Receivables

Contacts hold the customer currency, terms, tax treatment, credit limit and collection group. Credit checking compares amounts in the configured limit currency. A contact may also be a supplier, but the shared identity does not automatically net receivables and payables.

AR Clerk prepares invoices with revenue accounts, cost centres and tax codes. Posting fixes the approved accounting rate and writes receivable, revenue and tax amounts in functional currency. Tax conversion retains any separate authority-prescribed basis. Sending the invoice is a delivery action after posting.

Missing rates and overrides follow the rate-exception workflow. A later rate update does not change the invoice’s original posting. Corrections preserve the original through a linked credit or reversal.

Payments received records the actual cash in receipt currency on the matching bank account. A validated bank statement or manual entry posts bank debit and unapplied-cash credit immediately. The customer can remain unidentified while the bank movement is recognised.

The Cash Application Queue shows amounts still needing allocation. Unapplied amount is receipt Amount less receipt-currency cash consumed by applications. Withholding is recorded separately from bank cash. Overpayments remain an unapplied liability until their treatment is approved.

Payment applications hold the invoice amount settled and the receipt-currency cash used, with the conversion between them. Withholding amount is an invoice-currency settlement component; withholding functional amount records its functional value at the separately evidenced withholding rate. The invoice amount settled must reconcile to converted cash plus valid withholding.

At application, receipt carrying amount clears the allocated current value of unapplied cash. That amount plus withholding receivable is compared with carrying amount settled on the invoice. The journal debits unapplied cash and withholding receivable, credits receivable and posts only the residual realised FX difference.

A receipt covering several invoices has a separate application for each. Partial applications retain the unconsumed receipt amount and the invoice’s remaining debt and carrying basis. References prevent the same application from posting twice.

Revaluation items track unreversed adjustments allocated to open invoices and unapplied receipts. Under Delta, current carrying value includes the remaining original basis and its allocated adjustment. Settlement clears that current value; revaluation settlements track the adjustment released from the open portion. That release is not an extra profit-and-loss posting.

Prior revaluation FX and the residual settlement difference together explain the exchange movement. Under reverse next period, the linked reversal must be posted before the restored basis is used. Partial settlement releases only the allocation belonging to the settled portion.

A credit memo retains its own date, rate and original invoice reference. Credit applications record how it reduces an invoice and its carrying basis. An AR Clerk other than the preparer approves credits within recorded authority; Controller approves above-limit credits and all write-offs. Approval decisions preserve the amount converted into the approver’s limit currency.

Dunning follows configured customer-group rules and excludes disputed invoices. AR Aging distinguishes document-currency debt, ledger carrying value and any current-rate exposure presentation. Current exposure is not presented as a replacement for the booked balance.

• Cash Application Queue lists posted cash still to allocate.
• Open Foreign-Currency Invoices identifies foreign-currency debt and its rate context.
• Credit Memos Awaiting Approval lists credits requiring Controller review.