Bank Payment Journal

Bank Payment Journal is a general journal that is optimized for making payments.
This article describes some features that improve the work with created journal lines, as well as the creation of advance payments and the application of such payments to unposted documents (for example, orders)

Useful functionality in the Bank Payment Journal

1. The Change Payment Order Status feature allows you to quickly change the payment order status for all lines of the journal. Go to Actions > Functions > Change Payment Order Status and select the desired payment order status.
2. The Fill Active Agreement No. feature allows you to quickly fill in the Agreement No. field with an active customer or vendor agreement number in the all journal lines. Go to Actions > Functions > Fill Active Agreement No.. If the system finds several active agreements for the vendor or client, the corresponding message will be displayed and the Agreement No. field will remain blank.
3. The Renumber Documents feature renumbers journal lines in the order according to the configured series of numbers for Bank Payment Journal Batch. Go to Actions > Functions > Renumber Documents.

Creating an Advance Payment

An advance payment is any payment made by a customer before items or services are provided. Accordingly, there is a need to post such payments on separate accounts.

Before you can start working with advance payments, you need to make certain settings.

1. Choose the icon, enter Vendor Posting Groups or Customer Posting Groups, and then choose the related link.
2. For all required vendor or customer posting groups, select an account value in Advance Payment account field. Advance Payment amounts will be reflected on these accounts before application.
3. Choose the icon, enter General Ledger Setup, and then choose the related link.
4. On the Application FastTab select the option for the fields Divide Prepayments for Customers and Divide Prepayments for Vendors:
   • Before Post - this option splits the payment directly in the Bank Payment Journal before posting. That is, when a payment is applied to several unposted documents, the system splits the journal lines according to the number and amounts of the applied documents. If an unapplied balance occurs, a journal line will also be created for the balance amount. As a result of the posting such lines, the corresponding number of entries will be created in the Customer Ledger Entries or Vendor Ledger Entries and Bank Account Ledger Entries;
   • At Posting - this option splits one payment into several payments during post according to the application. That is, if the payment was applied to two unaccounted documents, then after posting, the system will divide the payment according to the amounts of the applied documents. If there is an unapplied balance during the application, a payment will be created for the amount of the balance. Posting for such lines will create as many customer or vendor ledger entries as there are applications. One entry for the full amount of the advance payment will be created in the Bank Account Ledger Entries.

To create an advance payment, do the following:

1. Choose the icon, enter Bank Payment Journal, and then choose the related link.
2. Fill in all required fields in the journal lines and set the Advance payment checkbox.
3. After posting such payment, its amount will appear on accounts which were set up in Vendor Posting Groups and Customer Posting Groups.

Applying advance payments to unposted documents

An Advance Payment can be applied to unposted documents before posting from Bank Payment Journal or after posting from Vendor ore Customer Ledger Entries.

1. Applying from Bank Payment Journal:

   • select journal line and choose Actions > Functions > Apply Prepayments;
   • a window with all customer's or vendor's released unposted documents will open. Standing on line with document to be applied, select Set Application. You can set application for multiple documents all at once. Close the window.
   • click Post to post the payment.

2. Applying from Vendor or Customer Ledger Entries:

   • select payment line and choose Actions > Functions > Apply Documents;
   • a window with all customer's or vendor's released unposted documents will open. Standing on line with document to be applied, select Set Application. You can set application for multiple documents all at once. Close the window.

After posting of the released documents, the system will automatically consider application and create the required entries in General Ledger.

Checking or Cancel the application of the documents

To check the application of documents to the payment, standing on the posted payment line in Customer or Vendor Ledger Entries, select Related > Entry > Applied Documents.

To cancel the application to unposted documents, standing on posted payment line in Customer or Vendor Ledger Entries, select Actions > Functions > Unapply Applying Documents.