and Strokeone Software Limited, it is strongly recommended that you record payments in the system exactly as they were received. Consolidating multiple payments received by your bank into a single system payment entry is not good operational practice.

 

 

Related Topics

Allocating Received Payments

Company Detail Invoice Tab