When you start working with a new customer or vendor, you reach an agreement with them on when are invoices due. On the Payments tab of the customer and vendor card, you select the Payment Term tab that suits the agreement. After that, the program will automatically calculate the due date when you create an invoice.

Payment terms

The Payment Terms page contains one line for each set of Payment Terms the company uses. You can create as many payment terms as you need.

Every set of payment terms must contain a Due Date Calculation formula that the program uses together with the document date of the invoice to calculate the due date. In addition, you can also specify a Discount Date Calculation formula and a Discount % that will be used to calculate discounts on the basis of early payments.

Navigate to Departments/Financial Management/Receivables/Setup to see the full list, which is shown in the following screenshot:

The payment term code is assigned to each customer by filling...

Different payment methods, used both by customers and vendors, can be defined at Departments/Financial Management/Receivables/Setup/Payment Methods.

Note that both CASH and CREDITCARD have a Bal. Account No. defined. When you post an invoice with one of the payment methods selected, the system will create and post the payment against the invoice, so you don't have to manually do it later on. This is useful when the payment is done at the same time the invoice is raised.

When you use the credit card payment method in a sales order or invoice, you have to specify which credit card will be used. Credit cards are created on the customer card, through the Credit Cards - Credit Cards action found on the ribbon. Information commonly required for credit cards has to be filled in, such as the card type, the holder's name, the card number, and the expiry date. Once the credit card is selected, an authorization against the total invoice amount is required...

When you pay or are being paid, you need to register the transaction in your system, no matter what method you have used. To do so, you use the Cash Receipt Journal window or the Payment Journal window. Both work the same way, but the Payment Journal can also be used to print checks. To post a payment, you need to inform:

Imagine that customer 20000, Selangorian Ltd. has paid us for invoice 103032, which was due on 02/09/2017. Let's follow the steps needed to post the payment:

The balance is the total amount a customer owes you or you owe to a vendor. Customer and vendor balances can be seen on their card through a field called Balance (LCY). LCY stands for Local Currency. This means that, regardless of the currency used, amounts are always translated to your local currency.

To learn the details of the balance amount, you can click on the amount and the corresponding ledger entries will be shown. This can be seen in the following screenshot:

As you can see, customer 20000, Selangorian Ltd. has seven pending invoices. Two of them are already due (they are shown in red) and invoice 00-8 has been partially paid (note that the remaining amount is lower than the original amount).

The payment registration functionality is a unique method of handling customer receipts without creating entries through the Cash Receipt Journal. This functionality is designed to support users in tasks involved in balancing internal accounts, using actual cash figures to ensure effective collection from customers. To perform this, we have to perform the following steps:

A payment reconciliation journal is where we specify payments, either incoming from customers or outgoing to vendors, that have been recorded as transactions on your electronic bank site and that need to be applied to their related open entries.

You can perform the following main activities in the Payment Reconciliation Journal window:

In the Payment Application Rules window, you set up rules to govern how payments should be automatically applied to their related open entries when you use the Apply Automatically function in the Payment Reconciliation Journal window. For this, refer to the following screenshot: