Epinomy - Step-by-Step Guide to Reconciling Payments and Allocating to Sales Invoices in ERPNext

Identify the Overdue Invoice

• Locate the overdue invoice. For example, invoice number ACC-SINV-2023-00026 for the amount of $8881.32.

Reconcile the Initial Bank Transaction

• If a customer can only wire partial payments, such as $5000 at a time, and incurs a transaction fee ($20), this results in a net deposit of $4980. Create and reconcile the bank transaction with a Payment Entry for this deposit amount.

Modify the Linked Payment Entry

• Find the Payment Entry linked to the first installment (e.g., ACC-PAY-2024-00204) which should have a connection to the corresponding Bank Transaction (e.g., ACC-BTN-2024-00423).

• Cancel this Payment Entry to unlink it from the Bank Transaction, which will then appear as “Unreconciled”.

Amend the Payment Entry

• Amend the canceled Payment Entry:

  • Update the Mode of Payment to "Wire Transfer".

  • Select the Company Bank Account.

  • Update the Party Contact.

  • Click on Get Outstanding Invoices and use date filters to retrieve the unpaid invoice, such as ACC-SINV-2023-00026.

  • Allocate $6000 of the Paid Amount ($5980) to the Payment References table to cover the invoice and the transaction fee.

Account for the Bank Fee

• Add a Bank Fee of $20 to Payment Deductions or Loss to account for the wire transaction fee.

Save the Amended Payment Entry

• Save the new Payment Entry, which is now based on ACC-PAY-2024-00204 and amended to -1 (e.g., ACC-PAY-2024-00204-1).

Reconcile the Bank Transaction Again

• Go to the previously unreconciled Bank Transaction (ACC-BTN-2024-00423).

• Add a reference to the updated Payment Entry (ACC-PAY-2024-00204-1) with the allocated amount of $5980.

• Click Update to mark the Bank Transaction as “Reconciled”.

Finalize the Payment Entry

• Submit the updated Payment Entry to finalize the changes.

Verify the Sales Invoice Allocation

• Return to the Sales Invoice (ACC-SINV-2023-00026) and refresh the page to confirm that the $6000 payment has been correctly applied.

• Verify that the Outstanding Amount now shows $2881.32, indicating the application of the $6000 towards the total invoice amount of $8881.32.