Finance and collections

Dealer invoices follow title. The Accountant prepares customer invoices from the title-transferred quantity on delivery lines, claimed through sales allocations so the same quantity and value cannot be billed twice. Each invoice carries the entity, currency, frozen exchange rate, dealer, posting date, due date and accounting period. Credit notes use the same table with document type credit note and point to the original invoice.

• Approve before posting. The Finance Manager approves an invoice only when net plus tax equals the total, the period is open, the rate is frozen, tax treatment is present and billed quantity does not exceed the eligible scope. The invoice then posts with its journal entries.
• Apply cash within what arrived. cash receipts record actual money received into a bank account and hold it as unapplied until cash applications allocate it to invoices. An application cannot exceed the unapplied amount after other reservations.
• Correct by reversal. Posted journals and documents are not edited. Finance corrections record reversals, bank returns, write-offs and bank fees with their own approval and journal.

On the payables side, payment runs freeze a set of supplier payments for approval, Payments record each disbursement with its settlement or rejection, and payment allocations settle supplier bills. Refunds and credit applications move credit between documents under finance approval. Each entity keeps its own chart of accounts, accounting periods, bank accounts and journals.

Agree the chart of accounts and posting profiles for each entity, tax codes and their treatment, payment terms, bank accounts and the exchange rate source. Agree the close checklist in close tasks, including bank, receivables, payables, inventory, transit, work in progress and tax reconciliations. Decide who approves invoices, payment runs, refunds, revaluation and period close, and who covers each of them through authority delegations.

A dealer pays one amount that covers two invoices in full and part of a third. The Accountant records the receipt from the bank statement line, then reserves applications against each invoice. The first two become Settled and the third partially settled. Nothing is left unapplied, and the bank statement line is matched and reconciled.

A week later the bank returns part of the payment. The Accountant records a finance correction for the cash return, and the Finance Manager approves it. The correction reverses the affected application with its own journal, and the invoice shows an outstanding balance again without any change to the original receipt.

During the pilot, try to apply more cash than the receipt holds. The application should be refused. Then try to post an invoice into a closed period.

• Dealer receivables — posted, partly settled and disputed invoices by dealer, due date and outstanding amount.
• Invoices awaiting approval — prepared invoices and credit notes waiting for the Finance Manager.
• My pending decisions — invoice, payment, refund and period decisions assigned to you.

• Invoice to cash: Prepare, approve and post a dealer invoice, then apply the dealer’s payment.
• Purchase to payment: Match supplier bills and release the payment run.

Read the implementation plan before migrating opening balances.