Cheque Date problem

[Former Member]

When we receive a cheque from a customer and we try to allocate this against an oustanding Invoice we have a problem if the Invoice Posting date has a later date than the Cheque Date. In other words, we enter the cheque date but we cannot see the relevant invoice if the Invoice Date is higher than the Cheque Date.

The circumstances this may happen is when we prepay for something and post the invoice with a later date. In this case we cannot easily allocate the cash against the invoice because the Invoice is not visible (because of the Date Issue)

So what we really want to ensure that when we allocate a payment ALL outstanding Invoices are shown, whatever the Date. So we want SAP to ignore the Cheque Date and just show us all the Oustanding Invoices. Is it possible?

Thanks

Robert

[former_member583013 · Accepted solution]

Robert,

What are the steps you are following when you say "we try to allocate this against an oustanding Invoice "

Suda

[Former Member · Accepted solution]

When you go to Banking/incoming payment and you choose your Customer Account then enter your Cheque Date, at this stage only Invoices before the Cheque date will be shown instead of showing ALL the outstanding Invoices.

thanks

Robert

[former_member583013 · Accepted solution]

On the Incoming Payment window if you talking about the Posting Date (the date which appears just below the Document numbering) is atleast to my knowledge for entering the Posting date. Posting date is generally the date you want this transaction to Post in the Journal. Most times it is the current date.

If you enter a date here which is earlier than the invoive date only invoices on or before this date would show.

You will need to enter the current date on this column. Check or incoming payment dates are generally entered in the Payment means window OR you may use the Document date for this.

Suda

[Former Member · Accepted solution]

But this is the problem that we have when the cheque date ( for whatever reason) has an earlier date than the invoice Date. If one cannot see the Invoice than the Cash Allocation wil not be done and this creates a slight problem. In our previous accounting system we were able to see ALL outstanding invoices and allocate the Cheque against the correct invoice and I am not sure what is the offered solution in SAP B1 when the circumstances are as described.

Thanks

Robert

[former_member583013 · Accepted solution]

What I am saying is you need not enter the check date in this field which is causing the filtering. Just enter the current date and you can see all the Invoices. Enter the Check date in the payment means area

[Former Member · Accepted solution]

The sequence of events are slightly different because we enter the cheque first because we pay ( eg pay in advance). So we enter the Date of the Cheque as todays' date. However the Invoice is entered several days later. So now we need to allocate an Earlier Dated Cheque to a later Invoice. The problem here is that the operator does not know the Invoice Date but she knows the Cheque Date. This Cheque is sitting in the system "unallocated" and now we need to allocate it against an invoice. But only EARLIER invoices are shown and the Invoice has a LATER DATE.

I hope I am explaining this correctly because this was reported to me by our Accounts people as a "Problem" and they showed me the issue. Basically what we need is to be able to Allocate an earlier dated Cheque to a Later Dated invoice and this seems to be tricky because of the Filtering of Later dated Invoices.

Thanks

Robert

[former_member583013 · Accepted solution]

What is the steps in the Allocation process? Do you mean linking Invoices to Payment procedure by going to Banking Statement and Reconciliation > Link Invoices to Payment or some other way

Does the Payment match the Invoices exactly?

Does one payment cover part of the one Invoice or covers mutiple Invoices?

Suda

[Former Member · Accepted solution]

I have just replicated the problem and it seems to be as follows. When you go into Banking and Incoming payment ( ie a cheque received) and I put a Cheque date, it will filter out all my invoices and show only older invoices than the Cheque Date which means that I cannot pay an invoice with an advanced Date because is not shown. This seems to be an artificial limitation and I wonder if it is a setting in SAP.

I feel that you are wondering why the Cheque Date should be earlier than the invoice Date but we have several circumstances when this happens. For instance if we write a cheque to a supplier who wants prepayment before sending an Invoice. But we have other instances where the Cheque comes before the invoice .

So the simplest example would be as follows

1. I write a cheque today for £ 100 and Date it 17. April. I send the cheque to a supplier and take no further action.

2. On the 20 of April I receive an Invoice from my Supplier for £100 and I enter this invoice and post the A/R Invoice

3. Now I want to enter and allocate my Cheque, so I go to Bank incoming Cheque payments, Enter my Supplier account and put my cheque Date as 17/April

4 The problem is that my A/R invoice dated 20th of April does not show up because is filtered out.

I hope this explains the situation

thanks

Robert

2

[former_member583013 · Accepted solution]

Robert,

Please confirm if these are trypographic errors.

You said you paid the vendor by check and you also write "Invoice from my Supplier for £100 and I enter this invoice and post the A/R Invoice" Are you saying A/P Invoice instead of A/R?

Invoice from Vendor is suppose to be A/P.

This apart I believe the steps you are doing to allocate the Cheque (this is also called reconciliation) are not correct.

Please try this.

To link invoices to payments, choose Banking > Bank Statements and Reconciliations > Link Invoices to Payments.

From the Doc Type drop down select Outgoing Payments You may enter any additional information like vendor code etc and click OK

Now you will see the list of Payment which are not allocated.

Double Click on the row header and this will open the Outgoing Payment screen displaying all the Invoices.

