Client uses BankRec.
When Invoices are posted with a payment entered during invoicing, what happens?
Is a cash batch created in AR?
Is a batch created in BR?
Is the payment posted to the cash GL account at all, or can we assume that all deposits will be posted in BR only, and this payment will be recorded for the printing of the invoice but will not be recorded again.

Hi Kate,

1) If you post an invoice in Receivables and a Payment was applied to the invoice, both the invoice and payment are posted. No cash batch is created in AR.

2) No cash posting in AR is transferred to BankRec, either when posting Cash batches or Invoices with applied payments. If you want the cash to update BankRec, the batch should be entered and posted in BankRec. After posting, a cash batch is created in AR.

3) In AR, the bank GL account is defined on the Control Account Set associated with the customer. When integrated with BankRec, typically this GL account will be a Clearing account. The actual bank GL account will be defined in BankRec, as will the Clearing account be. If AR is integrated with BankRec and accounting set up as above, posting cash in AR will update the clearing account but not the real bank. In order to update the bank directly by posting cash in AR, the Control Account on the customer needs to have the bank GL account defined. As you would guess, a customer would have to have all cash posted either in BankRec or AR, not both, for the GL accounting to be correct.

When using BankRec, you should do all your deposits there.

What happens when you post an invoice in OE with a payment?

The invoice audit list shows the check number bank GL account and department (which is the AR bank clearing account)and the payment amount.

I just want to verify that when Bank Rec is being used, payments can be shown on OE invoices without being recorded anywhere else.

When you post an invoice in OrderEntry with a payment and run Day End, this creates an invoice batch and a separate cash batch in AR. As from above, nothing is sent to BankRec.

Is this what you are hoping for. Or did you want to see AR cash batches able to be posted and send information to BankRec?

I want to be able to show a payment on the customer's invoice without any actual payment being recorded.

Because client is using BR, all deposits must go through BR.

I did a test transaction in Order Entry and ran day end. The Invoice Audit list shows the payment. The Invoice Batch in AR has the full invoice amount. There is no cash batch.

This works fine and is what I would want to have happen when OE is used with BR. I want confirmation that this is the expected behavior. I don't find it in the help files.

If this is how OE works when BR is used, then I can tell the client to record payments on invoices as needed. Those payments will not go to AR and will not duplicate the deposits being done in BR.

Sorry, let me clarify one of the statements earlier.

If you are using the Retrieval method of sending invoices, credit notes and payments from OE to AR, then separate Invoice and Cash batches are sent to AR. If you are using the Direct batch method, then only an Invoice batch is created, with payments attached to the invoice. You likely have the Direct method set up in OE, which is why you didn't see a Cash batch. Make sure of how your client is set up and if that meets the desired need.

Order Entry does not upate any bank GL accounts when posting - that is handled entirely by AR.

Interesting!

The AR batch shows only one detail.
After posting, the invoice posting journal shows only the entries for the total amount to the AR account & the AR clearing account. But there is now a cash posting journal for the payment amount, with a batch number, although the batch was never visible. The payment amount reduces AR and increases AR Bank Clearing.

So you cannot even show a payment and delete the cash batch to avoid duplication unless you require users to do retrievals.

When OE is used with Bank Rec, it would be nice to be able to show pre-payments made on invoices, without duplication. I'll try to work it out in optional fields.