Customer Payment Statuses

Posted on: June 26, 2024 | By: Meaghan Andrews | QAD Financials, QAD Business Process

QAD EE .NET and AUX uses Customer Payment Statuses to manage the progress of payments received through the system. There are multiple ways to configure payment statuses, depending on your organization’s requirements.

At the most basic level, a single Customer Payment status of “Paid” can be setup. All new payments will default to this status, and customer payments received will hit your bank GL account immediately (Debit Bank account, Credit Customer Payment (AR) account).

Alternatively, additional Customer Payment Statuses can be setup to allow to track the progress of payments received, from Initial all the way to Paid. The most used statuses are explained below:

1. Initial: Payment is saved against a customer but is not applied to invoices. No GL postings generated.
2. Allocated: Payment allocated to invoices (or other open items on the customer account).
   • GL posting generated:
     • Debit: Allocated Customer Payment Account
     • Credit: Customer Control (AR) Account
3. Accepted: Draft payment is signed by relevant parties. Rarely used and does not need to be setup in most configurations.
4. For Collection: Customer payment has been presented to the bank. This is generally used for check payments that have been recorded in the system but have yet to clear our bank account.
   • GL posting generated:
     • Debit: For Collection Customer Payment Account
     • Credit: Customer Control (AR) Account (if this is your first status), otherwise, the Payment Account associated with the previous status

5. Bounced: Customer payment did not clear the bank. This status reverses the customer payment and returns the full amount to the Customer Control Account.
   • GL posting generated:
     • Debit: Customer Control (AR) Account
     • Credit: For Collection Customer Payment Account

6. Paid: Payment has cleared our bank account. This is the final status, and the payment cannot be reset to a prior status after it is set to Paid.
   • GL posting generated:
     • Debit: Bank Account
     • Credit: For Collection Customer Payment Account

As you can see in the GL postings, each Customer Payment Status can be assigned a specific GL account to be used in transitions. When considering how to assign these GL accounts, you have two options:

1. Use a single GL account for all Customer Payment Statuses.
   • Ideal setup when you are not concerned about differentiating between customer payments in various statuses in your GL.

2. Use a specific GL account for all Customer Payment Statuses.
   • Ideal if you would like to see the $ amount associated with customer payments in each of your defined statuses.

Payment Status Transitions: AUX vs. .NET

Transitioning between Customer Payment Statuses varies based on your version of QAD:

AUX:

• Customer Payments (single) – Set the new customer payment status and click Save.
• Customer Payments (bulk) – From Customer Payments, select Actions>Mass Changes
  • Select the range of customer payments to transition, select the new status, and apply to the relevant payments. Click Save to finalize the transition.
• Bank files (upload) – Use Bank Files Excel upload functionality to change the status via upload.
  • This could be useful for check payments that have cleared your bank and could be downloaded to Excel format.

.NET:

• Customer Payment Modify (single) – Set the new customer payment status and click Save.
• Customer Payments Mass Change (bulk) – Select the range of customer payments to transition, select the new status, and apply to the relevant payments. Click Save to finalize the transition.
• Incoming Bank File Excel Integration (upload) – Use Bank Files excel upload functionality to change the status via upload.

 

Next Steps

If you are interested in learning more about Customer Payment Statuses, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.

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