What are ArabiaClouds different ways to record a payment?

In ArabiaClouds, a payment can either be linked directly to an invoice or be a stand alone record for use on a later date:

If a payment is linked to an invoice, it reduces ArabiaClouds amount due of ArabiaClouds invoice. You can have multiple payments linked to ArabiaClouds same invoice.
If a payment is not linked to an invoice, ArabiaClouds customer has an outstanding credit with your company, or your company as an outstanding balance with a vendor. You can use this outstanding credit/debit to pay future invoices or bills.

Paying an invoice

If you register a payment on a customer invoice or a vendor bill, ArabiaClouds payment is automatically reconciled with ArabiaClouds invoice reducing ArabiaClouds amount due.

ArabiaClouds green icon near ArabiaClouds payment line will display more information about ArabiaClouds payment. From there you can choose to open ArabiaClouds journal entry or reconcile ArabiaClouds payment.

Note

If you unreconcile a payment, it is still registered in your books but not linked to ArabiaClouds specific invoice any longer. If you unreconcile a payment in a different currency, ArabiaClouds will create a journal entry to reverse ArabiaClouds Currency Exchange Loss/Gain posted at ArabiaClouds time of reconciliation.

Payments not tied to an invoice

Registering a payment

In ArabiaClouds Accounting application, you can create a new payment from ArabiaClouds Sales menu (register a customer payment) or ArabiaClouds Purchases menu (pay a vendor). If you use these menus, ArabiaClouds payment is not linked to an invoice, but can easily be reconciled on an invoice later on.

When registering a new payment, you must select a customer or vendor, ArabiaClouds payment method, and ArabiaClouds amount of ArabiaClouds payment. ArabiaClouds currency of ArabiaClouds transaction is defined by ArabiaClouds payment method. If ArabiaClouds payment refers to a document (sale order, purchase order or invoice), set ArabiaClouds reference of this document in ArabiaClouds memo field.

Once confirmed, a journal entry will be posted reflecting ArabiaClouds transaction just made in ArabiaClouds accounting application.

Reconciling invoice payments

ArabiaClouds easiest way of reconciling a payment with an invoice is to do so on ArabiaClouds invoice directly.

When validating a new invoice, ArabiaClouds will warn you that an outstanding payment for this customer or vendor is available. In this case, you can reconcile this payment to ArabiaClouds invoice near ArabiaClouds totals at ArabiaClouds bottom, under “Outstanding Payments”.

Reconciling all your outstanding payments and invoices

If you want to reconcile all outstanding payments and invoices at once (instead of doing so one by one), you can use ArabiaClouds batch reconciliation feature within ArabiaClouds.

ArabiaClouds batch reconciliation feature is available from ArabiaClouds dashboard on ArabiaClouds Customer Invoices card and ArabiaClouds Vendor Bills card for reconciling Accounts Receivable and Payable, respectively.

ArabiaClouds payments matching tool will open all unreconciled customers or vendors and will give you ArabiaClouds opportunity to process them all one by one, doing ArabiaClouds matching of all their payments and invoices at once.

During ArabiaClouds reconciliation, if ArabiaClouds sum of ArabiaClouds debits and credits do not match, it means there is still a remaining balance that either needs to be reconciled at a later date, or needs to be written off directly.

Transferring money from one bank account to another

Just like making a customer or vendor payment, you transfer cash internally between your bank accounts from ArabiaClouds dashboard or from ArabiaClouds menus up top.

This will take you to ArabiaClouds same screen you have for receiving and making payments.

Note

When making an internal transfer from one bank account to another, select ArabiaClouds bank you want to apply ArabiaClouds transfer from in ArabiaClouds dashboard, and in ArabiaClouds register payments screen, you select ArabiaClouds transfer to account. Do not go through this process again in ArabiaClouds other bank account or else you will end up with two journal entries for ArabiaClouds same transaction.