Invoicing, payments and credits

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Invoicing, payments and credits

Danny Kahumba
Administrator

Invoicing/Payments/Credits

Last Update 8 November 2011

Let’s start with some definitions.

Invoicing
Invoicing the billing for products or services provided [fuel received, items bought, etc]

Payment:
A payment is an amount paid

Credit:
Credit is the money which is available or is made available to a client

This article explains how invoices, payments and credits and be processed on the Smartfuel Debtor system. It covers also different scenarios of how these can be used to make correction on the accounts and use these features to create balances brought forward.

Invoices, payment and credits can be recorded on the Smartfuel System. These can also be used to correct an account for example where a wrong payment has been done and needs to be reversed or to pass a credit to the account in the form of a rebate. This is how it is all done.

making a payment

To enter a payment on the system, Click on Manager > Debtors Manager.
This will open the Debtors Manager screen.

Select Invoices/Payments/Credits tab
Select the Debtor that you want to make the payment for.
Enter the details of the Payment [Reference, Amount and Date]
Payment Ref can be any detail about the payment such as Cash, Cheque number, August Payment, etc. The payment reference will appear on the statement so it is important to enter a good description of the payment.
Payment Amount is the amount that is being paid into the account.
Payment Date is the date of the payment and not the date that you are entering the payment. This way, payments can be back-dated to the correct date that they were done to match up a bank statement for example.

After the details of the payment have been entered, there are 2 options available


  1. This is the most used function, by selecting it the computer will automatically allocate the payment against invoices starting from the oldest invoice.

  2. This option allows you to select specific invoices that you want the payment to be allocated to. Note that when using the Allocate Selected option, you do not need to enter the payment amount; the system will automatically work out the total payment amount of the selected invoices. To select more than one transaction, hold the Ctrl key [Control key] on the keyboard and click on the transactions that you want to select.

You can at this point Undo the transaction if needed by clicking the  button.

Once the payment details are entered, Click on either Auto Allocate or Allocate Selected then Click the  button.

You will prompted to confirm the payment. Click Ok to post the payment.

As the message says, “Payment cannot be undone once posted”. If a correction needs to be done on a payment, you must cancel the payment by posting a General Invoice against that account.

INVOICING

Invoicing is done to capture invoices MANUALLY on the account. For example if an item was not charged to the customer at the time of the transaction and no needs to be invoiced. This can be used also to cancel out payments that have been wrongly made. If you make a wrong payment, you must do a General Invoice for the same date and the same amount under

Manager > Debtors Manager > Invoicing/Payments/Credits > General Invoicing

Enter all the details of the invoice as follows:

Date of Invoice is the date that you would like to post the transaction for. You can also back date invoices and in the case of cancelling a payment, you will choose the same date as when the payment was done.

The Slip option is used to select a specific item that needs to be invoiced. If there is no specific item to be invoiced (for example in the case you are canceling a payment) you can skip the slip option.
To enter a specific item, Click on the  under slip.

This will bring up the screen where you can select/scan items

Select the Debtor that the invoice is for

Reg # allows you to make that invoice against a specific vehicle of that account. Leave this blank if the invoice is not against a specific vehicle on that account.

Order is an order number from the client for that invoice. If no order number is required, leave this space blank.

Odo is the Odometer on the transaction that is being invoiced. This is most applicable when manually invoicing a fuel transaction.

Narrative, like payment reference, is important as you can enter here any comment that will appear on the statement against this transaction such as Oil, correction of payment, balance brought forward, etc.

An invoice can also be done to post a balance forward. A general invoice is done when the client already owes on the account. If the client is in credit, the balance brought forward must be posted as a General Credit as discussed in the next section. Balances brought forward are mostly used when importing accounts that already existed on previous systems.

If you have selected a specific item to be invoiced, the Total and vat amount will already be filled in. In case of a general invoice, enter the Total amount manually.

When completed, Click on Post button. You will be prompted to confirm the payment, click Ok.

CREDIT

There are 2 types of Debtors’ credit on the Smartfuel System.

  1. General credits

I’m starting with General Credits because it is the most used form of credit. This option passes a credit to an account without it being against a specific invoice. This can be used to pass a rebate to the account, or pass a credit to cancel out an incorrect invoice.

On the Smartfuel Backoffice go to Manager > Debtors Manager > Invoicing/Payments/Credits > General Credits

Under the General Credits screen,

Date of invoice
Enter the date of the credit; remember the credit can be back-dated to the exact date that the credit should have been.

Debtor
Select the Debtor

Reg #
Enter the registration of the vehicle if you need to the credit be allocated to a specific vehicle. This can be useful when individual vehicles need to be credited.

Narrative
Under Narrative, enter any comment that you need to record about that credit. This information will appear on the statement.

Credit
Capture the amount of credit that must be posted to the account. You will notice that a minus (-) sign appear before the amount entered.

Click on Post when all relevant information has been entered. Once posted, a credit cannot be undone [It can however be credited with a general invoice].

  1. Invoice credits

The Invoice credits option is used to credit specific invoices that have already been posted onto the account. To credit an invoice on the Backoffice system, go to Manager > Debtors Manager > Invoicing/Payments/Credits > Invoice Credits. The Invoice credit is done the same way as the Invoice Payments are done but the difference are listed in the table below

Invoice Payments

Invoice credits

Payment can be made in advance as there is no specific invoices it is attached to

Can only be done for invoices that have already been done on the account

Means that money was received from the client

Means that an invoice was incorrectly invoiced to the client and has been credited

 

Refer to the Invoice payment section at the beginning of this document to see how to post invoice credits.

The next article will deal with the type of limits and control available on the Smartfuel Debtors system.

Danny Kahumba
Production Executive


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