Payment Reconciliation is used to link payments with invoices.

In complex scenarios,

To access Payment Reconciliation, go to:

Home > Accounting > Accounts Receivable > Payment Reconciliation

1. How to Match Payments with Invoices

1. Navigate to Payment Reconciliation.
2. Choose a Company.
3. Select the Party Type and then the Party. The Receivable/Payable account will be automatically selected.
4. Choose the Bank/Cash account against which the payments need to be reconciled.
5. If filtering records is required, specify a date range for the invoices or set minimum or maximum amounts for invoices as well as payment transactions.
6. Click the Get Unreconciled Entries button.
7. This action retrieves all unlinked invoices and payment transactions from that party in the Invoices and Payments tables, respectively.
8. You can either select specific entries to allocate or click the Allocate button without making any selections to allocate all entries.
9. The allocation table will be populated based on FIFO (First In, First Out) or selection criteria.
10. The Allocated Amount is the amount designated for reconciliation.
11. Click on Reconcile to reconcile the allocated entries. Upon successful reconciliation, a message confirming “Successfully Reconciled” will appear.

2. What happens on Payment Reconciliation

When invoices are reconciled against:

• Payment Entry – A journal entry isn’t automatically generated during reconciliation against a payment entry. This is because payment entries are associated with linked transactions.
• Credit/Debit Note – A journal entry is automatically generated to allocate a credit/debit note to an invoice being reconciled. This automatic journal entry creation is essential as credit/debit notes lack linked transactions. The resulting journal entry from reconciliation indicates the adjustment of a specific credit/debit note with a particular invoice.

2. Related Topics

1. Payment Request
2. Sales Invoice
3. Purchase Invoice