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Future Invoice behaviors after enabling Invoice Settlement

After enabling Invoice Settlement, Future Invoice behaviors are different than previously. 

 

Question 1 Why do I get the error "The specified effective date should be later than or equal to the invoice date" when trying to create an electronic payment from a Future Invoice? 

Screen Shot 2019-06-14 at 3.27.12 PM.png

 

Question 2 Why the Selected Invoice on Payment Run page is empty? I can confirm a specific payment has been created from that payment run and applied to an invoice already. 

 

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Re: Future Invoice behaviors after enabling Invoice Settlement

Background

What kind of invoices will be selected by a payment run? The basic rule is Invoice Due date < Payment Run target date.

 

What is Future Invoice? 

Future Invoice's Invoice Date > today's date. Future notice is introduced in Invoice Settlement tenant per Finance perspective/requirement.

 

For example, today's date is 06/14. INV00000141 is created and its Invoice Date is 08/01 and its Due Date is 08/31. 

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When trying to process a payment for INV00000141using electronic payment method and click 'create payment' button. You will get an error 'The specified effective date should be later than or equal to the invoice date' (Question 1). 

Screen Shot 2019-06-14 at 3.26.57 PM.png

 

Explanation When the electronic payment method is used, the payment date is today's date and cannot be changed to a future date. Today's date is 06/14 and INV00000141 Invoice Date is 08/01. If you want to create an electronic payment from invoice directly, today's date cannot be before Invoice Date 08/01, in this case, you can create the payment using this method about 1.5 months later. The solution is you can use the payment run to collect the payment immediately in this case. 

 

After creating a payment run using today's date as target day, in this case, 06/14. You might notice INV00000141 has been paid successfully by P-00000139, but that invoice is not in the Selected Invoice (Question 2). 

Screen Shot 2019-06-14 at 3.29.03 PM.png

From the generated P-00000139, we can see that payment has been applied to INV00000141 already. 

Screenshot_2019_6_14__4_14_PM.png

 

Explanation When using Data Source Export to export Payment Application, you will find the timeline is that P-00000139 is created on 6/14 and it is stored as Payment Application with effective date 6/14. Its applied to invoice effective date is 08/01 which is Invoice Date. From Finance perspective, this payment cannot be applied till its invoice date 08/01, From 6/14 to 07/31, the payment is a "standalone" payment and it does not have a relationship with the invoice. 

Payment Application: Effective Date Payment Application: Apply Amount Payment: Payment Number
06/14/2019 10000 P-00000139
08/01/2019 10000 P-00000139
08/01/2019 -10000 P-00000139

 

So in summary, a payment without an associated invoice in payment run page is reasonable.