Overview

The Semi-Auto Payment Reconciliation feature helps you quickly match payments to invoices with minimal effort. This article explains how to set it up and use it to streamline your financial tasks.

You will have to manually enable the  Auto Reconcile Payments feature in iVendNext, under the Accounts Settings.

What is Semi-Auto Payment Reconciliation?

Semi-Auto Payment Reconciliation is a feature in iVendNext that automates the process of matching payments with invoices. It is particularly useful in scenarios where there is no direct link between payments and invoices, such as when customers make block payments or payments based on a schedule that is not tied to specific invoices.

Key Features:

• Automated Matching: Automatically matches payments with invoices based on predefined rules.

• Background Processing: Runs in the background, allowing you to focus on other tasks.

• Efficiency: Reduces manual effort and speeds up the reconciliation process.

Why Use Semi-Auto Payment Reconciliation?

Reconciling payments manually can be time-consuming and prone to errors, especially when dealing with a large volume of transactions. Here’s why you should consider using Semi-Auto Payment Reconciliation:

1. Time-Saving: Automates the reconciliation process, freeing up your time for other important tasks.

2. Accuracy: Reduces the risk of human error by automatically matching payments with invoices.

3. Scalability: Handles large volumes of transactions efficiently, making it ideal for businesses with high transaction volumes.

4. Improved Cash Flow Management: Ensures that your accounts are up-to-date, helping you manage cash flow more effectively.

How to Set Up Semi-Auto Payment Reconciliation

1. Enable the Feature

Before you can use Semi-Auto Payment Reconciliation, you need to enable it in your Accounts Settings:

• Navigate to Accounts Settings.

• Enable the Auto Reconcile Payments option.

2. Navigate to Process Payment Reconciliation

Once the feature is enabled, you can start using it by navigating to the Process Payment Reconciliation doctype:

• Go to Home > Accounting > Accounts Receivable > Process Payment Reconciliation.

3. Select Company, Party, and Account

• Select the Company, Party, and Receivable/Payable Account for which you want to perform the reconciliation.

• Save and submit the document. The status will change to Queued.

4. Background Processing

A background job runs every 15 minutes to pick up queued documents and start the reconciliation process. If needed, you can trigger the job immediately using the Start / Resume button.

How Semi-Auto Payment Reconciliation Works

1. Fetching Unreconciled Entries

• Go to Payment Reconciliation.

• Select the Company, Party Type, and Party. The Receivable/Payable Account will be selected automatically.

• Select the Bank/Cash Account against which the payments need to be reconciled.

• Click on the Get Unreconciled Entries button to fetch all unlinked invoices and payment transactions.

2. Allocating Entries

• You can either select specific entries to be allocated or click on the Allocate button to allocate all entries.

• The Allocation Table will be populated based on FIFO (First-In-First-Out) or your selection.

3. Reconciling Entries

• The Allocated Amount is the amount you want to allocate for the reconciliation.

• Click on Reconcile to reconcile the allocated entries. You will receive a message saying 'Successfully Reconciled'.

What Happens During Reconciliation?

1. Reconciliation Against Payment Entry

• If the invoices are reconciled against a Payment Entry, a journal entry is not auto-created. This is because payment entries are associated with linked transactions.

2. Reconciliation Against Credit/Debit Note

• If the invoices are reconciled against a Credit/Debit Note, a journal entry is auto-created to allocate the credit/debit note to the invoice. This is necessary because credit/debit notes do not have linked transactions.

Benefits of Using Semi-Auto Payment Reconciliation

• Efficiency: Automates the reconciliation process, saving time and effort.

• Accuracy: Reduces the risk of errors by automatically matching payments with invoices.

• Scalability: Handles large volumes of transactions efficiently.

• Improved Financial Management: Ensures that your accounts are up-to-date, helping you manage cash flow more effectively.

Best Practices for Using Semi-Auto Payment Reconciliation

Here’s a quick look at some of the best practices for Semi-Auto Payment Reconciliation.

1. Regular Reconciliation: Perform regular reconciliations to ensure that your accounts are always up-to-date.

2. Monitor Background Jobs: Keep an eye on the background jobs to ensure that the reconciliation process is running smoothly.

3. Review Reconciliation Logs: Regularly review the Process Payment Reconciliation Log to track the status of reconciliations and identify any issues.