HANDLING THE INCOMING PAYMENTS IN SAP B1

Incoming payments can be received in four ways: cash, checks, credit cards, and bank transfers. SAP Business One handles all of them in basically the same way—either by making a payment against a specific A/R invoice or by making a payment to a customer against two or more A/R invoices. 

CREATING INCOMING PAYMENTS FOR SPECIFIC INVOICES:

The following steps explain how to create an incoming payment against specific invoices: 

• Go to the Banking→ Incoming Payments→ Incoming Payments window shown in Figure.
• Click the selection list button to the right of the Code field and then select a customer
• Review the Documents for Payment table that displays all the open invoices for the customer
• Select the invoices for which you want to apply a payment (check the selection box next to the row number); the cumulative amount is displayed in the Total Amount Due field in the footer of the window
• Change the Total Payment amount field to do a partial payment
• Select the payment means icon from the SAP Business One toolbar to open the Payment Means Select the tab for the desired payment means, fill in the relevant details, and click OK, which brings you back to the Incoming Payments window.
• Click Add to post the document

Once the incoming payment document is added, the following actions are taken:

• Journal entries credit the customer’s accounts receivable control account and debit the bank account or a clearing account.
• The payment is applied to the invoice.
• The paid invoices are closed and no longer appear in the Open Items List, Documents for Payment table and in the customer’s receivable aging report.
• When a partial payment is processed, the selected invoice remains open for the balance due Amount
• When a full payment is processed, the invoice and the payment are internally reconciled and closed.
• If the payment is made by check, cash or credit card, the payment is posted to a clearing account, and a deposit document must be processed in order to transfer the funds from the clearing account to the house bank account 

CREATING INCOMING PAYMENTS ON ACCOUNT

You can accept payments that are received without reference to specific invoice(s)—for example, a one-time point-of-sale purchase. To do this, you check the Payment on Account checkbox of the Incoming Payments window and fill in the required information. Once the incoming payment document has been posted, the appropriate journal entry is created.

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