Accounting Query: How to match the Ledger balance to the Pending Amount as per invoices?

Hi,

I don’t know if all are aware about this situation or not. There is one major problem we face in erpnext and also other accounting software. The problem is that there are 2 reports for accounts receivables

  • Account ledger
  • Account receivable (Invoice wise)

Now there is a beautiful tool called payment matching tool which helps in actually rectifying our mistakes while doing data entry, still I have seen issues. Let me give an example:

  • Customer pays advance, data entry person just enters the amount received but forgets to enter it as advance.
  • Now we send the material against a Sales invoice, now the payment received earlier is not adjusted in the invoice (either by mistake or otherwise)
  • Now this thing creates a situation where the ledger balance of the customer is showing no receivable amount but the Invoice is showing as pending for payment
  • Here comes the payment matching tool where we could match the entries and make the invoice as paid.

Now this is a very simple example just to get my point rightly to all the viewer. Now ideally after doing the payment invoice matching with the tool there should not be any unmatched receipt or payments (in case of suppliers) if the ledger balance is ZERO or the pending invoice to be paid or received should be equal to the ledger balance.

So, I mean to say that if there are like 100 transactions and the final ledger balance of a customer is 10,000 Dr this means we need to take 10,000 and after doing payment matching there should be invoices pending to be received whose total should be coming to 10,000 only with NO UNMATCHED receipts or credit or debit notes , basically there should not be any JV left as un-matched.

But the last line is the key and I have found out many examples where the even though the ledger balance is equal to the receivable invoices or payable invoices when we go to the tool for payment matching it would show up some payments or receipts as unmatched.

What I am trying to say here is that the erpnext system might be correct but this situation should not be occurring at all or is there a case where this could be possible?

I hope I am able to put forward my point which is understandable. But this question is bugging me up for a long time now.


I hope someone can shed some light on it.



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Aditya,

Can you give us a specific instance? And can you also post the ledger entries of that account? (on support). It is really hard to tell otherwise.

best,
Rushabh


W: https://erpnext.com
T: @rushabh_mehta

On 02-Mar-2013, at 8:52 PM, Addy <ad...@gmail.com> wrote:

Hi,

I don't know if all are aware about this situation or not. There is one major problem we face in erpnext and also other accounting software. The problem is that there are 2 reports for accounts receivables
  • Account ledger
  • Account receivable (Invoice wise)

Now there is a beautiful tool called payment matching tool which helps in actually rectifying our mistakes while doing data entry, still I have seen issues. Let me give an example:

  • Customer pays advance, data entry person just enters the amount received but forgets to enter it as advance.
  • Now we send the material against a Sales invoice, now the payment received earlier is not adjusted in the invoice (either by mistake or otherwise)
  • Now this thing creates a situation where the ledger balance of the customer is showing no receivable amount but the Invoice is showing as pending for payment
  • Here comes the payment matching tool where we could match the entries and make the invoice as paid.

Now this is a very simple example just to get my point rightly to all the viewer. Now ideally after doing the payment invoice matching with the tool there should not be any unmatched receipt or payments (in case of suppliers) if the ledger balance is ZERO or the pending invoice to be paid or received should be equal to the ledger balance.

So, I mean to say that if there are like 100 transactions and the final ledger balance of a customer is 10,000 Dr this means we need to take 10,000 and after doing payment matching there should be invoices pending to be received whose total should be coming to 10,000 only with NO UNMATCHED receipts or credit or debit notes , basically there should not be any JV left as un-matched.

But the last line is the key and I have found out many examples where the even though the ledger balance is equal to the receivable invoices or payable invoices when we go to the tool for payment matching it would show up some payments or receipts as unmatched.

What I am trying to say here is that the erpnext system might be correct but this situation should not be occurring at all or is there a case where this could be possible?

I hope I am able to put forward my point which is understandable. But this question is bugging me up for a long time now.


I hope someone can shed some light on it.




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Would it be possible to make a report which could check the ledger balance and the pending balance as per sale or purchase invoice if they exist.

