A/P Credits - Overdue Payments

Version Relevance: All versions

Issue: When I put a credit note on to a suppliers account, the cleared flag is automatically set to "Yes". The credit note then appears to be ignored when listing Overdue Payments, so that the total amount to pay is higher than I would expect it to be.

If I allocate the credit fully against debits after putting it on however, the Overdue Payment listing correctly reduces the amount to pay. Why is this?

Apr 7th, 2005

Feedback: If you are using the Overdue Payments window to pay your suppliers, you should set the option optAcCreditsAutoClear to "1" in File -- System Manager -- Privileges and Settings then System and Options.

This will ensure that the credit is NOT marked as cleared when it is first entered, and it will list OK. You should then only clear it (by selecting it and clicking "allocate" in the Payments to Suppliers window) when you are ready to allocate it against debits, and make sure you allocate fully immediately on clearing.

The reason for the behaviour you are seeing is that when the credit is marked as cleared but not allocated, the Overdue Payments window will exclude it from the list of transactions but will not reduce the total amount payable.

(However, you will see that the account balance displayed in the window shows correctly, so if this value is different to the amount payable it is a good indicator that there may be some credits cleared but not allocated - although of course the status of credit control memos can also lead to a difference.)

It is also important to set the due date correctly for a credit (so that it is no later the date of the last debit to be adjusted by it) or it may not be included in the Overdue Payment transaction listing alongside the corresponding debits, even if it is not marked as cleared.

Paul Wilson - Caliach Consultant