BP net settlement
Use this function to settle open items for BPs that are customers, suppliers, or both. Open items that are available for settlement include invoices, unapplied prepayments, credit memos, and debit memos for customers and suppliers.
There are options for applying the netting amount to records when several open items are selected.
- The first option is to select all the items and click the Apply button to have the system automatically apply the netting amount to the open items. This is usually the case when netting supplier records against customer records. The system uses the oldest to newest due dates to apply the open items to one another. Any remaining balance will be left on the newest invoice(s).
- The second option is to manually select the items. After selecting the items, a user can either:
- Click the Apply button to have the system automatically apply the netting amount to the open items. The system uses the oldest to newest due date to apply the open items to one another. Any remaining balance will be left on the newest invoices.
- Manually adjust the netting amount to apply all or some of the amount. Once the net balance equals to zero, the transaction can be posted.
Prerequisites
Refer to documentation Implementation
Screen management
Entry screen
Presentation
Detail grid
The open item results grid allows you to select the open items and the amount of the open item to net (if different from the total open amount). A Selection total frame is also available to track amounts that have been selected for settlement.
The open items will appear based on the selection criteria order specified. If there are open items with duplicate sort criterion values (for example, mutiple items with same due date, source date, or transaction type), the secondary sort will be the combination of the internal number and due date number.
Clicking Apply runs the automatic calculation logic and will calculate the net result of the marked open items. The netting result is calculated for each item selected.
A maximum of 501 rows of date will display on the grid.
Changes to edits are lost when clicking Apply after modifying the netting amount.
Settlement scenarios:
When the netting result is a payable or receivable balance:
- A journal entry will be generated to clear the netting amount. The journal will contain one line for each open item included in the transaction.
- A net amount is left on most recent existing open item(s).
BP Customer and BP Supplier (Select all example)
Business partner has two supplier invoices for $1000 and $300, an unapplied supplier memo for $400, a customer invoice for $1500, an unapplied customer memo for $500, and an unapplied prepayment for $200. User selects all open items by clicking Select all. The result would be a net credit balance of $100.
- If all open items are selected, the result after clicking Apply is a balance of $100. Based on the premise that the document(s) with the latest due dates will remain open, customer memo CSCM00005 will remain open with a balance of $100.
Select | Type | Document no. | Due date | Open amount | Netting amount | Remaining amount |
X | CSINV | CSINV000024 | 3/31/2013 | 1500 | 1500 | 0 |
X | PREPY | PRE000011 | 3/31/2013 | -200 | -200 | 0 |
X | CSCM | CSCM00005 | 4/15/2013 | -500 | -400 | -100 |
X | SPINV | SPINV000123 | 3/15/2013 | -1000 | -1000 | 0 |
X | SPINV | SPINV000125 | 3/31/2013 | -300 | -300 | 0 |
X | SPMEM | SPMEM000026 | 4/15/2013 | 400 | 400 | 0 |
BP Customer only (Manual selection example)
Customer has several invoices for $100, and an unapplied customer memo for $-100.
A user manually selects customer credit memo CSCM00005, and applies $20 of the credit memo to each of the following customer invoices (CSINV000024, CSINV000025, CSINV000026, CSINV000027, and CSINV000028) by editing the netting amount of each application. Because the manually selected records resulted in a net balance of zero, they will go directly to post without having the system apply the calculation to determine where the balance remains. After posting, the result will have the following:
- A balance of $80 on the five invoices
- A zero balance on the credit memo
Select | Type | Document no. | Due date | Open amount | Netting amount | Remaining amount |
X | CSINV | CSINV00024 | 3/31/2013 | 100 | 20 | 80 |
X | CSINV | CSINV00025 | 4/07/2013 | 100 | 20 | 80 |
X | CSINV | CSINV00026 | 4/14/2013 | 100 | 20 | 80 |
X | CSINV | CSINV00027 | 4/21/2013 | 100 | 20 | 80 |
X | CSINV | CSINV00028 | 4/28/2013 | 100 | 20 | 80 |
CSINV | CSINV00029 | 4/28/2013 | 100 | 0 | 100 | |
CSINV | CSINV00030 | 4/28/2013 | 100 | 0 | 100 | |
CSINV | CSINV00031 | 4/28/2013 | 100 | 0 | 100 | |
X | CSCM | CSCM00005 | 4/15/2013 | -100 | -100 | 0 |
BP Supplier only (Manual selection example)
Supplier has two invoices for $1,000 and $900, and two unapplied supplier memos for $500 and $800.