On Monday, March 4, 2013 11:45:42 AM UTC+5:30, Rushabh Mehta wrote:

Aditya,

Can you give us a specific instance? And can you also post the ledger entries of that account? (on support). It is really hard to tell otherwise.

best,
Rushabh


W: https://erpnext.com
T: @rushabh_mehta

On 02-Mar-2013, at 8:52 PM, Addy <ad...@gmail.com> wrote:

Hi,

I don't know if all are aware about this situation or not. There is one major problem we face in erpnext and also other accounting software. The problem is that there are 2 reports for accounts receivables
  • Account ledger
  • Account receivable (Invoice wise)

Now there is a beautiful tool called payment matching tool which helps in actually rectifying our mistakes while doing data entry, still I have seen issues. Let me give an example:

  • Customer pays advance, data entry person just enters the amount received but forgets to enter it as advance.
  • Now we send the material against a Sales invoice, now the payment received earlier is not adjusted in the invoice (either by mistake or otherwise)
  • Now this thing creates a situation where the ledger balance of the customer is showing no receivable amount but the Invoice is showing as pending for payment
  • Here comes the payment matching tool where we could match the entries and make the invoice as paid.

Now this is a very simple example just to get my point rightly to all the viewer. Now ideally after doing the payment invoice matching with the tool there should not be any unmatched receipt or payments (in case of suppliers) if the ledger balance is ZERO or the pending invoice to be paid or received should be equal to the ledger balance.

So, I mean to say that if there are like 100 transactions and the final ledger balance of a customer is 10,000 Dr this means we need to take 10,000 and after doing payment matching there should be invoices pending to be received whose total should be coming to 10,000 only with NO UNMATCHED receipts or credit or debit notes , basically there should not be any JV left as un-matched.

But the last line is the key and I have found out many examples where the even though the ledger balance is equal to the receivable invoices or payable invoices when we go to the tool for payment matching it would show up some payments or receipts as unmatched.

What I am trying to say here is that the erpnext system might be correct but this situation should not be occurring at all or is there a case where this could be possible?

I hope I am able to put forward my point which is understandable. But this question is bugging me up for a long time now.


I hope someone can shed some light on it.




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Hi Aditya,

It is a good suggestion. However, we have a lot on our plate. We can take it up after we are done with Auto Inventory Accounting.

Thanks,
Anand. 

On 05-Mar-2013, at 6:40 AM, Addy <ad...@gmail.com> wrote:

Would it be possible to make a report which could check the ledger balance and the pending balance as per sale or purchase invoice if they exist.

On Monday, March 4, 2013 11:45:42 AM UTC+5:30, Rushabh Mehta wrote:
Aditya,

Can you give us a specific instance? And can you also post the ledger entries of that account? (on support). It is really hard to tell otherwise.

best,
Rushabh


W: https://erpnext.com
T: @rushabh_mehta

On 02-Mar-2013, at 8:52 PM, Addy <ad...@gmail.com> wrote:

Hi,

I don't know if all are aware about this situation or not. There is one major problem we face in erpnext and also other accounting software. The problem is that there are 2 reports for accounts receivables
  • Account ledger
  • Account receivable (Invoice wise)

Now there is a beautiful tool called payment matching tool which helps in actually rectifying our mistakes while doing data entry, still I have seen issues. Let me give an example:

  • Customer pays advance, data entry person just enters the amount received but forgets to enter it as advance.
  • Now we send the material against a Sales invoice, now the payment received earlier is not adjusted in the invoice (either by mistake or otherwise)
  • Now this thing creates a situation where the ledger balance of the customer is showing no receivable amount but the Invoice is showing as pending for payment
  • Here comes the payment matching tool where we could match the entries and make the invoice as paid.

Now this is a very simple example just to get my point rightly to all the viewer. Now ideally after doing the payment invoice matching with the tool there should not be any unmatched receipt or payments (in case of suppliers) if the ledger balance is ZERO or the pending invoice to be paid or received should be equal to the ledger balance.

