The Effect of Processing Automatic Payments

This section describes what happens behind the scenes once the Automatic Payments process occurs.

Automatic Payment value matches an outstanding invoice.

If the value of the Automatic Payment matches the value of an outstanding invoice in the matching debtor account, Exo Business will automatically allocate the Automatic Payment to that invoice.

Automatic Payment value doesn’t match any outstanding invoice

If the value of the Automatic Payment doesn’t match any of the outstanding invoices in the matching debtor account, Exo Business will create an unallocated payment/receipt transaction for the Debtor.

Payment/Receipt Reversals

Payment/receipt reversals (e.g. dishonoured Direct Debits) will appear on the Transactions tab for the Debtor account.

Note: The Allow Part Allocation in the Bank Rec AP and Auto Allocate Bank Rec AP to Latest Invoice profiles can be enabled if required.

General Ledger Journal

For each Automatic Payment the system generates a General Ledger journal DR Bank CR Debtors Control. For payment reversals, this is CR Bank DR Debtors Control. This entry is posted automatically; there is no need to run the Debtors to GL posting utility.

Effects on the Bank Reconciliation

Returning to the main Bank Reconciliation screen, having completed an Automatic Payment Process, there will be some differences.

• The Automatic Payment items from the right-hand-side of the Bank Rec will be cleared off. These are now ‘reconciled’ to the newly created GL transactions.

• The GL Balance as at dd/mm/yy will be updated with the value of the newly created GL entries.

• The newly created GL transactions representing the Automatic Payments will be ‘reconciled’ therefore they do not appear on the left-hand-side of the reconciliation.