Automatic payment using available credit disable

Can you please help me I don’t want to use the automatic payment method.
It is deducting (Showing Paid in Full) to the wrong invoice from the Customer.
How can I choose which invoice number must be paid in full?

13/06/16 178082930017 Santam S Friedman Inv 64 R 23 723,06 R 3 231,34 Due in 8 days

Now it takes the R3 231.34 which shows due in 8 days as outstanding because it automaticly took my inv nr 34 (Which is still outstanding) and shows it now as paid??

You can allocate the amount received directly against specific invoice.

In that case, you’d select an account called Accounts receivable, then select invoice.

Thank you Lubos…

It’s working perfectly now.

Have a nice day!

Speaking back about automatic allocation of credits but now for suppliers.

Use case:
We have a supplier, to whom we make two types of payments:

  1. For services A - there is no formal payment terms, we paying them as we resell their services, invoice from them received at the end of each month.
  2. For services B - we are working on prepayment basis. I.e. we are make payment in first days of new month, and services are being delivered somewhere during the month.

Current situation:
Say we are now in July (in which we are, hehe). I’ve recorded their invoice issued 30 June, and it reflected as a liability in my BS, e.g. in amount of CCY 4,000. Now I am making prepayment for services B, say in amount of CCY 3,000, which I am posting to supplier credits account. With auto allocation feature I have my invoice for Services A paid automatically and net position of CCY 1,000 is shown in my liability side of BS. Lets say in couple of days I receive invoice for Services B for CCY 3,000 which should be paid immediately.
Now, as prepayment was autoallocated to my Services A invoice, I have an impression that invoice for Services B is outstanding, and for services A was partially paid. But in fact we closed services B invoice and still owe for services A.

Issue:
While this correctly reflects our position with supplier, split for what we owe them is kinda wrong. And in case there is need to get info for what we owe, than it takes bit time to populate it.
So is there anyway to disable autoallocation of credits. In that case I would not allocate credits before receiving CCY 3,000 invoice, after recording it I would write-off credits against it.

Halp?
Is there any way to disable autoallocation?
Any other suggestions to workflow?

With Supplier payments you have two choices - one manual and one automatic.

  1. For manual - in Spend Money use Account = Accounts Payable + Invoice Number
  2. For automatic - in Spend Money use Account = Supplier Credits + Supplier

Read here where both methods are described

None of them suits my needs.

Automatic - makes wrong allocation (FIFO method).
Manual - I do not have invoice when I make prepayment, there is no 2nd invoice to which allocate money. And if I pay simply to AP, then I will have money on Suspense account, whereas they should be non-allocated on Supplier credit account.

Thanks for links thou, sure I’ve checked them before posting…

Why not create a dummy invoice for the prepayment and then convert it into a real invoice once the real one arrives

It will be posted in wrong period.

Edit: and in that case there will be no prepayment in BS, but it should be there.

Not if you use the correct period date

You suggesting to post invoice with future date?

Based on your comment “we make a payment in first days of new month, and services are being delivered somewhere during the month” it appears that the prepayment is only within the current month

  1. you could create an invoice dated last day of the month and make a payment on first day of the month (using Account = Accounts Payable + Invoice) and then amend that invoice when the real invoice arrives, or

  2. if you want to show a prepayment, then Spend Money with Account = BS - Asset - Prepayments then when the Invoice arrives, process it as normal.

Then either (a) re-allocate the Spend Money - Account from Prepayments to Accounts Payable + Invoice, or use a Journal to transfer the Prepayment to the Accounts Payable + Invoice

Generally but not always. And we are tracking income/expenses weekly. So (1) is not an option.

As for suggestion (2)
I get part where to transfer money to prepayment account (this can be done from “Spend money” dialog), but, as I see, invoice can be paid only from cash accounts, but not from Prepayments (where money will be transferred). Can you please elaborate here how to “re-allocate the Spend Money - Account from Prepayments to Accounts Payable + Invoice”.

