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Kkulk's avatar
Kkulk
User
3 years ago
Solved

How to match part amount to an invoice and allocate part amount to an account

Hello,

 

I receive a lumpsum deposit from EFTPOS at the end of the day comprising of EFTPOS transactions for that day. Sometimes I have a client that requests an invoice for the payment that they make on the day itself. So I have an invoice that looks unpaid; and the amount (of that invoice) that is also part of the EFTPOS deposit that will come at the end of the day.

 

These are some options I have for reconciliation: 

a) If I 'match' the invoice to the bank feed transaction, it does not allow me to save, because there is part of the amount that remains 'unmatched' as per the EFTPOS deposit.

b) If I 'allocate' the entire EFTPOS deposit amount to an account, then I can't match the invoice as you can only 'match' or 'allocate' but not both in one transaction feed and part of the amount remains "outstanding" as per the EFTPOS deposit.

 

The only solution seems to be to allocate the whole amount to an account to reconcile the bank feed transaction and then manually "Take payment" to close the invoice.

 

My questions are:

a) Will the above lead to a double entry - of the invoice amount in the EFTPOS deposit amount AND the amount from the "Take Payment" entry done to close the invoice?

b) Is there another way to reconcile the transaction feed and the invoice? maybe by splitting it in some way?

 

Hope to hear from someone about a solution :-) or clarification please.

Thank you!

 

 

 

  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi Kkulk 

     

    Thanks for your post. The common way to handle this situation in Essentials is to use a clearing account. If you have the Undeposited Funds account in your software you can use that or you can create a clearing account by clicking on your business name>>Accounts list>>Add new.  The clearing account needs to be an asset account with the Type set as Banking.

     

    You then record the Take Payments and Receive Money transactions, changing the Deposit into account to the clearing account:

     

     

     

     

     

    At the end of the day you record a Transfer funds transaction, transferring the lump sum amount from the Undeposited funds account to the bank account:

    The Undeposited funds should be cleared back to zero and the lump sum can be reconciled in bank feeds.

     

    If you were to allocate the lump sum in bank feeds and record a Take payment transaction you would be recording two transactions for the same amount so your income would be doubled.

     

    Please let me know if you need further help with this.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi Kkulk 

     

    Thanks for your post. The common way to handle this situation in Essentials is to use a clearing account. If you have the Undeposited Funds account in your software you can use that or you can create a clearing account by clicking on your business name>>Accounts list>>Add new.  The clearing account needs to be an asset account with the Type set as Banking.

     

    You then record the Take Payments and Receive Money transactions, changing the Deposit into account to the clearing account:

     

     

     

     

     

    At the end of the day you record a Transfer funds transaction, transferring the lump sum amount from the Undeposited funds account to the bank account:

    The Undeposited funds should be cleared back to zero and the lump sum can be reconciled in bank feeds.

     

    If you were to allocate the lump sum in bank feeds and record a Take payment transaction you would be recording two transactions for the same amount so your income would be doubled.

     

    Please let me know if you need further help with this.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • Kkulk's avatar
      Kkulk
      User
      3 years ago

      Hi Tracey

       

      Thank you for responding! - I was able to follow everything upto the General Ledger entry. Where do I find that in Essentials? After following the steps you mentioned, when I went to my Accounts list, the amount in the Clearing Account was Zero.

       

      Also, didn't quite understand - "The Undeposited funds should be cleared back to zero and the lump sum can be reconciled in bank feeds." - Does this mean, once I have followed the above steps, it would mean that the clearing account will be back to zero? Or do I have to do something to 'clear back to zero'?

       

      Related question I guess was - When I go back to the bank feed transaction, (EFTPOS) do I match the Transfer transaction (TR0000x) to that entry to reconcile it? or allocate it to the Income/Sales account?

       

      Looking forward to hearing back.

      Thank you! 

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        3 years ago

        HI Kkulk 

         

        My apologies I didn't explain that last screenshot. There isn't a general ledger entry, I've just run the General Ledger detail report to show that the Undeposited funds account clears back to zero when the Transfer funds transaction is recorded.

         

        Basically what these steps do in the Undeposited funds account is:

         

        1. Receive money and Take payments transactions DEBIT the Undeposited funds account
        2. Transfer funds transaction CREDITS the Undeposited funds account 
        3. the balance is cleared to zero

           

        In bank feeds you match the transfer funds transaction with the deposit amount. You've already allocated the sales to the income accounts when you recorded the Receive Money/sales invoices. You don't want to allocate to income accounts again or you will be doubling your income.

         

        Using a clearing account just allows you to create a lump sum transaction that you can match in bank feeds. You receive all eftpos sales to that clearing account individually. Then transfer the lump sum amount from the clearing account to the bank account for matching in bank feeds.

         

        I hope that clarifies it for you. Please do let me know if you have further questions.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.