Streamlining Accounting with Empress's Payment Reconciliation

Guides & Tutorials
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Introduction

Welcome to the guide on using the Payment Reconciliation feature in Empress. This tool is designed to streamline your accounting operations by matching payments with their corresponding invoices. This is particularly useful in business sectors where payments and invoicing schedules may not always coincide.

Why Use Payment Reconciliation?

The Payment Reconciliation feature simplifies the process of accounting for payments, especially when the payment schedule does not directly align with your invoice schedule. By allowing you to match payments with invoices, it enables you to maintain accurate financial records and facilitates efficient business operations.

Accessing Payment Reconciliation

You can access the Payment Reconciliation feature by following this path:

Home > Accounting > Accounts Receivable > Payment Reconciliation

How to Match Payments with Invoices

The process of matching payments with invoices using the Payment Reconciliation feature is straightforward:

  1. Go to Payment Reconciliation.
  2. Choose the correct Company.
  3. Pick a Party Type and then select the Party. The Receivable/Payable account will be selected automatically.
  4. Choose the Bank/Cash account you wish to reconcile payments against.
  5. Use the filters to narrow down the records, for example, by selecting a date range for the invoices, or setting minimum or maximum amounts for invoices and payment transactions.
  6. Click Get Unreconciled Entries. This will bring up all unlinked invoices and payment transactions from the selected party.
  7. From here, you can select specific entries to allocate, or click Allocate to allocate all entries.
  8. The Allocation table will update based on your selection.
  9. The Allocated Amount is the amount you wish to allocate for reconciliation.
  10. Click Reconcile to reconcile the allocated entries. You will see a confirmation message once the reconciliation is successful.

What Happens During Payment Reconciliation?

The actions taken during the reconciliation process depend on what the invoices are reconciled against:

  1. Payment Entry: A journal entry is not created automatically when reconciliation happens against a payment entry because payment entries already have linked transactions.

  2. Credit/Debit Note: A journal entry is created automatically to allocate a credit/debit note to an invoice being reconciled. This is because credit/debit notes do not have linked transactions. The journal entry resulting from reconciliation shows the adjustment of a specific credit/debit note with a specific invoice.

In conclusion, Empress’s Payment Reconciliation feature simplifies the accounting process, especially in industries where payments and invoices may not align directly. By allowing you to efficiently match payments with invoices, it helps maintain accurate financial records and streamline business operations. For more assistance or information, please refer to our user guide or contact our support team.