What is the purpose of Generate Voucher in AR Receipt/AP Payment?
There is a tab in AR Receipt and AP Payment called Voucher and there is a button “Generate Voucher”, what is it purpose?
There are two purposes for “Generate Voucher” function
- View the distributed Accounts before post this Payment to General Ledger for verification.
- Modify the GL Account Code and/or Amount to handle particular cases that cannot be handled in normal Profit Centre/Cost Centre accounts distribution before post this Payment to GL. (e.g. Bank Charge)
For following example will demonstrate how to use “Generate Voucher” to handle Bank Charge.
- Assume an AR invoice $1,000 is issued.
- When the customer paid this invoice, a $20 bank charge is deducted by the bank.
- Situation: The invoice should be fully settled, the bank account should debit $980. the bank charge should debit $20 and the A/R account should credit $1,000.
- Since there is no bank charge account defined in Profit Centre, the following steps can handle this situation.
a. Input the cash amount to Payment Amt and Amount to Apply. Input the other information as needed.
b. From the Voucher Tab, click Generate Voucher button.
c. Please noted that normally, the $20 is debit to the Terms Discounts Account defined in Profit Centre of the invoice. However, you can overwrite the Account No. to “Bank Charge” account in that tab.
d. Save and Post is Payment.
When there is the situation that bank charge (say $20) and discount (say $30) is existed in the invoice, input the sum of bank charge and discount ($50) in the discount field in step a, generate the voucher, and break the Debit Discount transaction ($50) to 2 transactions, one for bank charge ($20) and the other one for Discount ($30).