Managing Bank Statements Accounting Entries

159 Automatic Reconciliation For automatic reconciliation, you will be asking OpenERP to search for entries to reconcile in a series of accounts. OpenERP tries to find entries for each partner where the amounts correspond. Depending on the level of complexity that you choose = power when you start running the tool, the software could reconcile from two to nine entries at the same time. For example, if you select level 5, OpenERP will reconcile for instance three invoices and two payments if the total amounts correspond. Note that you can also choose a maximum write-off amount, if you allow payment differences to be posted. Figure 13.6: Form for Automatic Reconciliation To start the reconciliation tool, click Accounting → Periodical Processing → Reconciliation → Automatic Reconciliation . A form opens, asking you for the following information: • Accounts to Reconcile : you can select one, several or all reconcilable accounts, • the dates to take into consideration Starting Date Ending Date, • the Reconciliation Power from 2 to 9 , • checkbox Allow write off to determine whether you will allow for payment differences. • information needed for the adjustment details for the Write-Off Move. Note: Reconciling You can reconcile any account, but the most common accounts are: • all the Accounts Receivable – your customer accounts of type Debtor, • all the Accounts Payable – your supplier accounts of type Creditor. The write-off option enables you to reconcile entries even if their amounts are not exactly equivalent. For example, OpenERP permits foreign customers whose accounts are in different currencies to have a difference of up to, say, 0.50 units of currency and put the difference in a write- off account. Tip: Limit write-off adjustments You should not make the adjustment limits too large. Companies that introduced substantial automatic write-off adjustments have found that all employee expense reimbursements below the limit were written off automatically Note: Default values If you run the automatic reconciliation tool regularly, you should set default values for each field by pressing the Ctrl key and using the right-click mouse button when the form is in edit mode using the web client, or just right-click using the GTK client. The resulting context menu enables you to set default values. This means that you will not have to retype all the fields each time. Manual Reconciliation For manual reconciliation, open the entries for reconciling an account through the menu Accounting → Periodical Processing → Reconciliation → Manual Reconciliation. 160 You can also call up manual reconciliation from any screen that shows accounting entries. Select entries that you want to reconcile. OpenERP indicates the sum of debits and credits for the selected entries. When these are equal you can click the Reconcile Entries button to reconcile the entries. Note: Example Real Case of Using Reconciliation Suppose that you are entering customer order details. You wonder what is outstanding on the cus- tomer account that is the list of unpaid invoices and unreconciled payments. To review it from the order form, navigate to the Partner record and select the view Receivables and Payables. OpenERP opens a history of unreconciled accounting entries on screen. Figure 13.7: Unreconciled Accounting Entries After running the Reconcile Entries wizard, these lines can no longer be selected and will not appear when the entries are listed again. If there is a difference between the two entries, OpenERP suggests you to make an adjustment. This “write-off ” is a compensating entry that enables a complete reconciliation. You must therefore specify the journal and the account to be used for the write-off. For example, if you want to reconcile the following entries: Table 13.1: Entries for reconciliation Date Ref. Description Account Debit Credit 12 May 11 INV23 Car hire 4010 544.50 25 May 11 INV44 Car insurance 4010 100.00 31 May 11 PAY01 Invoices n° 23, 44 4010 644.00 On reconciliation, OpenERP shows a difference of 0.50. At this stage you have two possibilities: • do not reconcile, and the customer receives a request for 0.50, • reconcile and accept an adjustment of 0.50 that you will take from the PL account. OpenERP generates the following entry automatically: Table 13.2: Write-off account Date Ref. Description Account Debit Credit Date Ref. Description Account Debit Credit 03 Jun 11 AJ001 Adjustment: profits and losses 4010 0.50 03 Jun 11 AJ001 Adjustment: profits and losses XXX 0.50 The two invoices and the payment will be reconciled in the first adjustment line. The two invoices will then be automatically marked as paid.

13.4 Payment Management

OpenERP gives you forms to prepare, validate and execute payment orders. This enables you to manage issues such as: 1. Payment provided on several due dates.