First you need to have Accounting module activated and set up.
Setup >> Modules/Application setup >> Accounting (double entry)
NOTE: The module have to be set up according to the company’s chart of accounts in order to work correctly.
Then, when a sales is recorded and invoice is generated there is 2 options how you can clear that document:
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Open the invoice and post the payment directly through the document. This creates everything needed automatically and all links between the records are visible and built by the system (In this method you could also clear multiple invoices of the same customer without entering in each invoice). Then at the end of the period or whenever the Accounting person decides, all sales, purchases and bank entries could be transferred to the designated ledgers.
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Entering payments by importing them or directly through Bank menu - you need to be aware of 2 things:
2.1. Chart of accounts must be set correctly
2.2. Subledger account for each customer/vendor must be active and their numbers must be entered in the master data section
In order to do enter a payment manually you might follow those steps as an example: -
Enter the payment using Bank/Cash menu and then enter in to the bank account. After that go to Bank Entries and click on the (+) in the top right corner.
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The yellow fields in the form have to be populated along with the rest of the fields
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Then you may reconcile the record if you are using this option.
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In the Accounting section go to Recording in accounting >> Bank, choose the dates and click on Refresh button. You’ll see something similar
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When you create all journal entries something like this will be visible as a result
A payment record in the bank ledger on the bottom row and the payment against invoice on the first row. The res of the records are automatically created and they represents a VAT record and record in the chart of accounts.
The main problem with this method (I haven’t steel found out how to solve it) is the invoice is still shown as not paid in the Commercial section. It is possible to click on Abandon button but it will not be good.
Another more complicated method is setting up and using SEPA functionality by creating Direct Debit and Direct Credit payment. This method requires a bit more information to be provided in the master data but it allows you to do multiple payments (credit and debit) at once and it will set the documents automatically to closed after the SEPA file is marked as complete.
