How to apply an invoice to a payment on account using Internal Rec?

[john-paul_dellaputa]

As the link invoices to previous payments is now replaced by the new Internal Reconciliation Engine, you now need to perform a Business Partner internal reconciliation.

This seems like quite a cumbersome process.

The steps are:

1. Open the Business Partner

2. Select Internal Reconciliation

3. Select the payment (which you made previously on account)

4. Select the invoice which you would like to apply the payment towards

5. If the payment and the invoice don't exactly match, you now need to create a journal. So where does the other side of the entry go? One side is automatically filled in for you, being the Business Partner, the other side goes where?

If you put the other side as the Business Partner, the journal will post, but you get a mess when you look at the BP balance:

There will be:

RC - receipt on account $50

IN - invoice $80

JE - Journal for the difference ($30) (negative)

JE - Journal for the difference $30

None of these go away if you tick the 'Display Unreconciled Trans. Only' option.

How do others get around this?

[Former Member · Accepted solution]

Hi John......

There are two aspects of doing internal reconciliation.

1. you want to reconcile part Invoice amount against Payment on Account

2. You want to reconcile part Invoice amount against payment on account and accounting for rest amount of invoice should be gone to rate difference account and which you dont want to pay to your vendor.

So the thing you are asking about the differnce amount should go to rate difference account.

When you do the reconciliation just select the difference amount for Journal entry where diff. amount say $30 will go to rate difference account.........

Hope this will help you......

Regards,

Rahul

[john-paul_dellaputa · Accepted solution]

Thanks.

I worked it out.

The journal needs to be balanced, so if the amount on account is less than the invoice amount, then you can simply overtype the amount which is applied to the invoice.

This is quite simply like the Incoming Payments when you apply a payment to an invoice.