Semi-Auto Payment Reconciliation
Manually matching a lot of invoices and payments can be time-consuming and error-prone for a business. To manage this in a semi-automated manner, ERPNext provides a tool called "Process Payment Reconciliation." Without having to open each invoice and payment by hand, this feature allows you to reconcile them using logic such as matching dates and amounts.
For invoices and payments, you only need to choose the company, the party type (supplier or customer), and the posting date range. Based on open invoices and available unallocated payments, the system will make recommendations for potential matches. After it has been examined, you can submit the reconciliation, and ERPNext will automatically link the corresponding payments and invoices to make sure your outstanding balances are appropriately updated.
This makes the reconciliation process quicker, more effective, and less prone to errors, which is particularly helpful in sectors or companies like manufacturing or retail where large transactions happen regularly.
1. Steps
1.1. Enable Auto Reconcile Payments In Accounts Settings
Enable the "Auto Reconcile Payments" checkbox by going to Accounting > Settings > Accounts Settings. In order to activate the background reconciliation feature, this step is necessary. The system won't match payments and invoices automatically if this isn't enabled.
1.2. Navigate to Process Payment Reconciliation Doctype
Search Process Payment Reconciliation in the awesome bar. You will configure the reconciliation task on this main screen. It is intended to make managing numerous invoice entries and payments easier.
1.3. Select Party, Company, and Account Receivable/Payable
To perform a reconciliation, select the company, the party (supplier or customer), and the relevant payable or receivable account. Save the document, then submit it. This gathers all the data that the background job needs.
Or you can also make use of filters by selecting invoice and payment date range.
1.4. Document Will Be In "Queued" Status
The document status will change to Queued after submission. This indicates that it has been approved by the system and is awaiting processing by the background job. From this view, you can keep an eye on the status.
1.5. Background Job that is manually triggered or runs every fifteen minutes
Every fifteen minutes, ERPNext performs a background job that retrieves all reconciliation requests that are in the queue. You can also click the Start / Resume button to start the reconciliation job right away if you don't want to wait.
1.6. Review the Proces Payment Reconciliation Process Log.
The number of entries that were attempted, the number that were successfully matched, and any errors or unmatched records are all displayed in the Reconciliation Log that ERPNext generates after the job is finished. You can use this log to audit the entire reconciliation process and monitor any discrepancies for a later manual review.