Partial payments and payment differences

If an invoice is not entirely settled then perhaps a partial payment has been made or there is a payment difference. If it is a partial payment then the remaining amount remains as an outstanding item. Payment differences are written off as incidental profit or loss.

In the financial settings, you can specify the maximum payment difference. This is the maximum difference between the payment and the outstanding amount. As default, Profit applies this as follows:

• The difference is less than or equal to the maximum payment difference

  Profit automatically enters a payment difference and writes off the entire outstanding item. Profit displays the difference amount in the Pay. differ. column.

  If you do not consider the amount to be a payment difference, select the Partial payment check box. Profit deletes the amount in Pay. differ. and the remaining amount remains as an outstanding item.

• The difference is greater than the maximum payment difference

  Profit automatically enters a partial payment and selects the Partial payment check box. The remaining amount remains as an outstanding item.

  You cannot deselect the Partial payment check box if the payment difference is greater than the maximum payment difference. Thus, in such a case, you cannot write off the difference amount as a payment difference. If you have agreed with your debtor that the debtor does not pay the entire invoice amount, you can send a credit invoice to this debtor. The same applies to creditors: if you do not pay the full amount, you ask your creditor for a credit invoice.

In the financial settings, select the journal Profit uses for journal entries for payment differences and the accounts on which Profit enters them.

To enter a partial payment or payment difference:

1. Go to: Financial / Enter / Journal.
2. Check Financial year and Period. These are the financial year and the period to which you post the entry.
3. Select the journal.
4. Select the debtor or creditor number in Account.
5. Click on the action: Invoices.

   You open the reconciliation window. You can also open this window by pressing F8 in the Invoice number column.

   1. Input the amount paid from your bank statement in Total (Cash/Bank).

      At the bottom of the window, you see the total amount of the selected invoices in Selected. The To enter field displays the difference between Total (Cash/Bank) and Selected. This way you can be certain that you entered the total amount on completion of the entry.

      If Total (Cash/Bank) cannot be completed (the field is greyed out), you can deselect the Select directly check box.

   2. If you select the check boxes of outstanding items, the Total (Cash/Bank) field displays the total of the selected outstanding items. When you have reached the total payment amount (from your bank statement), you complete the entry.

      Select all the outstanding items to be written off. When doing so, keep to the following sequence:

      • First select the credit notes to be settled.

      • Then select the outstanding items which you want to write off completely.

      Profit copies the total amount of the outstanding items to the Paid KBG column, unless the amount in Total (Cash/Bank) is not sufficient. In that case, a partial payment or payment difference is created.

   3. Select the Partial payment check box. In principle, this occurs automatically if the total amount deviates from the outstanding amount.
   4. Enter the amount of the payment in Paid KBG.
   5. Click on: Finish.
6. Complete the entry.