Finance

Bill the actual eligible sale

Accountant prepares invoices from accepted, actually handed-over and unbilled customer scope. The quantity and net value come from the agreement, with partial allocations retaining their final rounding remainder.

Independent Finance Manager approval is mandatory for every invoice and credit revision. Review covers the complete source allocation, tax evidence, currency, period and current content. A material change requires a fresh decision.

Invoice posting records receivables, revenue and tax. Actual handover already recognized the associated stock cost. Sending the document remains a separate outcome, so a delivery failure does not undo local posting or claim that the customer received it.

Match purchases to accepted supply

Accepted supplier receipt tranches recognize standard inventory, original receipt accrual and the explicit purchase difference. Supplier bills claim the exact unused accepted scope and clear that original accrual.

Fully matched policy-eligible bills can follow the approved posting rules. Finance Manager independently reviews quantity, price and non-PO exceptions; a changed purchase commitment still requires purchasing authority. Missing tax or valuation evidence cannot become a fabricated zero.

Supplier returns use current carrying value while credits preserve the original commercial basis. Billed and unbilled returned portions retain their separate clearing treatment, leaving each remaining obligation explainable.

Apply funds without collecting them again

Confirmed customer money creates its actual cash asset and an unapplied balance. Eligible application consumes available receipt currency and settles the appropriate invoice-currency amount together. Approved discount or write-off amounts remain separate from cash.

Active applications and refunds reduce the same remaining source. A paid-invoice credit preserves historical payment applications and creates credit available for an authorized use. A refund consumes either that credit or eligible unapplied funds, without also reducing the other source.

Accountant prepares supplier runs against frozen beneficiaries and allocations. Independent Finance Manager releases the exact instruction. Bank acknowledgment is not payment; authoritative settlement establishes the actual cash effect. Uncertainty retains claims until reconciliation proves the outcome.

Keep LC obligations separate from bank movement

Reviewed terms and bank evidence distinguish an undertaking from supplier settlement. Actual settlement clears eligible AP or establishes supplier prepayment against a bank obligation; later company reimbursement clears that obligation once.

An export financing advance may create cash and a bank obligation while customer AR remains. Later settlement can discharge the matching sources without another company receipt. An outright receivable settlement needs its own evidenced treatment. Lender-collected surplus remains a bank-held receivable until evidenced settlement. Gross proceeds reconcile net cash and approved fees; a fully fee-deducted settlement has no cash leg.

Cash cover and collateral retain their asset and allocation history. A trade link does not expense that asset, and an LC fee cannot be charged twice through a source journal and another attribution entry.

Explain value and currency differences

Settlement releases exact current carrying value. The new exchange difference is distinct from reclassification of prior unrealized exchange, preventing the same gain from being recognized twice. Receivables, payables, bank assets and obligations retain their respective directions and source amounts.

Production receives finished goods at the released standard and relieves attributable actual WIP. Every nonzero completion variance requires independent finance approval before posting. Later closure deals only with remaining residuals.

Close on reconciled source balances

Reconcile stock, transit, WIP, receipt accrual, receivables, payables, credits, bank obligations, collateral and actual cash at the entity cutoff. Uncertain instructions or unclassified actual bank effects remain visible in that work.

Revaluation applies to each remaining monetary source once, followed by independent Finance Manager review and period close. A subledger and its control total cannot both be revalued. Migration uses a complete opening ledger with nonposting historical detail, preserving existing allocations without replaying goods or money.