I believe journals should not be an option here, as it is within invoicing process, not in adjustments area.

Thanks

Perfectly ok to use Journals - no problem within invoicing process or payment of invoice.

I tend to disagree. Use journal entries for 30+ invoices in month, seems to be an overhead.

Plus on the security side - I believe access to journals module should not be given to sales/purchase department, who handle invoicing/purchasing. And having person making those adjustments, in additional to AP/AR clerk, is definitely an overhead.

I was only providing a framework based on your initial post and without knowing your actual business operations. Accounting systems can provide management tool solutions.

Based on your additional information - I would be extremely comfortable with:

(a) Do a prepayment - Spend Money with Account = BS - Asset - Prepayments
(b) Process the Invoice per normal.
© Re-allocate the Spend Money - Account from Prepayments to Accounts Payable + Invoice

@koroko, please forgive me if some of my comments seem redundant. Several postings were made to this thread while I was writing my response. I’ve edited what follows somewhat, but had already spent enough time on this, so I didn’t want to spend more on a more thorough edit.

First, if you are not, I strongly encourage using accrual-based accounting. I am not saying things will not work under cash-based accounting, but I can’t predict what strange things might pop up in various reports and displays.

I have spent a lot of time considering how to handle customer deposits in Manager. The issues are all the same, only in reverse. The problem comes when you start thinking of a deposit as being connected to an invoice. It is not. In your case, the deposit you make for Service B is not payment of an invoice or account payable; it is merely a repositioning of who holds some of your cash assets, in this case, to a supplier. So my belief is that you should not make any use of purchase invoices until you receive the invoice after the services are provided. Remember, an purchase invoice records an obligation to pay, which does not yet exist at the beginning of your month. It also records an expense, which has not yet been incurred.

In Manager, purchase invoices and supplier credits are all associated with obligations to the supplier, so it makes sense that any payment of a purchase invoice would be applied against that supplier’s account, and vice versa. After all, money is interchangeable. You acknowledged this when you said that your overall position with the supplier was being correctly recognized, just not the position on individual invoices.

Instead, a deposit should be allocated to an asset account. There are several options:

  1. Create an asset account like Deposits with suppliers. Allocate your advance payment to this account. This could be a convenient approach if there is only one such supplier, or possibly a very limited number. If more than one supplier, you will have to keep a separate record of how much of that account resides with each supplier.

  2. Create similar asset accounts for each such supplier. But if there are more than a few, this will really clutter your balance sheet.

  3. (My preferred approach) Create a custom control account. Then, for each supplier with whom you lodge deposits, create a subaccount. You will see only the control account on your balance sheet, but have individualized records within Manager of where every deposit went. [Note: I am not positive of how far the custom control account capability has been rolled out, and I don’t have time to test. Eventually this will work, but might not yet. In that case, use option #2 above temporarily. When the custom control capability is fully implemented, create the control account and reassign the individual asset accounts to it by editing.]

Any of these options will avoid the need of future-dated transactions, dummy transactions, or replacements. So your balance sheet will always be complete and current. All that is required is to use a journal entry to debit Supplier credits or Accounts payable when an invoice is received for Service B and credit Deposits with suppliers.

LATE EDIT: I had time to test, and custom control accounts are not yet extended to accommodate this use case. So use option #2 for now and add the control account later. There will be no extra work involved and no data lost. You may just have a more cluttered balance sheet for a while.

Ok, guys. Thanks for insights I will give a shot for your ideas!

Alternatively, you could create two different Suppliers

  1. Supplier XYZ Services A
  2. Supplier XYZ Services B

This way the different Services Invoices & Payments would be kept separate and therefore the use of Supplier Credits wont cause wrong any payment conflicts.

Yes, you can actually do this.

Create an invoice with future date. You will be able to allocate earlier payment to this future invoice.

Manager will actually recognize this and will leave funds in Customer credits until invoice date when it will automatically allocate from customer credits against this future invoice.