BP balances

[Former Member]

Just a simple question:

when you enter an outgoing payment on account it records the entry on the BP record, then you print the check and confirm it. Why does the system still show the BP balance for the outgoing payment and also shows it on the aging even though it has been paid.

I do not want to create an invoice, just post a payment on account and then cut the check. Is there a place this can be reconciled so it is no longer in the BP balance. or is there a better way this can be handled? Just looking for some feedback, thanks

[Former Member · Accepted solution]

Dear Joanne Pencola,

Please brif your question.

If you book your invoice thrgh AP and every you want to Pay on account.

So you have to reconciled the the Bp balance. this option is availavle in Business partner master.

Regards

MANGESH PAGHDARE.

[Former Member]

Hi,

Your question is not simple at all. In brief, you want to make your book keeping only one side but asking system to reconcile automatically.

Please indicate how did you get the balance in the first place. Is it from opening balance? The balance may only from two sources: either Invoice or Open Balance. Since you said do not want to invoice, I can only assume you have the later. In that case, you can reconcile with outgoing payment directly.

Thanks,

Gordon

[Former Member]

Thank you to everyone...I completely understand all the logic and it is what I thought...the liability needs to be created either way before or after to completely reconcile the account.

Thanks again!!

[jitin_chawla]

Hi,

For reconciling a transaction with debit balance you would need another transaction with credit balance for the same BP or G\L Account, otherwise the transaction will remain Open and will be displayed in Aging Report as outstanding.

You need to have a transaction against which the Payment on Account ot Payment is created. There would not be a business scenario where you pay the amount just like that without any obligation document to pay that amount.

Therefore, either there is a open Invoice against which you paid that amount or that is a loss which then needs to be recongnized by entering a JE to the relevant G\L Account.

Kind Regards,

Jitin

SAP Business One Forum Team

[Former Member]

Hi Joanne.......

This is a simple logic that if you want to pay to anyone you have to create first its Liability which is done by Invoice.

If you pay him without any reference means you are giving him as advance and his account will show the balance as outstanding because SAP does not consider that he has supplied to you anything as you are not booking AP Invoice.......

These should be some track in the system based on which you are paying then only your transaction will be perfect........

Regards,

Rahul