The Effect of Processing Automatic Payments
This section describes what happens when the Automatic Payments process runs.
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 allocates 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 creates an unallocated payment/receipt transaction for the Debtor.
Payment/Receipt Reversals
Payment/receipt reversals (for example, dishonoured Direct Debits) display 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, Exo Business 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. You don't need to run the Debtors to GL posting utility.
Effects on the Bank Reconciliation
After you run that Automatic Payment Process, these changes appear on the main Bank Reconciliation screen:
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The Automatic Payment items from the right side of the Bank Rec are cleared. These are now reconciled to the newly-created GL transactions.
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The GL Balance as at dd/mm/yy is updated with the value of the newly created GL entries.
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The newly-created GL transactions, representing the Automatic Payments, are reconciled. They do not appear on the left side of the reconciliation.