Before starting

The software allows for accrual accounting: you can record an entry (Commitment) while specifying that you have not yet collected all or part of the sum (Payment). 

The management of payables and receivables is part of a commitment logic: it allows an accounting follow-up even if the Payment has not yet been made.

This module is only available in Ninja and Shaolin accounting levels, on which you will find more information in this article.

This article addresses the following points:

• Principle of the payables and receivables module
• Record a payable/receivable entry

Principle of the payables and receivables module

What is a payable/receivable?

In both cases, there is a commitment made by a person or organization to honor a payment due to a third party. The latter has the right to demand Payment. A distinction is therefore made between:

• The receivable: a third party undertakes to settle a payment corresponding to my accounts' revenue. As a creditor, I have the right to demand Payment
• The payable: I undertake to pay a third party the payment corresponding to an expense in my accounts. I must pay the amount as a debtor

How the feature works

The Payables/Receivables module involves several steps:

• The Commitment: an expense or revenue entry is entered with a subsequent payment. The Entry is displayed on the Payables/Receivables page to monitor it
• The Payment: a payment entry reduces the amount still to be paid
• Settle the Entry: the sum of the payments is equal to the amount of the Commitment; the payable/receivable is therefore balanced and is no longer displayed in the module

Record a payable/receivable entry

The software allows a simplified entry of payables/receivables within the framework of commitment accounting.

Record a receivable (outstanding revenue)

Revenue (Payment not yet received)

Go to the Accounting > Book Entry > Revenue page to record revenue by entering the label, the date of the Commitment, the amount, and the account.

Example: You have received a grant from a town hall that will not be paid for three months. You want to enter it in your accounting as a receivable.

Then click on Subsequent Payment to indicate the Payment as receivable, and click on Save. This will create a receivable in accounting.

You can also optionally enter the fields concerning the next Payment: the date you expect to receive the Payment, the amount, and the payment method used.

It is also possible to add multiple payment installments by clicking on Add Payment, for example, if your grant will be paid in installments.

Partially paid revenue

If part of the revenue is paid on the record date, enter that Payment in the Subsequent Payment section by clicking on Payment has already been made and entering the amount and date.

Record a payable (outstanding expenses)

The steps will be the same in the case of a payable: go to the Accounting > Book Entry> Expense page to enter the expense.

Example: you have recorded the purchase of a computer but have not yet paid for it. You want to record it in your accounting as payable.

Then enter the amount, the title, the account, and the date of the Commitment.

You can also add a payment received and multiple installments if needed. Once recorded, the Entry will be displayed on the Payables/Receivables page for tracking purposes.