Payables and receivables

Release instructions and prove settlement separately

Finance Clerk prepares payment runs from eligible outstanding bills, bank, method and due-through date. The run reserves its exact obligations and bank instructions so another draft cannot schedule the same remaining debt again.

An eligible Controller releases the reviewed run within authority and independently of its preparer and bill approvers. A delegate must have the necessary declared role and effective scope; possessing a numeric limit alone does not confer release rights.

Release, transmission, bank acceptance, rejection and settlement have distinct evidence. A generated file or transport acknowledgment does not prove the supplier received funds. Pending or uncertain instructions keep their reservations until reconciliation, and a retry uses the original bank-request identity.

Invoice the accepted commercial amount

Shipment billing follows the actual eligible shipment quantities and their accepted net order amounts. Direct recurring service billing follows its separately authorized contract cycle. Those routes cannot both invoice the same commercial scope.

Finance Clerk finalizes coding, terms and configured tax before issue. A discount already included in the accepted quote remains included in the order and invoice; it is not subtracted twice or forgotten. Issued line amounts and tax retain their source and rounding allocation for later credits.

Record received money before applying it

A confirmed bank receipt is recorded once against the bank and an unapplied-cash control balance. Missing customer identification or remittance does not make the money disappear from the ledger. BankStatementLines and Unapplied Cash retain the evidence requiring investigation.

Application reclassifies the applicable unapplied cash into the customer’s receivable settlement. Cash consumed, document amount settled, discount, write-off, withholding and credit are separate components. A 100 invoice settled with 98 cash and an authorized 2 discount closes while cash remains 98.

Payment currency and document currency retain their independent amounts and frozen conversion. Same-entity and counterparty checks, residual debt and available cash are enforced together. Realized exchange effects use the appropriate carrying values rather than multiplying a payment-currency amount by an unrelated invoice rate.

Keep credit and refund history intact

Customer and vendor credits identify eligible original lines and remaining uncredited net and tax values. Issuing a credit is separate from applying it to a document. The approved application reduces debt, while surplus credit remains available for an eligible later settlement or refund.

A fully paid invoice can justify a credit without erasing its historical payment application or producing negative receivables. A returned payment reverses its affected applications once before recording the actual cash return. Credit-funded refunds consume credit without also reducing the original payment again.

Discounts, write-offs, credits and refunds follow their specific authority and captured evidence. An uncertain external refund is reconciled before releasing its reserved amount or creating a replacement request.

Reconcile and follow up

Bills Awaiting Approval and Disputed Bills expose purchasing exceptions. Aged Receivables and Payables uses residual finalized debt as of a stated date, with unapplied cash and available credits shown separately. Dunning follows the authorized policy and actual remaining balance.

Controller manages credit holds separately from order amount exceptions. Bank reconciliation matches actual receipts and settlements to the statement; Cash Forecast moves an obligation between bill and instruction states without counting both.