Explore Payment Terms on Invoice Example for Management

Payment terms on invoice example for Management

welcome back Deo doers in this video we'll explore customer and vendor payments as well as the outstanding payments accounts in ODU we have multiple statuses to help keep track of our payments first an invoice or bill is unpaid this one's pretty self-explanatory next If part of the invoice has been paid but it isn't fully paid the status will be partially paid once the full payment has been registered the status is in payment and finally once the payment is reconciled with a bank transaction the status is finally paid the outstanding payments and outstanding receipts accounts are used as temporary holding accounts for the time between when a payment is made or received and when it's reconciled with a bank transaction so when the payment is registered in ODU it hits the outstanding account which is then balanced once the payment and the bank transaction are reconciled let's take a look at some payment in our Bloom database first we'll go into our accounting app and we'll look at our invoices if we want to register full payments for multiple bills or invoices at once we can select them and then click register payment then we have the option to group payments so we'll have only one payment per partner instead of one payment per Bill if instead we want to register payments one at a time instead of in CL then we have two options first we can do it directly from the invoice or bill so if we open an invoice here we can click on the register payment button we can edit any of this information that we need to and the benefit of this method is that this payment is automatically reconciled with this bill so we can see this payment Banner telling us that the status is in payment and down here on our little information icon we can actually see the link to the payment that we just registered and we have the ability to unreconcile the two if we registered the payment from the wrong invoice or Bill it's important to note that this reconciliation is just between the payment and the invoice or bill and it's different from the bank reconciliation where we make sure all of our bank transactions are accounted for second option is to register a payment manually through the customers or vendors menu depending on if it's an incoming or an outgoing payment that we want to register when we do this we can click on payments new and we just need to set a payment uh amount and a partner so for the partner we'll say Acres lawn care and for the payment amount will say € 30250 so we'll go ahead and confirm this and now we'll go back to our invoices and if we look at an invoice for this partner we can see we have a banner telling us that we have outstanding debits that we can allocate to mark this bill is paid and at the bottom it even gives us a little list here of any outstanding debits for for this vendor where we can select which one we want to allocate to this bill again we have the information icon to get information on the payments journal entry uh like the date memo the journal Etc and for more information we can go directly to the payment Itself by clicking View and here on the payment we have smart button connecting us to that bill or invoice and uh we also have one taking us to the journal entry for the payment which we'll click on and from there we have yet another smart button to the reconciled items where we can see the two items that both hit the account payable again remember that this reconciliation is just the connection between the bill and the registered payment bank reconciliation is a separate process where we match Bank transactions with these payments and what do you thought I don't want to reconcile these payments with my bank transactions can I bypass that so I'd always recommend reconciling your bank transactions for full transparency but there may be some cases like on a cash journal for example where you might not record transactions and you might want to skip the reconciliation process in that case what we can do is go to the journal we'll open our cash Journal here and in the incoming payments tab we will unhide the outstanding receipts account field and we're going to set the cash account which is the main account of the journal itself as outstanding receipts account if we left it blank it would instead use the default account from the settings but since we specify this account it will use this instead and we'll do the same in the outgoing payments tab we'll unhide the outstanding payments receipt or account and put the cash account there now we can go into one of our unpaid invoices and when we register a payment from our cash Journal we'll see that it skips the in payment status and goes straight to paid and then if we want to see the journal items of that payment we can go view journal entry and here we can see it's going to hit the cash account directly instead of going going to the outstanding receipts account so you won't need to reconcile this payment that's all for this video be sure to check out our documentation and other videos for more information this has been your palal I'll see you in the next one