- If a user manually selects supplier memo SPMEM000024 and supplier invoice SPINV000125, then modifies the netting amount on SPINV000125 to $-800, this will result in a net balance of $0. Because the manually selected records resulted in a net balance of zero, they will go directly to post without having the system apply the calculation to determine where the balance remains. After posting, the result will have the following:
- No change to SPINV000123 and SPMEM000026
- A remaining balance of $-100 on SPINV000125
- A zero balance on SPMEM000024
Select | Type | Document no. | Due date | Open amount | Netting amount | Remaining amount |
SPINV | SPINV000123 | 3/15/2013 | -1000 | 0 | -1000 | |
X | SPINV | SPINV000125 | 3/31/2013 | -900 | -800 | -100 |
X | SPMEM | SPMEM000024 | 3/31/2013 | 800 | 800 | 0 |
SPMEM | SPMEM000026 | 4/15/2013 | 500 | 0 | 500 |
Close
Fields
The following fields are present on this tab :
Criteria
| Only the open items of the entered company will be selected. |
| Select this check box to include all sites. To run this process for a single site, leave clear. |
| Only the open items of the entered site will be selected. |
| If this box is checked, the processing is launched for all control accounts (otherwise, they have to be specified). |
| Only the open items with a control account that belongs to the entered control account group will be selected. |
| Only the open items of the entered control account will be selected. |
| Only the open items of the entered BP will be selected. |
| Enter the currency to be used for open items. Netting is done only for open items of like currency. The company Main ledger currency is the default value. After a BP is entered, the currency default value changes to the pay-by/pay-to BP currency. |
| These two fields are used to define the due date ranges. These ranges are used to filter the open item entries with a date included within this time interval. There is no due date filter if these fields are left blank. |
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Sort
| Select the option to sort the details. The choices are:
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Totals
| This field displays the total number of open items displayed in the grid. |
| This field displays the total balance of open items. |
| This field displays the number of items selected. |
| This field displays the net balance of all items selected. |
Grid Details
| Click the check box to select the BP open items. This selection will populate the Netting amount column when clicking Apply. Click the Actions button to choose “Select all items” and “Clear all items”. |
| This field displays the journal document type associated with the open item.
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| This field indicates the document number. |
| This field displays the source document number. |
| This field displays the open item due date. |
| This field displays the open item amount due, open amount for invoices and credit memos, and the unapplied amount for payments and receipts.
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| Enter the open item amount to net if different from the amount displayed. The netting amount cannot exceed the remaining open item amount due. If an invalid amount is entered, a warning message appears and the value will be reset to its previous amount. |
| This field displays the resulting balance of the selected open item. It is calculated as the open amount less the netting amount. This amount represents the balance of the open item that will remain after processing the settlement transaction. |
| This field displays the control account code. |
| This field displays the reference number. |
| This field displays the bill-to business partner. |
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| This field displays the site of the open item. |
| This field displays the payment date/accounting date for the open item. |
| This field displays the original document amount.
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| This field displays the document amount that has been paid (invoices) or applied (payment or credit memo) against the open item.
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| This field displays the pending payment amount.
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| This field displays the payment number for the payment or receipt.
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| This field displays the payment approval status for customer and supplier invoices.
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Close
Action icon
Select all items
Select this menu option to select all of the rows in the grid for settlement.
Clear all items
Select this menu option to clear all of the rows in the grid for settlement.
Journal
Select this menu option to open Journal entry with the selected posted open item.
Customer/Sales/Supplier/Purchase Invoice
Select this menu option to open the invoice screen with the selected open item. This menu option will only display if the selected item is an invoice.
Payment
Select this menu option to open Payment/receipt entry with the selected unapplied payment/receipt. This menu option will only display if the selected item is a payment.
Close
Specific Buttons
Click Search to process the selection criteria in order to display the open item results. After the search is initially done, the option is disabled. |
Click Post to generate the settlement transaction. This option is disabled if the net balance is not zero. |