So, I mean to say that if there are like 100 transactions and the final ledger balance of a customer is 10,000 Dr this means we need to take 10,000 and after doing payment matching there should be invoices pending to be received whose total should be coming to 10,000 only with NO UNMATCHED receipts or credit or debit notes , basically there should not be any JV left as un-matched.

But the last line is the key and I have found out many examples where the even though the ledger balance is equal to the receivable invoices or payable invoices when we go to the tool for payment matching it would show up some payments or receipts as unmatched.

What I am trying to say here is that the erpnext system might be correct but this situation should not be occurring at all or is there a case where this could be possible?

I hope I am able to put forward my point which is understandable. But this question is bugging me up for a long time now.


I hope someone can shed some light on it.




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Hi Anand,

After about a fortnight I have come up with a make shift arrangement for a solution for my problem. The solution has been embedded in the current Accounts Payable and Account Receivable Reports (Bill Wise). I have added a column where the column shows the SUM of ALL the Pending INvoices for a Customer in that column, this ways we are able to match the bill wise details much easily by checking the ledger balance.

I thought that you might me interested in the code then please find that code here:

  1. Accounts Receivable by Invoice
  2. Accounts Payable by Invoice
I hope these reduces at least a spec from your plate.
On Wednesday, March 6, 2013 12:35:55 PM UTC+5:30, Anand Doshi wrote:
Hi Aditya,

It is a good suggestion. However, we have a lot on our plate. We can take it up after we are done with Auto Inventory Accounting.

Thanks,
Anand. 

On 05-Mar-2013, at 6:40 AM, Addy <ad…@gmail.com> wrote:

Would it be possible to make a report which could check the ledger balance and the pending balance as per sale or purchase invoice if they exist.

On Monday, March 4, 2013 11:45:42 AM UTC+5:30, Rushabh Mehta wrote:
Aditya,

Can you give us a specific instance? And can you also post the ledger entries of that account? (on support). It is really hard to tell otherwise.

best,
Rushabh


W: https://erpnext.com
T: @rushabh_mehta

On 02-Mar-2013, at 8:52 PM, Addy <ad...@gmail.com> wrote:

Hi,

I don't know if all are aware about this situation or not. There is one major problem we face in erpnext and also other accounting software. The problem is that there are 2 reports for accounts receivables
  • Account ledger
  • Account receivable (Invoice wise)

Now there is a beautiful tool called payment matching tool which helps in actually rectifying our mistakes while doing data entry, still I have seen issues. Let me give an example:

  • Customer pays advance, data entry person just enters the amount received but forgets to enter it as advance.
  • Now we send the material against a Sales invoice, now the payment received earlier is not adjusted in the invoice (either by mistake or otherwise)
  • Now this thing creates a situation where the ledger balance of the customer is showing no receivable amount but the Invoice is showing as pending for payment
  • Here comes the payment matching tool where we could match the entries and make the invoice as paid.

Now this is a very simple example just to get my point rightly to all the viewer. Now ideally after doing the payment invoice matching with the tool there should not be any unmatched receipt or payments (in case of suppliers) if the ledger balance is ZERO or the pending invoice to be paid or received should be equal to the ledger balance.

So, I mean to say that if there are like 100 transactions and the final ledger balance of a customer is 10,000 Dr this means we need to take 10,000 and after doing payment matching there should be invoices pending to be received whose total should be coming to 10,000 only with NO UNMATCHED receipts or credit or debit notes , basically there should not be any JV left as un-matched.

But the last line is the key and I have found out many examples where the even though the ledger balance is equal to the receivable invoices or payable invoices when we go to the tool for payment matching it would show up some payments or receipts as unmatched.

What I am trying to say here is that the erpnext system might be correct but this situation should not be occurring at all or is there a case where this could be possible?

I hope I am able to put forward my point which is understandable. But this question is bugging me up for a long time now.


I hope someone can shed some light on it.




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To unsubscribe from this group and stop receiving emails from it, send an email to erpnext-user-forum+un…@googlegroups.com.

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