Accounts, Sales & Purchase Ledgers, Auto-Reconcile

Use the auto-reconcile button to quickly reconcile money received or paid against single invoices in your ledgers. It is not as comprehensive as using the Cashbook, but much simpler and faster. If you are paying or have received a sum of money that covers more than one invoice then you should use the Cashbook instead.

To auto-reconcile an invoice in either the “Sales” or “Purchase” ledgers, starting from the “Accounts Menu”…

· Click either the “Sales” or “Purchase” button, in which case you should see a screen like that shown below

· Click on and thereby highlight the invoice to auto-reconcile

· Either click the “Pile of Money” button or the “Signpost” followed by “Auto-Reconcile”, which will

· Ensure the date is correctly set to the date you received or paid the money, not necessarily today

· Ensure the amount actually received is correct, not necessarily the same as the invoice

· Use the “Payment method” drop-down to select the type of payment (e.g. Cheque, Cash, etc)

· Optionally enter the cheque or other reference number (N.B. this may be greyed-out, see “Accounts, Set-up Payment Methods”)

· Use the “Bank account” drop-down to select which bank the money should go to / come from

· Use the “Cashing-up method” drop-down to select how the money should be cashed-up

· Click the “OK” button

· The “Due” column should now be reduced accordingly

· You may use the “Signpost” button “Jump to / Cashbook” option to review the details of this reconciliation

Client Details Section (for Cash in Advance)

The auto-reconcile button can also be used to record money received or paid before the relevant invoice has been created, for example, when a client pays a sum in advance as a retainer….

· In the “Client details” secion, tick the “Cash in advance” tick-box

· Use the “Set” drop-down to select the appropriate address set (e.g. Individual Clients)

· Use the search buttons to find the appropriate person (or first few letters + F9 key)

· Ignore the “Pre-allocate” tick-box for now

· Complete the rest of the dialogue as above

This will generate a cashbook item to record the amount that has been received (or paid) in advance. If you know for absolute certain that the money is for an insurance policy that already exists on your system, even though the invoice doesn’t yet, then you could also tick and use the “Pre-allocate” facility to dedicate this money to that particular policy.

Date Received or Paid

When you use this facility, ensure you enter the date the money was actually received or paid. The system will default to (i.e. automatically suggest) the current date, which could easily be wrong, particularly if you’re processing a whole batch of receipts retrospectively.

Amount Received or Paid

Ensure you enter the exact amount you have actually received or paid. The system will default to (i.e. automatically suggest) the amount of the invoice. Where the sum entered is less than the invoice the system will automatically settle just part of the invoice. Where it is more than the invoice the system will settle the invoice and then retain the remainder as cash in advance, available for settling subsequent invoices. When this occurs, you’ll be prompted “Do you really mean to over-reconcile by £nn.nn?” If you click the “Yes” button, then use the auto-reconcile button again on another invoice for the same name, and for example, re-set the amount to zero, then after you click “OK” button the system will make available for settlement all money held in advance. A little window pops-up showing the amount you’ve just received (zero in this example) plus all currently held money in advance from the same person, which you can then choose to use for this settlement, via a tick-box beside it.

Cheque or Other Reference Number

This field will be greyed-out unless you’ve specified in the accounts set-up that you want to enter reference numbers for the type of payment in question (e.g. for cheques). Typically you’ll only be asked for the reference number of your own cheques, written to pay your suppliers. This is useful, as it’ll subsequently allow you to reconcile your chequebook stubs. Giro, direct debit and standing order references might also prove helpful. However reference numbers on cheques received are not helpful, as quite often cheques received from entirely different customers may have the same number. Hence recording received cheque numbers may actually cause confusion.

Cashing-up Method

The cashing-up method will be one of the following…

1. Will be grouped item in bank statement

2. Will be individual item in bank statement

3. Doesn’t appear in bank statement

4. Cash-up now as individual item in bank

Use the first for receipts, where you’ll be taking them (i.e. cashing-up) to the bank later. Use the second for payments, where you’re writing a number on the same day. Use the third for post dated cheques, which can’t be taken to the bank yet. Use the last as a shortcut, where you’ve just got the one payment or receipt to process that day.

Cash in Advance & Pre-Allocation

You can also use the “Auto Reconcile” dialogue to make Cashbook entries for money paid in advance (i.e. where no invoice exists yet), as shown below…

· Click the “Cash in advance” tick-box

· Use the “Set” dropdown to select the address for the client record

· Use the search buttons to select the client

· Enter the details for the Cashbook transaction

· Click “OK”

Subsequently when you use the “Auto Reconcile” dialogue, for example because you’ve received Aaron’s remaining £150 towards a £450 invoice for which he previously paid £300 in advance, illustrated above, then after you’ve entered the new receipt of £150 you’ll get a prompt, like that shown below, which will allow you to also include the previously received £300.

Pre-allocation takes this a step further, but only applies to insurance related work. It allows you to pre-allocate money-received-in-advance to a policy, for example to eventually settle its renewal premium, for which there isn’t yet an invoice, as illustrated below…

· Click the “Cash in advance” tick-box

· Use the “Set” dropdown to select the address for the client record

· Use the search buttons to select the client

· Click the “Pre-allocate” tick-box

· Click on the policy to pre-allocate the money to

· Enter the details for the Cashbook transaction

· Click “OK”

See also “Reports, Accounts, Commission Allocation”.