Highlight the Invoice that you want to allocate and click Update.

Suda

[Former Member · Accepted solution]

This is a purchase we are making so it is an A/P invoice.

We know about the reconciliation procedure but this is an additional step which can be avoided if this date filtering was not there.

The issue is quite simple, that when we enter a cheque, we would like to see ALL OUSTANDING invoices WITHOUT any date filtering if possible. The date filtering is not helpful or required. I cannot see a good reason for filtering out earlier invoices when assigning Cheque Payments. Since we have many instances where the Cheque/Payment date is earlier than the Invoice, it makes this job longer because we need to go into an additional operation of RECONCILING the payment and really the solution would be better if we could just enter the CHEQUE and allocate it at the same time.

You need to relate to our circumstances - we have a lot of Payments, both Payments in and Payments out where the payments come BEFORE we raise an invoice. SAP B1 at present can only handle this situation in a 2 tier operation (Cheque Input + Reconciliation) and the reconciliation procedure would not be required if the Date Filtering did not exist.

thanks

Robert

[former_member583013 · Accepted solution]

Robert,

This being a product function could not be changed. I have not seen this being commonly requested and therefore I do not see this being changed in the future versions

Suda

[Former Member · Accepted solution]

This is a shame since it makes sense to be able to enter a cheque a gainst any Invoice - whatever the Date.

I also wonder if the issue is similar when we receive a Cheque Payment which is a partial payment of an Invoice? Do we have to enter the whole Cheque as Payment on account, then go to the Reconociliation procedure? In other words can one enter a Partial Payment of an invoice? I have the feeling that SAP B1 cannot accept a partial payment when one enters a Cheque?

Perhaps this is also a programme function that cannot be changed?

Thanks

Robert

[former_member583013 · Accepted solution]

Partial payments on a Invoice can be applied.

Example: If you check is for $400.00 and you want to apply this against 3 invoices or if you want to apply this to one invoice as partial, it is possible too.

Inv #100 $1000.00 Payment applied: $200

Inv #101 $500.00 Payment applied: $100

Inv #102 $600.00 Payment applied: $100

Suda

[Former Member · Accepted solution]

Hi Suda / Robert,

While making partial payment, end user have to entered balancing journal manually and there are chances of mistake as well. Since partial payments (AR & AP) being treated in Business One as On-Account payment and if you have to applied these payment against outstanding invoices then certainly it is complecated.

Further, you can't apply partial payment method more than one time as second time outstanding invoice not appeared.

Correct me if I am wrong?

Regards,

OP Sharma

[Former Member · Accepted solution]

A partial payment should mean that if you have an Invoice no 1946 of £1000 and you apply £200 agains this invoice, SAP should now show invoice No 1946 as an oustanding balance of £800. I think that SAP does not do this but it shows the invoice 1946 as £1000 and accepts £200 AS PAYMENT ON ACCOUNT and then we have to take the extra step to reconcile the account. Am I correct?

Robert

[former_member583013 · Accepted solution]

Robert,

I think you have an incorrect understanding of the functionality.

The way you process this is You open the Incoming/Outgoing Payment, and select the BP.

From the Invoices listed you change the Total amount column to £200 on the row for Invoice no 1946. Highlight this Invoice row and open the Payment mean and process the £200 payment and add the document. Now this partial payment gets applied to the Invoice and when you open the Invoice you will see Paid/Credited would show £200 and Balance Due would show £800.

Next time you open the same BP the Invoice would show a balance of £800

NOTE: The key is changing the Total Amount on the Invoice row to whats being Paid and then highlighting the row and then processing the payment means.

Suda

[Former Member · Accepted solution]

OP, You are right. SAP B1 does not seem to have Part Payment of an Invoice and it only seems to have PAYMENT ON ACCOUNT. There is a difference between these two situations:

PART PAYMENT example:

INV no 1946 = £500

Part Payment received against invoice 1946 of £200

INV 1946 now shows £300 outstanding.

This is NOT the same as a PAYMENT ON ACCOUNT where the Original Invoice 1946 still shows as £500.

SUDA, can you please confirm my understanding of this issue

Robert

[Former Member · Accepted solution]

Hi Suda

I have tried to apply an amount against an invoice ( a partial payment) and it was telling me that the amounts do not match and it will be applied as a PAYMENT ON ACCOUNT - this made perfect sense but then it came up with a message "Confirmation amount must be greater than zero" and it did not proceed to ADD the Cheque. Any ideas why this should be?

The amount of the cheque was showing as a MINUS figure, which looked OK to me.

Thanks

Robert

[former_member583013 · Accepted solution]

Robert,

What I meant in my previous reply was SAP B1 absolutely can handle partial payments.

If you follow the procedure I explained you will be able to see this.

I n the Payment window you need to change the Total Amount column on the Invoice row to whats being paid and then right click and select Payment Means or click on the Payment means icon on the Tool bar and enter the amount paid.

When you see this message it means you have click on the Add button on the Payments window without going to the Payment Means step.

xxx of the amount to be paid is not matched to existing transactions. Do you want to post this amount as a Payment on Account? and then

Confirmation amount must be greater than zero

[Former Member · Accepted solution]

Suda

You were right. Thanks for this.

Robert