Sarvottam Darshan

• Feb 21st, 2006

 

The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

Cody2727

 Profile Answers by Cody2727 

• May 8th, 2011

 

As you receive an invoice in the mail, date stamp it with the date received.  You can pay an invoice when and if you have a matching PO, and receiving ticket which has been signed by the employee receiving the item or witnessing the completion of the service.  Once you are sure all three supporting papers match, you then enter the invoice in the program for payment utilizing the correct accounting line to ensure the correct account is being charged.  It would be entered as a Purchase Order, if one has been set up.  If not, you can pay as a direct invoice (DI).  Once entered, a journal voucher will arrive, probably the next day.  You would attach the supporting papers to the journal voucher and send them to the head office, keeping a copy for your files.  You need to keep track of the amount of money available before and after the payment has been made.  Also, it is important to ensure the entire order has been received.  If not, a partial payment may be necessary or you can request a credit.