Accounts Receivable Collection

When to Use This Form

• When a customer pays a receivable or settles a sales invoice.
• When finance needs to record cash, bank, bank drafts, or other payment methods received from a customer.
• When a customer's receivable balance needs to be reduced according to the amount received.
• When proof of receipt needs to be traced together with its receivable invoice.

Before You Start

• Make sure the division, currency, customer, and payment type are available.
• Make sure the receivable invoice being paid is correct and still has a balance.
• Prepare the transfer slip, cash receipt, bank draft, or other receipt reference.

Workflow

1. Open Sales & POS / Returns & Receivables / Accounts Receivable Collection.
2. Fill in the division, invoice, date, time, currency, exchange rate, customer, and payment type.
3. Enter the Receivable Collection details according to the customer invoices being paid.
4. Check the amount received, the due date, and the received date if using a bank draft or staged payment document.
5. Add a note and save once the amount received matches the proof of payment.

Key Fields

Details and Relations

• Receivable Collection needs to be checked line by line so the payment goes to the right invoice and customer.

Receivable Term Discount Calculation

• A receivable collection discount can only be calculated automatically if the earlier sales invoice was created with a payment term that actually has a discount rule, for example the customer gets a certain percentage off when paying early.
• The dates compared are the sales invoice date and the receivable collection date. If the customer pays within the discount days of the term, the term discount still applies.
• If the collection date is past the term's discount deadline, the system must treat the term discount as no longer valid, so the collection is processed at the normal amount without that discount.
• The discount amount is usually calculated from the unpaid invoice amount on the related receivable line. If the invoice is paid in stages, the user needs to check whether the discount is still appropriate for the remaining receivable being collected.
• The term discount reduces the receivable amount settled by the customer. In practice, the cash or bank amount received can be smaller than the gross invoice amount because the customer uses the early payment discount.
• If the company uses rounding, tax, or other additional charges, make sure the calculation order is understood correctly. The term only governs the right to a payment discount; the final amount still follows the company's transaction and bookkeeping configuration.
• If the discount result is not as expected, check again the term data on the source sales transaction, the invoice date, the payment received date, and whether the invoice has already been partially collected before.

What Happens After Saving

• The customer's receivable balance decreases according to the collection details.
• If the term discount still applies, the payment discount also affects the receivable settlement amount and the related journal.
• The cash, bank, or bank draft received becomes the basis for finance reconciliation.
• The invoice payment status can change according to the amount received.
• If any required data or collection details are not valid, the application rejects the save and shows a validation message.

Common Problems

• Collection cannot be saved: check the division, invoice, date, customer, payment type, and receivable details.
• Receivable balance does not change as expected: check the selected invoice and the amount received.
• Payment discount does not appear or is wrong: check the payment term on the source sale, the discount days, the payment received date, and whether the receivable has already been partially collected.
• Collection is hard to trace: fill in the note, payment type, and proof of payment reference clearly.
• Exchange rate is wrong: check the default rate and the rate used.

Available Fields

The following list summarizes the fields available on the form. Rarely used fields are still listed so they are easy to look up during training or support.

User Checklist

Menu Location

• Sales & POS / Returns & Receivables / Accounts Receivable Collection
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