Introduction

Reconciling payments received against bank statements is a crucial aspect of maintaining accurate financial records. iVendNext offers both manual and semi-automated payment reconciliation tools, empowering users to streamline this process and ensure the integrity of their accounting data. This article provides a comprehensive guide to mastering payment reconciliation in iVendNext, covering various scenarios and techniques for advanced users.

1. Reconciling Payments with Complex Payment Schedules and Block Payments

Many businesses encounter situations where customers or suppliers make payments that don't align perfectly with individual invoices. iVendNext's payment reconciliation tools handle these scenarios efficiently.

• Complex Payment Schedules: If an invoice has a payment schedule with multiple installments, users can reconcile each installment as it's received, ensuring accurate tracking of outstanding amounts.

• Block Payments: When a customer or supplier makes a single payment to cover multiple invoices, iVendNext allows users to allocate the payment across the relevant invoices during reconciliation.

2. Handling Partial Payments, Unallocated Amounts, and Write-Offs

During reconciliation, users may encounter scenarios that require specific handling. iVendNext provides the tools to manage these situations effectively.

• Partial Payments: If a customer or supplier makes a partial payment on an invoice, users can reconcile the received amount and leave the remaining balance as outstanding.

• Unallocated Amounts: When a payment exceeds the total outstanding amount on the allocated invoices, the excess is considered "Unallocated." This amount is credited to the customer or supplier's account and can be applied to future invoices.

• Write-Offs: If a portion of the outstanding amount is deemed uncollectible, users can write off the amount during reconciliation. This involves debiting a "Bad Debts Expense" account and crediting the corresponding receivable account.

3. Optimizing the Reconciliation Process

iVendNext's payment reconciliation tools offer features to enhance efficiency and accuracy.

• Filters: Users can apply filters to narrow down the transactions displayed, making it easier to locate specific payments and invoices.

• Allocate Function: The "Allocate" button automates the allocation of payments to invoices based on predefined rules, such as First-In-First-Out (FIFO) or user-defined criteria.

4. Understanding Automatic Reconciliation

iVendNext offers a semi-automated payment reconciliation feature that streamlines the process for high-volume transactions. By enabling the "Auto Reconcile Payments" setting in Accounts Settings, users can trigger a background job that automatically reconciles payments based on matching criteria.

5. Reconciling Multi-Currency Payments

When dealing with payments in foreign currencies, iVendNext's multi-currency capabilities simplify the reconciliation process.

• Exchange Rate Considerations: The system automatically applies the appropriate exchange rates when reconciling multi-currency payments, ensuring accurate conversion to the base currency.

• Currency Gain/Loss: iVendNext tracks currency gains or losses that arise due to exchange rate fluctuations between the transaction date and the reconciliation date.